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The Bitcoin ATM was on the National (CBC TV National news program) last night and again tonight.
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EDIT: I'm not sure what the above poster meant by "about to cash out." Filing or approval in no way means Winklevii will be selling any or all of 100k coins at market the instant they are approved. They have to own the coins that the shares represent. They don't get to just sell them when ETF is approved, that makes no sense and then they wouldn't have an ETF. They hold the coins as specified in the filling. As more investors pile in they'd have to purchase more coins. Or the opposite. You get the picture.
Rigth now they personnaly hold those coins. Once the ETF is approved, they will give them to the ETF, and in return the ETF will issue shares to them. At that moment they will be the only ones holding shares. Then they will sell them on the market. Therefore, cash out. Edit : it doesn't mean a single coin has to be sold nor move. 100% of the coins will still belong to the ETF. Only them will have a little less ETF shares and a bit more dollars. This assumes of course that the Winklevii choose to cash out, if they do not then the ETF will have to purchase BTC on the open market to back up the shares. |
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... Here's a story recently related to me by a guest at a White House dinner, which included Google's Eric Schmidt: The president, whose most important job is surely to protect the integrity of the monetary system, smugly asked Schmidt if Bitcoin, one of many growing challenges to currency hegemony, was anything he had to worry about. ...
This part is very relevant to Bitcoin. |
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quoting my brilliant self: Consider the following scenarios:
1) 100,000 btc 24hr volume by 10,000 traders, with 90% of trades by 9,000 traders; and
2) 500,000 btc 24hr volume by 100 traders, with 90% of trades by 10 traders.
A noob investor/trader is likely to consider high volume as an indication of high demand, especially after a calm period. In 2), the few major traders can manipulate the price around at will.
This should be common sense.
So the idea is to manipulate the volume on BTC-E in order to drive the price down on exchanges with greater depth such as MTGox or BitStamp? |
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I think the most important thing is that bitcoin is the only asset in the history of financial markets that has seen 2 such bubbles as we had in 2011 and 4/2013, and survived them both, currently sitting at its all-time-high (if measured by 10 day average).
My logical conclusion is that it is indestructible and it is virtually risk free to buy bitcoins. The only thing that can happen is that the exchange rate may move -50% or -80% against you, but then again, how else can it rise 2000% or 3000% in 2 months? Surely that magnitude of rise has to be accompanied with some volatility.
Bitcoins are the easiest to store and most difficult to coerce from you so they are the ultimate in safe-haven investments. Only the natural need to diversify hinders a logical thinker from investing all his wealth into bitcoins.
There was also another bubble in early 2011 and also one in the fall of 2010. http://bitcoincharts.com/charts/mtgoxUSD#rg60zczsg2010-08-31zeg2011-04-03ztgSzm1g10zm2g25 |
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Why would you block those coins? What, you only like the free market whan it does things you approve of?
I was just saying theoretically it could be done, if a malicious entity had some absurd % of existing bitcoins. I don't generally support it, but it has been raised by others numerous times on these forums. That's all really.. I seriously doubt the US gov't would act with malicious intent with that 1%/2% of BTC because, largely, of point (2)... transparency. I agree. I do not expect the US government to do anything crazy with the BTC; however there is enough fear and distrust of the state among the Bitcoin community that it could trigger a short term sell-off / panic. Long term this is bullish but in the very short term I would not be surprised if the bears come out of hibernation just like what happened with the initial SilkRoad closure. |
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Technically, if this ever became a real threat (if they had, say, 10+% of coins), consensus could be reached to just block all transactions from known Gov't public addresses... I don't see what much they could do with 2% of available coins, beyond very briefly crash the market. These actions would: (1) Cost them $$$. They wouldn't get max dollar for liquidating their bitcoins if they just drove the price down. (2) It would be completely transparent to everyone! They couldn't secretly do this. Everyone in the public would know, and it'd be a PR disaster... The beauty of the Bitcoin protocol is that they can't hide what they do with these funds. I seriously doubt that there would be anywhere close to the consensus needed to block any particular group of addresses by means of hard fork since that would destroy the fundamental economic value of Bitcoin. Here is a thread thread that explains why this is such a terrible idea. https://bitcointalk.org/index.php?topic=308106 |
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If Bitcoin has a growth pattern comparable to that of the Internet since the mid 1990's I would say around 2023 - 2028.
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what are the implications of this
For Canadians, if I understand this correctively, this opens an investment in Bitcoin, for tax sheltered / tax deferred accounts such as an RRSP. TFSA, RRIF etc. The trade-off when compared to holding BTC outside a tax sheltered / tax deferred account is the fees and counterparty risk associated with the trust vs the tax benefits. |
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Just a reminder. Pandas are rare but they do show up once in a while.  |
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It is indicative of a market that is getting overheated. This does not mean it is going to crash right away but when it does, the crash will sharp and violent. The BTC will then end up in stronger hands namely those who own the BTC outright and / or can borrow USD or other fiat at more reasonable rates say well under 10% APR.
I also suspect that the correction / crash will start in China.
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Meh, it's a little uninformed but not generally incorrect.
+1 |
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There is a historical precedent for this. What happened to the free market price of gold outside the United States in 1933 as a result of Executive Order 6102? http://en.wikipedia.org/wiki/Executive_Order_6102. Let us not forget that it was not fully repealed until 1974. |
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Bitstamp and the Chinese exchanges are keeping up with MTGox http://btckan.com/price. Also BTC will flow into MTGox at a price. Let us not forget that EUR and JPY can and do leave MTGox. No they're not, Bitstamp has been hovering around $150 now for a while. Bitstamp 153.8 to MTGox 170. That is under 10% as per my link above. 796.com is over 1000 CNY |
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Bitstamp and the Chinese exchanges are keeping up with MTGox http://btckan.com/price. Also BTC will flow into MTGox at a price. Let us not forget that EUR and JPY can and do leave MTGox. |
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Bear trap  A bear trap baited with US politicians. |
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Damn adam, I feel like you're a closet bear sometimes (lol)
This is a bubble! I'm tingling with excitement!
180 is legitimately in our grasp for once. Prob crash to 135-145 before hand though.
disclaimer: I know absolutely nothing.
(also, it seems btc has only been higher than this for 5 days in its history)
i am a closet bear sometimes bitcoin is going parabolic again, good sign for the atl coins, FTC is a risky bet, but tons of fun. i have thousands of coins mauahahaha  I do not see the risk in the FTC/BTC trend-line. What I do see is a steady decline in the price of FTC in terms of BTC. http://www.cryptocoincharts.info/period-charts.php?period=alltime&resolution=day&pair=ftc-btc&market=btc-e Now if there was a way to go short FTC long BTC it could be an interesting and possibly safe trade. Myself I am sticking with the BTC/USD pair. Long BTC short USD. |
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