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Another Bitcoin Flash Crash Imminent? Second Major Exchange Follows MtGox In Suspending Withdrawals
Bitcoin plunged another 15% or so from its bounce highs this morning as volatility has picked up dramatically in the virtual currency. The reasons are numerous: JPMorgan has come out with a scathing attack - "bitcoin looks like an innovation worth limiting exposure to;" CoinDesk reports that major exchanges are under a "massive and concerted attack" by a bot system - creating a "fog of confusion" over the system; and perhaps most critically, BitStamp has followed Mt.Gox and halted withdrawals "due to inconsistent results from their bitcoin wallet" - due to the DDoS attacks...
Basically the main reason why BTC crashed in the past few days was the realization that MtGox had finally halted withdrawals, leading to an escalating blame game in which the finger pointing between the exchanges and the actual bitcoin source code (here and here) meant that something is wrong within the system. This lead to the previously noted flash crash in Bitcoin yesterday:
Alas, that may have been just the beginning when a few hours later, we just learned that the next major Bitcoin exchange, Bitstamp, has just halted Bitcoin withdrwawls, blaming a major DDoS for the suspension.
First, here is JPM's latest hit piece:
Unlike other asset markets, FX rarely welcomes newcomers for the simple reason that launching a widely-used currency traditionally required creating a sovereign or supra-sovereign entity with a central bank to issue the unit and manage its supply over time.
Hence the audacity of bitcoin: it is a stateless, virtual and peer-to-peer currency, so exists only digitally and is associated with no sovereign, central bank or bank payments system. It is also incredibly illiquid extremely volatile and often caricatured.
After a brief Economics 101 refresher on the required functions of money, this research note addresses various frequently-asked questions around this virtual currency: what is it; how is it created and transferred; what are its advantages and disadvantages for corporates and investors compared to fiat currencies; is it a serious contender for a global payments system; and can it prove more durable long-term than other somewhat fixed-supply currencies like gold.
At the risk of sounding like a luddite, bitcoin looks like an innovation worth limiting exposure to. As a medium of exchange, unit of account and store of value, it is vastly inferior to fiat currencies. Since governments are quite unlikely to accord it the status of legal tender, bitcoin or other virtual currencies would not reach the scale and scope to render them worthwhile for widespread commerce, payments or investment.
Bitcoin’s greatest appeal is the apparent cheapness of peer-to-peer fund transfers, though it is unclear how economical these transactions truly are when the virtual world interacts with the real world. As provocative as its underlying technology may be, bitcoin’s practical role may be no larger than that of an emerging markets currency subject to exchange controls.
For corporates, bitcoin’s appeal is two-fold: no or low transaction costs from a peer-to-peer payments system, and the potential brand recognition from trialing a new technology. These advantages must be weighed against extreme illiquidity and volatility, both of which impede risk management. All-in transaction costs may also be higher once the fees from transferring bitcoins to fiat currencies are included.
Investors normally avoid an instrument with bitcoin's trading properties. The unit's main investment appeal is the potential long-term price rise due to limited supply, much like some commodities when the market balance tightens.
But more importantly, the scapegoating begins - DDoS attacks (via CoinDesk):
A “massive and concerted attack” has been launched by a bot system on numerous bitcoin exchanges, Andreas Antonopoulos has revealed.
The chief security officer of Blockchain.info said a DDoS attack is taking Bitcoin’s transaction malleability problem and applying it to many transactions in the network, simultaneously.
“So as transactions are being created, malformed/parallel transactions are also being created so as to create a fog of confusion over the entire network, which then affects almost every single implementation out there,” he added.
And the culmination: BitStamp has halted withdrawals:
Dear Bitstamp users
Bitstamp’s exchange software is extremely cautious concerning Bitcoin transactions. Currently it has suspended processing Bitcoin withdrawals due to inconsistent results reported by our bitcoind wallet, caused by a denial-of-service attack using transaction malleability to temporarily disrupt balance checking. As such, Bitcoin withdrawal processing will be suspended temporarily until a software fix is issued.No funds have been lost and no funds are at risk.
