Wall Observer BTC/USD - Bitcoin price movement tracking & discussion - page 30412.

granathus

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Quote from: Bagatell on January 09, 2014, 02:48:38 PM

Quote from: granathus on January 09, 2014, 02:41:57 PM

Edit. So absolutely no gambling/playing ofcourse.

"Much as a bank like Goldman Sachs runs software to track price fluctuations as it juggles billions of dollars, Coinbase uses its hedging software to track all of the bitcoins it manages, deciding when to buy and sell bitcoins and adjust its exchange rate in an effort to minimize risk.

Goldman, where Coinbase’s Ehrsam previously worked, uses its software in an effort to make highly profitable trades, and Coinbase merely uses its system to protect its own position. But the inner-workings of the software are similar. “It’s algorithmic trading,” says Coinbase CEO Brian Armstrong. “It hedges that exchange rate risk in the background, every day.”

http://www.wired.com/business/2014/01/overstock-bitcoin-live/

Thanks for the more eloquent and precise explanation

N12

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Quote from: ft73 on January 09, 2014, 02:45:02 PM

Blitz, the frequency of your post is getting higher.
How long before the great dollar extraction?
I'm waiting eagerly to buy back in

Aternatively i'll wait for the bottom of this cup handle ...

At least on Emptygox, price action is actually pretty boring. Bitcoin has probably become stable now. Our job as speculators is done, price discovery complete for now and all eternity. Cheesy

Bagatell

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Quote from: granathus on January 09, 2014, 02:41:57 PM

Edit. So absolutely no gambling/playing ofcourse.

"Much as a bank like Goldman Sachs runs software to track price fluctuations as it juggles billions of dollars, Coinbase uses its hedging software to track all of the bitcoins it manages, deciding when to buy and sell bitcoins and adjust its exchange rate in an effort to minimize risk.

Goldman, where Coinbase’s Ehrsam previously worked, uses its software in an effort to make highly profitable trades, and Coinbase merely uses its system to protect its own position. But the inner-workings of the software are similar. “It’s algorithmic trading,” says Coinbase CEO Brian Armstrong. “It hedges that exchange rate risk in the background, every day.”

http://www.wired.com/business/2014/01/overstock-bitcoin-live/

MAbtc

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Quote from: ft73 on January 09, 2014, 02:47:29 PM

Quote from: MAbtc on January 09, 2014, 02:45:55 PM

No cup here.

No?

No. I see what you're seeing, though.

ft73

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Quote from: MAbtc on January 09, 2014, 02:45:55 PM

No cup here.

No?

MAbtc

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No cup here.

Adrian-x

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Quote from: N12 on January 09, 2014, 02:41:52 PM

Do you see how we all just spinned a major retailer accepting Bitcoin as negative news? This is the raw power of human emotion. Reality does not matter.

Make believe is everything.

Aside from the science of economics.
this I found bullish.

http://mobile.businessweek.com/articles/2014-01-09/bitcoin-mining-chips-gear-computing-groups-competition-heats-up

ft73

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Quote from: N12 on January 09, 2014, 02:41:52 PM

Do you see how we all just spinned a major retailer accepting Bitcoin as negative news? This is the raw power of human emotion. Reality does not matter.

Make believe is everything.

Blitz, the frequency of your post is getting higher.
How long before the great dollar extraction?
I'm waiting eagerly to buy back in

Aternatively i'll wait for the bottom of this cup handle ...

Walsoraj

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Activity: 686

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Ultranode

Unless they intend to hodl, major retailers accepting bitcoin is a bad sign (for bulls).

granathus

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Quote from: bambou on January 09, 2014, 02:39:41 PM

Quote from: N12 on January 09, 2014, 02:32:35 PM

Quote from: bambou on January 09, 2014, 02:29:23 PM

Quote from: N12 on January 09, 2014, 02:20:29 PM

Choo choo, all the overstock coins will soon hit the market. Cheesy

An overstock of coins. Cheesy

you really think they will directly sell 100% of the coins they get?!
imho they decided to jump in the bitcoin train not only to expand their marketshare, but also to make even more profit hodling some of it.. I mean, isnt that all about profit after all? Wink

I'm not sure you understand how this works: They do not accept Bitcoins directly. They use a payment processor called Bitpay that guarantees them USD, and Bitpay of course sells them on the open market.

edit: Coinbase then, but same principle applies.

ahh ok. but still, wouldnt coinbase or bitpay 'play' a little with the bitcoins they get instead of dumping it all on the market? :/

There is gonna be math science behind coinbase and bitpay's business plan regarding risk management getting rid of their coins. Probably gonna take higher margins during times of high volatility etc.

Edit. So absolutely no gambling/playing ofcourse.

N12

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Do you see how we all just spinned a major retailer accepting Bitcoin as negative news? This is the raw power of human emotion. Reality does not matter.

