25k coins bought, $10 jump

[P_Shep]

Man, do I regret cashing out $5000 yesterday!
Still, needed the the money. Just how long can one wait, eh?

[alexanderanon]

The network seems to jumping by leaps and bounds everyday, but just today it exploded some 30% from 600 TH to 800 TH. Jesus...

Anyone know if this is ASICminer turning on some massive number of new hashers, or what?

[fcmatt]

The network seems to jumping by leaps and bounds everyday, but just today it exploded some 30% from 600 TH to 800 TH. Jesus...

Anyone know if this is ASICminer turning on some massive number of new hashers, or what?

I would guess it is an asic company using community pre order money to build their own farm and then ship once the easy money has been made.

[Carlton Banks]

The network seems to jumping by leaps and bounds everyday, but just today it exploded some 30% from 600 TH to 800 TH. Jesus...

Anyone know if this is ASICminer turning on some massive number of new hashers, or what?

Likely a tag team effort from the 100TH/s MegaBigPower mine and 200TH/s GigaHashIO ramping up their hash hulks. Will ASICMiner pool become uneconomical and phase themselves out though? 

[OmegaNemesis28]

The network seems to jumping by leaps and bounds everyday, but just today it exploded some 30% from 600 TH to 800 TH. Jesus...

Anyone know if this is ASICminer turning on some massive number of new hashers, or what?

BFL has been shipping OODLES of Jalapenos and 60GH Singles. They've flown through the 3 weeks of orders in a matter of a single work week. They probably are arriving in a steady fashion. I know I just got mine yesterday as a July 10th order, and they claim they're up to July 22nd already.

Also, while Im here, can someone explain to me why CampBX or others typically have BTC cheaper than Mtgox? What is preventing people from just buying CampBX and then selling Mtgox almost instantly?

[kokojie]

Maybe, but I'd think anyone with that much money at stake would be working with Gox to get the money transferred our rather than taking a $250k haircut. Unless they have some inside info that Gox's collapse is imminent.

After FBI seized 5.8M USD from mtgox, I doubt they are still solvent enough to cash out 25000 BTC in USD.

[bitcon]

Maybe, but I'd think anyone with that much money at stake would be working with Gox to get the money transferred our rather than taking a $250k haircut. Unless they have some inside info that Gox's collapse is imminent.

After FBI seized 5.8M USD from mtgox, I doubt they are still solvent enough to cash out 25000 BTC in USD.

unless GOX is buying coins from bitstamp, etc., selling those coins at their inflated prices.  they can probably still cash withdrawal fiat to their own domestic bank in japan.

[xxjs]

Man, do I regret cashing out $5000 yesterday!
Still, needed the the money. Just how long can one wait, eh?

Nobody spends money with deflating prices, anyone?

[Phinnaeus Gage]

They probably want to get their money out of gox and have no choice in the matter? Buy BTC and transfer out?

Once out, they will then deposit into BitStamp. taking advantage of arbitrage. Some people just don't know how the Stock Market works.  

How do you arbitrage by purchasing bitcoins on an exchange with a higher price and then transferring them to an exchange with a lower price?

I'm not exactly sure how it's done, but I think it somehow involves a second person acting as the liaison between the two exchanges. Then, when the lower priced exchange rises, money is pulled out and put in the other exchange that has also risen the same exact percentage, thus not losing anything during the transfer. Soon, though, Mt Gox starts rising again, whereupon, say, at a 10% increase, once again money is pulled out and put back into Bitstamp, or maybe even a lesser used exchange to somehow cloak the traders intent/identity, for nobody wants to be caught red-handed practicing such a practice.

I hope my description of arbitrage helps those that weren't aware of how it works.

Happy trading!

[Hyena]

Man, do I regret cashing out $5000 yesterday!
Still, needed the the money. Just how long can one wait, eh?

Nobody spends money with deflating prices, anyone?

I have heard this "logic" several times. In the business economics course my lecturer said it too, he even called everyone idiots for spending money during the deflation.

However, this is a very flawed mindset. Are you really so greedy that you're willing to starve because your money could be worth more tomorrow? Also, in the case of bitcoin, one can never know when the trend reverses so buying stuff during an uptrend is actually a wise thing to do.

[FNG]

Also, while Im here, can someone explain to me why CampBX or others typically have BTC cheaper than Mtgox? What is preventing people from just buying CampBX and then selling Mtgox almost instantly?

