Digital Black Friday: First Bitcoin "Depression" Hits

[Agent 488]

http://www.dailytech.com/Digital+Bla...ticle21877.htm
The bottom line is that several things are clear from today's trading.

1. The Bitcoin market endured its first digital equivalent of a "bank rush" with people rushing to exchange their BTC for U.S. Dollars.
2. People have a large amount of money -- millions of USD sunk into Bitcoins lost big in the flash crash.
3. Unlike modern markets, which automatically close to prevent massive inflation, the digital Bitcoin markets stayed open.
4. Something major is moving the Bitcoin market in a sharp inflationary direction, in contrast to the predict deflationary trend

[CyberHustler]

Thanks for sharing...

[Deputy Chief Command]

lol .. it went from $28 to $20 even though that might be 30% if you look where it comes from just one month ago one BTC was $6

[u-Bob]

lol @ that article.

[mayabong]

Originally Posted by Agent 488

http://www.dailytech.com/Digital+Bla...ticle21877.htm
The bottom line is that several things are clear from today's trading.

1. The Bitcoin market endured its first digital equivalent of a "bank rush" with people rushing to exchange their BTC for U.S. Dollars.
2. People have a large amount of money -- millions of USD sunk into Bitcoins lost big in the flash crash.
3. Unlike modern markets, which automatically close to prevent massive inflation, the digital Bitcoin markets stayed open.
4. Something major is moving the Bitcoin market in a sharp inflationary direction, in contrast to the predict deflationary trend

Bitcions will only continue to rise, last friday it was at $18 as I type this its trading at $24 dollars. This is normal and healthy for any market.

[MrMaxwell]

"With an easy PayPal route gone, market liquidity was dramatically reduced. This may be a major cause for the market crash."

[mayabong]

Originally Posted by MrMaxwell

"With an easy PayPal route gone, market liquidity was dramatically reduced. This may be a major cause for the market crash."

Paypal stopped working with those exchanges a couple weeks ago, I doubt this had anything to do with this so called "crash".

There is another exchange that opened, maybe people are moving their funds there. It has more incentives.

[D Ghost]

I would be worried if it didn't go down today actually.

[DBS.US]

Sell,Sell,Sell,Sell,

[Barry-xlovecam]

In PayPal We Trust ...

[Chosen]

Cool story

[IllTestYourGirls]

how do you start mining these things?

[Caligari]

Originally Posted by IllTestYourGirls

how do you start mining these things?

theres another thread here which gets into it-
https://gfy.com/showthread.php?t=1025554&page=2

and there is a forum which explains alot, talks about hardware used to mine etc-
http://forum.bitcoin.org/index.php?topic=9430.0

[martinsc]

I actually thought about getting into mining lately...

[Agent 488]

interesting analysis here:

http://www.hightechforum.org/bitcoin...eek-ponzi-sche

Exponentially Higher Benefits for Early Bitcoin Miners
There was another way to obtain bitcoins, but those days are long over. In the early days of bitcoins before they could be had for fractions of a penny, computer geeks with fast graphics processors designed for high end gaming could generate their own bitcoins through a process called “mining.” Since the pool of bitcoin miners were few in the beginning and they all had a statistically equal chance of gaining a bitcoin if they had equivalent computing hardware, it was relatively easy to generate bitcoins. So easy in fact that nearly 3 million bitcoins were generated in 2009 — 13% of the total number of bitcoins allowed. The number of people sharing those 3 million bitcoins were relatively few, because not many people (even hardcore computer and information technology geeks) read cryptography mailing lists.

So who were the folks that knew about bitcoins in 2009 and had the first crack at getting a significant fraction of those 3 million bitcoins? It was the cryptography geeks. More specifically, the developers who wrote the first bitcoin mining software probably paid themselves by having the first crack at generating bitcoins with almost no competition. It would also be no surprise if one of those developers were the actual person behind the fictitious character “Satoshi Nakamoto” (who actually may or may not be Japanese). I agree with those who bet that he or she is not Japanese, as assuming that identity would only make it harder for him or her to be tracked down.