This is a denial-of-service attack made possible by some misunderstandings in the Bitcoin wallet implementation. These misunderstandings have simple solutions that are being implemented as we speak, and we’re confident everything will be back to normal shortly.
Withdrawals which failed on the 10th and 11th of February will be canceled and the amounts added back to the customer account balances.We will communicate any further developments regarding this issue.Thank you for your understanding!
Best regards
Bitstamp team
Best regards indeed.
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Who wants a revolution, do you want a revolution?
Mc Det.
Only as a last resort because it beats just getting on the cattle cars.
It is not a matter of what anyone currently wants. If they wanted revolution then they will realize it.
If want freedom then it does not mean that I will get freedom.
Perhaps I want a revolution because, currently, it has become intolerable.
That desire is growing amongst many more with each and every passing day.
When the Hyperinflation explodes on our shores then the desire for revolution will also explode on our shores.
It is coming more rapidly than you can imagine....regardless of what you want.
Bitcoin is designed to change the balance of power to we the people. Unfortunately most people seem to be more interested in bashing this 5 year old currency without fully understanding it. This is why we can not have nice things and the JPMorgans continue to rule your world.
LOL
PS...
If You Can't Move BC's Externally (I.E. TRADE), Then How
Can You Quote $700. Or Whatever Price?????
There Is No Free Market.
$700. or $7. Means Nothing Right Now...
Just be glad for the death pangs of Mt.Gox and try take advantage of CheapCoins like fonestar does... oh, and try feel sorry for those dumb shits that have coins stuck in Gox.
Sympathy for anyone with coins stuck in GOX, or in mining pools that have suspended manual and automatic payments because they can't pay for their servers. The price drop is going to have a ripple effect on the mining pools and all related crypto currencies. That is where the real pain is going to manifest.
The thing looked sketchy to me months ago, didn't really trust them. I don't really trust BTC-e either and that's why you don't leave coins at exchanges. You do your business and go home with your wallet.
Gox became the biggest dealer out there. How is that any fault of the people who for example listened to guys like you and "stashed" their money away at Gox. You gotta admit that is one stupid excuse. If Gox can do it, so can any other BTC "exchange". Face it, the gig is up. This is just painful to watch from a distance even.
I'm all stocked up on popcorn bought with bitcoin from Overstock.com.
If tracking number malleability is the worst that can affect bitcoin, lol, timberrrrrr.
So Mt.Gox is the new Cyprus. Thanks fs
It pains me to say it..fuk you Max and Stacy. Shame on you for ramping this lame duck
fonestar would like to thank Max and Stacy for helping get him into CheapCoins!
Given how much you rant about this dross the more I wonder if you are the man himself. Again..ramping this after it gives 1000 bucks is shameful and I for one will not watch him anymore. Pleased to say I never did nor will own a bit of Shit
That's fine, don't need sorry losers on the team. Millions on planet Earth will gladly take the position from you.
Tulips?
Even a tulip is something you can hold in your hand. This is beyond tulips.
If you can't hold it...
...then it is intangible and you can endlessly show off your keen grasp of the obvious.
Soon to be hundreds of thousands. . .
Millions on planet Earth will gladly assume the position from you.
There fixed.
Now will Max be open to having his Bitcoin holdings audited to see how much he sold before the Great Unravel?
What unravel would that be?
https://btc-e.com/
The one we're in the middle of.
Shamecoin.
Obamacoin. It's for the children. The black ones.
If I had a coin.....It would look like.....
I think you mean OH NO, as if you just jumped from the plane with NO shute!
You don't need a chute when you jump from a plane. You just need someone close by with a chute. Haven't you seen any 007 movies.
BTC-e at $633... seems the goxing half-life effect is wearing thin. Good night and good-riddance gox! Hopefully some DDOS'ing fonestar some more CheapCoins tho!
@fonestar
Yep, another click-bait article from ZH crafted to lure the gold-polishers from their bunkers and give ZH some more ad impressions. As you already know, the TX ID has been on the radar over a year ago, and the latest round of Mt. Gox incompetence caused the recent flurry of "OMG Bitcoin Broken" news.
