English translation of the Mt Gox judgment ... - law.ox.ac.uk
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Why still no UK bank transfer solution on MtGox? : Bitcoin
Bank transfer from the UK to Mt. Gox : Bitcoin
Thank you Bitstamp
Bitstamp recently paid me out over USD 1m. I wanted to write this post to thank Bitstamp and to assure other users waiting for big payouts. Having lost coins on MtGOx I was extremely nervous. Here’s a summary of what happened: Early January – requested a withdrawal but I realized Bitstamp would change the amount from USD to euros and I wanted to keep it in dollars, so I cancelled the withdrawal. Bitstamp acknowledged the cancellation and requested more Know Your Client information: eg proof that I had purchased the bitcoins on another exchange and my occupation to which I sent them screenshots of my bank statements and my Linkedin account. I replied to the KYC request the same day Early to mid-January – requested a USD SEPA withdrawal to Metro Bank. They refused as Metro Bank reject any Bitcoin related payment. Bitstamp also requested more KYC information End January - requested a USD withdrawal to a Barclays USD account via International Transfer. The delay here was waiting for Barclays to open the USD account which took five days against Metro Bank who instantly opened the account. The international transfer cost about USD 1000 but it ensured Bitstamp would not convert to euros. The USD 1000 charge felt like tipping the dealer. Bitstamp requested more KYC information but did say they would process the withdrawal despite the outstanding KYC information. 7 February – received the money to a USD account The money has been life changing and enabled me to retire in my fifties. It feels like winning the lottery but unlike winning the lottery in the UK I will have to pay tax on it. Please don’t send me any begging letters. If they are anything like the ones I used to send they will break my heart
When discussing decred a lot of the narrative is around how it affects the USD price and trading. I'd like to ignore all that for a moment to discuss the feasibility of using DCR as an actual currency for everyday use. There are to me still many problems in the crypto space that still need resolving if you agree with the idea of crypto overtaking banking institutions. If not then this post might not be for you as a lot of my questions revolve around how the software can do the bank's job. A few examples:
if someone dies or has an accident what can be done to transfer funds to a next of kin?
what measures are put in place to lock down accounts subjected to fraud or theft? For example the famous mtgox case, if users were able to self mark their transactions as theft maybe it would have prevented the mtgox coins from being distributed in the ecosystem or given other users the knowledge and choice to accept marked coins. Another example being where someone's wallet has been stolen. What measures are being put in place to flag the account as having coins stolen to prevent further damage.
What theft/fraud protections are coming to the system? For example my bank has spending limits I can setup, along with notifications on any transactions that happen. Will such restrictions ever be put on the chain so that transactions can be marked invalid?
Another example of the same above point. A lot of software has a rating for fraud levels. For example if all my actions have been in the UK and suddenly I'm asking to transfer all my money to a different account in Brazil the transaction will be rejected as the fraud scoring will be too high. Will we be seeing anything similar to this as it may help with my next example..
What protections can be put in place to prevent what has happened with bitcoin where there are people getting kidnapped and forced to transfer their entire wallet?
Can anything be done to prevent money laundering and other illegal activities which is something a lot of governments care about in a distributed manner to prevent a single point of control. Perhaps again this comes down to the marking of coins and for people to make a choice of accepting them or not.
Is anyone doing any work around this or even discussing it? To me it seems that everyone is so focused on treating crypto like an asset rather than a currency that no work is ever done outside of the trading space. Perhaps most people would prefer to keep the banks and have the currency treated just as that, but then my counter point would be that crypto offers very little over fiat at that point.
Hello! My name is Slava Mikhalkin, I am a Project Owner of Crowdsale platform at Platinum, the company that knows how to start any ICO or STO in 2019. If you want to avoid headaches with launching process, we can help you with ICO and STO advertising and promotion. See the full list of our services: Platinum.fund I am also happy to be a part of the UBAI, the first educational institution providing the most effective online education on blockchain! We can teach you how to do ICO/STO in 2019. Today I want to tell you how to sell and transfer cryptocurrencies. Major Exchanges In finance, an exchange is a forum or platform for trading commodities, derivatives, securities or other financial instruments. The principle concern of an exchange is to allow trading between parties to take place in a fair and legally compliant manner, as well as to ensure that pricing information for any instrument traded on the exchange is reliable and coherently delivered to exchange participants. In the cryptocurrency space exchanges are online platforms that allow users to trade cryptocurrencies or digital currencies for fiat money or other cryptocurrencies. They can be centralized exchanges such a Binance, or decentralized exchanges such as IDEX. Most cryptocurrency exchanges allow users to trade different crypto assets with BTC or ETH after having already exchanged fiat currency for one of those cryptocurrencies. Coinbase and Kraken are the main avenue for fiat money to enter into the cryptocurrency ecosystem. Function and History Crypto exchanges can be market-makers that take bid/ask spreads as a commission on the transaction for facilitating the trade, or more often charge a small percentage fee for operating the forum in which the trade was made. Most crypto exchanges operate outside of Western countries, enabling them to avoid stringent financial regulations and the potential for costly and lengthy legal proceedings. These entities will often maintain bank accounts in multiple jurisdictions, allowing the exchange to accept fiat currency and process transactions from customers all over the globe. The concept of a digital asset exchange has been around since the late 2000s and the following initial attempts at running digital asset exchanges foreshadows the trouble involved in attempting to disrupt the operation of the fiat currency baking system. The trading of digital or electronic assets predate Bitcoin’s creation by several years, with the first electronic trading entities running afoul of the Australian Securities and Investments Commission (ASIC) in late 2004. Companies such as Goldex, SydneyGoldSales, and Ozzigold, shut down voluntarily after ASIC found that they were operating without an Australian Financial Services License. E-Gold, which exchanged fiat USD for grams of precious metals in digital form, was possibly the first digital currency exchange as we know it, allowing users to make instant transfers to the accounts of other E-Gold members. At its peak in 2006 E-Gold processed $2 billion worth of transactions and boasted a user base of over 5 million people. Popular Exchanges Here we will give a brief overview of the features and operational history of the more popular and higher volume exchanges because these are the platforms to which newer traders will be exposed. These exchanges are recommended to use because they are the industry standard and they inspire the most confidence. Bitfinex Owned and operated by iFinex Inc, the cryptocurrency trading platform Bitfinex was the largest Bitcoin exchange on the planet until late 2017. Headquartered in Hong Kong and based in the US Virgin Island, Bitfinex was one of the first exchanges to offer leveraged trading (“Margin trading allows a trader to open a position with leverage. For example — we opened a margin position with 2X leverage. Our base assets had increased by 10%. Our position yielded 20% because of the 2X leverage. Standard trades are traded with leverage of 1:1”) and also pioneered the use of the somewhat controversial, so-called “stable coin” Tether (USDT). Binance Binance is an international multi-language cryptocurrency exchange that rose from the mid-rank of cryptocurrency exchanges to become the market dominating behemoth we see today. At the height of the late 2017/early 2018 bull run, Binance was adding around 2 million new users per week! The exchange had to temporarily disallow new registrations because its servers simply could not keep up with that volume of business. After the temporary ban on new users was lifted the exchange added 240,000 new accounts within two hours. Have you ever thought whats the role of the cypto exchanges? The answer is simple! There are several different types of exchanges that cater to different needs within the ecosystem, but their functions can be described by one or more of the following: To allow users to convert fiat currency into cryptocurrency. To trade BTC or ETH for alt coins. To facilitate the setting of prices for all crypto assets through an auction market mechanism. Simply put, you can either mine cryptocurrencies or purchase them, and seeing as the mining process requires the purchase of expensive mining equipment, Cryptocurrency exchanges can be loosely grouped into one of the 3 following exchange types, each with a slightly different role or combination of roles. Have you ever thought about what are the types of Crypto exchanges?
