The Dreaded Double **

[cypherdoc]

i think the attack on Bitcoinica has begun. 

this type of volatility can't be good for Zhou.  at least not for his customers who are being liquidated.  no players; no money.

why hasn't he come forward to tell us what's going on?

[Eveofwar]

What 'attack' ?

[ineededausername]

what a joke..

[ArsenShnurkov]

double ** is when bitcoinica cant connect to mtgox api

I think, that Z should provide clear indication of connection problems (date, time and resolution status)

Might be he should implement service level agreements with mtgox,
automated link testing on different levels of network model,
and so on

[zhoutong]

i think the attack on Bitcoinica has begun. 

this type of volatility can't be good for Zhou.  at least not for his customers who are being liquidated.  no players; no money.

why hasn't he come forward to tell us what's going on?

Nothing is going on. The system handles everything perfectly (including your spamming orders).

The asterisk is due to Mt. Gox API unstability, if you place order it still should get executed in 15 seconds AT MOST.

I wonder why anyone would associate market volatility with Bitcoinica system instability. Why can't we build something better than Mt. Gox?

[zhoutong]

double ** is when bitcoinica cant connect to mtgox api

I think, that Z should provide clear indication of connection problems (date, time and resolution status)

It's intermittent. Usually it doesn't last more than 15 seconds. You can just place orders and you will be fine.

[SlaveInDebt]

double ** is when bitcoinica cant connect to mtgox api

I think, that Z should provide clear indication of connection problems (date, time and resolution status)

As if anything will come of it.

double ** is when bitcoinica cant connect to mtgox api

I think, that Z should provide clear indication of connection problems (date, time and resolution status)

It's intermittent. Usually it doesn't last more than 15 seconds. You can just place orders and you will be fine.

Speak of the devil. Now burn GOX!

[cypherdoc]

What 'attack' ?

i put forward a hypothesis a few weeks ago about how some big players would try to exploit the deficiencies in the Bitcoinica model which i think have become more apparent today.

if you can create a lot of volatility and * events, i think it will cost Zhou money in the end since any acct losses cost him money.  for sure, it is costing his customers who are now starting to walk away. 

no players; no fees.

[SkRRJyTC]

15 seconds AT MOST.

The * has been on one side or the other EASILY 66% of the time over the LAST 2 DAYS.

[ArsenShnurkov]

Why can't we build something better than Mt. Gox?

We already done that - we use DarkExchange on I2P

[zhoutong]

15 seconds AT MOST.

The * has been on one side or the other EASILY 66% of the time over the LAST 2 DAYS.

That's because of reserve problems, not connection.

We're considering getting short-term loans when this is happening, but it will take a while before we solve the compliance problems.

[Eveofwar]

What 'attack' ?

i put forward a hypothesis a few weeks ago about how some big players would try to exploit the deficiencies in the Bitcoinica model which i think have become more apparent today.

if you can create a lot of volatility and * events, i think it will cost Zhou money in the end since any acct losses cost him money.  for sure, it is costing his customers who are now starting to walk away. 

no players; no fees.

Ah gotcha, thanks for the clarification.

Makes sense...force liquidations -> no new players =]

[N12]

for sure, it is costing his customers who are now starting to walk away. 

I would seriously hope they are.

Anyone leaving more than a bit of lunch money on Bitcoinica after all that’s happened is either filthy rich or insane.

I think I can now agree with you that Bitcoinica has harmed Bitcoin as a whole, and is continuing to do so. It’s turning this thing into a pyramid scheme.

[zhoutong]

Why can't we build something better than Mt. Gox?

We already done that - we use DarkExchange on I2P

I mean, OP assumes that Bitcoinica is a buggy system like Mt. Gox. And it's entirely possible that Bitcoinica hasn't been affected in this crash at all, systematically and financially.

[cypherdoc]

Why can't we build something better than Mt. Gox?

We already done that - we use DarkExchange on I2P

I mean, OP assumes that Bitcoinica is a buggy system like Mt. Gox. And it's entirely possible that Bitcoinica hasn't been affected in this crash at all, systematically and financially.

then why do u need the short term loans?

[zhoutong]

for sure, it is costing his customers who are now starting to walk away. 

I would seriously hope they are.

Anyone leaving more than a bit of lunch money on Bitcoinica after all that’s happened is either filthy rich or insane.

I think I can now agree with you that Bitcoinica has harmed Bitcoin as a whole, and is continuing to do so. It’s turning this thing into a pyramid scheme.

Our biggest clients who trade on 2.5:1 leverage have been fine.

We will re-consider our 5:1 and 10:1 options soon.

[cypherdoc]

for sure, it is costing his customers who are now starting to walk away.  

I would seriously hope they are.

Anyone leaving more than a bit of lunch money on Bitcoinica after all that’s happened is either filthy rich or insane.

I think I can now agree with you that Bitcoinica has harmed Bitcoin as a whole, and is continuing to do so. It’s turning this thing into a pyramid scheme.

Our biggest clients who trade on 2.5:1 leverage have been fine.

We will re-consider our 5:1 and 10:1 options soon.

i would hope so; for the sake of the community.

[zhoutong]

Why can't we build something better than Mt. Gox?

We already done that - we use DarkExchange on I2P

I mean, OP assumes that Bitcoinica is a buggy system like Mt. Gox. And it's entirely possible that Bitcoinica hasn't been affected in this crash at all, systematically and financially.

then why do u need the short term loans?

Because we don't have reserves for some heavily leveraged users. We are absolutely solvent throughout the crash, and we made some small profits from the huge volume.

This has nothing to do with the crash. We had the asterisk since two days ago.

[zhoutong]

bah and i was wondering when you go to 50:1 .....

When Bitcoin is at least $1000, I think 50:1 will be possible.

[SkRRJyTC]

15 seconds AT MOST.

The * has been on one side or the other EASILY 66% of the time over the LAST 2 DAYS.

That's because of reserve problems, not connection.

We're considering getting short-term loans when this is happening, but it will take a while before we solve the compliance problems.

Why do you have reserve problems?  Why are you not making tons of money?

Hearing plans for loans is good but they shouldnt be necessary.