Topic: Mt. Gox and the fluctuation of Bitcoin price... (Read 973 times)
Thanks for that response, gave me an entirely different perspective which I did not think about before...
Didn't see anyone mention it, but keep this dynamic in mind when speculating on Mt. Gox price movements:
If events happen which restricts Mt. Gox's ability to convert BTC to fiat funds for bank transfers, then there is a rush to buy BTC so that they can be transfered out of the exchange to somewhere that has less banking restrictions - price on that market goes bump.
If liquidity is foretasted to improve - whereby it looks like it will become easier to convert BTC to liquid fiat, then there will be a short term selling spree on that exchange and prices will fall as pent up need to extract fiat is fulfilled.
Growing pains of a very young market - don't be discouraged.
There is logic behind all the movements even if it's mostly just driven by popular news releases.... Wish i worked in the bitcoin news industry - they must be making a killing in buying and selling before news breaks.... Just like in the old non bitcoin world i guess....
If events happen which restricts Mt. Gox's ability to convert BTC to fiat funds for bank transfers, then there is a rush to buy BTC so that they can be transfered out of the exchange to somewhere that has less banking restrictions - price on that market goes bump.
If liquidity is foretasted to improve - whereby it looks like it will become easier to convert BTC to liquid fiat, then there will be a short term selling spree on that exchange and prices will fall as pent up need to extract fiat is fulfilled.
Growing pains of a very young market - don't be discouraged.
There is logic behind all the movements even if it's mostly just driven by popular news releases.... Wish i worked in the bitcoin news industry - they must be making a killing in buying and selling before news breaks.... Just like in the old non bitcoin world i guess.... 
1) there is little new money flowing in
2) there is money flowing out to pay for all these asic's being produced
Correct.2) there is money flowing out to pay for all these asic's being produced
Plus miners are being consolidated into ASIC and the biggest players seem to cash out vs hold or spend in the BTC economy. Things would be a lot better if ASICs were being distributed more evenly and producers were not mining.
It is much better for govt to embrace bitcoins and regulate them accordingly to stop the hydra effect which we witnessed with the music industry and napster, had they embraced napster they would have been able to control instead of shutting it town and having several pop up in its place
Yea I do not see any reason that exchange of cryto-currencies to other cryto currencies should be regulated, I remember reading an article where bitcoins were deemed a form of storage of memory and not an actual currency I wonder if this argument will be applied in these regulatory talks...
Perhaps elsewhere, but in the US FinCEN has made it very clear that certain bitcoin activities require registration as a MSB and a Money Transmitter.
"Those who govern Bitcoin"?? A government could conceivably push the current devs to implement rule changes, but of course very few people would adopt those updates and a host of new/anonymous devs would come out of the woodwork to carry the development torch the moment there was even credible suspicion of government involvement. No one "governs" Bitcoin!
Yea I do not see any reason that exchange of cryto-currencies to other cryto currencies should be regulated, I remember reading an article where bitcoins were deemed a form of storage of memory and not an actual currency I wonder if this argument will be applied in these regulatory talks...
feeling abit sad that youre losing money?
theehee
theehee
I feel it's (unfortunately) inevitable that regulation will come to the exchanges that deal in fiat currencies, but please, keep regulation away from the rest of the ecosystem.
I agree, now do you think regulation will add credibility which will in turn bring about new investors who were previously wary of investing in something with so little protection?
I think that some of the fluctuation has to do with the fear that Gox's registration might be denied.
http://www.pcworld.com/article/2043360/bitcoin-exchange-files-with-us-treasury-regulatory-agency.html
Jeremy Kirk, IDG News Service
Jul 1, 2013 5:57 AMprint
The largest Bitcoin exchange has filed key paperwork with the US Treasury's anti-money laundering agency, but it may have come too late.
Mt. Gox, based in Tokyo, registered on Thursday with the Financial Crimes Enforcement Network (FinCEN) as a money services business (MSB), according to FinCEN's website.
The adoption of Bitcoin, a virtual currency that can be transferred worldwide for free using peer-to-peer software, has been stymied by concerns over compliance with different countries' anti-money laundering and financial regulations.
Mt. Gox's registration comes just six weeks after one of its U.S. bank accounts was seized. The order alleged Mt. Gox failed to register as a money transmitting business, which is required by many states and the federal government.
The account was linked to Dwolla, a payments provider, and used by Mt. Gox to transmit funds to its exchange in Japan used to buy and sell bitcoins. Dwolla was not a target of order, issued on May 14 by the U.S. District Court in Maryland and didn't have any funds seized.
