Topic: The next Mt Gox? (MtGox 2.0) (Read 15235 times)

There is more weed than there are Bitcoin people...http://www.meetup.com/bitcoin-denver/

Let's smoke

Colorado? I'm in Colorado... lets talk!

Anything is possible - with the right business plan, contacts, and $$$ - it IS possible

Agreed with previous poster.  It is TOO capital intensive to launch a site like mt gox.  It would cost millions and millions just to get through US law, let alone the entire free world's regulations...  
https://bitcointalksearch.org/topic/trading-with-non-license-money-transmitters-aka-lending-btc-to-anyone-215951

Well, first and foremost: follow the laws.  People talk about MtGox like it's a big government crackdown, but I think the only reasons that they're cracking down is that a) bitcoins are getting popular and b) they didn't follow the laws for creating an exchange like that.  That's going to be an issue for any exchange that deals with the US currency.  If you want to be legit and not get shut down, this is a must.

After that's taken care of, I pretty much agree with Viceroy on the issues needed.  Secure and scalable are the key points.  There was an article in one of my business magazines recently about Netflix using a third of all the internet traffic during much of the time to stream videos, so scalability is definitely possible.  How do they do it?  Amazon web services.  I think this, or something similar, is the key to a successful exchange. 

AWS is a great system because from what I've heard it's basically infinitely scalable, you need more resources, simply allocate more to it.  But it's not trivial either, whoever runs this system would likely need a sysadmin or several to keep it running.  If the person / people running the exchange is willing to put the time and money into figuring out AWS, however, I think they have a real good shot at making a system that's much more scalable and stable than MtGox.

I'm about to launch a new exchange, but it's for China. I was going to encourage USD IN too, but not any more -- at least not at first.

I think the big part missing from most current exchanges is real scaleability; I don't see many properly utilising cloud infrastructure, or parallelising operations.

Having looked at a few existing trading engines when I was getting started, and not being terribly impressed, I have the feeling that there are a few crufty old lines of code still doing the rounds on other exchanges.

This is the best example I found, and it appears a few exchanges adopted the code...

... lock all database tables
... match all possible orders
... Hope nothing goes wrong. If it does, just print an error.
... unlock all tables
... sleep for a bit
... repeat

Sigh.

Please, we need your help more than ever.  If you have anything useful to add, please do so now.

MAJOR NEWS:

http://www.zdnet.com/us-department-of-homeland-security-issues-court-order-against-mt-gox-7000015389/

Wow, human ingenuity, a community of like-minded people, there's no stopping progress! It amazes me that people can get together on something as trivial as Bitcoin (come on, have you seen what some people say about it? How divided the opinions?), yet we continue to wage wars, kill innocents...

Keep it up!

Back on track, I think the most important thing is low fees and a stable exchange rate. Really that only happens with regulation and central authority, which is the complete opposite of what Bitcoin stands for, so I think we have to rethink this!

SEPA shouldn't take more than 3 business days.

The reason why Mt.Gox has such massive delays (not days but often weeks) is because their accounts have limits and having a lot more customers now, their withdrawal orders are queued.

But everyone knows that a wire transfer should take around 2-5 days, and there are a lot of people saying it took more than 20 days, almost a month to receive their money.

If a sepa is anything like a wire transfer it WILL take days.  Not much you can do to expedite that, I don't think...

What is a better way to get FIAT into or out of bitcoin?

The international or sepa withdrawals should be more fast, they take a lot of days to get processed, that is ridiculous.

Per your suggestion I just added this to the OP:

5) More, better and faster withdrawal methods:
 a) wire transfer takes days
 b) instant cash deposit to my account at a major bank?
 c) sepa withdrawl (European Only)
 d) something like a money pak code?
 e) overnight precious metals delivery?

It will be realy interesting to see what they roll out.

As far as I can see bitcoin exchanges have two major unsolved problems with a huge potential for improvement:

* Actually being able to deposit money frictionlessly
* Getting shut-down by governments / banks

These two need addressing before anything else. In an ideal world, the exchange would be located in a part of the world sympathetic to bitcoin but at the same time, not somewhere associated with scams (Nigeria, for example) because the public has to feel confident enough to entrust real money.

Is there any scope for actually setting up some kind of genuine regulated bank of bitcoin upon which to form the basis of any exchange infrastructure?

Cheers, Paul.

Mt Gox are doing Litecoin shortly aren't they? Or is that not what you meant.

On BTC-E the new currencies have generally tanked when they've been added, but Mt Gox may be different.

One massive exchange medium for the major crypto currencies is an awesome idea. Just think if Mt.Gox picked up LiteCoin, millionaires over night.

Let me put myself out there, as well: I have a lot of love for bitcoin and I've been a professional software developer for well over 10 years.

If you find some investment for this project I would be interested in working with you because I believe the market is crying out for a better exchange than MtGox.

Cheers, Paul.

Would it be possible to design a p2p based exchange?  It would be in the spirit of Bitcoin, decentralized, and resistant to DDOS.  I'm not sure of the technical details it would take to design, but a basic idea would be similar to how p2pool keeps track of stats and payouts.  The client would display current market data.  You could submit trades and the network would process them.  When you wanted to cash out you would have to actually trade cash for bitcoin with an individual or an entity, but while trading you could have wallets like the exchanges have that keep track of your Bitcoin and USD.  Not sure if it would work, but it would pretty cool.

PB