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Photographer
R A V E N D R I V E
Posts: 15,867
New York, New York, US


edit: 3/28 damn bitcoin prices have shot up! I bought a bitcoin mining computer with my profits.

====
Hey guys I bought some bitcoins when they were $34 dollars each and my account balance has already doubled! I was hoping to be able to pick some up at lower prices but with European governments trying to confiscate people's bank deposits, a lot of people are looking for something more decentralized! Not illiquid like gold.

I am keeping a small amount of bitcoins, but I sold most of my bitcoins for $60 each, and bought a bunch of litecoins and will use the rest of the cash for some hardware to mine more coins!

so now I have bitcoins, litecoins and cash.

The US Treasury released a memo about their limited regulation of cryptocurrencies on March 18th.

so that's exciting.
Mar 20 13 06:30 am  Link  Quote 
Photographer
ArtisticPhotography
Posts: 7,698
Buffalo, New York, US


I wouldn't go too heavy into it.

If it takes off, the government will regulate it.

If it stays as planned, someone will figure a way to manipulate it because it isn't very large.

If it dies, you're out of luck.

However, it seems like a good way for geeks to buy pizzas.

Good luck with it.
Mar 20 13 06:43 am  Link  Quote 
Photographer
Andialu
Posts: 14,029
San Pedro, California, US


I'll trade you my $500 of property based cash for your bitcoin.

http://www.worldofmonopoly.com/fansite/images/money/monopoly_money_500.jpg
Mar 20 13 06:43 am  Link  Quote 
Photographer
R A V E N D R I V E
Posts: 15,867
New York, New York, US


ArtisticPhotography wrote:
I wouldn't go too heavy into it.

If it takes off, the government will regulate it.

If it stays as planned, someone will figure a way to manipulate it because it isn't very large.

If it dies, you're out of luck.

However, it seems like a good way for geeks to buy pizzas.

Good luck with it.

thanks, I'm not an investor in anything. Just a trader, speculator, arbitrageur.

actively working with multiple parties to find a way to short bitcoin, haha, so naturally, I want it to fail at limited times

I really like how much arbitrage there can be taken advantage of between exchanges! you can transfer coins between exchanges and accounts instantly, no settlement times

You are right about the government eventually going to regulate it. Currently it is a surprisingly convenient way to get money out of the financial system and obfuscated, and generally the Treasury doesn't like that. Bitcoins can be traced/followed but I realized that once I converted them to litecoins there isn't any to trace the origin (I bought litecoins from an exchange that I funded with bitcoins which were bought on another exchange with USD, no USD in the second account so therefore no KYC/AML regulations were needed to open the second account)

I also don't pay an electric bill so I should set up some machines to mine more coins.

Mar 20 13 06:44 am  Link  Quote 
Photographer
John M Hoyt
Posts: 344
Greenville, South Carolina, US


Okay, so I have converted my entire retirement to BTC, which has gone from 5 dollars when I started, to 60.

Shame my retirement was only 0.0000000 BTC when I started.
Mar 21 13 09:16 pm  Link  Quote 
Photographer
Instinct Images
Posts: 22,321
San Diego, California, US


Looks like the government might step in to regulate it:

http://www.newscientist.com/article/mg2 … -high.html
Mar 26 13 07:47 pm  Link  Quote 
Photographer
R A V E N D R I V E
Posts: 15,867
New York, New York, US


Instinct Images wrote:
Looks like the government might step in to regulate it:

http://www.newscientist.com/article/mg2 … -high.html

This is what I said in my original post:

R A V E N D R I V E wrote:
The US Treasury released a memo about their limited regulation of cryptocurrencies on March 18th.

so that's exciting.

welcome to the party though! My cryptocurrency holdings are doing quite well, and am actively seeking a way to hedge these speculations so I can profit better while their price declines at some point in the future.