Traditional Cryptocurrency Exchange: These are the type that most closely mimic traditional stock exchanges where buyers and sellers trade at the current market price of whichever asset they want, with the exchange acting as the intermediary and charging a small fee for facilitating the trade. Kraken and GDAX are examples of this kind of cryptocurrency exchange. Fully peer-to-peer exchanges that operate without a middleman include EtherDelta, and IDEX, which are also examples of decentralized exchanges.
Cryptocurrency Brokers: These are website or app based exchanges that act like a Travelex or other bureau-de-change. They allow customers to buy or sell crypto assets at a price set by the broker (usually market price plus a small premium). Coinbase is an example of this kind of exchange.
Direct Trading Platform: These platforms offer direct peer-to-peer trading between buyers and sellers, but don’t use an exchange platform in doing so. These types of exchanges do not use a set market rate; rather, sellers set their own rates. This is a highly risky form of trading, from which new users should shy away.
To understand how an exchange functions we need only look as far as a traditional stock exchange. Most all the features of a cryptocurrency exchange are analogous to features of trading on a traditional stock exchange. In the simplest terms, the exchanges fulfil their role as the main marketplace for crypto assets of all kinds by catering to buyers or sellers. These are some definitions for the basic functions and features to know: Market Orders: Orders that are executed instantly at the current market price. Limit Order: This is an order that will only be executed if and when the price has risen to or dropped to that price specified by the trader and is also within the specified period of time. Transaction fees: Exchanges will charge transactions fees, usually levied on both the buyer and the seller, but sometimes only the seller is charged a fee. Fees vary on different exchanges though the norm is usually below 0.75%. Transfer charges: The exchange is in effect acting as a sort of escrow agent, to ensure there is no foul play, so it might also charge a small fee when you want to withdraw cryptocurrency to your own wallet. Regulatory Environment and Evolution Cryptocurrency has come a long way since the closing down of the Silk Road darknet market. The idea of crypto currency being primarily for criminals, has largely been seen as totally inaccurate and outdated. In this section we focus on the developing regulations surrounding the cryptocurrency asset class by region, and we also look at what the future may hold. The United States of America A coherent uniform approach at Federal or State level has yet to be implemented in the United States. The Financial Crimes Enforcement Network published guidelines as early as 2013 suggesting that BTC and other cryptos may fall under the label of “money transmitters” and thus would be required to take part in the same Anti-money Laundering (AML) and Know your Client (KYC) procedures as other money service businesses. At the state level, Texas applies its existing finance laws. And New York has instituted an entirely new licensing system. The European Union The EU’s approach to cryptocurrency has generally been far more accommodating overall than the United States, partly due to the adaptable nature of pre-existing laws governing electronic money that predated the creation of Bitcoin. As with the USA, the EU’s main fear is money laundering and criminality. The European Central Bank (ECB) categorized BTC as a “convertible decentralized currency” and advised all central banks in the EU to refrain from trading any cryptocurrencies until the proper regulatory framework was put in place. A task force was then set up by the European Parliament in order to prevent and investigate any potential money laundering that was making use of the new technology. Likely future regulations for cryptocurrency traders within the European Union and North America will probably consist of the following proposals: The initiation of full KYC procedures so that users cannot remain fully anonymous, in order to prevent tax evasion and curtail money laundering. Caps on payments that can be made in cryptocurrency, similar to caps on traditional cash transactions. A set of rules governing tax obligations regarding cryptocurrencies Regulation by the ECB of any companies that offer exchanges between cryptocurrencies and fiat currencies It is less likely for other countries to follow the Chinese approach and completely ban certain aspects of cryptocurrency trading. It is widely considered more progressive and wiser to allow the technology to grow within a balanced accommodative regulatory framework that takes all interests and factors into consideration. It is probable that the most severe form of regulation will be the formation of new governmental bodies specifically to form laws and exercise regulatory control over the cryptocurrency space. But perhaps that is easier said than done. It may, in certain cases, be incredibly difficult to implement particular regulations due to the anonymous and decentralized nature of crypto. Behavior of Cryptocurrency Investors by Demographic Due to the fact that cryptocurrency has its roots firmly planted in the cryptography community, the vast majority of early adopters are representative of that group. In this section we cover the basic structure of the cryptocurrency market cycle and the makeup of the community at large, as well as the reasons behind different trading decisions. The Cryptocurrency Market Cycle Bitcoin leads the bull rally. FOMO (Fear of missing out) occurs, the price surge is a constant topic of mainstream news, business programs cover the story, and social media is abuzz with cryptocurrency chatter. Bitcoin reaches new All Timehigh (ATH) Market euphoria is fueled with even more hype and the cycle is in full force. There is a constant stream of news articles and commentary on the meteoric, seemingly unstoppable rise of Bitcoin. Bitcoin’s price “stabilizes”, In the 2017 bull run this was at or around $14,000. A number of solid, large market cap altcoins rise along with Bitcoin; ETH & LTC leading the altcoins at this time. FOMO comes into play, as the new ATH in market cap is reached by pumping of a huge number of alt coins. Top altcoins “somewhat” stabilize, after reaching new all-time highs. The frenzy continues with crypto success stories, notable figures and famous people in the news. A majority of lesser known cryptocurrencies follow along on the upward momentum. Newcomers are drawn deeper into crypto and sign up for exchanges other than the main entry points like Coinbase and Kraken. In 2017 this saw Binance inundated with new registrations. Some of the cheapest coins are subject to massive pumping, such as Tron TRX which saw a rise in market cap from $150 million at the start of December 2017 to a peak of $16 billion! At this stage, even dead coins or known scams will get pumped. The price of the majority of cryptocurrencies stabilize, and some begin to retract. When the hype is subsiding after a huge crypto bull run, it is a massive sell signal. Traditional investors will begin to give interviews about how people need to be careful putting money into such a highly volatile asset class. Massive violent correction begins and the market starts to collapse. BTC begins to fall consistently on a daily basis, wiping out the insane gains of many medium to small cap cryptos with it. Panic selling sweeps through the market. Depression sets in, both in the markets, and in the minds of individual investors who failed to take profits, or heed the signs of imminent collapse. The price stagnation can last for months, or even years. The Influence of Age upon Trading Did you know? Cryptocurrencies have been called “stocks for millennials” According to a survey conducted by the Global Blockchain Business Council, only 5% of the American public own any bitcoin, but of those that do, an overwhelming majority of 71% are men, 58% of them are between the ages of 18 and 35, and over half of them are minorities. The same survey gauged public attitude toward the high risk/high return nature of cryptocurrency, in comparison to more secure guaranteed small percentage gains offered by government bonds or stocks, and found that 30% would rather invest $1,000 in crypto. Over 42% of millennials were aware of cryptocurrencies as opposed to only 15% of those ages 65 and over. In George M. Korniotis and Alok Kumar’s study into the effects of aging on portfolio management and the quality of decisions made by older investors, they found “that older and experienced investors are more likely to follow “rules of thumb” that reflect greater investment knowledge. However, older investors are less effective in applying their investment knowledge and exhibit worse investment skill, especially if they are less educated and earn lower income.” Geographic Influence upon Trading One of the main