Topic: btc (Read 2817 times)

it is an inside job for sure or at least they are pretty confident to let one people hold their private key, still waiting for the full report on how it is compromised anyway

It was an inside job. No one is that sloppy.

There is this general belief that crypto exchanges make a lot of money...
Not the mid-level exchanges and not the regulated exchanges (farewell Cryptsy, Polo, Bittrex)...
If cavirtex closed down... then administrative/regulatory costs are fucking killing this space.

Actually, a Bitcoin ETF would be a game changer...
You could trade BTC from your brokerage account with professional grade Wall Street security...
And trade MUCH cheaper with shorting and rebates...
Soon that first ETF will be followed by a flood of speciality crypto ETFs... only the Top 20 alts will matter.

The days where you trade shit coin pumps on obscure exchanges are coming to an end, baby.

assuming they have 0 overhead, eg. everyone works for free and servers and rent, etc. all free.

They were doing ~700 BTC per day, at 0.5% trade commission so that is 3.5 BTC per day
-> ~2000 days which is over 5 years.

However, it would be unlikely they return to same volume of trade volume, especially since their customers now have 7000 BTC less to trade, so at most I would expect half the old trading volume. We are up to 10 years.

Now let us be realistic and say that maybe they would need to pay for servers, customer support but we can be optimistic and say it they can run at an 70% profit margin. This puts the estimate at 15 years.

James

and from only 1 wallet.  Either they are brain dead stupid, or setting up the big con from the start.  What other explanations are there?

I'd prefer to concentrate on the development of de-centralised/distributed exchanges, rather than rescuing centralised businesses.

Yes there are risks to investments, especially this, which would have to be negotiated, and mitigated by a BitShares paid delegate.  How much profit does BTER make in a year?  How many years worth of profits did they just lose?

1?   2?  0.5?

If they open up and start trading again, and the price of bitcoin rises, then maybe they did not lose that much in dollar terms.  The value of those 7000 BTC is much less than their value a year ago.

Still trading, but coin selection is limited to bitcoins, dollars, euros, Yuan, and liquidity injecting coin that pays a dividend that this proposed ICO coin would be modeled after.  This profit sharing contract would actually trade on the BitShares blockchain.  A delegate would be elected to hold one part of the multisig key for a portion of the BTC reserve of BTER.  Yes they need to be more like COinbase when it comes to securing their keys.
Yes, some who hold coins in BTER have paniced.  The bottom line is that BTER needs to be taught multisig technology.  It is ridiculous to put all your eggs in one basket (isn't that an ancient Chinese proverb?).  BitShares is designed to hire people to do tasks like this.  They have connections in China, and may be able to help BTER secure their capital with multisig tech going forward.  This is just a preliminary gauge of potential investor sentiment.

Agreed. I think the problem is we're all seeing the shrinking market cap and starting to get desperate for something to pull us out of the ashes