Bitcoinica has paid out the first day's interest!

[zhoutong]

Check your Account Ledger for your first interest payment! Now both USD and BTC have noticeable interest rates.

[finway]

If i took this interests,
does that mean you can use my coins ?

 

[Spekulatius]

You fucking genius, I lift my hat to you! You really got it figured out. I just hope the men in black won't close your ass down before you get all licensed (if so, ill make a good buck on that terror news).

Good luck,
Spekulatius

[rebuilder]

So you're paying around 0.0615% interest.. daily?

edit: this on USD

[RandyMarsh]

I thought the max daily pip was 5.0?

[molecular]

So you're paying around 0.0615% interest.. daily?

edit: this on USD

awesome!

That's about 25% yearly roi. almost as good as shares in MergedMining (38%), JLP-BMD, or FPGA.contract (30%) on http://glbse.com (ROIs calculated on current market prices).

I wonder which investment has lower risk associated.

[chsados]

i dont get this..

i can deposit btc or usd and bitcoinica gives me interest?  what risks are involved?

[molecular]

i dont get this..

i can deposit btc or usd and bitcoinica gives me interest?  what risks are involved?

oh, not much risk really, just the usual risk involved with trusting a random stranger on the interwebs which you should be accustomed to by now as a serious bitcoiner. (disclaimer: don't take too serious)

[Cluster2k]

i dont get this..

i can deposit btc or usd and bitcoinica gives me interest?  what risks are involved?

+1.  USD interest rates are way above anything anyone could get anywhere in the world (without the risk of losing your money).  

What's to stop someone depositing $10k, never trading and collecting 8%pa?  High reward = high risk.  No ifs, no buts.

[da2ce7]

+1.  USD interest rates are way above anything anyone could get anywhere in the world (without the risk of losing your money). 

What's to stop someone depositing $10k, never trading and collecting 8%pa?  High reward = high risk.  No ifs, no buts.

as the exchange gets more liquid the rates go down...

Swaps mean that those buying bitcoin or USD on leverage pay the interest to those providing the liquidity.

What will happen in the future is that the starfish will never exist again as those trying to buy new long (or short in a bare market) positions will be facing extremely high swap costs.  (meaning there is a huge intensive for people to provide more liquidly to to fund those positions).

It is really win-win for everyone

[da2ce7]

(meaning there is a huge intensive for people to provide more liquidly to to fund those positions).

This could be a great way to attract new $$$ into the bitcoin economy...  above market rate interest rates

[chsados]

+1.  USD interest rates are way above anything anyone could get anywhere in the world (without the risk of losing your money).  

What's to stop someone depositing $10k, never trading and collecting 8%pa?  High reward = high risk.  No ifs, no buts.

as the exchange gets more liquid the rates go down...

Swaps mean that those buying bitcoin or USD on leverage pay the interest to those providing the liquidity.

What will happen in the future is that the starfish will never exist again as those trying to buy new long (or short in a bare market) positions will be facing extremely high swap costs.  (meaning there is a huge intensive for people to provide more liquidly to to fund those positions).

It is really win-win for everyone

it just seems...too good to be true!  ive been warry of bitcoinica from the start, not in terms of shady practices but i just dont understand margin trading.  this seems like something that i would benefit from....seems like an un-shade-ified version of bitscalper.

is it as simple as just depositing some money or do i need to do something special....i guess its time for me to register an account there and look around.

EDIT:



is anyone willing to explain what the above informs us? does this mean I have to deposit money and essentially try to predict a direction (long/short), this must be wrong because its essentially the same thing as margin trading...what am i missing?

i see zhoutong slowly bringing some really exciting things.  if he does indeed start his own exchange he could potentially allow people to gain interest with their zhoutexchangeUSD credits

[M4v3R]

The first two paragraphs in there explain the situation when you have no positions and some balance deposited in Bitcoinica. Considering figures from the screenshot you get 0.64% yearly for your BTC balance and 8.45% yearly for your USD balance

[muyuu]

I guess someone gets "sacrificed" to Zhoutong every now and then to finance that 

[M4v3R]

I guess someone gets "sacrificed" to Zhoutong every now and then to finance that  

No. As zhoutong explained somewhere else this gets financed by people who are charged for their positions. For example, right now people who are long are being charged to get the funds for paying up the interest rates. It's not much, but it adds up pretty well I guess.

[muyuu]

I guess someone gets "sacrificed" to Zhoutong every now and then to finance that  

No. As zhoutong explained somewhere else this gets financed by people who are charged for their positions. For example, right now people who are long are being charged to get the funds for paying up the interest rates. It's not much, but it adds up pretty well I guess.

Duh. It was a joke.

Thanks for the info anyway.

[RandyMarsh]

Here's the official thread: https://bitcointalk.org/index.php?topic=63694.0

I hope Z addresses all these questions, because quite frankly we're all confused about this

[zhoutong]

+1.  USD interest rates are way above anything anyone could get anywhere in the world (without the risk of losing your money).  

What's to stop someone depositing $10k, never trading and collecting 8%pa?  High reward = high risk.  No ifs, no buts.

as the exchange gets more liquid the rates go down...

Swaps mean that those buying bitcoin or USD on leverage pay the interest to those providing the liquidity.

What will happen in the future is that the starfish will never exist again as those trying to buy new long (or short in a bare market) positions will be facing extremely high swap costs.  (meaning there is a huge intensive for people to provide more liquidly to to fund those positions).

It is really win-win for everyone

it just seems...too good to be true!  ive been warry of bitcoinica from the start, not in terms of shady practices but i just dont understand margin trading.  this seems like something that i would benefit from....seems like an un-shade-ified version of bitscalper.

is it as simple as just depositing some money or do i need to do something special....i guess its time for me to register an account there and look around.

EDIT:



is anyone willing to explain what the above informs us? does this mean I have to deposit money and essentially try to predict a direction (long/short), this must be wrong because its essentially the same thing as margin trading...what am i missing?

i see zhoutong slowly bringing some really exciting things.  if he does indeed start his own exchange he could potentially allow people to gain interest with their zhoutexchangeUSD credits

You don't have to do anything to earn the interest. Just deposit money and hold.

(I'm not going to start an exchange for now. We will continue using Mt. Gox until a better exchange comes out.)

[zhoutong]

i dont get this..

i can deposit btc or usd and bitcoinica gives me interest?  what risks are involved?

There are no risk at all. We collect swaps from traders and distribute a (large) fraction of them to depositors through interest payments. This is not a ponzi scheme or any risky investment. It's similar to a money market fund. (In fact, Bitcoinica is the first ever Bitcoin money market.)

We have a notable history of running a large-scale trading system with high security and availability.

It's important to also know that the interest rate will go down if there are a lot of spare deposits, and we can't guarantee any interest rates. According to my experience and understanding of the system, realistically the long-term APY interest rates for USD should be between 3% - 8%. (But again, this is not a guarantee, just a personal opinion.)

[notme]

There are no risk at all.

False.  There is very little risk, IMHO, and I trust you with my money, but there is nothing with no risk.

I guess someone gets "sacrificed" to Zhoutong every now and then to finance that 

No. As zhoutong explained somewhere else this gets financed by people who are charged for their positions. For example, right now people who are long are being charged to get the funds for paying up the interest rates. It's not much, but it adds up pretty well I guess.

Duh. It was a joke.

Thanks for the info anyway.

Don't quit your day job, you suck at jokes.