If bitstamp goes down, then the price they use comes from their own internal exchange. This has lower volume than bitstamp (and thus is easier to manipulate). However, it isn't extremely low.
It mostly be a problem if bitstamp goes down (or has massive delays) and there is major (10%+) price swing.
Topic: Bitfinex (Read 2070 times)
They still need a backup exchange to connect to (they rely upon bitstamp - if it goes down they are in trouble) and are working on becoming official.
what would happen if bitstamp went down? are you talking temporarily or permanently or what?
They still need a backup exchange to connect to (they rely upon bitstamp - if it goes down they are in trouble) and are working on becoming official.
I guess you are implying it could be a scam. Well it definitely doesn't feel like one.
I'd say there are risks and they include
1) not being able to close positions in time. During the massive bubble Bitfinex lost its connection to MtGox (along with everyone else due to MtGox lag) - the website ate its losses. And they've made major changes to address this.
2) getting hacked.
3) regulation. They are working on getting registered in Hong Kong.
I'd say there are risks and they include
1) not being able to close positions in time. During the massive bubble Bitfinex lost its connection to MtGox (along with everyone else due to MtGox lag) - the website ate its losses. And they've made major changes to address this.
2) getting hacked.
3) regulation. They are working on getting registered in Hong Kong.
So what's the situation with them now? I took a look at their site but it seems to be in "beta" mode which means alot of the features of the platform have no documentation at all. Oh, the biggest risk of all is them closing down and walking away with peoples BTC and cash. Not that #1-#3 aren't issues but they aren't the biggest one.
I guess you are implying it could be a scam. Well it definitely doesn't feel like one.
I'd say there are risks and they include
1) not being able to close positions in time. During the massive bubble Bitfinex lost its connection to MtGox (along with everyone else due to MtGox lag) - the website ate its losses. And they've made major changes to address this.
2) getting hacked.
3) regulation. They are working on getting registered in Hong Kong.
I'd say there are risks and they include
1) not being able to close positions in time. During the massive bubble Bitfinex lost its connection to MtGox (along with everyone else due to MtGox lag) - the website ate its losses. And they've made major changes to address this.
2) getting hacked.
3) regulation. They are working on getting registered in Hong Kong.
Warning: Moderators do not remove likely scams. You must use your own brain: caveat emptor.
Bitfinex is currently offering 80% APR on BTC and 45% on USD. Your money is lent to speculators to take long or short positions.
Rates vary a lot based on demand. For instance, I've seen USD rates vary from 20% to 1000% (during the crazy bubble).
I'm a customer.
Rates vary a lot based on demand. For instance, I've seen USD rates vary from 20% to 1000% (during the crazy bubble).
I'm a customer.
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