One of FinCEN's missions is to combat money laundering. Bitcoin's semi-anonymous transaction system has led to concerns that it could be used to hide money and avoid taxes.
Mt. Gox's registration may have come too late. According to FinCEN's website, those running money services businesses are required to register with the agency within 180 days of when the business was established. Businesses must renew their registration every two years.
The seizure order from the federal court stated that Mt. Gox has used its U.S. account to distribute funds to Dwolla since at least December 2011.
Mt. Gox officials could not be immediately reached for comment. On June 21, the exchange stopped U.S. dollar international wire transfers. The exchange said the halt was due to its bank, which was struggling to cope with the volume of transfers over the last two months. Mt. Gox said it planned to resume transfers within a couple of weeks.
The decentralized nature of the Bitcoin system, managed by a small community of software developers, poses interesting issues for government regulators in how to apply laws and regulation, wrote Ed Felten, a professor of computer science and public affairs at Princeton University.
"The people who govern Bitcoin are an obvious point of leverage for regulators," Felten wrote. "In principle, a regulator might try to compel the developers who govern the Bitcoin software to deploy certain rule changes, by compelling them to push software changes that implement the modified rules."
Bitcoin will likely prove "to be more regulable than its initial advocates thought," Felten wrote. The transition could be awkward due to Bitcoin's complexity.
"Also like the Internet, Bitcoin will flummox some of the less savvy people in government, leading to some series-of-tubes moments," he wrote.
http://www.pcworld.com/article/2043360/bitcoin-exchange-files-with-us-treasury-regulatory-agency.html
Jeremy Kirk, IDG News Service
Jul 1, 2013 5:57 AMprint
The largest Bitcoin exchange has filed key paperwork with the US Treasury's anti-money laundering agency, but it may have come too late.
Mt. Gox, based in Tokyo, registered on Thursday with the Financial Crimes Enforcement Network (FinCEN) as a money services business (MSB), according to FinCEN's website.
The adoption of Bitcoin, a virtual currency that can be transferred worldwide for free using peer-to-peer software, has been stymied by concerns over compliance with different countries' anti-money laundering and financial regulations.
Mt. Gox's registration comes just six weeks after one of its U.S. bank accounts was seized. The order alleged Mt. Gox failed to register as a money transmitting business, which is required by many states and the federal government.
The account was linked to Dwolla, a payments provider, and used by Mt. Gox to transmit funds to its exchange in Japan used to buy and sell bitcoins. Dwolla was not a target of order, issued on May 14 by the U.S. District Court in Maryland and didn't have any funds seized.
One of FinCEN's missions is to combat money laundering. Bitcoin's semi-anonymous transaction system has led to concerns that it could be used to hide money and avoid taxes.
Mt. Gox's registration may have come too late. According to FinCEN's website, those running money services businesses are required to register with the agency within 180 days of when the business was established. Businesses must renew their registration every two years.
The seizure order from the federal court stated that Mt. Gox has used its U.S. account to distribute funds to Dwolla since at least December 2011.
Mt. Gox officials could not be immediately reached for comment. On June 21, the exchange stopped U.S. dollar international wire transfers. The exchange said the halt was due to its bank, which was struggling to cope with the volume of transfers over the last two months. Mt. Gox said it planned to resume transfers within a couple of weeks.
The decentralized nature of the Bitcoin system, managed by a small community of software developers, poses interesting issues for government regulators in how to apply laws and regulation, wrote Ed Felten, a professor of computer science and public affairs at Princeton University.
"The people who govern Bitcoin are an obvious point of leverage for regulators," Felten wrote. "In principle, a regulator might try to compel the developers who govern the Bitcoin software to deploy certain rule changes, by compelling them to push software changes that implement the modified rules."
Bitcoin will likely prove "to be more regulable than its initial advocates thought," Felten wrote. The transition could be awkward due to Bitcoin's complexity.
"Also like the Internet, Bitcoin will flummox some of the less savvy people in government, leading to some series-of-tubes moments," he wrote.
1) there is little new money flowing in
2) there is money flowing out to pay for all these asic's being produced
2) there is money flowing out to pay for all these asic's being produced
Is the fluctuation of Bitcoin prices do in part to Mt.Gox actively seeking regulation and is it possible with this precedent being set that central banking organizations are buying Bitcoins en masse? Friendly discussion/debate wanted...
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