Topic: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion - page 29196. (Read 26608306 times)

Technically that would not be fractional reserve banking, or even banking at all.  While the price remained constant, the exchange would still have on its hands enough capital to honor all the clients' account balances -- except that it would temporarily be in the form of stocks or other investments, rather than bitcoins. 

There is no law that requires an exchange to store clients' dollars as dollars and bitcoins as bitcoins, unless that is stated in the user agreement.   Converting coins to dollars would have been a terrible risk, but they may have thought that it was OK.
 

Yeah, exactly! Most of the people are here because they are interested in buying low and selling high, so they can make a easy buck. People aren't here because bitcoin is a practical currency for everyday use. It's all good fun, but bitcoin can't become a serious financial tool because of that.
But, I think that the idea of open sourced and transparent monetary system, that is supported by the internet, is very important and it is the future. Bitcoin is just financially too simplistic to do the job. Something more complex has to be made to create a practical currency, that follows the same open source rules of transparency.

...otherwise known as "a speculation thread."

Explanation

Did you guys see the neo-bee demo already? http://www.youtube.com/watch?v=oRUM75oyI-g

Good news for day traders.

It's hard to believe that the usercount will stop and stay stable. In my idea, it will more probably either increase or decrease.
But what remains the same is that the inflow of new coins will slow down and get more expensive.
All of it combined will keep bitcoin far away from stability.

That is just a theory, of course (I still think that it is more likely than the stupid malleability hack.  Both theories depend on sheer stupidity, but mine also has a greed motive.

Frrom the charts, I see that there were long periods when the price was stable.  Perhaps MtGOX expected the price to remain stable for another couple of months, or that it would rise slowly so that they would have time to reverse the deal.

In my theory, the sale would probably have happened off-market, in large lots.  Suppose that a big investor contacted MtGOX and offered to buy 1,000,000 BTC from their cold storage at 15$ each, when the market price was 10$.  Would they let that opportunity pass?

I can only hope this is true too, but I still consider my Gox coins lost.
I'm not hoping for any miracles

Hope this is true. Buitink says investors trying to bail out gox.

Hearsay, but do we have anything better right now?

https://twitter.com/paulbuitink/status/438428157948219392

User count is going to stabilize at some point, and will become lower than the actual BTC inflation rate. I see no reason why that wouldn't lead to price stability (not in USD terms perhaps but that's because USD is actually not stable at all).

What kind of narcissistic invalid is Mark Karpeles? Why is he even issuing these press releases.... I really think he thinks he is God. Why the hell would anyone care if he was in Japan or not? Where is the money? Where is the transparency? Oh, thousands of people's life savings and substantial investments are "unavailable". And he basically posts a selfie saying "Hey guys don't worry... Mark Karpeles is in Japan."  

but don't worry.... Mark Karpeles is working hard for you...

What does he fancy himself? He acts like its all about him.

At least he finally admits there is an "issue" now. Previous statements have been so vague and he likes to paint himself as totally infallible.

"Oh, by the way, don't ask any questions..... "

DONT ASK ANY QUESTIONS?  IS THIS GUY MENTAL?

There was never a better time for people to be asking questions. A proper response for a company would be to at least provide an outlet for questions to be asked, a helpdesk of some kind, no matter how small the chance of resolution was... damage control mark.... Mark doesn't do this though because Mark doesn't make mistakes, Mark does everything right for the customer, Mark doesn't need to respond to people, Mark knows what is best for Bitcoin, Mark made bitcoin, Mark controls bitcoin, They would be nothing without Mark, Mark answers to nobody,Mark, Mark, Mark,Mark........

Someone get this guy to a therapist.

I've seen a lot of libertarians whining about MtGox but isn't no regulations what libertarians fight for??

Anyways, everyone of us knew what we were getting into. No use whining now. Thankfully I didn't have any money on MtGox.

The supply of new coins will slow down and become more expensive, while the user count is increasing. That deflationary part is good to attract investors with promises "buy now, and you will be 10000x richer soon", but it does stop bitcoin from becoming a practical currency. What a quality currency needs is price stability, that is just not possible with bitcoin.
Stable deflation rate, that would make a currency work, would be around 1% a year. Bitcoin is far from it.

Is  fractional reserve banking actually illegal, especially with Bitcoins?
Banks are quite happy to use it and screw us .

Agree but not likely to happen and I dont think thats what anyone was suggesting when they said investors can buy coins from other exchanges.

What a coincidence. My bitcoin price analysis is similar.

Of course it is OK to buy coins on other exchanges from the exchange's customers and withdrawing them.

What is not OK is buying a big lump of those coins in private from the exchange without the clients' knowledge. 

watch  Heiken Ashi and you see better the evolvement than with "normal" candlesticks

sorry I got only 4h chart