drivers of the apparent seasonal ebb and flow of cryptocurrency prices is the tax situation in the various territories that have the highest concentrations of cryptocurrency holders. Every year we see an overall market pull back beginning in mid to late January, with a recovery beginning usually after April. This is because “Tax Season” is roughly the same across Europe and the United States, with the deadline for Income tax returns being April 15th in the United States, and the tax year officially ending the UK on the 6th of April. All capital gains must be declared before the window closes or an American trader will face the powerful and long arm of the IRS with the consequent legal proceedings and possible jail time. Capital gains taxes around the world vary from jurisdiction to jurisdiction but there are often incentives for cryptocurrency holders to refrain from trading for over a year to qualify their profits as long term gain when they finally sell. In the US and Australia, for example, capital gains are reduced if you bought cryptocurrency for investment purposes and held it for over a year. In Germany if crypto assets are held for over a year then the gains derived from their sale are not taxed. Advantages like this apply to individual tax returns, on a case by case basis, and it is up to the investor to keep up to date with the tax codes of the territory in which they reside. 2013 Bull run vs 2017 Bull run price Analysis In late 2016 cryptocurrency traders were faced with the task of distinguishing between the beginnings of a genuine bull run and what might colorfully be called a “dead cat bounce” (in traditional market terminology). Stagnation had gripped the market since the pull-back of early 2014. The meteoric rise of Bitcoin’s price in 2013 peaked with a price of $1,100 in November 2013, after a year of fantastic news on the adoption front with both Microsoft and PayPal offering BTC payment options. It is easy to look at a line going up on a chart and speak after the fact, but at the time, it is exceeding difficult to say whether the cat is actually climbing up the wall, or just bouncing off the ground. Here, we will discuss the factors that gave savvy investors clues as to why the 2017 bull run was going to outstrip the 2013 rally. Hopefully this will help give insight into how to differentiate between the signs of a small price increase and the start of a full scale bull run. Most importantly, Volume was far higher in 2017. As we can see in the graphic below, the 2017 volume far exceeds the volume of BTC trading during the 2013 price increase. The stranglehold MtGox held on trading made a huge bull run very difficult and unlikely. Fraud & Immoral Activity in the Private Market Ponzi Schemes Cryptocurrency Ponzi schemes will be covered in greater detail in Lesson 7, but we need to get a quick overview of the main features of Ponzi schemes and how to spot them at this point in our discussion. Here are some key indicators of a Ponzi scheme, both in cryptocurrencies and traditional investments: A guaranteed promise of high returns with little risk. Consistentflow of returns regardless of market conditions. Investments that have not been registered with the Securities and Exchange Commission (SEC). Investment strategies that are a secret, or described as too complex. Clients not allowed to view official paperwork for their investment. Clients have difficulties trying to get their money back. The initial members of the scheme, most likely unbeknownst to the later investors, are paid their “dividends” or “profits” with new investor cash. The most famous modern-day example of a Ponzi scheme in the traditional world, is Bernie Madoff’s $100 billion fraudulent enterprise, officially titled Bernard L. Madoff Investment Securities LLC. And in the crypto world, BitConnect is the most infamous case of an entirely fraudulent project which boasted a market cap of $2 billion at its peak. What are the Exchange Hacks? The history of cryptocurrency is littered with examples of hacked exchanges, some of them so severe that the operation had to be wound up forever. As we have already discussed, incredibly tech savvy and intelligent computer hackers led by Alexander Vinnik stole 850000 BTC from the MtGox exchange over a period from 2012–2014 resulting in the collapse of the exchange and a near-crippling hammer blow to the emerging asset class that is still being felt to this day. The BitGrail exchange suffered a similar style of attack in late 2017 and early 2018, in which Nano (XRB) was stolen that was at one point was worth almost $195 million. Even Bitfinex, one of the most famous and prestigious exchanges, has suffered a hack in 2016 where $72 million worth of BTC was stolen directly from customer accounts. Hardware Wallet Scam Case Study In late 2017, an unfortunate character on Reddit, going by the name of “moody rocket” relayed his story of an intricate scam in which his newly acquired hardware wallet was compromised, and his $34,000 life savings were stolen. He bought a second hand Nano ledger into which the scammers own recover seed had already been inserted. He began using the ledger without knowing that the default seed being used was not a randomly assigned seed. After a few weeks the scammer struck, and withdrew all the poor HODLer’s XRP, Dash and Litecoin into their own wallet (likely through a few intermediary wallets to lessen the very slim chances of being identified). Hardware Wallet Scam Case Study Social Media Fraud Many gullible and hapless twitter users have fallen victim to the recent phenomenon of scammers using a combination of convincing fake celebrity twitter profiles and numerous amounts of bots to swindle them of ETH or BTC. The scammers would set up a profile with a near identical handle to a famous figure in the tech sphere, such as Vitalik Buterin or Elon Musk. And then in the tweet, immediately following a genuine message, follow up with a variation of “Bonus give away for the next 100 lucky people, send me 0.1 ETH and I will send you 1 ETH back”, followed by the scammers ether wallet address. The next 20 or so responses will be so-called sockpuppet bots, thanking the fake account for their generosity. Thus, the pot is baited and the scammers can expect to receive potentially hundreds of donations of 0.1 Ether into their wallet. Many twitter users with a large follower base such as Vitalik Buterin have taken to adding “Not giving away ETH” to their username to save careless users from being scammed. Market Manipulation It also must be recognized that market manipulation is taking place in cryptocurrency. For those with the financial means i.e. whales, there are many ways in which to control the market in a totally immoral and underhanded way for your own profit. It is especially easy to manipulate cryptos that have a very low trading volume. The manipulator places large buy orders or sell walls to discourage price action in one way or the other. Insider trading is also a significant problem in cryptocurrency, as we saw with the example of blatant insider trading when Bitcoin Cash was listed on Coinbase. Examples of ICO Fraudulent Company Behavior In the past 2 years an astronomical amount of money has been lost in fraudulent Initial Coin Offerings. The utmost care and attention must be employed before you invest. We will cover this area in greater detail with a whole lesson devoted to the topic. However, at this point, it is useful to look at the main instances of ICO fraud. Among recent instances of fraudulent ICOs resulting in exit scams, 2 of the most infamous are the Benebit and PlexCoin ICOs which raised $4 million for the former and $15 million for the latter. Perhaps the most brazen and damaging ICO scam of all time was the Vietnamese Pincoin ICO operation, where $660million was raised from 32,000 investors before the scammer disappeared with the funds. In case of smaller ICO “exit scamming” there is usually zero chance of the scammers being found. Investors must just take the hit. We will cover these as well as others in Lesson 7 “Scam Projects”. Signposts of Fraudulent Actors The following factors are considered red flags when investigating a certain project or ICO, and all of them should be considered when deciding whether or not you want to invest. Whitepaper is a buzzword Salad: If the whitepaper is nothing more than a collection of buzzwords with little clarity of purpose and not much discussion of the tech involved, it is overwhelmingly likely you are reading a scam whitepaper. Signposts of Fraudulent Actors §2 No Code Repository: With the vast majority of cryptocurrency projects employing open source code, your due diligence investigation should start at GitHub or Sourceforge. If the project has no entries, or nothing but cloned code, you should avoid it at all costs. Anonymous Team: If the team members are hard to find, or if you see they are exaggerating or lying about their experience, you should steer clear. And do not forget, in addition to taking proper precautions when