The protocol isn't, its the implementations of the wallet software, but that won't stop the barking seal trolls from rubbing their gold schlongs and spooging the usual ignorant technophobe comments here on ZH.
Anyway, Bitstamp will have this corrected today, and Gox will flounder in their usual arrogant style - until they become fully irrelevant. They mostly have though, since a lot of services dropped their ticker/feed and aren't planning on switching back any time soon.
Nice rebound on the last swoon, we're currently at levels we saw a few days ago prior to the "flash crash", as ZH calls it. I'm surprised Tyler didn't put up a chart of the price axis at 0.05 cent increments, given how he lovingly frames declines. I guess its understandable to a certain point, since the equity indexes have failed to obey his "This time its different" stories.
Have a good one!
http://www.youtube.com/watch?v=5-LIqdjqHts
I'm pretty sure he's saying "Gold - Gold - Gold!!!"
JPM is a criminal organization, plain and simple. That's not an opinion, that's a fact. And I don't mean inadvertently, or in one rogue department, or in a way senior managers did not know about. Here is the recent list of FINES PAID. In our system of giving banks everything they want, including our taxpayer bailout money, you have to try pretty hard to get criminal fines like these:
Jan. 8 $1,7 billion - US Gov't
Jan. 7 $350 million - Office of Comptroller of the Currency
Jan. 7 $461 million - US Treasury Department FinCEN
Oct. 16 $100 million - CFTC
Sept. 19 $200 million - SEC
Sept. 18 $200 million - Federal Reserve
Sept. 18 $221 million - UK FCA
Sept 17 $300 million - OCC
Sept. 18 $309 million - CFPB
Sept. 18 $60 million - OCC
July 30 $285 million - Federal Energy Regulatory
July 30 $125 million - FERC
that's just the last 6 months. As if we should listen to anything they say about Bitcoin...
Beat cops on the take don't mess with the Godfather.
They take their payoff and STFU.
Double posting on Reddit. Tsk Tsk. If it weren't such pertinent information, I would chastise you further.
Don't despair, fonestar. Bitcoin will bounce back.
Hasn't really gone anywhere on fonestar's exchange to begin with. fonestar likes celery with some low fat dip.
Fonestar, are you roommates with Elmo by any chance?
What's with the talking in the 3rd person singular all of a sudden, or does bitcoin make one do this ?
You are mixing up your personas. You should be logged into your Boris account when using that register.
I think you're mixing up the Queen's English with the Tsar's English..
Boris is own man
you'll always have your ford focus....foney. Do you still have enough bitcoin networth left to get back?
Isn't it so darned funny that Chavez was able to find a way through those "logistical challenges" while the German Bubba cannot?
It just ain't right, boys. That just ain't right.
Yes, and China seems to be able to get more each month than Germany can get in a year. But then again, I think they are more or less getting it from the back door of the market.
...Using soon-to-be-no-longer-petro dollars. Yeah.
Stupidity of the Buba notwithstanding (WTH is the stuff doing outside German borders in the first place), Failure To Deliver seems tantamount to an act of WAR.
RETURN THE GERMAN GOLD TO THE GERMAN PEOPLE. RETURN LIBYAN GOLD TO THE LIBYANS. RETURN IRAQI GOLD (plus all the other stolen goodies) TO THE PEOPLE OF IRAQ.
...KEEP YOUR TUNGSTEN AND "BITCOINS."
Funny, the U.S. had no problem in 1944 shipping tanks and millions of metric tons of hardware to Europe for D-Day.
I imagine if the German Gold was actually here to ship it could be done in a month.
Go long tungsten.
Nah, just another much needed bubble for TPTB. There must be one.
Some are fast, some are slow. THIS is a fast bubble *pop*
BTC-e is $644 mental rejects.
there was already a attack on bitcoin a month ago when all servers needed to be reset and bitcoin was out for 3 hours.
I think the problem with bitcoin is that it doesn't use one central server to keep the price setting.
turns out the good thing that sets the price is also it's weakest point.
There is no problem with Bitcoin or its "price setting".
