Bitcoin Forum
December 05, 2016, 02:26:44 AM *
News: Latest stable version of Bitcoin Core: 0.13.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Arbitrage through spendbitcoins.com (or similar services)  (Read 981 times)
bitfoo
Donator
Sr. Member
*
Offline Offline

Activity: 289



View Profile
August 06, 2011, 03:01:05 AM
 #1

1) Buy bitcoins from Mtgox @ $9.60
2) Buy Amazon gift cards using above bitcoins on spendbitcoins.com @ $10.24
3)  Huh
4) Profit!!

Merchants accepting bitcoins at weighted average prices should theoretically prevent BTC value from dropping too much in a single day. Thoughts? Would you do this? It's definitely a no-brainer if you want to buy something from Amazon today.

1480904804
Hero Member
*
Offline Offline

Posts: 1480904804

View Profile Personal Message (Offline)

Ignore
1480904804
Reply with quote  #2

1480904804
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1480904804
Hero Member
*
Offline Offline

Posts: 1480904804

View Profile Personal Message (Offline)

Ignore
1480904804
Reply with quote  #2

1480904804
Report to moderator
1480904804
Hero Member
*
Offline Offline

Posts: 1480904804

View Profile Personal Message (Offline)

Ignore
1480904804
Reply with quote  #2

1480904804
Report to moderator
EricSU
Newbie
*
Offline Offline

Activity: 25


View Profile
August 06, 2011, 03:06:09 AM
 #2

Why would someone buy bitcoins and then buy amazon gift card with them if it means losing money?
Selling amazon gift cards even at a markup its probably still a good idea, for those who already have bitcoins and looking to spend them.

You can program your site to instantly sell your BTC on mtgox if you don't want to hold them.
bitfoo
Donator
Sr. Member
*
Offline Offline

Activity: 289



View Profile
August 06, 2011, 03:14:46 AM
 #3

Why would someone buy bitcoins and then buy amazon gift card with them if it means losing money?

If you want something from Amazon right now, you're not losing money, you're gaining. spendbitcoins.com doesn't mark up the prices. Right now, they offer a value of $10.22 per bitcoin, each of which you can buy for 50 cents less at MtGox. In short, you can currently buy a $100 Amazon gift card for $95. If enough people do this the mtgox price should converge to the daily weighted average.

EricSU
Newbie
*
Offline Offline

Activity: 25


View Profile
August 06, 2011, 03:22:00 AM
 #4

Oh lol I thought it was the other way around.
So really spendbitcoins is losing money then, if enough people did it they would go out of business, unless BTC value was going up to make up the difference.
nomadwfs
Newbie
*
Offline Offline

Activity: 12


View Profile
August 08, 2011, 11:27:34 PM
 #5

Why do people keep thinking that "well, if I can convince enough people to do x..." somehow the price will change?

The price of bitcoins is not affected by the stuff people post here. It's affected by what people actually DO with their fiat and their BTC.



Also, arbitrage is by definition, taking advantage of a market inefficiency for profit. The reason why markets are, on a whole, efficient is because people exploit these inefficiencies. While it is likely that a large group of people will exploit this inefficiency, more likely the spendbitcoins.com owner will change his exchange rate to quit hemorrhaging money.
kjj
Legendary
*
Offline Offline

Activity: 1302



View Profile
August 09, 2011, 12:07:29 AM
 #6

And that is exactly what he is doing now in a different thread.

p2pcoin: a USB/CD/PXE p2pool miner - 1N8ZXx2cuMzqBYSK72X4DAy1UdDbZQNPLf - todo
I routinely ignore posters with paid advertising in their sigs.  You should too.
bitfoo
Donator
Sr. Member
*
Offline Offline

Activity: 289



View Profile
August 09, 2011, 06:51:20 AM
 #7

And that is exactly what he is doing now in a different thread.

Well, I'm glad. It's in our interest that these guys remain profitable and stick around.

Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!