investing in ICOs, you must always make sure that you are visiting authentic web pages, especially for web wallets. If, for example, you are on a spoof MyEtherWallet web page you could divulge your private key without realizing it and have your entire portfolio of Ether and ERC-20 tokens cleaned out. Methods to Avoid falling Victim Avoiding scammers and the traps they set for you is all about asking yourself the right questions, starting with: Is there a need for a Blockchain solution for the particular problem that a particular ICO is attempting to solve? The existing solution may be less costly, less time consuming, and more effective than the proposals of a team attempting to fill up their soft cap in an ICO. The following quote from Mihai Ivascu, the CEO of Modex, should be kept in mind every time you are grading an ICO’s chances of success: “I’m pretty sure that 95% of ICOswill not last, and many will go bankrupt. ….. not everything needs to be decentralized and put on an open source ledger.” Methods to Avoid falling Victim §2 Do I Trust These People with My Money, or Not? If you continue to feel uneasy about investing in the project, more due diligence is needed. The developers must be qualified and competent enough to complete the objectives that they have set out in the whitepaper. Is this too good to be true? All victims of the well-known social media scams using fake profiles of Vitalik Buterin, or Bitconnect investors for that matter, should have asked themselves this simple question, and their investment would have been saved. In the case of Bitconnect, huge guaranteed gains proportional to the amount of people you can get to sign up was a blatant pyramid scheme, obviously too good to be true. The same goes for Fake Vitalik’s offer of 1 ether in exchange for 0.1 ETH. Selling Cryptocurrencies, Several reasons for selling with the appropriate actions to take: If you are selling to buy into an ICO, or maybe believe Ether is a safer currency to hold for a certain period of time, it is likely you will want to make use of the Ether pair and receive Ether in return. Obviously if the ICO is on the NEO or WANchain blockchain for example, you will use the appropriate pair. -Trading to buy into another promising project that is listing on the exchange on which you are selling (or you think the exchange will experience a large amount of volume and become a larger exchange), you may want to trade your cryptocurrency for that exchange token. -If you believe that BTC stands a good chance of experiencing a bull run then using the BTC trading pair is the suitable choice. -If you believe that the market is about to experience a correction but you do not want to take your gains out of the market yet, selling for Tether or “tethering up” is the best play. This allows you to keep your locked-in profits on the exchange, unaffected by the price movements in the cryptocurrency markets,so that you can buy back in at the most profitable moment. -If you wish to “cash out” i.e. sell your cryptocurrency for fiat currency and have those funds in your bank account, the best pair to use is ETH or BTC because you will likely have to transfer to an exchange like Kraken or Coinbase to convert them into fiat. If the exchange offers Litecoin or Bitcoin Cash pairs it could be a good idea to use these for their fast transaction time and low fees. Selling Cryptocurrencies Knowing when and how to sell, as well as strategies to inflate the value of your trade before sale, are important skills as a trader of any product or financial instrument. If you are satisfied that the sale itself of the particular amount of a token or coin you are trading away is the right one, then you must decide at what price you are going to sell. Exchanges exercise their own discretion as to which trading “pairs” they will offer, but the most common ones are BTC, ETH, BNB for Binance, BIX for Bibox etc., and sometimes Tether (USDT) or NEO. As a trader, you decide which particular cryptocurrency to exchange depending on your reason for making that specific trade at that time. Methods of Sale Market sell/Limit sell on exchange: A limit sell is an order placed on an exchange to sell as soon as (also specifically only if and when) the price you specified has been hit within the time limit you select. A market order executes the sale immediately at the best possible price offered by the market at that exact time. OTC (or Over the Counter) selling refers to sale of securities or cryptocurrencies in any method without using an exchange to intermediate the trade and set the price. The most common way of conducting sales in this manner is through LocalBitcoins.com. This method of cryptocurrency selling is far riskier than using an exchange, for obvious reasons. The influence and value of your Trade There are a number of strategies you can use to appreciate the value of your trade and thus increase the Bitcoin or Ether value of your portfolio. It is important to disassociate yourself from the dollar value of your portfolio early on in your cryptocurrency trading career simply because the crypto market is so volatile you will end up pulling your hair out in frustration following the real dollar money value of your holdings. Once your funds have been converted into BTC and ETH they are completely in the crypto sphere. (Some crypto investors find it more appropriate to monitor the value of their portfolio in satoshi or gwei.) Certainly not limited to, but especially good for beginners, the most reliable way to increase your trading profits, and thus the overall value and health of your portfolio, is to buy into promising projects, hold them for 6 months to a year, and then reevaluate. This is called Long term holding and is the tactic that served Bitcoin HODLers quite well, from 2013 to the present day. Obviously, if something comes to light about the project that indicates a lengthy set back is likely, it is often better to cut your losses and sell. You are better off starting over and researching other projects. Also, you should set initial Price Points at which you first take out your original investment, and then later, at which you take out all your profits and exit the project. That should be after you believe the potential for growth has been exhausted for that particular project. Another method of increasing the value of your trades is ICO flipping. This is the exact opposite of long term holding. This is a technique in which you aim for fast profits taking advantage of initial enthusiasm in the market that may double or triple the value of ICO projects when they first come to market. This method requires some experience using smaller exchanges like IDEX, on which project tokens can be bought and sold before listing on mainstream exchanges. “Tethering up” means to exchange tokens or coins for the USDT stable coin, the value of which is tethered to the US Dollar. If you learn, or know how to use, technical analysis, it is possible to predict when a market retreatment is likely by looking at the price movements of BTC. If you decide a market pull back is likely, you can tether up and maintain the dollar value of your portfolio in tether while other tokens and coins decrease in value. The you wait for an opportune moment to reenter the market. Market Behavior in Different Time Periods The main descriptors used for overall market sentiment are “Bull Market” and “Bear Market”. The former describes a market where people are buying on optimism. The latter describes a market where people are selling on pessimism. Fun (or maybe not) fact: The California grizzly bear was brought to extinction by the love of bear baiting as a sport in the mid 1800s. Bears were highly sought after for their intrinsic fighting qualities, and were forced into fighting bulls as Sunday morning entertainment for Californians. What has this got to do with trading and financial markets? The downward swipe of the bear’s paws gives a “Bear market” its name and the upward thrust of a Bull’s horns give the “Bull Market” its name. Most unfortunately for traders, the bear won over 80% of the bouts. During a Bull market, optimism can sometimes grow to be seemingly boundless, volume is rising, and prices are ascending. It can be a good idea to sell or rebalance your portfolio at such a time, especially if you have a particularly large position in one holding or another. This is especially applicable if you need to sell a large amount of a relatively low-volume holding, because you can then do so without dragging the price down by the large size of your own sell order. Learn more on common behavioral patterns observed so far in the cryptocurrency space for different coins and ICO tokens. Follow the link: UBAI.co If you want to know how do security tokens work, and become a professional in crypto world contact me via Facebook to get all the details: Facebook
Prohibiting agreements or practices that restrict free trading and competition between business entities. This includes in particular the repression of cartels.