The comment section on ZH continues to disappoint. The anti-PM trolls are nearly all gone, and in their absence, commentors feel no sense of hypocracy in adopting those exact same tactics against bitcoin.
They refuse to spend FIVE MINUTES learning about something before shutting down their brains and submitting to groupthink.
Its starting to make me hate people.
If you think that Bitcoin critics here are trolls, I sugest you learn about the Bitcoin blockchain and the 51% attack. Unless you think the NSA cannot easily implement this. Which THEY CAN.
I hate people who refuse to spend five seconds learning and thinking about something before making blanket statements about those who disagree with them.
Could it be that there are people here that understand and/or suspect more than you ever will?
This is largely why I've stopped commenting on bitcoin threads for the most part. The vast majority of negative comments made are wildly off the mark because of a lack of technical understanding, and I see the same myths repeated over and over in spite of corrections. Normally these are tactics of sockpuppets but far too many of the comments come from people that otherwise are respect-worthy contributors here. I just don't get it.
As far as the current situation with bitcoin -- this is stuff that was documented three years ago and not considered a threat. I think what's actually going on is either that MtGox is completely incompetent and lost their coin (likely) or that they were corrupted internally and used to manipulate bitcoin and are now up against the wall the same way banks were in the early 1930s runs -- they tried to run a fractional reserve scam with a fixed asset and got fucked in a run.
Gox and a small minority of other exchanges (who, for all we know, stored balances with Gox) are trying to throw bitcoin under the bus to cover up their own malfeasance, and there are plenty in the press and TPTB banking industry willing to help. Bitcoin and the bitcoin-qt reference client are completely unaffected by this, as are any exchanges that followed the reference implementation.
Please elaborate. Show us the "technical understanding" we lack. We will gladly show you the REAL WORLD understanding you obviously lack.
Real world?
2/11/2013 1 BTC = $25 USD
2/11/2014 1 BTC = $574 USD, after a major crash involving one of the top two exchanged shutting down.
Technical understanding? None of this crash has anything to do with bitcoin's protocols on a technical level. What's happening today is the equivalent of the CME saying they're not redeeming paper gold contracts -- it has no bearing on any other exchanges.
More than a year ago I started mentioning bitcoin here was a worthwhile area to explore, and save for a handful of posters, got ignored or worse.
Real world, I've banked returns that are a respectible percentage of my AU appreciation.
Remember Xoom? Geocities? Dead end internet fads? Pets.com anyone? There are fundamentals and there are traits. Make the distinction at your own peril.
stop wasting your breath defeding bitcoin, put your money where your mouth is and just buy the fucking dip!
bbtfd. bitcoin buy the fucking dip.
+ 1 BTC seek
so many coins....i want a max coin...i wanted a max keiser silver oz but the overhead is a bit high.(at the time of my interest) so why be upset? the story is just beginning and with out trolls there would be no pressure on any potential "guru" du jour... so buck up me hearty! this ship of fools is just set asail.....oops..left sailing mod turned on...bad verbot!...
oh fonestar! i am so glad you are here!...so how is max coin doing??...hehehe..
yes there is a problem with btc price setting.. it is network operator tension hoping to ignite investor interest..rather than supply demand...or not...
Unlike gold and silver, amirite?
No, no, nevermind. Don't think about that for five minutes. It make you into something other than a hypocrite, and that will make your mother cry.
the mother of all money changers.... stop this intra-enclave manouvering and jostling and work exchange services deeper into modern scalable exchanges(and assossiative services..etc.. cant believe i got to say such things aloud..)....or not..
The bank statement told my grandmother that she had money in the bank. But when she went to withdrawl the money, the line was so long that the bank ran out of money before she could withdrawl and they lost everything. Later they would bury pm's and pass it on to their son.
if you treat it like an investment, then yes. if you look at it as a means to challenge the status quo and it grip on centralized currency, then its not a disaster. its not going anywhere. the vendors who accept it are growing in numbers. if one is holding it for the right reasons, one can hope for stability in its price, not huge increases in value
Beg to differ. The establishment has it's tentacles firmly wrapped around this BTC fad. It's only permitting it's perceived independence until it can come up with a way of taxing it.
