How does DDoS affect BTC price

[Manticore]

"You can blame the DDoS for the lag but not the correction, which would've happened regardless. To blame this correction on the lag/DDoS is ridiculous because that would be saying that half the worth of a currency can be destroyed simply because people have a tough time logging into their forex account. If my equities platform lagged out I would be highly annoyed, but it would not destroy the stock market and force me to liquidate. This thing was headed down well before and independent of this lag....

If this was a DDoS attack, how can that cripple a multibillion dollar market this easily? If it can, then this market is overvalued because there is an extreme level of systematic risk. Is bitcoin (by way of its service providers) really so fragile that it gets cut in half in the blink of an eye simply because Gox lags out massively? That's even scarier than a natural panic sell-off and subsequent lag after a meteoric rise. On the NYSE, they have circuit breakers that halt trading intentionally because that quells panic (which is what I think this lag does, contrary to what most of you think). If anything, a DDoS would prevent the sell-off from being as deep and as fast as it would have been.

If one can truly blame this on an attack, then bitcoin needs Wall Street help (I hate to say it). What's worse, a currency that has a deep and natural sell-off (like this, IMO) or a currency that can be completely wrecked by a hacker? I opt for natural sell-off.....because otherwise we need a very strong and experienced organization (e.g., Goldman et al.) to step in and provide a platform."

https://bitcointalk.org/index.php?topic=172550.msg1796607#msg1796607

[masize]

"You can blame the DDoS for the lag but not the correction, which would've happened regardless. To blame this correction on the lag/DDoS is ridiculous because that would be saying that half the worth of a currency can be destroyed simply because people have a tough time logging into their forex account. If my equities platform lagged out I would be highly annoyed, but it would not destroy the stock market and force me to liquidate. This thing was headed down well before and independent of this lag....

If this was a DDoS attack, how can that cripple a multibillion dollar market this easily? If it can, then this market is overvalued because there is an extreme level of systematic risk. Is bitcoin (by way of its service providers) really so fragile that it gets cut in half in the blink of an eye simply because Gox lags out massively? That's even scarier than a natural panic sell-off and subsequent lag after a meteoric rise. On the NYSE, they have circuit breakers that halt trading intentionally because that quells panic (which is what I think this lag does, contrary to what most of you think). If anything, a DDoS would prevent the sell-off from being as deep and as fast as it would have been.

If one can truly blame this on an attack, then bitcoin needs Wall Street help (I hate to say it). What's worse, a currency that has a deep and natural sell-off (like this, IMO) or a currency that can be completely wrecked by a hacker? I opt for natural sell-off.....because otherwise we need a very strong and experienced organization (e.g., Goldman et al.) to step in and provide a platform."

https://bitcointalk.org/index.php?topic=172550.msg1796607#msg1796607

How can micro transactions affect the price?

[Manticore]

"You can blame the DDoS for the lag but not the correction, which would've happened regardless. To blame this correction on the lag/DDoS is ridiculous because that would be saying that half the worth of a currency can be destroyed simply because people have a tough time logging into their forex account. If my equities platform lagged out I would be highly annoyed, but it would not destroy the stock market and force me to liquidate. This thing was headed down well before and independent of this lag....

If this was a DDoS attack, how can that cripple a multibillion dollar market this easily? If it can, then this market is overvalued because there is an extreme level of systematic risk. Is bitcoin (by way of its service providers) really so fragile that it gets cut in half in the blink of an eye simply because Gox lags out massively? That's even scarier than a natural panic sell-off and subsequent lag after a meteoric rise. On the NYSE, they have circuit breakers that halt trading intentionally because that quells panic (which is what I think this lag does, contrary to what most of you think). If anything, a DDoS would prevent the sell-off from being as deep and as fast as it would have been.

If one can truly blame this on an attack, then bitcoin needs Wall Street help (I hate to say it). What's worse, a currency that has a deep and natural sell-off (like this, IMO) or a currency that can be completely wrecked by a hacker? I opt for natural sell-off.....because otherwise we need a very strong and experienced organization (e.g., Goldman et al.) to step in and provide a platform."

https://bitcointalk.org/index.php?topic=172550.msg1796607#msg1796607

How can micro transactions affect the price?

I agree; they shouldn't. But somehow the bid/ask go right back up to the level of these tiny trades after a sell-off (sometimes a 5% -10% move based on nothing but a teenth of a coin). They didn't today because the sell-off was too large, but it happened in all 4 previous recent minor sell-offs. It makes no sense for the price to pop back up based on these minuscule trades. The bid/ask move up erratically and never follow the trades down in and orderly way. It's almost as if the bots are used to put green on the screen and stem the psychology of a panic sell. But that doesn't explain why the bid/ask shoot directly back up after 100's of coins have been dumped at much lower prices.