Banning abusive behaviour by a firm dominating a market, or anti-competitive practices that tend to lead to such a dominant position. Practices controlled in this way may include predatory pricing, tying, price gouging, refusal to deal and many others."
I know very little about the details of the law but isn't what the banks are doing? (And this is not just in the UK!) They are defending a monopoly that should never have been allowed to exist! Transferwise has just been banned from sending money to Bitstamp: http://transferwise.com/blog/2013-04/notice-to-bitcoin-users-april-2013 Mtgox had their account in the UK closed. Bitfloor closed due to their bank closing it (I think). We need to do something about this! Can someone with a law background provide a watertight argument for why the banks refusing transfers to Bitcoin exchanges is illegal? Can we take the banks to court over this?
I'm donating 5057 BTC to charitable causes! Introducing The Pineapple Fund (20020 points, 2927 comments)
Farewell from the Pineapple Fund (10944 points, 610 comments)
🍍 $4mil will fund MDMA trials for PTSD; marked 'Breakthrough Therapy' by FDA. Pineapple Fund is matching MAPS donations 1:1. Reddit, let's make history by crowdfunding an incredible treatment for PTSD, in bitcoin! (10650 points, 558 comments)
Day 2: I will repost this guide daily until available solutions like Segwit & order batching are adopted, the mempool is empty once again, and transaction fees are low. You can help. Take action today (5145 points, 766 comments)
Day 9: I will post this guide regularly until available solutions like SegWit, order batching, and Lightning payment channels are mass adopted, the mempool is empty once again, and tx fees are low. Have you done your part? (2070 points, 190 comments)
Day 5: I will post this guide regularly until available solutions like SegWit & order batching are mass adopted, the mempool is empty once again, and transaction fees are low. User demand from this community can help lead to some big changes. Have you joined the /Bitcoin SegWit effort? (2017 points, 268 comments)
Day 7: I will post this guide regularly until available solutions like SegWit & order batching are mass adopted, the mempool is empty once again, and tx fees are low. Do you want low tx fees, because this is how you get low tx fees (1959 points, 166 comments)
Day 3: I will repost this guide daily until available solutions like SegWit & order batching are mass adopted, the mempool is empty once again, and transaction fees are low. ARE YOU PART OF THE SOLUTION? News: Unconfirmed TX's @ 274K, more exchanges adding SegWit, Core prioritizes SegWit GUI (1758 points, 220 comments)
Day 8: I will post this guide regularly until available solutions like SegWit, order batching, and Lightning payment channels are mass adopted, the mempool is empty once again, and tx fees are low. BTC Core SegWit GUI coming May 1, Coinbase incompetence exposed, more exchanges deploy SegWit (1454 points, 177 comments)
Day 6: I will post this guide regularly until available solutions like SegWit & order batching are mass adopted, the mempool is empty once again, and tx fees are low. Refer a friend to SegWit today. There's no $10 referral offer, but you'll both get lower fees and help strengthen the BTC protocol (1193 points, 99 comments)
Proposition: UK banks blocking transfers to Bitcoin exchanges is illegal and in violation of UK Competition Law
I've posted this in Bitcoin and got a great response, but being the wrong breed of nerd (tech nerd vs legal nerd) we need the help of law to find out the truth of the matter! What is bitcoin? For those of you who don't know Bitcoin is: Bitcoin is a decentralized crypto-currency that uses an algorithm to generate bitcoins at a steady rate. It's basically web-cash. Banks don't like it because it allows people to send money to each other (bitcoins) without banks. It's competition to banks, which currently have a monopoly on money transfer. What did the banks do to bitcoin exchanges? Banks, especially UK banks, have been shutting down the bank accounts of bitcoin exchanges. To get bitcoins, you have to send money from your bank account to an exchange, then once you have the bitcoins you can send them to anyone around the world anytime, without using a bank and trade them for goods and services. Proposition: UK banks blocking transfers to Bitcoin exchanges is illegal and in violation of UK Competition Law: From Wikipedia: http://en.wikipedia.org/wiki/United_Kingdom_competition_law#European_Union_law "Like all competition law, that in the UK has three main tasks.
Prohibiting agreements or practices that restrict free trading and competition between business entities. This includes in particular the repression of cartels.
Banning abusive behaviour by a firm dominating a market, or anti-competitive practices that tend to lead to such a dominant position. Practices controlled in this way may include predatory pricing, tying, price gouging, refusal to deal and many others."
I know very little about the details of the law (specifically UK law) but isn't this exactly what the banks are doing? (And this is not just happening in the UK) They are defending a monopoly that should never have been allowed to exist! Examples of this happening: - Mtgox, the biggest bitcoin exchange had their bank account in the UK closed.
Today transferwise has just been banned from sending money to Bitstamp: http://transferwise.com/blog/2013-04/notice-to-bitcoin-users-april-2013 Bitstamp is a major bitcoin exchange and transferwise allowed UK citizens to send GBP to Bitstamp at a good rate. Now they can still do it but with a SEPA transfer, which in the UK has an great big fee (e.g. £15 for barclays) plus a very expensive exchange rate.
Bitfloor, another bitcoin exchange closed due to their bank account being closed.
Can someone provide a watertight argument for why the banks refusing transfers to Bitcoin exchanges and closing accounts of bitcoin exchanges is illegal? Can we take the banks to court over this? (or something that will prevent from doing this)
A beginners guide to buying and using Bitcoins to purchase books etc on Silkroad
So my story is that my country doesnt allow certain controversial books to be sold so I buy them from Silkroad using bitcoin instead. I do not condone using Silkroad for other illegal purposes. Okay so after having written this I realise just how much of a pain in the ass it is to set up but once everything is set up it really is easier than buying stuff of ebay. Step 1: SilkRoad
Once you have it installed go to the folder labled "Tor Browser" and click the "Start Tor Browser".
If the browser connected successfully to the network then put the following address into the url bar to connect to the silkroad website: http://ianxz6zefk72ulzz.onion/index.php Make sure you only ever use that url, do not google "silkroad" to get it, there are phishing scams out there.
Note that the whole underground network is often pretty slow and sometimes the connection times out, you may have to wait a few minutes and try again.
Register an account and browse away!
Step 2: Bitcoins So as you can see from the website you need to pay with bitcoin. The next step is actually a little trickier despite it being perfectly legal.
The cheapest way to buy bitcoins is from an exchange. I use www.mtgox.com. Once you have an account with mtgox click "add funds" and choose wire transfer.
In order for this to work make sure you have online banking set up with your bank. Its different with every bank but with my bank you set up an international bank transfer and add a new beneficiary, if you havent done this before then you'll probably have to wait until your bank post you an activation code.
Once you have this set up then transfer money to your mtgox account(takes 3-4 days). This can then be used to purchase bitcoins. Once you have the bitcoins then click "withdraw funds" and enter the bitcoin address given to you by Silkroad to transfer to your silkroad account.