Virtual 1099's soon.
Hard to see BTC as a protest proxy. Hell, it's on every nations tax authority radar at this point.
There already is a way it's taxed. Tax laws say you must pay for any gain. Like barter.
I need to make a withdrawal!! Mah baby need shoos!!
If 100% of your BTC is sitting in a trading account on an exchange, you'll just have to wait a little while.
Nobody should mix daily expenses with their trading funds, ever, for any asset, be it gold, dollars or BTC.
If only someone had warned people that it was a ponzi scheme where it's easy to get your money in, and hard to get it out...
If only...
Yes, dumb ass. Keep your fiat currency. It's serving you so well!
Yes, dumb ass. Keep your fiat currency. It's serving you so well!
12.5 million BTC's X [graciously] $700 USD = [graciously] $10 billion...
~~~
Central banks have 'printed' $11 trillion over the past few years to expand balance sheets & suck up everything...
What makes anyone think that, for $10 billion [3 days of QE], the Fed couldn't have bought up all the 'non-inert' BTC's around and are now sucking them into a black hole?
I mean ~ FFS, the 'market cap' on Apple is $479 billion... They could do it by themselves with 'cash'... Fucking Warren Buffett could do it with a quarter of his net worth...
If their goal was to destroy Bitcoin, this is the most stupid thing they could do. Buying up all the BTC and sucking them into a "black hole" would cause the price to rise exponentially, while the number of actual BTC units they acquire would fall equally exponentially. They would end up with a modest chunk of the BTC market, and the price would be high. If they turned around and dumped their entire hoard onto the market, they would immediately crash the market and end up getting a piss poor price for it.
The end result would be that the fed injected $$$$$ into the BTC community, the price of BTC would be much higher than before they entered the market, and they would have created a precedent that BTC ownership will be rewarded with generous bids from the fed. This would only serve to fuel the price of BTC just as they've done with treasuries.
Current market cap of BTC is around $10bn. If they wanted to buy $500bn worth, they might obtain half the world's supply and cause the price of 1BTC to shoot past $1 million. If they turned around and dumped the whole thing on the market, the price would probably crash back down to $5000. And what would they have accomplished? Less than nothing.
Wrong...
~~~
My 'notion' is that, over a year ago, they hired some MIT geek[s], to set up hundreds of thousands of 'dummy' wallets... [maybe when BTC was <$50 even & nobody was talking about it]... They 'funded' these accounts with printed money...
Each one of these 'wallets' may hold only a BTC or 2...
As such [& at whim], it would be possible to, periodically, radically fluctuate the 'market' [by flooding the exchanges with buy/sell orders that are triggered, yet which appear to be from random small accounts]... The end result would be to create CHAOS [& mistrust]...
Tell me how this is NOT possible to achieve...
They could do it TODAY [with a mere $10 billion]... Imagine a year ago when it would have cost < a billion...
Don't believe me? [IOW ~ they could 'easily' do this tomorrow, if they haven't done so already ~ they don't fucking care if BTC goes to ZERO ~ & in fact, hope to achieve that, because they print money out of thin air, and the 'LOSSES' are placed on an endless balance sheet]...
Electronically ~ they can STEAL any balance you own... ANYWHERE & at ANY TIME [this way]... The only thing they can't steal is your gold [unless they come after you with guns]...
It's as if you ignored or failed to comprehend 90% of my post.
Market manipulation, in the long run, can do one thing and one thing only: Raise prices.
so ~ is THIS your post?
"Market manipulation, in the long run, can do one thing and one thing only: Raise prices."
~~~
Well then... POINDEXTER... Explain GOLD...
KEY WORDS...
IN THE LONG RUN.
Gold will explode to the upside.
Those with Gold will end up POOR.
Those without Gold will end up DESTITUTE.
There is no solution for the Financial Tsunami that is about to swamp the World. It will happen. There is no way out.
$700 Trillion in Derivatives that are held leveraged by the Banks will destroy us...EVERYONE ON THE PLANET WILL BE ADVERSELY AFFECTED. There is no place to run and no place to hide.
