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Posted on 02/22/2014 10:12:35 AM PST by Errant
A new market will allow Mt. Gox customers to trade funds in their exchange accounts for bitcoin, effectively allowing bitcoin withdrawals despite an official freeze.
The service, Bitcoin Builder, has also created an arbitrage opportunity for traders who wish to exploit the growing spread between the price of bitcoin on Mt. Gox and other major exchanges.
According to the market’s founder Josh Jones, some 14,500 BTC (about $8.1m) worth of trades have been executed since it was set up on 11th Feb.
(Excerpt) Read more at coindesk.com ...
•I withdrew crypto-cash from America's first Bitcoin ATM
• New Documents Show Goldman Sachs is Discussing Bitcoin
•Japanese Police Shut Down Protest at Mt. Gox
•Why Facebook’s $19bn Acquisition of WhatsApp is Meaningful for Bitcoin
•Bitcoin Basics For The '76 Percenters' Who Don't Have A Clue What It Is
There is a scalability problem (I’m re-synching now, still 26 weeks behind). This problem will be hugely aggravated if 5,000 Bitcoin ATM’s come online. Even doing away with zeroblocks won’t fix it.
Watch the tech. Any new Bitcoin-like substitute that successfully deals with the scale issues will be the one!
Ok i didnt read all that but if it can allow them to release... then what a buying opportunity. BTC on MtGox right now below 200USD while >575 is the “going” rate on the other exchanges. a $375 margin. For the brave!
Thanks for the report!
Indeed! lol
lol
I went from QT 0.8.1 to 0.8.6, which is supposed to be way better on the scale issue.
Doesn’t seem much different to me, though.
I need to get synched then back up the data folder...
I was about 230 days behind.
Wow. So far, I haven't had a sync issue. I sync up at least once or twice a week through a 15mb pipe.
Have you tried mining Dogecoin? I'm thinking of giving it a go.
Which exchanges are trading DOGE?
I don’t have a clue, I’ve just noticed that the difficulty level is way less than ltc and thinking of switching my miner. It’s up to about number 3 or 4 in popularity now.
“There is a scalability problem (I’m re-synching now, still 26 weeks behind). This problem will be hugely aggravated if 5,000 Bitcoin ATM’s come online. Even doing away with zeroblocks won’t fix it.”
So, what happens with the scalability issue if, say, everyone in the U.S. made ALL of their current purchases with bitcoin?
It would grind to a halt and become useless.
Imagine ALL cash registers in the US hooked up to ONE computer.
Imagine then that EVERY sale/transaction had to be backtracked and verified through a chain of data that included all transactions that ever occurred.
It’s just not possible.
This syncing you speak of. Is that just for miners or does everyone who has a wallet have to do it? I don’t have great bandwidth.
“It would grind to a halt and become useless.
Imagine ALL cash registers in the US hooked up to ONE computer.
Imagine then that EVERY sale/transaction had to be backtracked and verified through a chain of data that included all transactions that ever occurred.
It’s just not possible.”
Yeah, that’s what I thought, which seems to me to mean that bitcoin does not have much utility as an actual currency. Which then makes me wonder WHAT its real utility is, and therefore why it should have any intrinsic value at all. At least REAL commodities have utility, namely you can eat them or use them to make something that is useful and can be sold for a profit. What can you do with bitcoin except pretend like it is money or a commodity?
Everyone that has a “local” wallet does have to sync. That means you have a copy of the blockchain on your pc. Most people use an online wallet, so they don’t have to worry ‘bout it.
Every new technology has growing pains. Someone will figure it out...
Well, in a sense it is money without any counter-party exposure.
What does that mean?
Well, you might have 100,000 in the bank. You get to walk around and tell everyone “I have 100,000 in the bank!”
Try to pick up girls. Think about buyin a new car.
But in fact it is NOT up to you to decide or declare if you have 100,000 in the bank. You ONLY have 100,000 in the bank if SOMEONE AT THE BANK IS WILLING TO SAY SO!
Same with stocks (unless you have the physical certificate). Same with bonds and Money Market accounts and pensions... etc etc etc.
But with bitcoin, you have the wallet. Any bitcoins in your wallet exist ONLY in your wallet and nowhere else. Other people can verify they are in there for their own satisfaction, but the bitcoins in your wallet do not exist because some person/institution says they do.
So as of now, it is a finite, non-counterfeitable commodity, and that is a big part of it’s appeal. It can achieve an equilibrium price and from there is relatively secure.
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