Conveniently Anonymous
We can effectively think of “Satoshi Nakamoto” as being on top of a Ponzi scheme. But unlike physical world Ponzi schemes where the creators almost always end up in jail, the creator of bitcoins is anonymous and went out of his way to use anonymous email accounts through TOR networks to anonymously publish a whitepaper on bitcoins. The next wave of speculators who bought early into the bitcoin scheme and/or tried to generate their own bitcoins at a much slower pace (but still much higher than today) were the next tier in the scheme and they can probably walk away with some nice earnings if they pull out before the bubble bursts. At this late stage when the mainstream news is reporting on bitcoins, we have speculators trying to buy in at extremely high valuations hoping to sell to the “greater fool”.

[CurrentlySober]

i cant afford to mine bitcoins...

[Agent 488]

http://www.techzone360.com/topics/te...l-bitcoins.htm

Netizen Robbed of Nearly Half A Million Dollars in Virtual 'Bitcoins'

“The completely anonymous nature of the Bitcoin system means that users are protected from identity theft, but are also nearly untouchable when it comes to punishment for misdeeds,” said Yahoo News.

[Agent 488]

http://www.forexyard.com/en/news/Bit...-06-15T220113Z

Bitcoin exchanges offer anti- money-laundering aid

T. LOUIS, June 15 (Thomson Reuters Accelus) - Exchanges that have facilitated trade in a fledgling digital currency known as Bitcoins are offering to help U.S. law enforcement track suspect transactions, after two senators charged that the operations aided drug traffickers and money launderers.

[Serge Litehead]

[Agent 488]

bitcoin is primitive.

[Serge Litehead]

Originally Posted by Agent 488

bitcoin is primitive.

to what extent? "it's so simple a caveman can do it" primitive type of way?

[cam_girls]

peer to peer is inadequate IMO

EVERY ONE has to store EVERYONE ELSES BANK STATEMENT

and it's just a peer to peer SHELL over the centralised source code.

Wait till I put up eGOLD.COM and you don't have to install anything, just send a token like this:

1.00.EGOLD.1234.1234.1234.1234.1234

JUST EMAIL IT! TRANSACTION DONE!

[Serge Litehead]

Originally Posted by cam_girls

peer to peer is inadequate IMO

EVERY ONE has to store EVERYONE ELSES BANK STATEMENT

and it's just a peer to peer SHELL over the centralised source code.

Wait till I put up eGOLD.COM and you don't have to install anything, just send a token like this:

1.00.EGOLD.1234.1234.1234.1234.1234

JUST EMAIL IT! TRANSACTION DONE!

GO FOR IT!

[Seth Manson]

Originally Posted by cam_girls

peer to peer is inadequate IMO

EVERY ONE has to store EVERYONE ELSES BANK STATEMENT

and it's just a peer to peer SHELL over the centralised source code.

Wait till I put up eGOLD.COM and you don't have to install anything, just send a token like this:

1.00.EGOLD.1234.1234.1234.1234.1234

JUST EMAIL IT! TRANSACTION DONE!

You're a strange man.

[Agent 488]

Symantec Uncovers Bitcoin-Stealing Trojan

The weak point in the system is that your Bitcoin wallet contains your private key. So once someone has your digital wallet, they also have control of your Bitcoins and can easily transfer the digital money from your account to theirs.

The worst part is you'll have to watch the thieves transfer your money to an identifiable account number, knowing there is nothing you can do about it and that you will probably never know who the thieves are.

http://www.pcworld.com/article/23053...ng_trojan.html

[AzteK]

Originally Posted by Agent 488

interesting analysis here:

http://www.hightechforum.org/bitcoin...eek-ponzi-sche

Exponentially Higher Benefits for Early Bitcoin Miners
There was another way to obtain bitcoins, but those days are long over. In the early days of bitcoins before they could be had for fractions of a penny, computer geeks with fast graphics processors designed for high end gaming could generate their own bitcoins through a process called ?mining.? Since the pool of bitcoin miners were few in the beginning and they all had a statistically equal chance of gaining a bitcoin if they had equivalent computing hardware, it was relatively easy to generate bitcoins. So easy in fact that nearly 3 million bitcoins were generated in 2009 ? 13% of the total number of bitcoins allowed. The number of people sharing those 3 million bitcoins were relatively few, because not many people (even hardcore computer and information technology geeks) read cryptography mailing lists.