I do not agree with a lot of statements by Warren Buffet.
I do agree with him when he declared, correctly so, that the Derivatives Market is a Weapon of Financial Mass Destruction.
awesome handle!!....we all live in hy brasil.
..it's not happening....
HY BRASIL ~ http://en.wikipedia.org/wiki/Brasil_%28mythical_island%29
oh c'mon...the vid makes it
https://www.youtube.com/watch?v=d8IBnfkcrsM&feature=youtube_gdata
lol ~ Not as fast as Bitcoin...
oh c'mon...the vid makes it
https://www.youtube.com/watch?v=d8IBnfkcrsM&feature=youtube_gdata
Goxed is the term used in the community as MtGox has cause multiple crashes in the past. It should have been marginalized back in April. MFGox ruining the fun for everyone by spreading FUD everywhere.
It was bad enough their crappy wallet trying to second-guess the blockchain but for them to come out and try and blame Bitcoin pisses fonestar off emensly. fonestar is glad he never opened an account there or gave them any money.
'emensley'? ~ how many BTC's does it take to win a SPELLING CONTEST?
Being a Grammar Cop does not score points.
If you want to demonstrate the problem with Bitcon you must attack the architectural Weakness. Sooner or later Supernodes must be maintained as the Blockchain increasingly grows in size. (I am writing about the Second Derivative of an Exponential Growth Function...)
Sooner or later Bitcon will be dependent upon nodes and increasingly be subject to the same attacks.
PAY CLOSE ATTENTION TO THE FOLLOWING VIDEO.
https://www.youtube.com/watch?v=PfeA94BedQI
Then you will be able to intelligently converse with Fone Star.
You can also talk to Fone Star by using his You Tube Channel.
https://www.youtube.com/user/weihrauchfan1999
He likes guns.
The linked video's point is that the distributed ledger will grow as more people make transactions.
With the assumption that it will not be feasible for average users to run their own in-house global clearance and verification nodes.
The take-away I guess is: give up on Bitcoin and go back to USD and the centralized Visa/PayPal/ACH/SWIFT system?
However, the blockchain has not gotten out of hand, yet, and cost/availability of computing may keep pace going forward. At any rate, I don't see it as a reason to completely abandon the project.
Absolutely. Mark Karpeles is a hubristic asshole that needs to go back to his mother's basement. Sadly, I think he will be lounging on a Pacific beach. The real takeaway from all of this is the BTC is resilient and self-policing. There will be no government hearings (in the BTC community though I am sure that some enterprising DA will find someone to label with money-laundering charges for this) nor will there be any bailouts. This is a truly free market. Not sure what so many ZHers fail to see about this. You want a free market? Here it is! It's tough when you have to put your money where your mouth is though.
Just another step in the BTC evolution. The concerted attack has just confirmed how important the currency is and how much the cronies are frightened.
I believe BTC will eventually beat the fiat concept. This fraudulent concept is on the verge of collapse like every other fiat experiment in history. It's nice to have a viable alternative together with PMs.
Seriously.... No one could have seen technological hiccups on the way. I'm sure ther will be a few more of these. Just like there will be some hacker stealing customer info (Target) or banking info. But to call it done because of a DDoS attack? If every time someone got ddosed they shut down we would have no internet. Do they need to make better wallets? Sure. Is it the end of the Bitcoin world. Hardly....
Boom! There it is.
If it was backed by something (a real asset class, a gold coin), it might have helped. As a gold & silver man, it is sad to see....
You know something though, the other side of the coin (excuse the pun), makes me wonder - why this destruction of bit-coin? If it is nothing worthy then eventually like tulip manias it would fade.... But why the inteference from governments, central planners, banks talking up competition, NSA-friendly Google, expressing interest of forming their own coins....
