"No Reserve" explanation

[zhoutong]

I see upward momentum despite a massive amount of USD trapped in an insolvent bucket shop.  This is insanely bullish.

What I see is people buying without considering the implications of bitcoinica being insolvent.
I think whoever just bought those couple thousand coins is going to get burned badly.

Bitcoinica is never insolvent. We now have tens of thousands of Bitcoins, and that's it.

Too many people have long positions and we couldn't fulfill any more buy orders.

And now it has already been fixed. Buying and selling are normal now.

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[cypherdoc]

can everyone see that massive $236,000 @ $3.90?

soon that is going to tumble over to the right and crush all the asks. they are getting impatient.

[ineededausername]

can everyone see that massive $236,000 @ $3.90?

soon that is going to tumble over to the right and crush all the asks. they are getting impatient.

Let's see $5 today or tomorrow!

[mjcmurfy]

I see upward momentum despite a massive amount of USD trapped in an insolvent bucket shop.  This is insanely bullish.

What I see is people buying without considering the implications of bitcoinica being insolvent.
I think whoever just bought those couple thousand coins is going to get burned badly.

no, they are going to make a fortune as the price continues up to its equilibrium fundamental price which is MUCH higher than this.

are you short?

I don't use bitcoinica. I am 100% in USD right now though, as I have already mentioned a number of times, and have been discussing moving into fiat over the past couple of days. I'm not trying to sway opinion, just giving my own. I might be wrong, but all of my data was telling me to get out.

[cypherdoc]

I see upward momentum despite a massive amount of USD trapped in an insolvent bucket shop.  This is insanely bullish.

What I see is people buying without considering the implications of bitcoinica being insolvent.
I think whoever just bought those couple thousand coins is going to get burned badly.

Bitcoinica is never insolvent. We now have tens of thousands of Bitcoins, and that's it.

Too many people have long positions and we couldn't fulfill any more buy orders.

And now it has already been fixed. Buying and selling are normal now.

that makes no sense.  if you have thousands of Bitcoins, why aren't you selling to all the ppl who have complained here on the Forum of not being able to buy or cover short positions?

listen up shorts who are caught not being able to cover;  Zhou just said he has thousands of Bitcoins that he's not selling to you to allow you out of your shorts...

[cypherdoc]

I see upward momentum despite a massive amount of USD trapped in an insolvent bucket shop.  This is insanely bullish.

What I see is people buying without considering the implications of bitcoinica being insolvent.
I think whoever just bought those couple thousand coins is going to get burned badly.

no, they are going to make a fortune as the price continues up to its equilibrium fundamental price which is MUCH higher than this.

are you short?

I don't use bitcoinica. I am 100% in USD right now though, as I have already mentioned a number of times, and have been discussing moving into fiat over the past couple of days. I'm not trying to sway opinion, just giving my own. I might be wrong, but all of my data was telling me to get out.

then you are a smart man.

[zhoutong]

LOL!  please think of a fix that will make everyone money.

Well, the best way for you to make money right now is to take advantage of the imminent long squeeze.

Why do you believe there will be a long squeeze?

IMO, it's the other way around:
-Because you can't buy BTC on Bitcoinica, anyone who wishes to buy BTC will need to buy them on on MtGox, leading to higher prices.
-Because you can't buy BTC on Bitcoinica, any bull with BTC will be LESS likely to sell because they can't re-buy them if they sell too low.


I don't see your logic.  If something is in short supply, its price goes up, not down.

Am I missing something?

no, you are not.  this prolonged rise in the market has placed Zhoutong in an untenable position IMO.  when you go long, he has to go short.  IMO he is caught in a massive short squeeze and is desperate to get you guys to either sell or go short to provide btc liquidity so he can cover his losing positions.  i think the dam has broken and his advice smacks of manipulation in the name of self preservation.

when are you guys going to learn?  problem after problem after problem keeps cropping up.  Bitcoinica is doomed.

Bitcoinica never trades against its customers. Price movements have almost no effect on my profits. However, our system couldn't process too many buy orders when our reserves were depleted. This has been fixed now because more people start selling.

I don't have to cover any losing positions. It's just a precautionary procedure to ensure that we don't have any losing positions when people are trading in one direction. Same thing can happen on the selling side too.

[mjcmurfy]

can everyone see that massive $236,000 @ $3.90?

soon that is going to tumble over to the right and crush all the asks. they are getting impatient.

And what about the invisible 200,000 bitcoins that have been mined over the past couple of weeks but not yet made it onto the exchanges? They could be insane bulls, I'll grant you, but I am of the opinion that they are just being greedy. Rationality will kick in soon.

[zhoutong]

I see upward momentum despite a massive amount of USD trapped in an insolvent bucket shop.  This is insanely bullish.