A guide to using Silk Road, specifically for /r/UKtrees
Hey all, I’ve seen a few posts on here asking about using Silk Road to purchase trees. I’m not an expert, but I have used it successfully a few times now, so I figured I’d write a guide to help anyone out. 1. Getting on Silk Road. Silk Road exists on what is commonly referred to as the ‘Hidden internet’, or ‘Deep Web’; Websites on the hidden internet are not indexed and thus not accessible by regular search engines or DNS lookups. You can do more research on this if you want - to be perfectly honest, I don’t understand it entirely - but you don’t need to. To access Silk Road and the rest of the Hidden Internet, you need to download a piece of Software, called Tor. This software allows you access hidden websites via a regular browser window. Just head to Tor’s Website and click the download. Once the files are downloaded, unzip and click Start Tor. To head to Silk Road, enter the following address silkroadvb5piz3r.onion You’ll need to make an account, this is pretty straight forward. (Make sure you remember your pin. You don’t need it when logging in, but you do need it when confirming transactions. Also, your pin doesn’t actually have to be a ‘pin’, mine is just another regular password) Note: Due to the nature of the Onion network/service, it’s quite slow. And a busy site like Silk Road can be even slower. So, it may be that you have trouble connecting. If it doesn’t work, hit refresh a couple of times, and then just try again later. I usually have better luck in the morning 9pm-12pm and late evening 10pm-4am 2. Bitcoin. Bitcoin is a decentralised peer 2 peer based currency. Essentially, it’s an untraceable and anonymous currency. Purchasing Bitcoin can be a little tricky, there are a number of ways to do it. There are exchanges such as MTgox and Intersango, and many direct Bitcoin purchasing sites such as Bitstamp, and BitInstant. The problem with many of these sites is they operate outside of the UK, and as such getting money into them can be tricky. They tend not to accept debit credit cards, and often require bank transfers via IBAN. However, banks will often charge you a fee for using IBAN (I know Natwest charges £10). These websites will allow you to deposit money into your account, and then place orders to convert that money into Bitcoin. Other easier websites are Virwox, and Block Chain. With Virwox, you first need to convert currency into Linden Dollars (SLL) (a currency used in the game Second Life) then into Bitcoins. However, Virwox does not allow for fractions of bitcoins, which means you can easily end up being just shy of a full bitcoin and having ‘worthless’ SLL. One nice thing about Virwox is that they accept UKash vouchers. So if you want no trace of your purchases, you can go buy UKash vouchers at any Paypoint and then deposit those. Block Chain used to only be depositable via Barclay’s Pingit, but has since opened up regular bank transfers, I found this worked really well the last time I used it, so I’d recommend it. You can also buy bitcoins in person by searching on Local bitcoin. In addition, there are also people selling Bitcoins on Ebay, but very overpriced, so I wouldn’t recommend that. There are a tonne of places to buy bitcoin, some accept cash/cheques in the mail as well. You can always find more by googling. 3. The purchasing process. You need to send your purchased Bitcoins to your SR account, you can find your bitcoin address under ‘Account’ at the top of the screen. It can take a few hours for the transfer to take place. Once in your account, you’re ready to purchase, simply find whatever it is you wish to buy, click add to cart, and then head to the checkout. Select a postage method for your items and click go to confirm the postage. Now, you need to input your address and your pin. Now, you might have heard of PGP encryption by this point, it’s a form of public/private key encryption used on SR to protect the addresses of its users. For this, I’m just going to steal mr_kyitty’s guide from this thread.
Get gpg4win, install, and open 'GPA'
Now you need to make your own key. Go to Keys>New Key, and follow the prompts. Use a fake name/e-mail. Before entering a passcode, write it out (the longer the passcode, the better, and you have to enter it every time you encrypt something). Once that's done, you have your own key.
Import the seller key from the seller page. To do this, copy the public key from the page, paste it into a blank notepad file, and save the file. Then click 'Import' in GPA and load that file. You now have that seller's public key.
To encrypt your address, open the clipboard in GPA and type in your address. Click encrypt, select the seller's public key, and in the lower box, check "sign" and select your own key. Then you will be prompted to enter your passcode. Once complete, copy the block from the clipboard and paste it into the address box on the shopping cart page.
I’d like to add, that you don’t need to ‘sign’ the encryption. What this does is allows the seller to verify that you are the actual sender of the message. However, I’d argue this isn’t entirely necessary, as it will also require you to post your public key somewhere. Click to confirm the transaction, and that’s the order placed. It will now show up under your ‘orders’ section. You’ll notice an option to ‘finalize’. Silk Road uses escrow, i.e. they hold your money when you place an order, and when the order is confirmed to have gone through (after x days) the money will be sent to the vendor. You can Finalise early, by clicking the finalise button and sending them their payment. It’s common courtesy to do this once your item has arrived. If an issue arises, you can click resolve, and attempt to claim a refund/resolve the issue. I don’t have any experience with this so I’d recommend you search /silkroad for advice if you need assistance on resolving a matter. Some vendors might ask you to finalise early before they will send your order. Now, this is actually against Silk Road policy, but its common for vendors to ask for this from first time buyers. Personally, I would say just don’t do it. You never know what’s going to happen. But generally speaking, a vendor's reputation is probably worth more than your particular order, so the risk of being 'ripped off' is low. Still, I wouldn't recommend it. 4. Additional Comments Do I recommend it for weed? I started using SR Last year after I moved back home from Uni, because I no longer had a dealer. Personally, if I had a choice, I would choose to buy from a dealer every time. SR is a lot of hassle, so I wouldn’t recommend it for your general Eighth or quarter, unless you have no other connection (as is unfortunately the situation for me). However, there are a variety of strains and products available, ranging from hashes to oils to edibles, so some of you might like to have those options. In terms of price, I’d say it’s fair. A lot of Weed vendors will have a standard strain that they’ll sell for a (roughly) standard £20/eighth. You will generally be spending a little more given the nature of the process. Is it risky? In terms of general legal risk, you can't control what people send to you. If there's no record of you having bought it (Which there isn't, buying bitcoins is not a crime) then you should be fine. In terms of 'Will I get scammed risk' - it's just like ebay, people value their reputation. Buy from high repped vendors, and you should be fine. Anyway, that’s all folks, I hope you’ve found this helpful. If you have any questions, leave a comment, and I’ll do my best to help you out. Also, if any other more experienced SR users have noticed any mistakes or things I should alter in this guide, please leave a comment and let me know, and I’ll make the necessary amendments. And here are some other great subreddits which you may also find useful. /SilkRoad - For everything Silk Road. /Bitcoin - For everything Bitcoin. /onions - For everything hidden internet.
