Topic: Can attacks on exchanges drop the price of bitcoin? (Read 1254 times)
Headlines are all "BitWallet haxedd11!" and all the newbs who jumped in are just now finally getting to read their Yahoo articles to get their news on bitcoin, and they're getting scared. Too much fun.
Do you think wallstreet literally burning to the ground would affect stock prices?
You just made my day.Yes, of course exchange attacks fuck with price. Were you alive today by any chance?
The jump from that to a normative statement is meh.
Yes, last mtgox hack caused crash in 2k11.
It happened to Mt Gox in the past:
https://bitcointalksearch.org/topic/m.1702596
Yes, last mtgox hack caused crash in 2k11.
It happens almost weekly.
The key is that exchanges are just a convenience. But that convenience affects the price of Bitcoin by allowing people to easily move their money into Bitcoin.
When it was just people on an IRC channel trading, the price was much lower.
But as more exchanges pop up (which they can), the more decentralized things become.
I have said this before, Bitcoin is demonstrating why patents are not as necessary as one would think. If you come up with an idea early and execute it well, people will use your product or service. You will be able to grow your business and grow that trust. As others try to copy your idea or product, they are at a disadvantage of trying to compete where you already have the advantage. It is on them to come up with new ideas and better service to take away market share from you.
MtGox was out of the gate early and built that trust. It is on all other exchanges to prove themselves or offer something that MtGox does not offer (new ideas).
The key is that exchanges are just a convenience. But that convenience affects the price of Bitcoin by allowing people to easily move their money into Bitcoin.
When it was just people on an IRC channel trading, the price was much lower.
But as more exchanges pop up (which they can), the more decentralized things become.
I have said this before, Bitcoin is demonstrating why patents are not as necessary as one would think. If you come up with an idea early and execute it well, people will use your product or service. You will be able to grow your business and grow that trust. As others try to copy your idea or product, they are at a disadvantage of trying to compete where you already have the advantage. It is on them to come up with new ideas and better service to take away market share from you.
MtGox was out of the gate early and built that trust. It is on all other exchanges to prove themselves or offer something that MtGox does not offer (new ideas).
Absolutely, attacks on exchanges hurt the credibility of bitcoins and threaten their entire ecosystem to an extent.
If a hurricane went through NYC and the NYSE had to shut down it would certainly affect prices. Even hurricane sandy effected the prices of stocks negatively to an extent.
If a hurricane went through NYC and the NYSE had to shut down it would certainly affect prices. Even hurricane sandy effected the prices of stocks negatively to an extent.
Do you think wallstreet literally burning to the ground would affect stock prices?
If yes, should big exchanges like MtGox accept only big transactions from smaller exchanges?
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