15 dollar arbitrage between bitstamp and gox right now???

[FreedomCoin]

yeah ive been noticing the price difference for almost a week now. Gox is always higher it seems.

[mrkent]

This is MTGOX's financial innovation: The withdraw time is so long that people are all forced to do long term investment in bitcoin, and the price will rise long term wise, this protect the exchange rate 

If it takes several months to withdraw your dollars from NASDAQ, you would just buy some stock and hold them for years before you withdraw

 

[vokain]

Or a simpler answer. MtGox's Fiat is worth less as they cant be withdrawn [without delay]. Thus the coins seems to "worth" more on Gox

[BitPirate]

I updated the ticker on my website as it has been pointless in showing a MtGox comparison for some time.

I replaced it with real-time animated sliders showing rmbtb.com, btcchina.com, Mtgox, Bitstamp, and BTC-e.

Unfortunately it still isn't quite as informative as I hoped!



LOL.

[smoothie]

I would only expect this amount to widen as long as Gox has a lag on their FIAT withdrawal methods.

Has anyone even gotten a wire from them and can confirm say a 4 digit wire that has completed?

[johnyj]

The recent rally is happening on all exchanges with volume, means there are significant amount of arbitraging between them. It is difficult to imagine that the buyer bought coin from all the exchanges at the same time

But this is good for bitcoin, it means no one can manipulate a single exchange with large amount of capital, because he will face all the arbitraging orders from other exchanges

[SGExodus]

I would only expect this amount to widen as long as Gox has a lag on their FIAT withdrawal methods.

Has anyone even gotten a wire from them and can confirm say a 4 digit wire that has completed?

There is no benefit in removing the fear, uncertainty and doubt in the current situation.

Right now, one man's fear is another man's profit.

[notme]

I would only expect this amount to widen as long as Gox has a lag on their FIAT withdrawal methods.

Has anyone even gotten a wire from them and can confirm say a 4 digit wire that has completed?

There is no benefit in removing the fear, uncertainty and doubt in the current situation.

Right now, one man's fear is another man's profit.

+1

If you could get 4 figures out of Gox, would you blab about it our arbitrage the shit out of it?

[Tirapon]

A mistrustful part of me suspects that MtGox is making huge profits arbitraging the price difference themselves, which gives them a perverse motivation to keep withdrawals slow.

Unfortunately I have a feeling you might be spot on with that theory...

[solex]

A mistrustful part of me suspects that MtGox is making huge profits arbitraging the price difference themselves, which gives them a perverse motivation to keep withdrawals slow.

Unfortunately I have a feeling you might be spot on with that theory...

If anyone was making huge profits on the arb then the gap would close to a few dollars. It isn't, which means that MtGox is under huge stress trying to do any transfers. The last thing MtGox wants is a crippled business. The long-term profits from commission far outweigh any temporary games trading the arb on their own account.

They are hemorrhaging market share by the day. They are in a fight for survival while the fiat banking system has a hobnailed boot on their windpipe.
 

[johnyj]

If each country has 6-10 large bitcoin dealers advertising their buy/sell order on localbitcoins.com, each of them have an order depth of 1000 coins, then people could move away from traditional exchanges and be independant of international bank transfers

It's very easy to setup a buy order ladder since everyone have fiat money, but it is more difficult to build up a sell order ladder since that will require huge amount of coins

[notme]

If each country have 6-10 large bitcoin dealers advertising their buy/sell order on localbitcoins.com, each of them have an order depth of 1000 coins, then people could move away from traditional exchanges and be independant of international bank transfers

It's very easy to setup a buy order ladder since everyone have fiat money, but it is more difficult to build up a sell order ladder since that will require huge amount of coins

Unless supply = demand in each and every country, international transfers will still need to happen.

