Is anyone in the BITCOIN market?

I wanted to find a way to short these since I knew it was going to tank eventually. Especially with the sharp rise in only a matter of days.

Bitcoin proponents are in full defensive mode at the moment, claiming that a "DDoS attack on Mt. Gox" or "Mt. Gox getting hacked" caused the drop and not natural market forces.

 

 

Bitcoin proponents are in full defensive mode at the moment, claiming that a "DDoS attack on Mt. Gox" or "Mt. Gox getting hacked" caused the drop and not natural market forces.

 

 

 

"The chart says the stock needed to pull back, this is completely normal"

http://www.fool.com/investing/general/2013...tment-idea.aspx

I tried to read on how this system works , my head exploded. Miners, Workers, exchanges, more miners, a wallet.

In for the thread and info on Aaron's business venture. Highly interesting but also seems highly risky. I will keep my cash in more normal currencies for now.

By definition it's not a PONZI scheme at all, they aren't taking money from new people to pay old people. But the security aspect of it bothers me a bit, and the fact that it is so unregulated/uninsured.

 

Really??? Not a Ponzi scheme by definition. Maybe I misunderstood the definition of a Ponzi scheme.

 

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation. The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going.

 

Maybe we should call it a pyramid scheme? Is there a difference? I think not.

Really??? Not a Ponzi scheme by definition. Maybe I misunderstood the definition of a Ponzi scheme.

 

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation. The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going.

 

Maybe we should call it a pyramid scheme? Is there a difference? I think not.

 

 

Your viewing bitcoins they wrong the way. Honestly a better way to think of them is equal to Gold or a pre-paper money version of it. People "mine" the coins (the processor for mining security and to reduce over supply is pretty complex), Then they sell the coins onto the open market. People then buy and sell the coins, the price being determined by supply and demand thats why the price floats so freely, and because its a much smaller market then lets say gold or the USD the price can act more erratically. Its more akin to a virtual commodity right now that they just call a currency. If it becomes more prevalent then maybe it'll start acting more like a currency.

Maybe we should call it a pyramid scheme? Is there a difference? I think not.

 

It's neither. And ultimately there is no promise of returns or gains what so ever.

 

A bar in NYC is accepting bitcoins as payment....

 

http://news.yahoo.com/york-city-bar-accept...-192300237.html

http://investing.schwab.com/public/schwab/...329-L2N0E90PR-1

News Story

UPDATE 1-U.S. shuts digital money system it suspects of cyber-criminal links

Print

12:25 PM 5/28/2013 - Reuters

By Emily Flitter and Brett Wolf

NEW YORK/ST LOUIS, May 28 (Reuters) - U.S. authorities revealed on Tuesday they have shut down a Costa Rica-based money transfer company that they said provided a digital currency system widely used around the world by cyber-criminals.

In a statement, officials said authorities in Spain, Costa Rica and New York arrested five people on Friday and seized bank accounts and Internet domains associated with the company, Liberty Reserve.

Digital currency is made up of transferable units that can be exchanged for cash. Over the past decade, its use has expanded, attracting attention from the media and Wall Street. The most widely known digital currency is called Bitcoin. Liberty Reserve's currency was not connected to Bitcoin.

Along with the five arrests, prosecutors filed charges against two more company employees, who were still at large in Costa Rica.

According to an indictment filed in U.S. District Court for the Southern District of New York, "Liberty Reserve has emerged as one of the principal means by which cyber-criminals around the world distribute, store and launder the proceeds of their illegal activity."

The indictment said the company had more than a million users worldwide, including at least 200,000 in the United States, and virtually all of its business was related to suspected criminal activity.

According to the indictment, Liberty Reserve's currency unit was called the "LR." The company's users opened accounts at Liberty Reserve giving only a name, address and date of birth that the company made no attempt to verify. Once a user had a Liberty Reserve account, he or she could use cash to purchase LRs from third-party exchange merchants, which traded LRs with each other in bulk and charged fees to make the exchanges between LRs and hard cash.