[bpd]

Honestly, it's irresponsible of MtGox to even offer the option of issuing a market order given the known horrible performance of their matching engine. At minimum, they should not allow market orders when lag is significant.

[loanexpress]

Honestly, it's irresponsible of MtGox to even offer the option of issuing a market order given the known horrible performance of their matching engine. At minimum, they should not allow market orders when lag is significant.

Agreed. Don't use Market Orders. And definitely don't make it the default option, which I think it might be.

[wopwop]

DDoS is just another word for 'many people trying to sell at once'

[gogxmagog]

so, mtgox is pump & dumping themselves?

[b!z]

"You can blame the DDoS for the lag but not the correction, which would've happened regardless. To blame this correction on the lag/DDoS is ridiculous because that would be saying that half the worth of a currency can be destroyed simply because people have a tough time logging into their forex account. If my equities platform lagged out I would be highly annoyed, but it would not destroy the stock market and force me to liquidate. This thing was headed down well before and independent of this lag....

If this was a DDoS attack, how can that cripple a multibillion dollar market this easily? If it can, then this market is overvalued because there is an extreme level of systematic risk. Is bitcoin (by way of its service providers) really so fragile that it gets cut in half in the blink of an eye simply because Gox lags out massively? That's even scarier than a natural panic sell-off and subsequent lag after a meteoric rise. On the NYSE, they have circuit breakers that halt trading intentionally because that quells panic (which is what I think this lag does, contrary to what most of you think). If anything, a DDoS would prevent the sell-off from being as deep and as fast as it would have been.

If one can truly blame this on an attack, then bitcoin needs Wall Street help (I hate to say it). What's worse, a currency that has a deep and natural sell-off (like this, IMO) or a currency that can be completely wrecked by a hacker? I opt for natural sell-off.....because otherwise we need a very strong and experienced organization (e.g., Goldman et al.) to step in and provide a platform."

https://bitcointalk.org/index.php?topic=172550.msg1796607#msg1796607

How can micro transactions affect the price?

Bot puts up buy at $x
Noobs sell at market price $x

rinse and repeat

[masize]

"You can blame the DDoS for the lag but not the correction, which would've happened regardless. To blame this correction on the lag/DDoS is ridiculous because that would be saying that half the worth of a currency can be destroyed simply because people have a tough time logging into their forex account. If my equities platform lagged out I would be highly annoyed, but it would not destroy the stock market and force me to liquidate. This thing was headed down well before and independent of this lag....

If this was a DDoS attack, how can that cripple a multibillion dollar market this easily? If it can, then this market is overvalued because there is an extreme level of systematic risk. Is bitcoin (by way of its service providers) really so fragile that it gets cut in half in the blink of an eye simply because Gox lags out massively? That's even scarier than a natural panic sell-off and subsequent lag after a meteoric rise. On the NYSE, they have circuit breakers that halt trading intentionally because that quells panic (which is what I think this lag does, contrary to what most of you think). If anything, a DDoS would prevent the sell-off from being as deep and as fast as it would have been.

If one can truly blame this on an attack, then bitcoin needs Wall Street help (I hate to say it). What's worse, a currency that has a deep and natural sell-off (like this, IMO) or a currency that can be completely wrecked by a hacker? I opt for natural sell-off.....because otherwise we need a very strong and experienced organization (e.g., Goldman et al.) to step in and provide a platform."

https://bitcointalk.org/index.php?topic=172550.msg1796607#msg1796607

How can micro transactions affect the price?

Bot puts up buy at $x
Noobs sell at market price $x

rinse and repeat

Yes, I agree the bot can eat all buy orders that newbies create and make the price go down, but why make it in tiny transactions?
Is this done because they sell BTC from thousands of accounts at once with bots, and cant sell large amounts as they need to be verified?

[mmortal03]

Honestly, it's irresponsible of MtGox to even offer the option of issuing a market order given the known horrible performance of their matching engine. At minimum, they should not allow market orders when lag is significant.

Agreed. Don't use Market Orders. And definitely don't make it the default option, which I think it might be.

People who don't understand how it works will think they will get the price they currently see on the screen with a market order, but when it lags and there is volatility, they can end up getting shafted by a lower price than they wanted to sell their bitcoins for once it goes through.