So who were the folks that knew about bitcoins in 2009 and had the first crack at getting a significant fraction of those 3 million bitcoins? It was the cryptography geeks. More specifically, the developers who wrote the first bitcoin mining software probably paid themselves by having the first crack at generating bitcoins with almost no competition. It would also be no surprise if one of those developers were the actual person behind the fictitious character ?Satoshi Nakamoto? (who actually may or may not be Japanese). I agree with those who bet that he or she is not Japanese, as assuming that identity would only make it harder for him or her to be tracked down.

Conveniently Anonymous
We can effectively think of ?Satoshi Nakamoto? as being on top of a Ponzi scheme. But unlike physical world Ponzi schemes where the creators almost always end up in jail, the creator of bitcoins is anonymous and went out of his way to use anonymous email accounts through TOR networks to anonymously publish a whitepaper on bitcoins. The next wave of speculators who bought early into the bitcoin scheme and/or tried to generate their own bitcoins at a much slower pace (but still much higher than today) were the next tier in the scheme and they can probably walk away with some nice earnings if they pull out before the bubble bursts. At this late stage when the mainstream news is reporting on bitcoins, we have speculators trying to buy in at extremely high valuations hoping to sell to the ?greater fool?.

What's said here is correct. There is a smaller amount of bit coins being distributed today because there is a cap and they are generated at random.

Bit coin mining doesn't make any economic sense to me because the gpu/cpu cycles are used to just secure the network. To me it would make sense if the cycles were leased/sold to compute real world problems so they would have an actual monetary value.

[iamtam]

pump

























dump

repeat.

[Agent 488]

you would have to be one of the first involved in this to make any bank. too late now.

[Wizzo]

I sell WOW gold cheap get it now!

[d-null]

Originally Posted by Agent 488

http://www.forexyard.com/en/news/Bit...-06-15T220113Z

Bitcoin exchanges offer anti- money-laundering aid

T. LOUIS, June 15 (Thomson Reuters Accelus) - Exchanges that have facilitated trade in a fledgling digital currency known as Bitcoins are offering to help U.S. law enforcement track suspect transactions, after two senators charged that the operations aided drug traffickers and money launderers.

Bitcoin will be finished soon

[Agent 488]

was thinking it might be a government honeytrap. what more perfect way to track illegal flows of money than to create a crypto-currency that will be used for drugs and money laundering then release it into the world?

[Spudstr]

Originally Posted by AzteK

What's said here is correct. There is a smaller amount of bit coins being distributed today because there is a cap and they are generated at random.

Bit coin mining doesn't make any economic sense to me because the gpu/cpu cycles are used to just secure the network. To me it would make sense if the cycles were leased/sold to compute real world problems so they would have an actual monetary value.

secretly deep down inside someone is making money off these cycles. And its not the people "mining" its the smuck who made the algo and is selling the data to get processed to god knows whoever it is.

[Agent 488]

Originally Posted by Spudstr

secretly deep down inside someone is making money off these cycles. And its not the people "mining" its the smuck who made the algo and is selling the data to get processed to god knows whoever it is.

ding ding ding ....

i think crypto-currencies are a cool idea, but this particular one has a certain evil genius from the theory to how it was social engineered ... the true-believers are in for a surprise ...

[Agent 488]

Bitcoin collapses on malicious trade

http://www.theregister.co.uk/2011/06... =%2540cybfor

The fragility of the Bitcoin peer-to-peer crypto-currency has been thrown into sharp relief when a large sell transaction sent the trade value of Bitcoins to zero.

http://leanback.eu/bitcoin/plots/201...5756-mtgox.png

there is an account dump on twitter as well.

[Serge Litehead]

Originally Posted by Agent 488

Bitcoin collapses on malicious trade

http://www.theregister.co.uk/2011/06... =%2540cybfor

The fragility of the Bitcoin peer-to-peer crypto-currency has been thrown into sharp relief when a large sell transaction sent the trade value of Bitcoins to zero.

http://leanback.eu/bitcoin/plots/201...5756-mtgox.png

there is an account dump on twitter as well.