It does make you wonder, maybe we shouldn't kick it - if it is being a thorn in the FED and other establishments' sides.
fonestar should reveal himself at the end of the btc Btc drama..a classic bow to the audience once the "satoshi" element has eroded away... i know who i think he/they/them may be.....lol
He's busy,he's being serviced by satoshi at the local glory hole.
better than gold my ass fonestar
if all the exchanges went down
and there would be no price "discovery-manipulation"
my ounces would go actually waaaaay up
and not crash
either way ounce in gold is like
a already cashed out bitcoin which remains
still exposed to the paper price
i love it
fonestar denying he's shitting his pants in 3...2...
BTC-e at $639 and fonestar will be using the last "goxed" shit shows to his advantage before this crappy exchange goes dark forever.
Fonedude retired on the moon with his stock of btc
New screenname fixes ya right up
When purchasing BTC after a dump does one back up the truck to an electricity outlet?
++ yen.
There's a hole in the grid and all the coins are leaking out!
Buying opportunity in 3..2..1..
I stopped reading Fonestar awhile ago, as the replies to his comments are far more entertaining.
Why would anyone stop reading Fonestar? You won't find a funnier, more desperate pump scheme anywhere on the net. His juvenile "I'm smarter than the system and everyone else is a dumb sheep" routine is pure gold bitcoin.
It's not that fonestar is smarter than the system, it's just that the posters on Reddit are a lot brighter than on Zerohedge (usually). Just think about everyone's "favorite old posters who are now banned" or some shit.... basically a bunch of tough guy morons trying to expose "teh joos" ROFL...
or even worse: former ZHer's like the Ralph Naderites (slewie the pirat), those erudits who have taken the time to critically examine historical record and actually bothered to read Marx/Engels before disparaging them (Blunderdog); not to mention annoying all-round secular humanists like Lennon Hendrix!
/sarc
But otherwise I agree with you foney, basically.
he's about to start sucking cheap hooch out of a paper bag [with Leo]... & Dennis Gartman...
I shouldn't brag, but awhile ago I put my investment fiat into virtual good much like BitCon.
And now the value of my Team Fortress 2 hat portfolio is up at least 40% - and I get to wear them in-game.
Converting them to cash is actually easier, apparently than BigCon, as well.
That's no crash.
... "it's a space station"
"Free Bitcoin with your purchase of two pairs of panty hose!"
p.s. - Probably a DDoS attack by NSA in collusion with the J.P. Morgue.
Given what Laws of Physics said about JPM hiring top programming talent and looking to get a stake in BTC I'd say that was a good guess.
If I just started buying gold and could beat the price down I'd do it.
Why on earth would the NSA want to crash bitcoin with a ddos? They probably have code in the bitcoin software that functions as a trojan scooping in exobytes of valuable intel.
The FUD spread by MFGox has rippled throughout the BTC ecosystem. Currently the infrastructure of every BTC exchange in under the same type of attack that led to the latest Gox-ing. Thankfully, other exchanges are prepared for these things. The BTC community is welcoming this attack as it provides a nice real-world stress test. I would imagine we will see another price shock (maybe down to $500) before returning to +/-$700. The transaction malleability issue has been known since 2011 and was thought to have been dealt with at the exchange level, apparently the DnD asshat at MtGox chose to ignore the memo thinking that he was smarter than everyone else.
I do see these latest BTC hitpieces out of JPM and FT as bullish for the currency as it has garnered enough attention (and perhaps caused enough worry) to merit a coordinated attack on the security and viability of the system as a whole.
I'm just hoping to scoop up some more cheap coin.
BTCTalks,
Can you become the new bitcoin bull round here?
Sounds like that youtube idiot 'Brother John'
Sometime you can learn more from an idiot than an expert.
From the mouthes of babes....so to speak.
I'll do my best, but fonestar has some pretty big shoes to fill. My position on BTC is that it is revolutionary technology that has the potential to liberate individuals by placing th power of their own money back in their own pockets. The currency itself may come or go, but the technology behind it is nothing short of revolutionary and will only get more powerful going forward. The possibilities for automating laborious transactions (escrow, copyright, conditional contracts, etc) are endless and new additions like Ethereum will only make BTC more powerful. BTC now is like the internet in 1992 "I can send an email. Great! Now what else can I do?" The answer then - as it is now - is "we don't know"
We can rebuild the financial system. We have the technology. Only time will tell what comes from it.