[johnyj]

If each country have 6-10 large bitcoin dealers advertising their buy/sell order on localbitcoins.com, each of them have an order depth of 1000 coins, then people could move away from traditional exchanges and be independant of international bank transfers

It's very easy to setup a buy order ladder since everyone have fiat money, but it is more difficult to build up a sell order ladder since that will require huge amount of coins

Unless supply = demand in each and every country, international transfers will still need to happen.

The localbitcoins.com could use an automated market making system to adjust the bid and ask price for the largest 6-10 dealers' order

For example, if the demand for bitcoin is too high (Too much coins were bought from those dealers in a short time frame), they will automatically raise the bid/ask price for those large dealers, thus reduce the demand for coins. If the sell pressure is too high, they will lower the bid and ask price for those large dealers, thus increase the buying support. How much to raise or lower is the question here, it should provide low slippage but still enough flexibility

[sublime5447]

I arbitrage between btc-e and mt gox all the time. The way you could do it is buy coins from either bitstamp or btc-e and sell them to me. I will pay a few percent under gox. Or any trusted member for tons of methods.

[niko]

% arbitrage between gox and bitstamp is proportional to percieved % odds of mtgox defaulting

What is the constant in that proportionality?

[notme]

If each country have 6-10 large bitcoin dealers advertising their buy/sell order on localbitcoins.com, each of them have an order depth of 1000 coins, then people could move away from traditional exchanges and be independant of international bank transfers

It's very easy to setup a buy order ladder since everyone have fiat money, but it is more difficult to build up a sell order ladder since that will require huge amount of coins

Unless supply = demand in each and every country, international transfers will still need to happen.

The localbitcoins.com could use an automated market making system to adjust the bid and ask price for the largest 6-10 dealers' order

For example, if the demand for bitcoin is too high (Too much coins were bought from those dealers in a short time frame), they will automatically raise the bid/ask price for those large dealers, thus reduce the demand for coins. If the sell pressure is too high, they will lower the bid and ask price for those large dealers, thus increase the buying support. How much to raise or lower is the question here, it should provide low slippage but still enough flexibility

Sure, but if prices get out of whack people will start importing bitcoins from other countries and exporting their fiat to keep prices in sync.  Doing this in a decentralized nature will still likely be way easier than a handful of major institutions attempting to move millions of dollars in 4-5 figure increments.

[slothbag]

Mtgox need to offer Ripple as a cash in/out method like BitStamp.. this will entice people holding MtGoxUSD to hold onto them (as ripple assets) instead of exchanging for BTC and withdrawing.

Then users can trade their MtGoxUSD freely with other ripple assets, including BitStamp directly.. If MtGox are really having reserve problems this could extend their game a little longer.. but also allow liquid trading of GoxUSD and better arbitrage opportunities.

Mtgox were probably hesitant to adopt Ripple because they had such a dominating market share and didn't need too.. but that is quickly disappearing.

[notme]

Mtgox need to offer Ripple as a cash in/out method like BitStamp.. this will entice people holding MtGoxUSD to hold onto them (as ripple assets) instead of exchanging for BTC and withdrawing.

Then users can trade their MtGoxUSD freely with other ripple assets, including BitStamp directly.. If MtGox are really having reserve problems this could extend their game a little longer.. but also allow liquid trading of GoxUSD and better arbitrage opportunities.

Mtgox were probably hesitant to adopt Ripple because they had such a dominating market share and didn't need too.. but that is quickly disappearing.

There are regulatory issues with issuing tradeable USD denominated IOUs.  MtGox used to provide codes that allowed that before Ripple existed, but they shut it down because they have enough legal headaches as it is.  Bitstamp is asking for trouble.  Just look at how things turned out for Liberty Reserve.

[phelix]

A mistrustful part of me suspects that MtGox is making huge profits arbitraging the price difference themselves, which gives them a perverse motivation to keep withdrawals slow.

Trust in them is worth much more. A properly working Gox is a money making machine.

[genuise]

may be this can be informative too

https://bitcointalk.org/index.php?topic=261071.msg2942341#msg2942341