Topic: What to do when MTGOX gets shut down ? Are we ready for coincalypse ? (Read 5540 times)

Yes, i bring free har for everybody everyday !
FREE HARS !! Har har har har....

In no way is this a typo ! Don't even think about it !

what is a harbringer? one who brings hars?

as for the OP, there is nothing to worry about. free market is king, i mean, that's the foundation of bitcoin anyway.

I am aware of the network effect.
My question was rather rethorical.

What I am actually asking is: "what have we done do diminish MtGox influence ?".
.
.

You are actually trying to start discussion about whether Bitcoin is/will be successful and whether it is a good currency.

But this is a matter for another discussion.

Bitcoin is no threat to anything other than itself, and that damage is so extensive at this point I doubt it will ever be a successful above ground payment system. It has perhaps been a useful prototype for the payment system(s) that will instantly dwarf it there is actually a market for such things.

There is a bitcoin "underground economy" that is likely to persist amongst aficionados. For that matter I think you can still actually do things with Linden dollars ( Second Life ), but if you think bitcoin isn't fully surrounded and contained, I can only say sorry you got to the party so late.

Network effect because it is the largest exchange, and thus has a lot more bids close to the current market price. Ever tried to buy a larger bunch of coins at once at another exchange? The Ask price will rise up quickly. Not so at mtgox. But I agree this problem should diminish if/when Bitcoin has gained more traction.

If you want to trade out of bitcoins, you can do so at exact Mt Gox current rate with NO slippage and just a $15 wire fee direct to your bank account using the wire option at http://spendbitcoins.com/convert.

This obviously does not work for day trading, but it is a good alternative for exchanging bitcoins (if I do say so myself--well, other say so as well: http://spendbitcoins.com/testimonials).

I think in this case the network effect has diminishing returns (so maybe not a network effect?). Imagine two exchanges one 10x Gox size and one 1000x, what is the spread and does it matter for 99% of people? They'll care way more about customer service and wires that take only days.

It seems to me the benefit of being with more traders is not dynamic at all and quickly hits a wall.

http://en.wikipedia.org/wiki/Network_effect
http://en.wikipedia.org/wiki/Natural_monopoly

+ e^x

Imho that's exactly what is going to happen.

They process transfers every hour and a half. They're true champs.

https://bitcointalksearch.org/topic/m.838712

Yeah I think the likes of the e-gold example show the US government won't like bitcoin one bit once it makes their radar!

We can get an idea of what to expect by looking at the history of e-gold. The US government started attacking the exchange sites before they went after e-gold itself, and the banks would deny them accounts, making it increasingly difficult for people to exchange dollars (or whatever) for e-gold. We can certainly expect them to do the same thing with bitcoin exchanges eventually, because they already know it works.

I don't really have an answer to this. While it's nice that Intersango exists because competition is good, it's apparently located in the UK, which is just as subject to the US government as Japan is. Maybe an exchange will crop up that's just as (relatively) easy to get US dollars to and from but is located in a country where the government has both a backbone and a nuclear arsenal, but unless that happens I think we're pretty much enjoying the high point of national currency-to-bitcoin exchange right now.

The good news is that e-gold did hold on after the exchanges started getting shut down--it wasn't until the US government attacked them directly that they went down. With bitcoin there is no central authority, making it much harder for the government to attack. With major economies in the world circling the drain, the demand for bitcoin (or something like it) seems likely to increase, hopefully fast enough to make it impossible to do an attack by controlling the majority of the network.

Automation That Actually Works^TM

At just before midnight, Saturday night I transferred some money to Intersango using my UK bank's online banking site.

Just after 3:30am Sunday morning I got an email from Intersango to say the funds had arrived.

I was amazed.  3.5 hours in the early hours of Sunday morning.  Outside of banking hours.

How does that happen?  I thought I'd have to wait at least until Monday morning.

Interango will prevail.

what about the emails leak
lol

Yes, it is quite obvious that SOME of the governments will view BTC as threat. I didn't say how many governments, or which governments.

+1 for Intersango. Allows SEPA, no stupid verification, lower fees than MtGOX for SEPA withdrawal.

I switched from Mtgox when they became too cosy with cooperating with authorities (kyc and all that) I use Intersango now successfully. Now Intersango use Metro, deposits clear usually within 24hrs and the rest is as anonymous as BTC. so its your choice. reg.

At BitFloor the way we solved this problem was to allow deposit and withdraw to MtGox codes through the trading API. This allowed traders to write bots that kept the two spreads between the exchanges closer leading to better prices for our users.

While it may bring better arbitration, I have qualms about an exchange running automated traders on their own platform. I do not engage in day trading or other market making activities on BitFloor (other than buy and sell what I need to use) because I believe it would be unfair to my users. I have insights about how the exchange is setup which they do not. I prefer to maintain and run a stable trading platform and provide the APIs needed for solid trading and market making.

Better prices is not the only thing that keeps users coming back. I regularly field support emails and calls helping users buy their first Bitcoins as well as constantly add features to make the entire process better. I think MtGox is good at being able to handle the volume of trading they do and the fraud they must deal with, however I also think they are not perfect and are doing some things wrong. This is why others exchanges exist. If you want to hedge against a MtGox collapse I would suggest you give some of them a try. Maybe you won't get the best price today, but who knows, maybe you will and it will surprise you.

cheers,
~Roman