Kudos for rationality, reason and all that good stuff but you aren't going to lead anyone here to water (or make them understand Bitcoin).
Untrue, Fonestar
I have taken the time to research the technology. It is indeed revolutionary. The problem...in drinking the water...is the current pricing mechanism. To me, the early adapters deserve the gains. However, at this point.....the bugaboo is the volatility which will keep the new horses away from the water.
For the Bitcoin revolution to continue...I would assume more soldiers are needed...no?
I will buy a bitcoin when I know who Satoshi is.
I here you, Skateboarder. My concern is over the efficacy of BTC. For example, if I can save paying a patent attorney 5k by simply encoding and idea in the block chain...well fuck sign me up for one BTC.
However, if the courts do not recognize the blockshain as IP evidence...well that is another story.
Hmm... That's like saying you will use arithmetic when you know who invented it. The power is in the mathematics, not the mathemetician. Satoshi was smart when he (she/it/they) published his white paper. If people knew who he was, there would have been coordinated charecter assassination attempts. By releasing it pseudonymously, they allowed the math to speak for itself. The theory currently is that Satoshi was a team of cryptographers working for the NSA that realized what they came up with and decided to return power to the people. If that is indeed the case, anonymity was a good choice.
We know who he is: Nick Szabo
http://en.wikipedia.org/wiki/Nick_Szabo
Satoshi is the mouth behind the glory hole.
As long as an infinite number of copy-cats can be created, systemic raids on the top dogs could keep folks rotating into the upstarts. This could prevent the price stability that is needed for any crypto-coin to truly establish itself as a store of value.
Don't be a dick, you score no points with those who would like to understand.
And stop talking about yourself in the third person, fool.
BTC or Fornestar,
Has the blockchain ever been tested in case law? That is, the DNA of a contract/intellectual property existing within the blockchain.
Don't care about "laws". Irrelevant.
I'm sure the IRS will get a good chuckle out of that one when you fail to report your capital gains.
Not yet. That will come very soon. If email is admissible then any blockchain confirmed evidence should be even more admissible. Data uploaded to the blockchain are independently confirmed and timestamped and the blockchain has never been hacked (there is ample evidence to suggest that this would be, if not impossible, absolutely not profittable). In my opinion (and those of experts) blockchain evidence should be irrefutable - perhaps even more so than DNA...
Thanks, BTCTalks,
That time will be very interesting. I would expect some significant blowback from the legal community. However, nothing is impossible.
You may have the technology... but you do not have the "trust". Not that fiat currencies should have "trust" but seeing is half of believing.
The trust of the technology of Bitcoin will have to involve the legal community and therefore Gov't at some level. The wishful thinking of the "People's" currency is where I begin to harbor doubt.
Legal community and governments have proved themselves to be totally corrupt, irresponsible, untrustworthy, and have failed both morally and professionaly. Under such circumstances exluding them from money making and supervision is not only needed but necessary for the wide community to get consolidated. That's the point of BTC. Any sort of desired regulation not interfering with and circumventing the vest interests of criminal sociopaths is yet to be invented. Until then guarding the BTC independence and anonymity is crucial.
It's a great attempt of mankind to separate from the archaic parasitic oligarchy belonging to 18th century and certainly a next big step towards liberated and more matured personality.
If BTC represented just this it would be much enough.
Every unsuccessful attack only makes it stronger. The core protocol is rock solid. These are tertiary issues.
FUBAR
+1 for that FUBAR.
Robottrader is back?
The icon does look familiar, but I doubt it is Robot.
FUBAR
+1 for that FUBAR.
Foda," I felt a great disturbance in the Farce, as if a couple hundred geeks suddenly cried out in terror.."
PMSL
Buying op!!!! Pony up. Lose it all or get filthy rich. It's not a bad bet and you hurt the banks which makes a victory even more sweet. Fuck it, anything against the banks is good enough for me. Fuck the banks.
STUXNET!
15% here and 15% there, and soon you're talking about real bits.
"You can check in any time you like. But you can never leave."