bitcoinica swap/interest

[gewure]

...i don't get it. zhoutong, plz explain.

[Crypt_Current]

https://bitcointalk.org/index.php?topic=63694

[gewure]

...i don't get it. zhoutong, plz explain.

if bitcoinica needs USD will will receive money for selling BTC and if you are buying BTC you will pay a fee each hour you have that position= best thing is to short
if bitcoinica needs BTC you will recieve money for buying BTC and if you are selling BTC you will pay a fee each hour for having that position open= best thing if you go long


atm you get money if you short

lol. i am feeling kind of zhoutonged..

[gewure]

if you really want to get the price UP you need to support this because there are allot of funds frozen by long positions

if you did buy 10 000 BTC at 2USD bitcoinica needs to put aside 54 000 USD so you can close your position and if that 54k USD are available now someone can buy 10k BTC and move the price up

that is only true on the short term

[M4v3R]

...i don't get it. zhoutong, plz explain.

if bitcoinica needs USD will will receive money for selling BTC and if you are buying BTC you will pay a fee each hour you have that position= best thing is to short
if bitcoinica needs BTC you will recieve money for buying BTC and if you are selling BTC you will pay a fee each hour for having that position open= best thing if you go long


atm you get money if you short

lol. i am feeling kind of zhoutonged..

I'm not . I already got few swap dollars from my position .

[gewure]

that is only true on the short term

well yes but what do you know about long term ? a law can pop up and any banks that facilitate deals with "rogue/terrorist" currencies are fined then the price will go down like a rock

LOL. "rogue/terrorist" currency.

i sense euphoria on bear side.

[waspoza]

Dont you think guys it will become market indicator, kind like a starfish? Im not sure if this is good.

[zhoutong]

Dont you think guys it will become market indicator, kind like a starfish? Im not sure if this is good.

Interest rate is one of the most important fundamental indicators in forex market. Same thing will apply to Bitcoin market too.

When interest rate rises, there will be an upward pressure on the value of the currency.

However, this is not likely to have a significant effect now because the money market is very small, and Bitcoinica is the only guy that offers interests for Bitcoin deposits.

[waspoza]

Dont you think guys it will become market indicator, kind like a starfish? Im not sure if this is good.

Interest rate is one of the most important fundamental indicators in forex market. Same thing will apply to Bitcoin market too.

When interest rate rises, there will be an upward pressure on the value of the currency.

However, this is not likely to have a significant effect now because the money market is very small, and Bitcoinica is the only guy that offers interests for Bitcoin deposits.

Thanks for the info. I hope it wont have significant effect, unlike starfish which does have tremendous effect apparently.