LR users could transfer LRs to each other, to be redeemed in different parts of the world for cash using the third-party exchange companies. The indictment said Liberty Reserve did not collect any banking or transaction information from the third-party exchange companies. It also let its users hide their Liberty Exchange account numbers when making transactions, which offered another opportunity for the users to mask their true identities.

The company processed around 12 million financial transactions per year. Since it began operating in 2006, the indictment said, Liberty Reserve laundered around $6 billion in criminal proceeds.

Costa Rican prosecutor José Pablo González said Liberty Reserve was used to launder funds from child pornography websites and drug trafficking.

On Tuesday, the company's website, www.libertyreserve.com, displayed the message: "This domain name has been seized by the United States Global Illicit Financial Team."

It was not clear whether the people arrested in Spain and Costa Rica would be extradited to the United States or when the two people arrested in Brooklyn, New York, would appear in court.

A spokeswoman for the U.S. Attorney for the Southern District of New York declined to comment.

Regulatory obligations to combat money laundering have emerged as a major challenge to digital currency firms. The U.S. Treasury Department's anti-money laundering unit, the Financial Crimes Enforcement Network (FinCEN), issued guidance in March that labeled digital currency firms as money transmitters, thereby obliging them to enact anti-money laundering programs and register with FinCEN.

A top Bitcoin exchange, Mt. Gox, failed to register with FinCEN earlier this month and had its U.S. dollar accounts seized by authorities.

 

 

3-Can I start my own virtual currency?

 

This is what people are forgetting. There is nothing stopping people from building new currencies and allowing early adopters to make money and dump. Rinse and repeat.

$500+.... Growth past few days has been insane. $1,000+ before December or another crash?

 

I just bought 10 coins. Will buy more if it crashes down to $200-$250.

 

Anyone else buying? selling?

 

 

$600+ now haven't bought anymore, I want to though, in at $90....

 

it will hit the news big today and probably hit $1000 soon....

 

 

$500+.... Growth past few days has been insane. $1,000+ before December or another crash?

 

I just bought 10 coins. Will buy more if it crashes down to $200-$250.

 

Anyone else buying? selling?

$675

You guys would invest in something this volatile that can flux that much in either direction that quickly?

I can see the draw as if you're paying close attention and could make some fast money, but I'd be worried I'd leave for a lunch break with it at $675 and come back and have a $30 value

You guys would invest in something this volatile that can flux that much in either direction that quickly?

I can see the draw as if you're paying close attention and could make some fast money, but I'd be worried I'd leave for a lunch break with it at $675 and come back and have a $30 value

 

Treat it like gambling, only play with money you don't mind losing

 

 

 

yep, could be a huge upside if this is the next big thing.... or a huge downside... my next Lambo Plate is B1TCOIN

 

 

 

 

Treat it like gambling, only play with money you don't mind losing

http://www.c-span.org/Live-Video/C-SPAN3/

yep, could be a huge upside if this is the next big thing.... or a huge downside... my next Lambo Plate is B1TCOIN

There's a guy who has a kid in my sons grade at school that drives a white Cayenne Turbo with the plate BITCOIN. His wife said he got in years ago. Must have made a killing

$27 to $1M in 4 years...

 

 

http://gizmodo.com/man-forgets-about-buyin...th-a-1454150399

 

$3M now if he kept it...

 

There's a guy who has a kid in my sons grade at school that drives a white Cayenne Turbo with the plate BITCOIN. His wife said he got in years ago. Must have made a killing

bitcoin crash started last night. I wonder where it will end up $750 yesterday to $470 now

There's a guy who has a kid in my sons grade at school that drives a white Cayenne Turbo with the plate BITCOIN. His wife said he got in years ago. Must have made a killing

 

Probably made a worse investment in the Cayenne

I'm waiting for my original purchase to go through then buying more. Not worried.

$1,044