Topic: Are MtGox withdrawls delayed to artificially keep the Bitcoin price high? - page 2. (Read 2388 times)
May 23, 2013, 04:25:13 AM
To make more profit
May 23, 2013, 04:21:55 AM
You only woke up today? Mtgox is overpricing bitcoins for weeks, communicating positive news to mislead investors...
Good Morning
Yes, I know that.
But I want to know the reason why.
May 23, 2013, 03:43:32 AM
You only woke up today? Mtgox is overpricing bitcoins for weeks, communicating positive news to mislead investors...
May 23, 2013, 03:40:06 AM
They care about bitcoin price as long as they are getting they fees in bitcoins. But they are worried more about trade volume than price. If the price would be $100000000 and one person would buy 1 satoshi then they wont get the same profit than thousands of people trading constantly for $100.
Aren't you a smartass (again)?
Volume ... that goes without saying.
It's hard for MtGox to get the volume up (they can't lower their fees much more, already sub 1%). But they can keep the price high.
Can we now please go back OT? Which is, in essence: ... Is this the reason why Bitcoin on MtGox is always between 5 and 10 percent higher compared to all the other exchanges (like btc-e, bitcoin.de, ...)?
May 23, 2013, 03:08:20 AM
They care about bitcoin price as long as they are getting they fees in bitcoins. But they are worried more about trade volume than price. If the price would be $100000000 and one person would buy 1 satoshi then they wont get the same profit than thousands of people trading constantly for $100.
May 23, 2013, 03:01:47 AM
So you are saying that if i have $1000 to buy bitcoins and bitcoin price is $1 (1000btc bought fee is 50btc=$50) then mtgox will get less fee than if price would be $100 per btc (10btc bought fee 0,5btc=$50)? You missed math lessons or what?
Aren't you a smartass?
Let me explain it very simple, so that even you have a chance to understand it.
This is the Bitcoin cake (aka market capitalization):
MtGox has a big, big piece of this cake (fees).
Now the task for you:
(1) How big do you think was this piece in June 2012 (when Bitcoin was at 5$)?
(2) How big do you think was this piece in April 2013 (when Bitcoin was at 250$)?
And now go tell me again: MtGox does not care about the Bitcoin price ...
May 23, 2013, 02:30:15 AM
So you are saying that if i have $1000 to buy bitcoins and bitcoin price is $1 (1000btc bought fee is 50btc=$50) then mtgox will get less fee than if price would be $100 per btc (10btc bought fee 0,5btc=$50)? You missed math lessons or what?
For a fixed volume he is correct.
Fact is, MtGox's fee schedule means you have to actively trade less and less volume in order to incur the same fees as the price rises.
May 23, 2013, 02:24:47 AM
So you are saying that if i have $1000 to buy bitcoins and bitcoin price is $1 (1000btc bought fee is 50btc=$50) then mtgox will get less fee than if price would be $100 per btc (10btc bought fee 0,5btc=$50)? You missed math lessons or what?
May 23, 2013, 02:05:45 AM
Three facts:
- Deposit of USD and EUR to a MtGox account works without any problems.
- Withdrawal of Bitcoins works without any problems.
- Withdrawal of USD or EUR is problematic (it takes several weeks). So all you can do is buy back your Bitcoins, transfer them to another exchange and sell them there.
So in essence all you can do at MtGox is the transformation of USD to Bitcoin. Which means MtGox is not really a free market (because they are backing up Bitcoin).
One way to keep prices high is to "artificially" slow down the outflow of USD/EUR/etc.
Is this the reason why Bitcoin on MtGox is always between 5 and 10 percent higher compared to all the other exchanges (like btc-e, bitcoin.de, ...)?
MtGox has a vested interest to keep Bitcoin prices up (higher price means more fees for them). Of course all the other exchanges have that interest too - but maybe they are not abusing their market power as shameless as MtGox does.
MtGox has 80 percent? 90 percent? of the Bitcoin cake. They can't generate more income with growth. But they can generate more income in making the price go up and up and up ...
- Deposit of USD and EUR to a MtGox account works without any problems.
- Withdrawal of Bitcoins works without any problems.
- Withdrawal of USD or EUR is problematic (it takes several weeks). So all you can do is buy back your Bitcoins, transfer them to another exchange and sell them there.
So in essence all you can do at MtGox is the transformation of USD to Bitcoin. Which means MtGox is not really a free market (because they are backing up Bitcoin).
One way to keep prices high is to "artificially" slow down the outflow of USD/EUR/etc.
Is this the reason why Bitcoin on MtGox is always between 5 and 10 percent higher compared to all the other exchanges (like btc-e, bitcoin.de, ...)?
MtGox has a vested interest to keep Bitcoin prices up (higher price means more fees for them). Of course all the other exchanges have that interest too - but maybe they are not abusing their market power as shameless as MtGox does.
MtGox has 80 percent? 90 percent? of the Bitcoin cake. They can't generate more income with growth. But they can generate more income in making the price go up and up and up ...
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