I've just checked my wallet, not collapsed.

I didn't loose faith in Bitcoin. Security on these sites will be upgraded.

Fucked up that what happened with Mtgox, happened at the cost of privacy bridge of Mtgox's customers. This will most certainly impact public's trust in exchanges and Bitcoin itself.

It won't stop people from trading with bitcoins and setting up new exchanges due to bitcoin's benefits as a currency.

[cam_girls]

Originally Posted by AzteK

What's said here is correct. There is a smaller amount of bit coins being distributed today because there is a cap and they are generated at random.

Bit coin mining doesn't make any economic sense to me because the gpu/cpu cycles are used to just secure the network. To me it would make sense if the cycles were leased/sold to compute real world problems so they would have an actual monetary value.

like what? nobody buys computer time. SETI botnets examine millions of scans of the sky but don't pay.

the only monetary value in botnets is spam.

If I get eGold.com or eCoins.com or whatever then you'll have to buy a mining permit for $1 with a valid CC to stop people using botnets to mine.

So you'd only make $1 a day from 1 PC, max 10PCs per user account.

Non miners wouldn't need to validate though.

But I'm just putting a f@cking shop at EGOLD.COM

COME AND BUY AS MUCH CRYPTOCURRENCY AS YOU LIKE!
$$$$$$$$$$$$$$$$$$$$$$

Here's $10,000 ecoins.com thank you very much!

10000.00.ecoins.com/1234.1234.1234.1234.1234.1234

My new URL currency digital token!


$$$$$$$$$$$$$$$$$$$$$$


Do it from a website and you can SELL MONEY! Stuff peer to peer!

[Serge Litehead]

Originally Posted by cam_girls

like what? nobody buys computer time. SETI botnets examine millions of scans of the sky but don't pay.

the only monetary value in botnets is spam.

If I get eGold.com or eCoins.com or whatever then you'll have to buy a mining permit for $1 with a valid CC to stop people using botnets to mine.

So you'd only make $1 a day from 1 PC, max 10PCs per user account.

Non miners wouldn't need to validate though.

But I'm just putting a f@cking shop at EGOLD.COM

COME AND BUY AS MUCH CRYPTOCURRENCY AS YOU LIKE!
$$$$$$$$$$$$$$$$$$$$$$

Here's $10,000 ecoins.com thank you very much!

10000.00.ecoins.com/1234.1234.1234.1234.1234.1234

My new URL currency digital token!


$$$$$$$$$$$$$$$$$$$$$$


Do it from a website and you can SELL MONEY! Stuff peer to peer!

you are riding on the back of the bitcoin! open new thread for your Egold!

[rowan]

Originally Posted by cam_girls

like what? nobody buys computer time. SETI botnets examine millions of scans of the sky but don't pay.

the only monetary value in botnets is spam.

You think that every virtual linux instance on AWS is a web server?

[rowan]

Originally Posted by Agent 488

Bitcoin collapses on malicious trade

http://www.theregister.co.uk/2011/06... =%2540cybfor

The fragility of the Bitcoin peer-to-peer crypto-currency has been thrown into sharp relief when a large sell transaction sent the trade value of Bitcoins to zero.

"However, it illustrates the problem confronting Bitcoin users. Not only do they have to implement personal security better than the likes of Sony, Nintendo or RSA can manage: they also know that only a relatively small transaction ? $1,000 worth of coins, which at the pre-collapse level was fewer than 60 Bitcoins ? constitutes a ?run? on the currency."

I don't think this is correct. The $1,000 thing is an mtgox withdrawal limit, ie limiting the maximum USD cash that can be sent to an account somewhere. There was a shitload more BTC sold off during that crash; it wasn't a single transaction. It's laughable that the author of this article thinks that a $1k transaction can cause a currency to crash when there's currently $100m worth in the world. A transaction that size is measured in thousandths of a percent.

[cam_girls]

Originally Posted by holograph

you are riding on the back of the bitcoin! open new thread for your Egold!

No problem! I was on topic with a couple points on WHY MINE?

1 - it has no useful purpose
2 - it can just be a small supplement to actually buying bitcoins with real money