Mar 26 13 08:11 pm  Link  Quote 
Photographer
R A V E N D R I V E
Posts: 15,867
New York, New York, US


Bitcoins are $90 now! (flight to liquidity in europe since the governments there have been colluding to freeze bank accounts and seize assets)

I am spending all my bitcoins and bitcoin profits to buy some mining hardware tomorrow! I will probably be mining other cryptocurrencies besides bitcoins but yay new computers, LOTS OF GRAPHICS CARDS

the electricity costs are negligible for me, so I'm lucky!
Mar 28 13 07:43 pm  Link  Quote 
Photographer
R A V E N D R I V E
Posts: 15,867
New York, New York, US


I GOT MY BITCOIN MINING MACHINE SET UP

woohoo, this thing is a beast. over two dozen graphics cards in it.
Mar 31 13 11:14 am  Link  Quote 
Photographer
Stephen Dawson
Posts: 29,230
Toronto, Ontario, Canada


I find the bitcoin thing interesting.

But I also consider the possibility that it could end up like on ponzi scheme.

Government will go after it, because it offers a way to launder money, and avoid blockades on countries like Iran.

But its decentralised design has a goal of being impossible to regulate.

Interesting.
Mar 31 13 11:41 am  Link  Quote 
Photographer
Digitoxin
Posts: 13,308
Houston, Texas, US


So bitcoins have nearly doubled in value against the US Dollar?  How is that exchange rate determined?  And what arbitrage opportunities exist in conversion to other currencies?  Say, bitcoins to yen to dollars?
Mar 31 13 01:17 pm  Link  Quote 
Photographer
R A V E N D R I V E
Posts: 15,867
New York, New York, US


Digitoxin wrote:
So bitcoins have nearly doubled in value against the US Dollar?  How is that exchange rate determined?  And what arbitrage opportunities exist in conversion to other currencies?  Say, bitcoins to yen to dollars?

LOTS OF ARBITRAGE OPPORTUNITIES EXIST, mainly between the exchanges. The order books are pretty liquid but one exchange can have a 6% difference in price from another exchange. (the reason being that all CASH deposit methods on that exchange incur a fee, like 2% or whatever like all credit card transactions, so you can buy coins there cheaper and sell them on another exchange for more)

Everyone knows this too (as in, its not a secret that a few arbitrageurs are trying to keep secret) but it hasn't equalized and won't until all the exchanges have free cash deposit methods.

Right now, you could do this with all your capital like 1 a day, or 1 every 2 days, since it involves getting the cash out of the exchange to send it back to the first exchange again.

Mar 31 13 03:59 pm  Link  Quote 
Photographer
R A V E N D R I V E
Posts: 15,867
New York, New York, US


Stephen Dawson wrote:
I find the bitcoin thing interesting.

But I also consider the possibility that it could end up like on ponzi scheme.

Government will go after it, because it offers a way to launder money, and avoid blockades on countries like Iran.

But its decentralised design has a goal of being impossible to regulate.

Interesting.

there are real risk factors that exist. thats why I wish a bitcoin ETF would come out, just because their 10-Q would like all the RELEVANT risk factors

macroeconomic risk, interest rate risk, exchange rate risk, political risk


Mining with special hardware is a ponzi scheme. Specialized computers are coming out just to mine bitcoin, if you actually had one in your hand right now, you could be making thousands of USD a week, but by the time they actually ship everyone will have them and the amount of processing power to actually generate a bitcoin will have gone up accordingly. Making your investment in mining hardware pointless. Enriching the producer of the hardware though.

Mar 31 13 04:00 pm  Link  Quote 
Photographer
Lawrence Guy
Posts: 17,584
LAKE PEEKSKILL, New York, US


R A V E N D R I V E wrote:
LOTS OF ARBITRAGE OPPORTUNITIES EXIST, mainly between the exchanges. The order books are pretty liquid but one exchange can have a 6% difference in price from another exchange. (the reason being that all CASH deposit methods on that exchange incur a fee, like 2% or whatever like all credit card transactions, so you can buy coins there cheaper and sell them on another exchange for more)

Everyone knows this too (as in, its not a secret that a few arbitrageurs are trying to keep secret) but it hasn't equalized and won't until all the exchanges have free cash deposit methods.

Right now, you could do this with all your capital like 1 a day, or 1 every 2 days, since it involves getting the cash out of the exchange to send it back to the first exchange again.

I wrote a bitcoin arbitrage system in a day and a half. Problem was moving the money between exchanges, what with the fees and the daily limits. That, and trusting the people who run these things. Have you LOOKED at the "About Us" page of bitinstant??? No fucking way I'm going to hand my money to those guys.

