One question about VeriBit:
If the markets starts to crash, and ppl will liquidate vrc to btc through the veribit, will the btc buffer take market depth into account or can i get a better price of my VRC via veribit in a fast declining market? That would make the buffer bleed.
Edit:
Thinking of this some more. If we have a crashing market, veribit makes it even easier for users to dump VRC directly from wallet and you will probably get a better price than transferring to exchange, waiting for confirmation and trading.
This would accelerate the crash and bleed out the veribit buffer.
Anyone?
To add to this:
If i think price is falling, i can open up a veribit address for my mintpal btc deposit address and wait. If price drops, i can sell my vrc for the price 15 minutes ago and buy back lower. If it doesn't, i can just cancel the transaction.
Or have I misunderstood? Looks like bear market trading without risk. Of course it will consume the btc buffer in veribit
My friend just mentioned this to me, and yes you can do this over and over risk free. You could even create a bot to do this and grab money on every drop. Open multiple instances at a time to maximize profits.
The moment this happens, the buffer goes up from 2 VRC to make it unprofitable until a solution is found. You all really don't troll well.
As with everything new, its being done on a small scale to weed out shitheads like you who take advantage of a good thing.
Actually, actions of you and people like you help strengthen and motivate teams like VeriCoin to progress and make them more secure.
So troll away, an issue of today, is a solution of tomorrow.
You are getting mad because the designers didn't think far enough ahead to prevent obvious problems, this isn't an issue of trolls its an issue of bad design. If the price is raised to 2 VRC you just modify the bot to look for larger margins. If the solution is to continue to raise the fee then to what end, the feature becomes pointless because its unsustainable?
This is hacking not trolling, looking at how systems work and seeing how they can break. If they can't stand up to scrutinity then the system isn't good. This is why most good code is written in the open, unlike much of vericoins features which are closed source rush jobs.
Okay, so. To make this work, you need to BUY the VeriCoin, to make it drop in price?
Your logic in this is awesome. I am sure more brilliant minds like you are jumping in to Buy VeriCoin, to sell it in hopes of making a few % when they get it to crash?
Am I missing something? How is this intelligent in your eyes?
The intention is not the make the price drop, the intention is to have risk free arbitrage.
For example:
You could constantly initiate say 5 1 BTC veribit trades. Save the prices of each trade and set a timer on them.
-- Initiates 5 trades where the value is 2200 per bitcoin
Over 14 minutes, check the prices on the markets using their API and compare the price differences.
IF -- Price drops significantly, so the new value is 3200 per bitcoin.
If the price fluctuates downward within the timeframe, we send the VRC we hold to veribit. Collect our 5 BTC, making a total of 5000 VRC.
ELSE IF -- Price doesn't drop
We let the trades lapse.
Doing this enough times could equate to a large amount of money with zero risk. If they raise the cost of the conversions, you just adjust the range which you would buy the bitcoins. You could even thread this process so you are doing it constantly. If it goes up you win, if it goes down you win. You are basically forcing the developers who didn't think enough about this feature to eat your losses.
I can write a simple golang script that does this about an hour, I could make a really refined one in a night.
