Topic: How to fix bitcoin - page 2. (Read 10311 times)
HFT are forced to take out the bottom ask if you jump in the middle of their manipulation but a determined HFT can move the price up esp. in a thin mkt despite ppl dumping shares to them on the way up. Many folks believe they have been a major force in the last 2 yr ramp.
i'm beginning to wonder if the MtGox price is being manipulated as well. if i setup 2 different accts funded with USD and decide to bid up the price of pizza back and forth with each transactions $0.10 higher than the last, in a thin mkt like we have i could become the HFT of MtGox.
No one serious cares what the last price was they care about what offers are available now. Some joker playing with himself doesn't affect the top bid and bottom ask.
assuming you're a perfect stock picker and avoided the calamities of the previous teflon stocks like the investment banks.
i'm beginning to wonder if the MtGox price is being manipulated as well. if i setup 2 different accts funded with USD and decide to bid up the price of pizza back and forth with each transactions $0.10 higher than the last, in a thin mkt like we have i could become the HFT of MtGox.
IMHO, the best investment right now is shorting stocks.
nonsense it is best to be in 100% stocks at all times.
Especially Lehman, HIH, Onetel, Enron.
AAPL AZO NVR ... You buy companies with real earnings. Gold and silver good too.
not to mention CFC, DSL, WM, Wachovia, Bear Stearns, Merrill, Indy Mac, MBIA, Ambac, and how many others? Financials still in the toilet along with housing for how many years? Wait til the next plunge and we may be there right now on the precipice. the only reason for the recent 2 yr ramp is b/c of Ben and the liquidity pump and how sustainable is that?
as a holder of PM bullion, i'll argue that PM's have history behind them as well as a physicality. ppl like to touch and feel there money. also the hobo on the street can trade it as well as USD. these are the advantages of the current system. having said all that, i do see potential in Bitcoin but it has a long uphill battle to fight. Steelhouse is right, ultimately you need large merchants who will accept it. all this talk here about how bitcoin is already a currency is way too premature. i've looked at many of the transactions and they are way too small in value and volume to be conclusive. in fact, there is an attempt by the geek community to "prop" transactions and commerce to legitimize the bitcoin concept. not saying it to criticize, but it is what it is. its just way too early to tell.
I think I figured out the missing link in bitcoin. IMHO, bitcoin can be cornered and might already be. This is the method Bill Still said was used to steal 1/2 the homes west of the Mississippi in the 1800s. Support a high currency then crash it, take loans with it. Might even be used today in this housing market.
Say you privately back bitcoin at $1 per coin - all 21,000,000 of them. Suppose one you wake-up and the price is $1.25 you can sell 10000 and make $2500. One day the price will drop to $0.80 and the manipulator will buy til the price reaches $1. The manipulator might cause wide fluctuations in the price of bitcoin to create chaos to gain the most.
I think you should find a backer of this currency to publicly back it with a stable currency/commodity like aluminum and announce what the backing rate is. You can also use part of the transaction fees to create the worlds first appreciating currency.
"nonsense it is best to be in 100% stocks at all times."
hows that worked out over the last 10 yrs? 2 crashes of over 55% in the last decade. did you hold on during both plunges?
hows that worked out over the last 10 yrs? 2 crashes of over 55% in the last decade. did you hold on during both plunges?
IMHO, the best investment right now is shorting stocks.
nonsense it is best to be in 100% stocks at all times.
Especially Lehman, HIH, Onetel, Enron.
IMHO, the best investment right now is shorting stocks.
stocks, gold, silver, real estate are good to buy.
they want to force us all to default with another secondary deflationary wave and then take the underlying assets away and OWN America.
This makes no sense. If you're talking about foreclosure, then they already rightfully own those assets, but they cannot make a profit or brake even during a default. All assets not bought on credit will appreciate in value and cannot be bought more easily than before.Ultimately it's about the government deficit. Higher deficit = more inflation necessary.
The only alternatives are government default or bailout. Europe currently does a combination of both, but the bailout part will hit its limits if bigger countries like Spain or Italy need help. In the case of the US, it's practically impossible.
To the points raised about fiat and intrinsic value:
It's not hard to define. The intrinsic value is the (subjective) commodity value outside of being a medium for exchange. It's not necessary for this to be especially high, like in the case of gold. It just sets a lower limit for marketability.
