Here's the official thread: https://bitcointalksearch.org/topic/bitcoinicas-interest-system-63694
I hope Z addresses all these questions, because quite frankly we're all confused about this
Topic: Bitcoinica has paid out the first day's interest! - page 2. (Read 3775 times)
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.
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.
I guess someone gets "sacrificed" to Zhoutong every now and then to finance that
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
+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.
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
(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
+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.
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
i dont get this..
i can deposit btc or usd and bitcoinica gives me interest? what risks are involved?
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.
i dont get this..
i can deposit btc or usd and bitcoinica gives me interest? what risks are involved?
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)
i dont get this..
i can deposit btc or usd and bitcoinica gives me interest? what risks are involved?
i can deposit btc or usd and bitcoinica gives me interest? what risks are involved?
So you're paying around 0.0615% interest.. daily?
edit: this on USD
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.
I thought the max daily pip was 5.0?
So you're paying around 0.0615% interest.. daily?
edit: this on USD
edit: this on USD
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
Good luck,
Spekulatius
If i took this interests,
does that mean you can use my coins ?
does that mean you can use my coins ?
Check your Account Ledger for your first interest payment! Now both USD and BTC have noticeable interest rates.
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