What I see is people buying without considering the implications of bitcoinica being insolvent.
I think whoever just bought those couple thousand coins is going to get burned badly.

Bitcoinica is never insolvent. We now have tens of thousands of Bitcoins, and that's it.

Too many people have long positions and we couldn't fulfill any more buy orders.

And now it has already been fixed. Buying and selling are normal now.

that makes no sense.  if you have thousands of Bitcoins, why aren't you selling to all the ppl who have complained here on the Forum of not being able to buy or cover short positions?

listen up shorts who are caught not being able to cover;  Zhou just said he has thousands of Bitcoins that he's not selling to you to allow you out of your shorts...

No, Bitcoinica has a lot of Bitcoins, and when people want to buy on Bitcoinica, the system has to hedge by buying more Bitcoins.

So the system was out of USD, and we couldn't allow more buyers to buy.

[cypherdoc]

LOL!  please think of a fix that will make everyone money.

Well, the best way for you to make money right now is to take advantage of the imminent long squeeze.

Why do you believe there will be a long squeeze?

IMO, it's the other way around:
-Because you can't buy BTC on Bitcoinica, anyone who wishes to buy BTC will need to buy them on on MtGox, leading to higher prices.
-Because you can't buy BTC on Bitcoinica, any bull with BTC will be LESS likely to sell because they can't re-buy them if they sell too low.


I don't see your logic.  If something is in short supply, its price goes up, not down.

Am I missing something?

no, you are not.  this prolonged rise in the market has placed Zhoutong in an untenable position IMO.  when you go long, he has to go short.  IMO he is caught in a massive short squeeze and is desperate to get you guys to either sell or go short to provide btc liquidity so he can cover his losing positions.  i think the dam has broken and his advice smacks of manipulation in the name of self preservation.

when are you guys going to learn?  problem after problem after problem keeps cropping up.  Bitcoinica is doomed.

Bitcoinica never trades against its customers. Price movements have almost no effect on my profits. However, our system couldn't process too many buy orders when our reserves were depleted. This has been fixed now because more people start selling.

I don't have to cover any losing positions. It's just a precautionary procedure to ensure that we don't have any losing positions when people are trading in one direction. Same thing can happen on the selling side too.

wow, how many contradictions lie within those statements and the ones before.  i would stop talking if i were you...

[trogdorjw73]

I'm with mjcmurfy... these >$4 prices are frankly shocking to me and it means that I now am mining at a substantial profit rather than just barely covering power. I don't see them staying this high for long, but in the meantime I'll happily sell off all my mined coins and wait to buy back in at <$2.50.

[ineededausername]

I'm with mjcmurfy... these >$4 prices are frankly shocking to me and it means that I now am mining at a substantial profit rather than just barely covering power. I don't see them staying this high for long, but in the meantime I'll happily sell off all my mined coins and wait to buy back in at <$2.50.

Keep waiting, buddy.   

[cypherdoc]

can everyone see that massive $236,000 @ $3.90?

soon that is going to tumble over to the right and crush all the asks. they are getting impatient.

And what about the invisible 200,000 bitcoins that have been mined over the past couple of months but not yet made it onto the exchanges? They could be insane bulls, I'll grant you, but I am of the opinion that they are being greedy.

i am an insane bull but i am not greedy.  i will sell when the time comes at MUCH higher prices.

[notme]

That couldn't have been one trade, there was price fluctuation as the 7k went thru the pipes.

+1

I saw at least 1k BTC worth the sells during that ramp.

that makes no sense.  if you have thousands of Bitcoins, why aren't you selling to all the ppl who have complained here on the Forum of not being able to buy or cover short positions?

listen up shorts who are caught not being able to cover;  Zhou just said he has thousands of Bitcoins that he's not selling to you to allow you out of your shorts...

He isn't selling them because they are held by his users in positions.  It makes perfect sense.

[zhoutong]

LOL!  please think of a fix that will make everyone money.

Well, the best way for you to make money right now is to take advantage of the imminent long squeeze.

Why do you believe there will be a long squeeze?

IMO, it's the other way around:
-Because you can't buy BTC on Bitcoinica, anyone who wishes to buy BTC will need to buy them on on MtGox, leading to higher prices.
-Because you can't buy BTC on Bitcoinica, any bull with BTC will be LESS likely to sell because they can't re-buy them if they sell too low.


I don't see your logic.  If something is in short supply, its price goes up, not down.

Am I missing something?

no, you are not.  this prolonged rise in the market has placed Zhoutong in an untenable position IMO.  when you go long, he has to go short.  IMO he is caught in a massive short squeeze and is desperate to get you guys to either sell or go short to provide btc liquidity so he can cover his losing positions.  i think the dam has broken and his advice smacks of manipulation in the name of self preservation.

when are you guys going to learn?  problem after problem after problem keeps cropping up.  Bitcoinica is doomed.