A purchase of 161 coins on CampBX increases the price by over $11

[niko]

Man, do I regret cashing out $5000 yesterday!
Still, needed the the money. Just how long can one wait, eh?

Nobody spends money with deflating prices, anyone?

I have heard this "logic" several times. In the business economics course my lecturer said it too, he even called everyone idiots for spending money during the deflation.

Of course, everyone who ever bought a computer (computers are in perpetual state of deflation) is an idiot by his logic. Yea right.

Professors of economics, economic experts, pundits, and such have had their chance, multiple times, and have repeatedly proven themselves idiots and their theories idiotic. Only an idiot would take them seriously after everything we've seen in the past 50 years. Even those who profited - especially them - don't take the mainstream econimic theories seriously.

[xxjs]

The fundamental error made by the inflationists is that they conflate money with demand. In reality, demand is the goods and services the buyer brings to the market, and supply is the goods and services the seller brings to the market. Money is just the oil to smooth out differences in many to many trades and time preferences.

[Anon136]

Man, do I regret cashing out $5000 yesterday!
Still, needed the the money. Just how long can one wait, eh?

Nobody spends money with deflating prices, anyone?

deflation is a long term thing. sharp increases in the price are just as likely to be a trap as a legitimate long term movement. this means there is plenty of reason to buy things when the price is rising. you get more stuff for the money you invested. i bought amnesia the dark decent for 0.02btc and im feeling pretty good about it =)

[xxjs]

Man, do I regret cashing out $5000 yesterday!
Still, needed the the money. Just how long can one wait, eh?

Nobody spends money with deflating prices, anyone?

deflation is a long term thing. sharp increases in the price are just as likely to be a trap as a legitimate long term movement. this means there is plenty of reason to buy things when the price is rising. you get more stuff for the money you invested. i bought amnesia the dark decent for 0.02btc and im feeling pretty good about it =)

Right, and the other side of the coin: We have no problem buying bitcoins when the price is rising.

[JimboToronto]

Some people just don't know how the Stock Market works.

Ah yes, the stock market. Keep buying and selling those BTC shares in accordance with established stock market technical analysis.

When do you think the shares will be split?

 

[JimboToronto]

The "shares" will be split when people start using satoshis instead of bitcoins.

Bitcoin comes pre-split. I've long referred to prices as being in millions of satoshis rather than fractions of bitcoins.

I was having fun with Phinneus' obviously sarcastic (judging by the rolling-eyes smiley) referral to the stock market as if it had anything to do with Bitcoin.

[JimboToronto]

sure, ok.

It just struck me as badly wrong claiming that Bitcoin is not like a stock (obviously only to some degree) only because it supposedly "cannot be split" or is "pre-split". By this logic GOOG and BRK/A are not stocks.

My point was that the Bitcoin (or any other crypto-currency) market is different from previous established markets like stocks, commodities, metals, and forex, although obviously there are many similarities.

While market manipulation is as old as history, the small size and low liquidity leave it more vulnerable.

It's a lot easier and cheaper to move the price up or down than to corner the market on onions.

[Phinnaeus Gage]

I was having fun with Phinneus' obviously sarcastic (judging by the rolling-eyes smiley) referral to the stock market as if it had anything to do with Bitcoin.

Gage is never sarcastic. You simply can not think on his wave length.

Actually, I brought a new computer and it didn't come with sarcastic tags or a smiley button. Seriously, I've yet to take a screenshot with it because I don't know which button to push without Googling it. It took me a week to figure out the mouse pad--by accident--so that I no longer have to touch the screen to do stuff. Ironically, the main reason for purchasing this damn thing is so that I would have that ability, now I don't use it.

Yes, I was being sarcastic with my two previous posts, insinuating that one could buy high and sell low, but make it up in volume. I figured if it was good enough for The Polish Maverick to remove the zeros from the roulette wheels, the sound advice should carry over to bitcoin investing.

[notme]

sure, ok.

It just struck me as badly wrong claiming that Bitcoin is not like a stock (obviously only to some degree) only because it supposedly "cannot be split" or is "pre-split". By this logic GOOG and BRK/A are not stocks.

My point was that the Bitcoin (or any other crypto-currency) market is different from previous established markets like stocks, commodities, metals, and forex, although obviously there are many similarities.

While market manipulation is as old as history, the small size and low liquidity leave it more vulnerable.

It's a lot easier and cheaper to move the price up or down than to corner the market on onions.

It may be a lot easier and cheaper to move the price up.  Down is a different story.