Buy Option in Robocoin Vancouver Shutdown

[activescott]

Looks like the buy option on the Robocoin Kiosk in Vancouver was shutdown due to problems with BitStamp. The Vancouver Operators announced on reddit.

[exstasie]

I wonder if this is the same for the other Robocoin ATMs as well.

[pjviitas]

Hmmm...when I combine this story with whats happening at MTGox....is it possible that there is a Bitcoin shortage?

[adub]

the problem is with the Bitstamp API and the operator having all eggs in one basket...

http://www.reddit.com/r/Bitcoin/comments/1w83db/weve_shut_down_the_buy_option_at_the_bitcoin_atm/

[ArticMine]

The problem is that Virtex may not have enough liquidity, so they went with BitStamp.  There are currently only 98 BTC on Virtex at CAD 900 or below.

Edit: It appears that propriety software is the root cause of this problem. I should have known.

It seems that a lot of people don't quite understand the problem. I'm sure the guys at bitcoiniac appreciate all of the suggestions regarding alt exchanges etc. But the fact is that robocoin, the provider of the proprietary software used on the machines, don't support hot wallets or alt exchanges. Their software relies on bitstamp in order to collect their cut, and their machines can only use their software (per purchase agreement). In looking for a bitcoin teller platform for our upcoming launch in Denver, I was very concerned about the built in and forced reliance on an exchange. Fears confirmed. Good luck OP.

From http://www.reddit.com/r/Bitcoin/comments/1w83db/weve_shut_down_the_buy_option_at_the_bitcoin_atm/

[pjviitas]

The problem is that Virtex may not have enough liquidity, so they went with BitStamp.  There are currently only 98 BTC on Virtex at CAD 900 or below.

Interesting...ya I guess since these are exchanges, not banks so there is no guarantee that they will have the foreign currency you wish in the quantities you wish.

With that being said, why don't the exchanges hold more Bitcoin?

[ArticMine]

...
With that being said, why don't the exchanges hold more Bitcoin?

Because there are not enough people willing to sell. One can always get BTC at a price of course.

[dave111223]

Can anyone corroborate that there are Bitstamp withdrawal issues?

*Puts on Tinfoil hat*, it's interesting the bitcoiniac releases this right before they launch their own exchange platform 

[pjviitas]

...
With that being said, why don't the exchanges hold more Bitcoin?

Because there are not enough people willing to sell. One can always get BTC at a price of course.

So they don't want to buy Bitcoin because it costs too much.

[solex]

Probably the Bitstamp API has stalled because of too many requests from the ATM (i.e. spam-like).

The ATM should maintain a float and decouple customer transactions from exchange fill-ups. I am amazed that this was not considered a priority after rollout.  The ATM should also have a link to btce, but it is up to Robocoin to improve this.

[dave111223]

Probably the Bitstamp API has stalled because of too many requests from the ATM (i.e. spam-like).

The ATM should maintain a float and decouple customer transactions from exchange fill-ups. I am amazed that this was not considered a priority after rollout.  The ATM should also have a link to btce, but it is up to Robocoin to improve this.

For them to hold a BTC float is highly risky.  If they are holding during a flash crash it could wipe out months of profit.

[pjviitas]

Probably the Bitstamp API has stalled because of too many requests from the ATM (i.e. spam-like).

The ATM should maintain a float and decouple customer transactions from exchange fill-ups. I am amazed that this was not considered a priority after rollout.  The ATM should also have a link to btce, but it is up to Robocoin to improve this.

For them to hold a BTC float is highly risky.  If they are holding during a flash crash it could wipe out months of profit.

Hmmm...if this kind of thing continues...maybe local bitcoin the way to go.

[jadescorpio]

i feel there is a link between this and there is whats happening with Gox

[kjlimo]

i feel there is a link between this and there is whats happening with Gox

Yep, both involve bitcoin...

Good call...