Mar 31 13 04:10 pm  Link  Quote 
Photographer
R A V E N D R I V E
Posts: 15,867
New York, New York, US


Lawrence Guy wrote:

I wrote a bitcoin arbitrage system in a day and a half. Problem was moving the money between exchanges, what with the fees and the daily limits. That, and trusting the people who run these things. Have you LOOKED at the "About Us" page of bitinstant??? No fucking way I'm going to hand my money to those guys.

lmao

yep thats the problem

you can do OK Pay -> btc-e for a 2% fee,  and then buy bitcoins. bitcoins -> mtgox wallet and sell bitcoins for higher.

then sit on your hands and wait. limited to $10,000 withdrawal in a month = fail.

Mar 31 13 04:59 pm  Link  Quote 
Photographer
Stephen Dawson
Posts: 29,230
Toronto, Ontario, Canada


I just watched a BBC story on Bitcoin.

It is certainly getting attention.

It has already attracted the attention of hackers and governments.

Governments will go after the interface points. Where you put money in, or get money out.
Mar 31 13 05:25 pm  Link  Quote 
Photographer
R A V E N D R I V E
Posts: 15,867
New York, New York, US


Stephen Dawson wrote:
I just watched a BBC story on Bitcoin.

It is certainly getting attention.

It has already attracted the attention of hackers and governments.

Governments will go after the interface points. Where you put money in, or get money out.

yep yep. so lets consider the US one of the more restrictive regimes for reporting requirements, there are already is an exchange (mt gox subsidiary) that is going to be regulated by (I believe) fdic for deposits, fincen money transmitter, and simply offer the perk of being able to buy and sell bitcoin.

I asked them about futures but they didn't want to have to deal with the SROs, Finra, and CFTC

but one step closer to wall street. (I really want a vanguard etf with options contracts)

Mar 31 13 05:42 pm  Link  Quote 
Photographer
R A V E N D R I V E
Posts: 15,867
New York, New York, US


wow, these crypto currencies are appreciating in value quickly. at this rate my new mining hardware will pay for itself!
Apr 01 13 07:41 am  Link  Quote 
Photographer
Digitoxin
Posts: 13,308
Houston, Texas, US


R A V E N D R I V E wrote:

LOTS OF ARBITRAGE OPPORTUNITIES EXIST, mainly between the exchanges. The order books are pretty liquid but one exchange can have a 6% difference in price from another exchange. (the reason being that all CASH deposit methods on that exchange incur a fee, like 2% or whatever like all credit card transactions, so you can buy coins there cheaper and sell them on another exchange for more)

Everyone knows this too (as in, its not a secret that a few arbitrageurs are trying to keep secret) but it hasn't equalized and won't until all the exchanges have free cash deposit methods.

Right now, you could do this with all your capital like 1 a day, or 1 every 2 days, since it involves getting the cash out of the exchange to send it back to the first exchange again.

And there in lies the problem.... If this was a transparent market with near-perfect information in the market, there would be only vanishingly small opportunity for arbitrage.  The whole thing tastes like EMUs to me at the moment.

Apr 01 13 09:09 am  Link  Quote 
Photographer
R A V E N D R I V E
Posts: 15,867
New York, New York, US


Digitoxin wrote:
And there in lies the problem.... If this was a transparent market with near-perfect information in the market, there would be only vanishingly small opportunity for arbitrage.  The whole thing tastes like EMUs to me at the moment.

The participants on the exchange in question simply priced in the CASH deposit fees. Their payment processor takes this and it is very transparent, it would be the same if they used any credit card processor whether it was paypal, authorize.net, square, google checkout....

You arent getting that this only effects users wishing to deposit and withdraw with cash, people that are liquid in cryptocurrencies can take advantage of this because they do not buy and sell cryptocurrencies for dollars on THAT exchange, therefore never effecting the orderbook on that exchange. You can generate litecoins, transfer them to that exchange, buy bitcoins on that exchange with ur litecoins. Transfer your bitcoins to another exchange, sell them for cash at a premium. The arbitrage to USD persists because there are other currency pairs.