Bitcoinica never trades against its customers. Price movements have almost no effect on my profits. However, our system couldn't process too many buy orders when our reserves were depleted. This has been fixed now because more people start selling.

I don't have to cover any losing positions. It's just a precautionary procedure to ensure that we don't have any losing positions when people are trading in one direction. Same thing can happen on the selling side too.

wow, how many contradictions lie within those statements and the ones before.  i would stop talking if i were you...

Sorry, it's only you with some terrible assumptions. I can't see any contradictions.

I'm always asking myself, could be cypherdoc never understands how Bitcoinica exactly works?

[smickles]

wow, how many contradictions lie within those statements and the ones before.  i would stop talking if i were you...

It seems to me that you are spreading FUD and coming to conclusions based on the fact that Z doesn't 'speak' perfect english.

[cypherdoc]

LOL!  please think of a fix that will make everyone money.

Well, the best way for you to make money right now is to take advantage of the imminent long squeeze.

Why do you believe there will be a long squeeze?

IMO, it's the other way around:
-Because you can't buy BTC on Bitcoinica, anyone who wishes to buy BTC will need to buy them on on MtGox, leading to higher prices.
-Because you can't buy BTC on Bitcoinica, any bull with BTC will be LESS likely to sell because they can't re-buy them if they sell too low.


I don't see your logic.  If something is in short supply, its price goes up, not down.

Am I missing something?

no, you are not.  this prolonged rise in the market has placed Zhoutong in an untenable position IMO.  when you go long, he has to go short.  IMO he is caught in a massive short squeeze and is desperate to get you guys to either sell or go short to provide btc liquidity so he can cover his losing positions.  i think the dam has broken and his advice smacks of manipulation in the name of self preservation.

when are you guys going to learn?  problem after problem after problem keeps cropping up.  Bitcoinica is doomed.

Bitcoinica never trades against its customers. Price movements have almost no effect on my profits. However, our system couldn't process too many buy orders when our reserves were depleted. This has been fixed now because more people start selling.

I don't have to cover any losing positions. It's just a precautionary procedure to ensure that we don't have any losing positions when people are trading in one direction. Same thing can happen on the selling side too.

wow, how many contradictions lie within those statements and the ones before.  i would stop talking if i were you...

Sorry, it's only you with some terrible assumptions. I can't see any contradictions.

I'm always asking myself, could be cypherdoc never understands how Bitcoinica exactly works?

but i am observant.  and i see problem after problem after problem.

[cypherdoc]

wow, how many contradictions lie within those statements and the ones before.  i would stop talking if i were you...

It seems to me that you are spreading FUD and coming to conclusions based on the fact that Z doesn't 'speak' perfect english.

i think his English is excellent and there can be no confusion as to his terms.  they just contradict themselves.

[zhoutong]

LOL!  please think of a fix that will make everyone money.

Well, the best way for you to make money right now is to take advantage of the imminent long squeeze.

Why do you believe there will be a long squeeze?

IMO, it's the other way around:
-Because you can't buy BTC on Bitcoinica, anyone who wishes to buy BTC will need to buy them on on MtGox, leading to higher prices.
-Because you can't buy BTC on Bitcoinica, any bull with BTC will be LESS likely to sell because they can't re-buy them if they sell too low.


I don't see your logic.  If something is in short supply, its price goes up, not down.

Am I missing something?

no, you are not.  this prolonged rise in the market has placed Zhoutong in an untenable position IMO.  when you go long, he has to go short.  IMO he is caught in a massive short squeeze and is desperate to get you guys to either sell or go short to provide btc liquidity so he can cover his losing positions.  i think the dam has broken and his advice smacks of manipulation in the name of self preservation.

when are you guys going to learn?  problem after problem after problem keeps cropping up.  Bitcoinica is doomed.

Bitcoinica never trades against its customers. Price movements have almost no effect on my profits. However, our system couldn't process too many buy orders when our reserves were depleted. This has been fixed now because more people start selling.

I don't have to cover any losing positions. It's just a precautionary procedure to ensure that we don't have any losing positions when people are trading in one direction. Same thing can happen on the selling side too.

wow, how many contradictions lie within those statements and the ones before.  i would stop talking if i were you...

Sorry, it's only you with some terrible assumptions. I can't see any contradictions.

I'm always asking myself, could be cypherdoc never understands how Bitcoinica exactly works?

but i am observant.  and i see problem after problem after problem.

Care to point out?

[cypherdoc]

sure.  you have thousands of bitcoins on hand but you won't sell them or allow ppl to cover b/c you THINK there are too many long positions?  LOL.