Topic: USD Swap demand on Bitfinex has never been so high - page 2. (Read 9398 times)

not quite yet
"if something bad happen to MtGox, you have the twitter of Mark Karpeles you can taunt mad insults on while you gawk at a /r/bitcoin about how you found out which luxury apartment his photo of a sunset was taken from."

Mark Karpeles probably gamble using customer money and lose a great deal of money shorting bitcoin (and claimed hack/malleability attack). MtGox was worth at least 300M given the volume and the fee the company charged per trade.

If you ask any sane person (non-gambler), most people will think this guy is an idiot for ruining a sound business.

After seeing the amount of legal trouble Mark got into, I seriously doubt the current batch of exchange owners will make the same idiotic mistake.

Naturally, because I am an international hitman and man of mystery. Capable of striking my prey like a lightning bolt before fading back into the shadows never to be seen again.....or maybe not, so how about this:

"if something bad happen with MtGox, you have identity of their CEO and know who to go after"

"if something bad happen to MtGox, you have picture of Mark Karpeles you can stab with a pen as you mourn the wealth that you thought you had, that has all went up in smoke"

If something bad happen to bitfinex, you have the identity of their CEO and CFO and know who to go after.

I must agree with TERRA here.

Luckily there are many other reasons to be bullish

it's also possible a big whale with fiat  has a few accounts taking loans cheap .; and lending his own fiat more expensive..
which means nothing is wrong with bfx  

which also supports my theory why the swap doesnt realy go down even in big sellofs.. 

Nope. Like the hapless poker player who was cheated by an elaborate operation involving hidden cameras and wireless tapping communication device, I have absolutely no evidence whatsoever but know when I have been had. Without having any concrete evidence or any understanding of precisely how BFX might fuck traders over, I just think that this exchange stinks of pish and shit.... I have had some gut wrenching experiences on Bitfinex, where I was conned out of a stunning short trade with my stop order being the very top of the market as a result of a last minute FU rally after all the other exchanges had gone of in other direction. After that, I stopped trading with a stop on BFX as I just seen a stop order as a means of assisting the exchange in ripping me off. I came to regret that particular practice later on to the tune of several thousand dollars.

Obviously, everyone looks to Bitstamp when analysing Bitcoin, but make a point of also checking out Bitfinex. You will soon begin to twig on that the Bitfinex basically follows Stamp, except it is a lot more rough round the edges seldom forming any clean chart formations, it breaches important trendlines often as though they never mattered, and full of fakes outs on just about every consolidation phase. You will therefore soon also twig that it is much easier charting the future course of Bitcoin with Stamp than through Bitfinex. This is because Stamp isn't lying to us about market psychology/action whereas Bitfinex does lie to us. Look at the trading today. Stamp stays within the logical triangle formation pattern whilst Bitfinex is acting like it is about to break out to the upside. It is not about to break to the upside, but is farming a whole lot of stop orders, or at least trying to push the market into doing so on the exchanges behalf. I am guessing there must be some hefty real sell orders in between $595 and $600, otherwise Bitfinex would have spiked away above that as short stop loss after short stop loss is triggered by the crooks who know where they are and whose algorithms tell them when it is profitable to farm them or not. Pay attention to Bitfinex or indeed Huobi, and you will notice all manner of peculiarities in their chart actions that you just don't see with Bitstamp.

I have no proof. But I know that Bitfinex is a fucking sewer rat of an exchange.

I would wager that the next grand scale BTC daylight robbery a la Bitcoinica, MtGox etc, happens with Bitfinex.

To be honest, I'm too scared to lend there now that they don't route orders through Bitstamp. Book is scary thin. I used to lend whenever I sold (unless I was very, very sure and went short), but not anymore.

It is not recommended unless you are already trading on bitfinex and sold near a top and are waiting for a few days for the market to go down. Lending out for the long term is too risky due to flash crashes and exchange goxings.

So would you guys recommend lending money to Bitfinex to take advantage of the interest? Are they trustworthy? Do you have to provide documentation to verify your account?

certainly, BFX insiders have the ability to do this. and nothing they have done in the past has shown me that they are ABOVE doing this. but do you have any evidence that they are front running?

If even half of the USD even actually exists in the exchanges lending account. If it isn't all just a fractional reserve number game that the exchange is playing with it's traders safe in the knowledge that they know where the stop losses are and they have the ability to front run the market.

As far as I know you can't borrow USD and pay the rent or food. The only purpose is to buy BTC.

I read OKCoin has re-enabled margin trading/lending (http://www.coindesk.com/okcoin-international-markets-margin-trading-launch/) - anyone know of a site that tracks their usage data like bfxdata does for Bitfinex? Also I'm curious if the other Chinese exchanges are going to reverse course and re-enable margin.

 

So true. That's the reason swap is expensive, inherent risk for the lenders that the site suddenly disappears with all the money.

I concur Maker.. I'm looking at a similar fractal completing like the one we just passed..  I'll start making some purchases around $540.

i actually think tera made a good point this time, but i don't think it will go down to the 400s. i think we have a few more weeks of sideways trading. a lot of people aren't moving until the fbi sale. i hope the price stays down for a while so i can buy more though, so i guess I'm biased.

It's not a demand for bitcoin. It's actually a demand for USD. It's called "USD swap demand" is a market for people to borrow USD, based on the interest rate.

if the history repeats itself as in $10->$2 collective short by bitcoinica, we would see a slow decline to $100 for half a year, then bitfinex would run with customer's money and the rally to 10000 starts

PS this comment obviously is a joke, as is any thread trying to predict future price based on tea leavesbitfinex

PPS somebody here actually lends money through bitfinex? Brave souls, my hat off to you. I also have a nigerian prince inheritance we need to discuss with you, PM me.