So Mt. Gox has frozen USD withdrawals for 2 weeks and this has caused a great Arb opportunity. You see, people with lots of USD on Mt. Gox are afraid they will lose their USD cash and are buying bitcoins there at any price, transfering them to bitstamp (and to a lesser extent the other exhanges) and selling them on bitstamp at a 10%+ discount to Mt. Gox prices.
How to take advantage? Well, Mt. Gox still allowing withdrawals in other currencies (EUR) and it will allow USD withdrawals again in only 2 weeks. So wire money to Bitstamp, by BTC at 99 USD, transfer BTC to Mt. Gox, then sell at 111.5 USD (or the euro equivalent). Now you just made a $11.5 USD profit per bitcoin which is 12.5%. Take out 1% in trading fees and that is 11.5%. 11.5% profit and all you have to do is not have access to your USD for 2 weeks? Pretty good return on investment!
How to take advantage? Well, Mt. Gox still allowing withdrawals in other currencies (EUR) and it will allow USD withdrawals again in only 2 weeks. So wire money to Bitstamp, by BTC at 99 USD, transfer BTC to Mt. Gox, then sell at 111.5 USD (or the euro equivalent). Now you just made a $11.5 USD profit per bitcoin which is 12.5%. Take out 1% in trading fees and that is 11.5%. 11.5% profit and all you have to do is not have access to your USD for 2 weeks? Pretty good return on investment!
By the time the money wire to bitstamp has been done, Bitstamp will probably be back to GOX rates.
A big drop at Bitstamp for sure (down to $90 or something), and a great opportunity to buy < $100, but only for people with some cash at Bitstamp at that time.Not now, and certainly not when a wire transfer is complete.
