How does DDoS affect BTC price

[masize]

Can somebody explain how DDoS makes BTC price drop?

[gimme_bottles]

if trading sites become unaccessable some people tend to panic selling, which increases load on the servers even more.

[BCB]

Did you not watch the market implode today??

That's how it effects the price.

[evolve]

It doesn't.  People just don't want to admit that investor confidence might be shook, and the whole meteoric rise in price was all a charade, so they are looking for a scapegoat.


If anything, MtGox lag slowed the freefall.

[Minor Miner]

if trading sites become unaccessable some people tend to panic selling, which increases load on the servers even more.

BTC exchanges are HEAVILY weighted to the buy side since some many new people are opening accounts.  When you freeze access to the site, these new buyers cannot get on and buy so it makes it easier to sell.  When things freeze up and fall, people with little sense panic and yell fire as they run to the exits.

[gimme_bottles]

Alone, it wouldn't do all that much. It is typically accompanied by a huge sell off first.

you forget a trading platform with shitty implemented algorithms  

[Elwar]

It doesn't.  People just don't want to admit that investor confidence might be shook, and the whole meteoric rise in price was all a charade, so they are looking for a scapegoat.


If anything, MtGox lag slowed the freefall.

Except for the fact that the huge drops in price are always combined with huge MtGox lag.

Unfortunately they will be fixing this today (tomorrow there) and I cannot write my trade bot to take advantage of it.

[Minor Miner]

Alone, it wouldn't do all that much. It is typically accompanied by a huge sell off first.

you forget a trading platform with shitty implemented algorithms  

How about something like a SOP policy to HALT trading when shit like this happens?   Who runs that place?   Really need an adult run exchange, there should be enough money in it to get real people interested.

[evolve]

Except for the fact that the huge drops in price are always combined with huge MtGox lag.

Yeah, thats the point. The lag allows Mtgox to prop the market (by slowing down the freefall) during a crash.

[gimme_bottles]

Alone, it wouldn't do all that much. It is typically accompanied by a huge sell off first.

you forget a trading platform with shitty implemented algorithms  

How about something like a SOP policy to HALT trading when shit like this happens?   Who runs that place?   Really need an adult run exchange, there should be enough money in it to get real people interested.

i missed the "crash", but a few minutes ago i saw a quote somewhere here that said they stopped accepting new orders for some time. anyone knows more about this?

[masize]

Alone, it wouldn't do all that much. It is typically accompanied by a huge sell off first.

you forget a trading platform with shitty implemented algorithms  

How about something like a SOP policy to HALT trading when shit like this happens?   Who runs that place?   Really need an adult run exchange, there should be enough money in it to get real people interested.

Oh man! If only I could wire transfer from my country I could rise that little number back to heaven.
How is it usd 130 and all you guys not buying?

[pretendo]

It exacerbates panic sales and obscure price information to participants.

I am so done with MTGOX though. They've had PLENTY of time and money to upgrade their hardware to industry standard.

[evolve]

i missed the "crash", but a few minutes ago i saw a quote somewhere here that said they stopped accepting new orders for some time. anyone knows more about this?

I had market orders fail to go through during the lag. Dont know about anyone else though.

[gimme_bottles]

Except for the fact that the huge drops in price are always combined with huge MtGox lag.

Yeah, thats the point. The lag allows Mtgox to prop the market (by slowing down the freefall) during a crash.

the lag causes market sell orders placed at $230 to be executed at $150. so i don't think it slows it down, instead it fuels it up even more

[masize]

It exacerbates panic sales and obscure price information to participants.

I am so done with MTGOX though. They've had PLENTY of time and money to upgrade their hardware to industry standard.

Why do people use MtGox then? Bitcoin 24 or BitStamp don't charge any fees and I havent seen them down never.

[Minor Miner]

Except for the fact that the huge drops in price are always combined with huge MtGox lag.

Yeah, thats the point. The lag allows Mtgox to prop the market (by slowing down the freefall) during a crash.

the lag causes market sell orders placed at $230 to be executed at $150. so i don't think it slows it down, instead it fuels it up even more

Exactly.   When you are unable to do the business that people contract you to do, you HALT until you are ready.   They should have HALTED trading.   They are idiots.

[gimme_bottles]

stopping to accept new orders is a first step, but i guess they are just too greedy 

[ManBearPig]

It exacerbates panic sales and obscure price information to participants.

I am so done with MTGOX though. They've had PLENTY of time and money to upgrade their hardware to industry standard.

Why do people use MtGox then? Bitcoin 24 or BitStamp don't charge any fees and I havent seen them down never.

Lack of liquidity really.

[Minor Miner]

stopping to accept new orders is a first step, but i guess they are just too greedy 

I find it so incompetent that I wonder if it is not the exchange itself.   Say they get too "short" because they are borrowing (without asking) other people's deposited coins to keep the market going, waiting for a break to cover these shorts.   And the pullback does not come and their "facilitation of trade" actually becomes a HUGE liability.   Wouldn't a nice plunge help fix that?
Can anyone tell me why the above is not plausible?

[Manticore]

It doesn't.  People just don't want to admit that investor confidence might be shook, and the whole meteoric rise in price was all a charade, so they are looking for a scapegoat.


If anything, MtGox lag slowed the freefall.

Exactly. The sell-off started well before the lag. Trading curbs and circuit breakers slow panic selling on the NYSE/Nasdaq......the lags stems panic on Mt Gox. Everyone is using this DDoS(??)/lag as an excuse for a correction. That said, there are no trading curbs in currencies. Forex does not have circuit breakers. What does BitPay do during an outage??? Should a currency (or quasi-currency) ever have a circuit breaker?

Before this, the last 4 minor corrections were accompanied by the same lag (subsequent to a sell-off, not prior) and tiny bot trades on an inflated ask (e.g., 0.02 BTC trades well above the stream of sells) that kept the bid/ask high while most of the sales were actually occurring much much lower, which is why it always jumped back up so quickly after a sell-off even though the buys were minuscule compared to the much larger dump. The bot trades always appeared at key support levels, just as they did today. The panic selling would normally stop when lag increased to point that Gox was unresponsive. This time the selling was too intense.

https://bitcointalk.org/index.php?topic=172540
https://bitcointalk.org/index.php?topic=170483

A DDoS would only stem panic selling.....nobody should ever place market orders. Never ever....