Make believe is everything.

bambou

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Activity: 346

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Quote from: N12 on January 09, 2014, 02:32:35 PM

Quote from: bambou on January 09, 2014, 02:29:23 PM

Quote from: N12 on January 09, 2014, 02:20:29 PM

Choo choo, all the overstock coins will soon hit the market. Cheesy

An overstock of coins. Cheesy

you really think they will directly sell 100% of the coins they get?!
imho they decided to jump in the bitcoin train not only to expand their marketshare, but also to make even more profit hodling some of it.. I mean, isnt that all about profit after all? Wink

I'm not sure you understand how this works: They do not accept Bitcoins directly. They use a payment processor called Bitpay that guarantees them USD, and Bitpay of course sells them on the open market.

edit: Coinbase then, but same principle applies.

ahh ok. but still, wouldnt coinbase or bitpay 'play' a little with the bitcoins they get instead of dumping it all on the market? :/

Walsoraj

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Ultranode

Quote from: adamstgBit on January 09, 2014, 02:35:05 PM

Quote from: Richard Branson on January 09, 2014, 02:22:50 PM

Quote from: Mythul on January 09, 2014, 02:19:52 PM

CHOOOOO-CHOOOOO: OVERSTOCK WENT LIVE !

That is not bullish. Overstock has nothing to do with bitcoin.
They simply use bitpay and accept fiat Wink

Bitpay sells the coins asap -» Selling pressure

but it increases bitcoins usefulness, and this brings up the value.

now i can save AND spend with BTC, these days you can pretty much live on BTC without any problems. how far we've come in so little time.

General public will not want bitcoin for its usefulness if actually using it decreases its fiat value.

N12

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Quote from: Chalkbot on January 09, 2014, 02:36:32 PM

Are you sure about this? In the original announcement it sounded like they wanted to make their own payment processing system in-house, to avoid the market dump effect and the fees.

Looks like they are using Coinbase, not Bitpay:

Quote

Last Tuesday, the company struck a deal to handle bitcoin payments through a service operated by the suddenly hot San Francisco startup Coinbase

http://www.wired.com/business/2014/01/overstock-bitcoin-live/

Maybe, Richy. This is economics, and economics is similar to religion. Cheesy

granathus

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Quote from: Walsoraj on January 09, 2014, 02:35:17 PM

What is coinbase? You moron.

?

Richy_T

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1RichyTrEwPYjZSeAYxeiFBNnKC9UjC5k

Quote from: N12 on January 09, 2014, 02:32:35 PM

Quote from: bambou on January 09, 2014, 02:29:23 PM

Quote from: N12 on January 09, 2014, 02:20:29 PM

Choo choo, all the overstock coins will soon hit the market. Cheesy

An overstock of coins. Cheesy

you really think they will directly sell 100% of the coins they get?!
imho they decided to jump in the bitcoin train not only to expand their marketshare, but also to make even more profit hodling some of it.. I mean, isnt that all about profit after all? Wink

I'm not sure you understand how this works: They do not accept Bitcoins directly. They use a payment processor called Bitpay that guarantees them USD, and Bitpay of course sells them on the open market.

edit: Coinbase then, but same principle applies.

But consider GoxBux... Discounted (currently around 10% looks like) because it's hard to do anything with them once you have them. By adding more easy exits to Bitcoin ownership, it makes them a more attractive proposition to own in an inverse manner.

Adrian-x

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Quote from: gentlemand on January 09, 2014, 02:32:06 PM

216 coins crashed the market? Are you sure?

Call it good timing (correlation doesn't = causation)

Chalkbot

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Quote from: N12 on January 09, 2014, 02:32:35 PM

Quote from: bambou on January 09, 2014, 02:29:23 PM

Quote from: N12 on January 09, 2014, 02:20:29 PM

Choo choo, all the overstock coins will soon hit the market. Cheesy

An overstock of coins. Cheesy

you really think they will directly sell 100% of the coins they get?!
imho they decided to jump in the bitcoin train not only to expand their marketshare, but also to make even more profit hodling some of it.. I mean, isnt that all about profit after all? Wink

I'm not sure you understand how this works: They do not accept Bitcoins directly. They use a payment processor called Bitpay that guarantees them USD, and Bitpay of course sells them on the open market.

edit: Coinbase then, but same principle applies.

Are you sure about this? In the original announcement it sounded like they wanted to make their own payment processing system in-house, to avoid the market dump effect and the fees.

Walsoraj

hero member

Activity: 686

Merit: 500

Ultranode

Quote from: granathus on January 09, 2014, 02:34:16 PM

Quote from: N12 on January 09, 2014, 02:32:35 PM

Quote from: bambou on January 09, 2014, 02:29:23 PM

Quote from: N12 on January 09, 2014, 02:20:29 PM

Choo choo, all the overstock coins will soon hit the market. Cheesy

An overstock of coins. Cheesy

you really think they will directly sell 100% of the coins they get?!
imho they decided to jump in the bitcoin train not only to expand their marketshare, but also to make even more profit hodling some of it.. I mean, isnt that all about profit after all? Wink

I'm not sure you understand how this works: They do not accept Bitcoins directly. They use a payment processor called Bitpay that guarantees them USD, and Bitpay of course sells them on the open market.

They use Coinbase.

What is coinbase? You moron.

adamstgBit

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Trusted Bitcoiner

Quote from: Richard Branson on January 09, 2014, 02:22:50 PM

Quote from: Mythul on January 09, 2014, 02:19:52 PM

CHOOOOO-CHOOOOO: OVERSTOCK WENT LIVE !

That is not bullish. Overstock has nothing to do with bitcoin.
They simply use bitpay and accept fiat Wink

Bitpay sells the coins asap -» Selling pressure

but it increases bitcoins usefulness, and this brings up the value.

now i can save AND spend with BTC, these days you can pretty much live on BTC without any problems. how far we've come in so little time.

Topic: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion - page 30412. (Read 26711661 times)