The Dreaded Double **

[gtabmx]

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.

I'd rather the 5:1 option remain as I have been using it and have been very conservative with it and it has served me well. If people can't handle the leverage, then they deserve the loss. Don't penalize those (like me) who use leverage properly to take advantage of big dips or peaks and leave enough reserve to cover. 10:1 is crazy, but 5:1 is perfect for many.

-Mike

[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?

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.

so some of your heavily leveraged longs couldn't sell during the crash and some of your heavily leveraged shorts couldn't cover during the ramp?

[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.

bitcoin will never go there if users need a nanny when is money to be made there you will get big player to put the price up  at 50:1 u can shake things in a awesome way and also make money and money will bring in more players

If Bitcoin is $1000, it will be hard to "shake" things in terms of percentage. The volatility could be even less than gold's.

[barrymac]

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!

Seriously plug it into other exchanges, do it! MtGox architecture can't handle itself at all, it always craps out when things get volatile!

[Dutch Merganser]

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.

Ya think? Best post I've seen in a busy day. I made $0.03 today getting out of the way, good for me 

[ArsenShnurkov]

give I2p long url (was 512 bits no ?)

It's P2P client - https://github.com/macourtney/Dark-Exchange

[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.

so some of your heavily leveraged longs couldn't sell during the crash and some of your heavily leveraged shorts couldn't cover during the ramp?

Your memory stays two weeks ago. Anyone with a position can close it or reduce it. There's no such state as "all trading stops" on Bitcoinica, except when the site is down.

[Dutch Merganser]

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.

All the asterisks recently made me think Bitcoinica might be getting slammed back and forth a bit on limited reserves, perhaps pressuring its ability to hedge as well. Reducing the leverage available would lessen that effect, wouldn't it?

Also, just to hear it from you, was there a connectivity issue involved at some point in the last day or two? If so did that ever result in liquidations or not?

Perhaps your could start a thread with a sticky that addresses all these questions that seem to be around? I imagine you are getting a lot of this right now.

[cypherdoc]

Because we don't have reserves for some heavily leveraged users.