WalletBit is now offering its great bank transfer rate to customers from Mexico. For as low as 2.75% you can receive deposits to your bank account in Mexico. This same great rate is available everywhere, making WalletBit the most affordable way to accept Bitcoins worldwide. In the last six weeks WalletBit has gone from only offering Bitcoin and MTGox instant ask withdrawals to offering bank transfers to Europe, Denmark, Canada, USA, UK and now Mexico. Not only this but at the world's most competitive rate. Never before has it been so easy or affordable to accept Bitcoins anywhere. Bank transfers aren't just for businesses either. All users have the ability to convert their bitcoins into local currency. Bank transfers are initiated on Mondays and a minimum fee applies for each transfer. Every user has the ability to set their own minimum transfer level giving everyone the ability to manage their own fees. For complete details please see https://walletbit.com/pricing If your country isn't listed on our pricing page you can check if you are eligible for bank transfers by completing your WalletBit bank profile. If your profile is approved then you are eligible. All deposits and sales will be converted to local currency. The minimum transfer fee is usually $15 or whatever the local currency equivalent is. As always, if you want to keep your Bitcoins you still have the option to keep your Bitcoins for our low flat rate of 0.89%. WalletBit - A Bitcoin Way to Pay www.WalletBit.com
I have created multiple posts in Reddit during last year and wrote 20 letters to LocalBitcoins support describing all those issues with web-interface, usability, and basic maintenance they have. Most of issues lead to money losses among my friends every day. I'm gonna talk mostly about countries like Russia. LocalBitcoins became something like traditional institution which is not innovating, and I am myself an active supporter of @BTC_CHANGE_BOT - the Telegram bot which is simpler version of LocalBitcoins, I am trying to help developers of this bot, so: don't say that I'm not trying to solve problem by creating alternative product (Even though should I? Such exchanges are very complicated product). And also I love the idea and I try my best to make possible to switch to https://bitsquare.io - but it has many issues at current stage. First off, let me start with main indicator showing up, how much LocalBitcoins earns just from Russian users: https://coin.dance/volume/localbitcoins/RUB - $2,686,567 or 180 million rubles per week LocalBitcoins takes astounding 1% fee off every deal, which means that only from Russia LocalBitcoins business earns $26,865 weekly or $107,460 per month. One hundred thousand per month. And this is not counting other countries than Russia which use LocalBitcoins for similar reasons (for wire irreversible transfers using our traditional Russian banking infrastructure and their Escrow system for fascilitating all those trades).
I've sent 5 bug reports to their technical support during last 3 years that their mobile web-interface doesn't show MINIMUM-MAXIMUM DEPOSITS - this makes almost impossible to use their application on the go with horrible Internet coverage we have here in Russia and for choosing trader this forces a customer to surf 10 pages of links just to check those deposits. I'm not kidding, I've been trying to ask this question on their forums, many other people asked this, basically this is our main feature request. Just to include one fucking row which represents minimum/maximum deposits like "from 1500 rub to 10000 rub" because all exchange advertisements vary - some traders trade only "from 10000 rub to 100000 rub" - this kind of trades are not suitable for customers who came to exchange 5000 rub or less. And still you have to check 10 pages - which is ridiculously slow process when you're on mobile.
Their latest change of the interface where they don't allow me to enter details of contract (I can only enter phone number) is very wrong decision. I wrote them, and all they responded was standard "thank you for feedback"
I have offered them many times to limit ability of traders to block Bitcoins, but it seems like they are really don't care - it is not healthy practice at all to block my Bitcoins in Escrow for 360 minutes - i.e. for 6 hours! If trader is not online (while it looks like he is online), it means that you will wait 6 hours before you restore your access to your Bitcoins. Most often its enough to give any trader 30 minutes, because trader can press "prolong contract" button in case if 30 minutes is not enough for processing payment. But this is only in case if he is online. I don't have to wait 6 hours to get back my own money!
Their stupid orange form is not working at all - this orange form is cruicial for choosing country, while its not working in Russia most of the times. I wrote about this to their technical support several times too, all they could say about this "Try again", "It works now", "Well probably you choosing the wrong options", all kind of excuses, just to not ask their developers to fix this.
Their web-site is always down - I am trying to educate people here in Russia on how to use Bitcoins, and this is voluntary time-consuming almost full-time job, and still those people whom I finally teached how to use LocalBitcoins - next day call me and say that "there's some Cloud Flare error when I try visit their web-site". Their web-site uptime is really horrible! Their web-site is almost always down, especially on old computers - because in Russia I mostly deal with poor people who have not the latest laptop from Apple (we tested Cloud Flare shows error only if computers are little bit old, I don't know why)
Technical support of LocalBitcoins releasing Bitcoins too fast against your will. In most regions we have very often problems with the internet, and on a few contracts my people lost their Bitcoins because LocalBitcoins decided that "customer have not answered within 3 hours", when the reason was we couldn't answer so shortly because there was electricity outage or some problem with the Internet
0 efforts at encouraging new directions like Uzbekistan, Kyrgyzstan, Kazakhstan and many many directions with rich opportunities and banks having all necessary traditional tools to cover this countries up
Their web-sites haven't changed like since 2000. All they do is introduce some annoying little functions here and there.
There's still no function/markets for quick sell in Russia, while they did it for UK, etc.
Stupid reCaptcha & even more stupid authorization system which doesn't work! All their emails / sms which coming as 2 factor authorization isn't work properly! I have waited hours and even sometimes days with my funds locked up, just because email didn't appeared. In other cases not because of LB, but because of my email provider who are blocked me out without reason (our main mail.ru emails provider are very ofter blocking people accounts without possibility to restore it, other email providers are not reliable too)
I am sorry for showing up so much complaints, but this company is extracting $107 thousand dollars each months from Russian Bitcoin community without paying anything back. This is just selfish, and I understand that this is nothing personal just a business. I wouldn't say those things if I and my friends personally wouldn't lost so much of my own money on all of these bugs. I just can't understand how come they can't consider improving/fixing at least 1 of my issues? For $107,000 of extracted income from Russia per month?! After all those efforts to ask at least for a little changes, I'm just feeling exhausted and ripped off. This company don't care. And with their custodial model this company is MtGox v2.
This may be a long post but I wanted to get a few things off my chest. Some of you may not like what I'm saying but if that's the case at least take the time to discuss it rather than downvoting me. I think that's what communities on Reddit lack - discussion is how we progress and sometimes it feels like all Reddit does is downvote instead of actually talking up. Firstly - Bitcoin in the media. It's no big news that Bitcoin was synonymous with Silk Road and the Deep Web for a while. You couldn't have one without the other. This lead to a lot of negative press for Bitcoin itself. I think it was handled quiet well, we showed the majority of people that Bitcoin was useable in a mainstream setting but I don't think we did enough. How often do we see the good features of Bitcoins like:
Free / automatic fraud prevention. You can be sure that your payment won't be chargeback from fraudsters. *Very easy implementation with Coinbase and other merchants. Fees are very low compared to credit card processors.
Accept payments worldwide. Anyone who can download the client can make a payment.
Can be set up usually within 10 minutes.
How often do we see these features? I recently saw a sign in my local shop saying they couldn't accept credit card payments due to high fees. Imagine if they knew about Bitcoin, as long as they have a computer or even access to one they could attract a wider audience. I think we can do a lot more to give out a clearer message about Bitcoin. I think a lot of the fear comes from the fact that people don't understand it. If we spend more time educating then we can get a more positive image out there. Secondly - Miners, their profitability and other issues.
The next thing I'd like to bring up is the mining community. When people were using CPUs and GPUs to mine we all knew that there was very little chance of profit. BTC was no where near as popular as it is now and you could end up spending thousands on building a rig with hardly any chance of making profit - but people still did it for fun. It was a interesting concept how your computing time would make the network stronger and secure and in return you would be repaid in miner fees / generating blocks. Now it's all about profit. Yes, it's understandable that if you spend $5000 on a miner you want to make profit of it but people see it as a simple money in profit out scheme. That's now how you should see it. Your making an investement. If you look at ROI in terms of Bitcoin chances are you won't break even any time soon. This was the same with GPUs and it's the same with ASIC. However if you pay for something like a USB ASIC miner you shouldn't see it that way. You're paying a small amount for xGH/s (or MH/s) for a fraction of what it would actually cost you. When I brought my USB miner I spent about $20. If I were to buy that power with a GPU it'd cost me way more and even more to keep it running in terms of power costs. Another way of looking at it is if you were an early adopter. 50BTC rewards were nothing back in the day. If I hoarded all my coins and spend that 50BTC buying hardware it's not that bad because those 50BTC cost me nothing. Yes I could have sold it and gotten way more but if it means I'm securing hardware to mine even more coins to hoard then it could be very profitable. What if the hardware I brought mines me 25 coins now, I've done a good job imho.