If trading is done mainly electronically or with 100% backed paper, etc., golds advantages are reduced and it could be that another commodity will win out.
of course i'm not certain but one cannot fault the logic. i understand the inflation logic too but deflation makes more sense to me right now.
You are correct that I cannot fault the logic.
of course i'm not certain but one cannot fault the logic. i understand the inflation logic too but deflation makes more sense to me right now.
the Fed is clearly indicating a stoppage of QE and they've performed a couple of reverse repos in the mkt (selling assets which pulls liquidity).
I think that has more to do with the change in the political climate than any far reaching stragedy. BB probably drank himself stupid after learning that Ron Paul would be the new chairman of the house financial oversight board.
That doesn't mean that QE3 wouldn't happen in a heartbeat if the political winds changed.
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i think their goal is to keep the markets off balance. with everyone betting on inflation, they will do the opposite b/c the economy is in better shape and they can afford to. forget this one world currency theory; the Fed will NEVER give up their franchise of the USD hegemony.
This statement assumes that the FedReserve wouldn't functionally be in control of said one-world currency. Tell me, what countries dominate the UN?
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what do u think all the bankers wealth is denominated in? USD! are they just going to let Ben destroy that? plus inflating the debt away only saves the American ppl, whom they don't give a hoot about. they want to force us all to default with another secondary deflationary wave and then take the underlying assets away and OWN America. besides, if u don't buy the conspiracy theory, i can make an argument that its time for a reversal from an overbought standpoint as well as an uberbullish sentiment standpoint.
I'm not willing to contradict your conclusions, as I think that you might be right in the end; I'm just not quite as certain as you seem to be.
IMHO, the best investment right now is shorting stocks.
i'm watching the stock mkt in real time right now. i would caution everyone to look out. i think we may be topping. huge reversals in MANY stocks. Silver Wheaton making a big reversal. time to raise cash.
the Fed is clearly indicating a stoppage of QE and they've performed a couple of reverse repos in the mkt (selling assets which pulls liquidity). i think their goal is to keep the markets off balance. with everyone betting on inflation, they will do the opposite b/c the economy is in better shape and they can afford to. forget this one world currency theory; the Fed will NEVER give up their franchise of the USD hegemony. what do u think all the bankers wealth is denominated in? USD! are they just going to let Ben destroy that? plus inflating the debt away only saves the American ppl, whom they don't give a hoot about. they want to force us all to default with another secondary deflationary wave and then take the underlying assets away and OWN America. besides, if u don't buy the conspiracy theory, i can make an argument that its time for a reversal from an overbought standpoint as well as an uberbullish sentiment standpoint.
creighto: you're very much like me in what you've stocked. however, i believe in stock mkt cycles and we've way over reflated the last 2 yrs and its time for Ben to let alittle deflation in. you're starting to see it today i stocks. anything but USD cash is very risky right now.
Perhaps, but deflation requires a more deliberate act on the part of the Fed to invoke than inflation, because it's harder to mop up the water than to pour it out of the bucket.
No currency is useful without a functioning market, and that requires a civilization. Bulletts are a good idea, though, even if you don't own a gun. 22lr, 38special and 9mm are the best choices.
Existing currencies would of course be useless, but I think some form of currency would likely emerge even with only a handful of people. It's a pretty useful technology. To be fair, digital currencies have a disadvantage there (say, to gold), with the usual post-apocalyptic scenarios. However, this may actually change in the future, as eMansipater said. Maybe we will discover a low-energy way to communicate in large distances before this Armageddon. Millions of such solar powered handheld devices will be lying around... Then Bitcoin could be the best option.Search the forum for the term, "Dash7"
No currency is useful without a functioning market, and that requires a civilization. Bulletts are a good idea, though, even if you don't own a gun. 22lr, 38special and 9mm are the best choices.
Existing currencies would of course be useless, but I think some form of currency would likely emerge even with only a handful of people. It's a pretty useful technology. To be fair, digital currencies have a disadvantage there (say, to gold), with the usual post-apocalyptic scenarios. However, this may actually change in the future, as eMansipater said. Maybe we will discover a low-energy way to communicate in large distances before this Armageddon. Millions of such solar powered handheld devices will be lying around... Then Bitcoin could be the best option.Jump to: