But let's get realistic, I'm partly to blame, but MtGox are not doing enough to ensure the safety of people's BTCs. Vladmir's post zeros in on Asset Risk... Because there's a massive, general security tradeoff... When you operate pseudo-anonymously in the Underground Economy... (Passwords, security layers are a small part... counter-party risk is the Big One). MtGox = Full Tilt Poker circa 2010... Both basically operating out of a Big Slush Fund. I actually disperse my BTC trading among several smaller BTC exchanges... Your random high-tech startup >> trustworthy than MtGox... Small exchanges have a HUGE incentive to stay in business. In a parallel universe... All my Securities Trading accounts are linked to a physical Security Device... And wires can only go out to specific bank addresses... And my broker is a solvent, billion $$$ counter-party. I may not be able to trade on my cellphone while skydiving... And there MAY be a trail for tax purposes... But it's impossible to steal my money without breaking into my office. http://en.wikipedia.org/wiki/Security_token |
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Anybody who's taken a course as simple and basic as Series 7...
(And there seem to be very few people here even on that intro level)...
Would understand why anything to do with money is loaded up with regulations.
It's to protect ordinary people from being RIPPED OFF by predators...
Just like the predators that have descended on the BTC universe.
So any trick and device to circumvent Financial Regulations...
Will be seen as precisely that... lawyers are not this stupid.
One has to view BTC as an alternative GLOBAL currency/commodity...
Which will have to find offshore homes to process...
Some country will eventually welcome Bitcoin and give the finger to the world...
But it's dead-in-the-water in the USA in it's present form.
The US bigshots from Paypal and Google talking about adopting BTC...
Actually want to subvert and destroy BTC.
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It took humans thousands of years to realize bartering wasn't the most efficient way of conducting transactions. More exchanges will open up very soon and gox will not have the strangle hold it has now. People don't need to accept it as payment but if an organization started accepting donations (who doesn't want a free donation?!) then it will catch in quicker. Because of the 'stability' now people will start spending them now which is probably the best thing for it.
We don't need more exchanges, we need more shops/services. Crypto>fiat end of story
Agree. The central problem is one (1) Monopoly exchange... Supplemented by a gaggle of dwarf exchanges... That are all working really hard to SUCK millions out of the BTC universe. Without a diversified exchange space with 100s of players... What on earth do people think "shops" will do with their BTC... Are "shopkeepers" going to feed Bitcoins to their kids? That said, you have to be optimistic about anything... Anything... that has rocketed to $1 billion market cap... Supported by a radical, obsessive, committed Cult. |
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On the other hand, if a exchanges were to decide* to stop buying any bitcoins, wouldn't that make the market price drop suddenly?
You really don't understand how exchanges work, do you? You don't really understand how... Unregulated exchanges with a monopoly... Operate in an illiquid bubble, do you? Well, it's nothing like you read in the textbook. |
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Of course there are a lot of resources to go to in order to find Bitcoin Games, but we are more interested in the implications of Bitcoin Gaming. Implications are positive... It's VERY important to increase the velocity of BTC... Even if it's via dodgy "entertainment" sites. Because you can't really call BTC a "currency" unless velocity increases by 5-10 times... Right now it's a "commodity" that people are hoarding. |
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I googled "bitcoin banking jurisdiction"... and this came in #2.
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Gavin comes across as a NSA Trojan Horse.
Now that BTC has hit $1.3 billion in market cap...
Now is the time to purge the Foundation...
Pack it with radicals and take the hard, radical road of Satoshi's Vision.
Bitcoin just got important enough to be noticed...
Govt agencies wanna strangle BTC in it's crib...
Paypal, WU wanna co-opt BTC, neuter it, and take over the Cryptocurrency Space.
When people like David Marcus and Eric Schmidt talk about Bitcoin...
You should shudder and turn away...
They represent everything that Bitcoiners find abhorrent.
The one place I would give a little is on AML and tax evasion...
BTC must stay independent while moving away from being a criminal vehicle.
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I'm referring to the obvious and blatant manipulation occurring at MtGox and other btc exchanges. I've been trading daily for 15 years... And even in a highly regulated environment like the NYSE... You are constantly cheated in various different ways... But it's more like chiseled for pennies that add up over time. Since MtGox has a monopoly on BTC pricing and is completely unregulated... They are systematically manipulating the market to max their take... Profits from these 20% moves like today dwarf that dinky 0.5% fee... Because they probably do a LOT of large, private deals off-the-books. Just about everything I ever read about MtGox negative... I'm sure the truth is worse than anyone can imagine. Ironically, BTC has a single point of failure = career criminals MtGox... If BTC is soon co-opted and made irrelevant by Paypal or a Bank... It will be because MtGox kept this market in this Stone Age... And prevented BTC from becoming a stable currency. Cue the Apologists from Gox who have infiltrated this place... 3-2-1. |
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Then beside the pirates you have the narco traffickers from South America targeting Europe via the Caribbeans too. For this bubble to be realistic it would need a very strong shell. Ya man, pirates would come and take your money and rape your women... You would have to hire a well-armed militia... see John Mcafee Experience.  |
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Risks are potentially similar to running a Piratebay in the long term. Think outside the box, Pirate Bay is a good example of decentralization. (1) An exchange does not have to centralize or deal with Fiat = just be an Order Book and Account System. Doesn't even need a bank account. Have your Clients owe each other money and settle their debts to continue trading. A private citizen sending money to another private citizen is under the radar. (2) Gambling sites are ubiquitous. An interesting gambling site with 97% payout that just happens to accept BTC is a backdoor exchange. But no, everyone sets up a BIG HONKING "MONEY EXCHANGE". |
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Well what did you expect? If you deal in any other currency than Canadian (dollars?) you must pay taxes, so why not so with Bitcoin?
Why not bitcoin? Because taxation is theft. The only reason they want to tax it is because they cant help but extort money from their cattle. Any time they see someone trying to break free from their scheme, they put systems in place to prevent others from doing it. Its high tech slavery, where you let the slave pick and choose their job and place to live, making them more productive to the slave owner. Once something like zerocoin comes out and the ledger is nothing but a big washing machine, how are they going to tax it? as long as you don't deal in their garbage fiat, how could they tax you? Yes. That. +1 The other thing is that only CAD can be used to pay taxes in Canada. BTC isn't "legal tender" for taxes. You guys sort of have it backwards. The ability to pay taxes and stay out of jail... Is the Big Thing that gives all Fiat Currencies real Intrinsic Value... Unless you are a hobo and don't have to worry about stuff like family, house, car, college, etc... Really, this thread is like denying that Death exists. |
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This is huge and deserves it's own thread... EBay/Paypal is saying, "This is inevitable... let's be early adopter". |
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I'm excited to see how they're going to pull it off. I mean, if it's a measly "You should do it", I see many issues springing up in the future; they may not know who's avoiding taxes, but they'll see clear as day taxes are being avoided. Then they have fire power to campaign against the use of Bitcoin.
That's not the way our government works. They cannot outlaw bitcoin. We have the right to private property and there is a long standing coupon called "Canadian Tire Money" that is widely used. If you look at the development of Canada's banking and money you will see many private coupons. These were all legal. "Canadian Tire Money" cannot be converted to Canadian $$$... So it's not a currency... it's just a discount coupon. |
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Feedback is welcome.
U might be right. But on this forum u won't get positive feedback on any article that criticizes Bitcoin. Replies above just prove my words. It doesn't help that the "article" is amateurish and moronic. You can make a very good case for the demise of BTC... but this is jokes. |
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Interesting observations. I have been wondering about this a lot. If I go long 1000$ Bitcoin they have to take the other side. Sure their capital is basically unlimited, but they can't allow significant positions. If 1000 people go long BTCUSD with 1000$ , they have 1 M$ in net exposure short BTCUSD. Imagine that during the last 8 weeks with the price going from 20$ to 200$ and you have a serious problem. Which is why an exchange traded forward has practically no couterparty risk, where as CFD expose serious risk in terms of execution. Because the CFD broker is your direct couterparty, which means they will always rip you off. If they don't have hedging capabilities of their own, that invites trouble. But at least they have a decent backend. I'm not surprised at all that 1broker had to stop trading BTC.
This is the problem with CFDs, gold exchange, options... It's almost impossible to lay off risk... In a market where 70% are "hoarding" and has soared 1000%. In a rational market... A lot of people would want to short CFD or exchange for gold to lock in profits... In which case the counter-party gets stuck with a lot of very risky BTC. In an irrational market everyone wants to go long... In which case the counter-party is short a lot of very risky BTC. Basically, you cannot be a naked counter-party... It doesn't matter how much capital you have... Only exchanges that MATCH counter-parties can function in this space. |
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Actually, they were not the first... see these Russian guys: https://1broker.com/But they had to shut down the BTC/USD contract... Because they were being manipulated, maybe couldn't stay hedged, etc. https://1broker.com/?c=news&newsid=5This is only temporary... lots of CFD BTC trading on the way in 2013. |
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...it wouldn't even matter to you. Cult members never question anything. As for Nakamoto... He is either has a good Accounting Firm and is paying taxes in his jurisdiction... Or he will end up in jail sooner or later. |
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The CFD and Binary Option casinos are very well capitalized...
If they maintain small spreads like 138-139...
It will revolutionize BTC trading.
Anyone with a BTC position will be able to stay hedged...
Also, this will allow BTC/gold/silver exchanges to stay hedged...
So the spread for exchanging BTC/gold will collapse from 10-20% to 2-3%.
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A small, "under-the-radar" broker...
And they do 10 times the volume of Gox.
But CFD brokers still leave the huge Exchange-To-Fiat problem.
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