Companies themselves have let us down with the exception of one or two. BFL fucked up. Avalon pretty much cheated the whole community. KNC Miner and ASICMiner are the only ones I know that kept the promises as close as they could. As an investor, investing in any of the miners with my USD wouldn't be very appealing to me. It's all shambles and I would prefer to invest my USD in buying BTC and holding it rather than buying mining software. To me it sounds like all the companies are interesting in selling during the gold rush. "During the gold rush, sell shovels." Which seems to apply to most of the companies these days.
Thirdly - exchanges and how they work.
A lot of people seem to give MTGox shit because of their processing time. What you have to understand is that whenever fiat is involved there are regulations. Bitcoin is still a touchy subject in the US. This makes it dangerous to anyone in govt. who doesn't understand it. Their system works though.
MTGox, BTC-e use something called an order book. Meaning BTC will only be worth what people are willing to pay for it. The highest bid price will raise the last price. Simple as that. It's good because it means they can't artificially raise the price..but it also means trading bots with the relevant APIs can change the price by making small orders. They take a small fee in BTC / USD which imho sounds fair.
LocalBitcoins is failing. People are charging premiums way above even Gox but only paying below Bitstamp to buy the coins. It's all about being greedy. LocalBitcoins used to be cheaper for a while but now it's just being ruined by greed. Unless travel costs are included, most people use just UK Bank Transfer which costs you NOTHING. You could charge a .10p fee each way, keep it at Bitstamp prices and easily attract more customers but people choose to be greedy.
Bitcoin for devs and merchants. I think a lot of work needs to be done for Bitcoin devs. Unlike other documentation, I found Bitcoin very hard to follow when it comes to dev. I understand the basics of coding and a few languages - not a much but enough to say make a web page or a automated program in C#. Imagine if you had Bitcoin dev dedicated websites like w3schools does for languages (I know w3 schools is a very bad benchmark but whatever). If more people understood how dev works then more people would attempt to get into it. I think a lot of work needs to be done within the BTC community itself before we even think of making it mainstream. Even if the last price reaches $1000 it's useless if people don't know as much as should do.
OK, so now MtGox is not an option, is there anywhere that I can just make an online transfer to from my UK current account with an account number, sort code and reference as I would with MtGox? I've looked around but can't find anything. I don't have a Barclays bank account so pingit through Block Chain won't work. Is there any where else? What are other UK users doing? EDIT: After yrro pointed out that Barclays Pingit does infact work with any bank account I set this up with BlockChain last night. It is literally instant bitcoin in your wallet I highly recommend it. It took a few hours for the Pingit app to actually work on my phone but after an expensive phone call to Barclays they informed me it was an error their side. Now it's working it is by far the easiest and quickest method to get your mits on some bitcoins.
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If you need to buy bit coins instantly go to https://www.bitcoinberudechange.com we accept Credit/Debit cards & MasterCard we also offer bank transfer and yes you could go to mtgox.com but they are going to take 3 - 5 working days to clear your funds us (BBDC - Bitcoin Beru De Change) If you are a EU & UK Resident we receive the transfer instant because of the faster payments EU Regulations if your are INTERNATIONAL It would take 1 working day to clear your funds and for you to receive to your bit coins if you use our Credit/Debit Card option you will receive your funds instantly as well so please buy some bitcoins and we need all of you to leave reviews if you dont trust us check another forum this link bellow with happy customers & our review page on our site thanks & take care. http://www.bitcointrading.com/forum/bitcoins-for-sale-exchanges/bbdc-buy-bit-coins-with-paypal-bank-transfer-!/
I can't seem to find any method to get money onto the bitcoin exchanges quickly from the UK. I have money going through bank transfer to MTGox, but ideally I'd like to get onto the exchanges within the next 24 hours. localbitcoins - no luck btcquick - no luck blockchain.info - having issues with Sofort banking Any help would be greatly appreciated. Cheers
Has anyone tried doing currency exchange through bitcoin?
I've been looking at the price of bitcoins in various exchanges in difference currencies, and it seems like it should be possible to transfer money between currencies with low cost (or possibly better than cost given such large currency variations) That is, I want to take money from a bank in country A and transfer it to a bank in country B. Nothing illegal, just simple transfer between accounts in two countries (Like UK->US or US->Canada). Right now there are lots of options like wire transfers or xe.com trading accounts, which can be as cheap as 2% above the current exchange rate. Is there a practical alternative with bitcoin to do the following with any sort of efficiency or cost savings?
Transfer from a bank in country A to an exchange in country A
Transfer the bitcoins to exchange in country B
Transfer cash into bank in country B
Looking at the exchanges right now it seems like you could buy bitcoins at mtGox for $79 USD and sell them on caVirtex for $82 CAD, which seems like an arbitrage opportunity anyway given that that is better than the current exchange rate, but it might get eaten away by fees.
Notice: service towards bitcoin exchanges appears to have been suspended as of 22 Apr 2013. An e-commerce business allowing payments and money transfers to be made from through the Internet. TransferWise can send from either GBP funds (from U.K. bank account) or EUR funds (from a E.U. bank account) to one any of the supported destination currencies and will perform the currency conversion at ... Mt. Gox, called "Mount Gox" or simply "Gox", was the most widely used bitcoin currency exchange market from shortly after its inception in 2010 to its insolvency late 2013. The market was closed February 25, 2014 and has since filed for bankruptcy protection in Japan and the United States, after losing 640 thousand bitcoins.. A registrant on Mt. Gox had at least two sub-accounts: one for ... Last Thursday I requested a bank transfer from the UK to Mt. Gox, the money still hasn't arrived, is this normal and how much longer can I expect... Barclays is taking sterling deposits for a new bitcoin exchange, making it the only UK bank to do so currently. Banks in the UK have avoided working with bitcoin exchanges so far, but customers of ... Mt Gox was a Japanese bitcoin exchange which became insolvent after a large number of bitcoin it held (for clients and for itself) were stolen. It filed for civil rehabilitation proceedings in Tokyo on 28th February 2014, and bankruptcy proceedings commenced on 16th April 2014. The exchangeheld a large number of bitcoin for clients, one of whom brought a lawsuit against the bankrupt exchange ...
Hello everyone in this video I talk about how we are just a few days away for when the claims period of MtGox's Bankruptcy will end. Go clam your coins now. ... Want to make money online? Join here - https://www.beermoneyforum.com/ Exchange Bitcoin to Bank Account How to transfer Bitcoin to Bank Account There are so many ways to get bitcoins but so little time! Watch as Maria breaks down an easy way to get you some. Today we’ll discuss how to get bitcoins th... This is the best and fastest way to buy Bitcoin in UK using many payment methods !! ★ BUY BITCOIN IN UNITED KINGDOM: https://localbitcoins.com/?ch=ahg5 This ... Withdraw Bitcoins from Blockchain to Your Bank Account, withdraw bitcoins from mtgox to Bank Account, withdraw bitcoins from bitstamp To Bank Account, withdraw bitcoins from btc-e to Bank Account ...