As soon as that exchange has equally as convenient and free cash deposit and withdrawal methods that one exchange will stabilize in price

Apr 01 13 04:16 pm  Link  Quote 
Photographer
R A V E N D R I V E
Posts: 15,867
New York, New York, US


so I shorted bitcoin throughout the bubble and made triple.

anarchists and small-cap investors are stupid traders, so now I have their coins.
Apr 13 13 06:06 pm  Link  Quote 
Photographer
Kofi Hamilton Film
Posts: 7
London, England, United Kingdom


May 28 13 09:36 am  Link  Quote 
Photographer
Kofi Hamilton Film
Posts: 7
London, England, United Kingdom


BITCOIN is a real concept based on a GOLD STANDARD!!...

We need a NEW gold standard to get the Global economy going again and i believe BITCOIN is just the start of the coming Gold standard!

Im all in with Bitcoin ........
May 28 13 09:47 am  Link  Quote 
Photographer
Digitoxin
Posts: 13,308
Houston, Texas, US


Kofi Hamilton Film wrote:
BITCOIN is a real concept based on a GOLD STANDARD!!..........the US Dollar is being hyper-inflated as we speak and is only worth 2% (or 2 cents) of its original worth!

We need a NEW gold standard to get the Global economy going again and i believe BITCOIN is just the start of the coming Gold standard!

Im all in with Bitcoin just like im in with Gold (Metal)

Emus or tulips.  Take your pick.

May 28 13 07:04 pm  Link  Quote 
Photographer
Farenell Photography
Posts: 17,576
Albany, New York, US


R A V E N D R I V E wrote:
so now I have bitcoins, litecoins and cash.

The US Treasury released a memo about their limited regulation of cryptocurrencies on March 18th.

so that's exciting.

Bitcoin may have won that round but if this Washington Post article:

http://www.washingtonpost.com/business/ … story.html

...is any indication. They'll be drawing further federal scrutiny from their money laundering operations.

May 28 13 07:10 pm  Link  Quote 
Photographer
Michael Bots
Posts: 5,179
Kingston, Ontario, Canada


They don't want the competition.

Liberty Reserve Founder Arrested, Site Shuttered
http://krebsonsecurity.com/2013/05/repo … shuttered/

Founder  "of Liberty Reserve, a digital currency" was  "arrested in Spain this week on suspicion of money laundering. News of the law enforcement action may help explain an ongoing three-day outage at libertyreserve.com: On Friday, the domain registration records for that site and for several other digital currency exchanges began pointing to Shadowserver.org,"

"On Friday, the domain name servers for Libertyreserve.com were changed and pointed to ns1.sinkhole.shadowserver.org and ns2.sinkhole.shadowserver.org."

"In computer security lexicon, a sinkhole is basically a way of redirecting malicious Internet traffic so that it can be captured and analyzed by experts and/or law enforcement officials."

"Libertyreserve.com is not the only virtual currency exchange that has been redirected to Shadowserver’s DNS servers. According to passive DNS data collected by the ISC, at least five digital currency exchanges –milenia-finance.com, asianagold.com, exchangezone.com, moneycentralmarket.com and swiftexchanger.com – also went offline this week, their DNS records changed to the same sinkhole entries at shadowserver.org."

---------------------------------------------------------------------------------------------------------------------------------------------------------

How things really work - example.

http://blogs.forbes.com/people/karenhudes2/

----------------------------------------------------------------------------------------------------------------------------------------------------------
Swiss strike deal with US over tax evasion
http://www.france24.com/en/20130529-swi … ax-evasion

"Switzerland has accepted a United States demand to settle a dispute over the alleged complicity of Swiss banks in tax evasion by Americans, Finance Minister Eveline Widmer-Schlumpf announced Wednesday."

"This is both a good and a practical solution,"
"the Swiss government had been presented with a take it or leave it offer by Washington.
"It was a unilateral offer, one that we couldn't negotiate," she said."
May 29 13 08:48 am  Link  Quote 
Photographer
Kofi Hamilton Film
Posts: 7
London, England, United Kingdom


Digitoxin wrote:

Emus or tulips.  Take your pick.

I pick GOLD and other precious metals!!....LOL!

May 29 13 09:00 am  Link  Quote 
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