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pmbug

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U.S. law enforcement officials have shut down down Silk Road, the online drug market, following a raid and an arrest of Ross William Ulbricht, the site’s alleged proprietor.

According to a Justice Department release, Ulbricht, 29, was arrested in San Francisco and will be presented in San Francisco federal court Wednesday morning. Until Wednesday, the person who ran the site was known only by the pseudonym “Dread Pirate Roberts.”

In addition to arresting Ulbricht, the Federal Bureau of Investigation seized approximately $3.6 million in Bitcoin, making it the second biggest seizure in the digital currency’s history.

Federal prosecutors in New York charged Ulbricht with narcotics trafficking conspiracy, computer hacking conspiracy and money laundering conspiracy. A criminal complaint also alleges that in March 2013, Ulbricht engaged in a “murder-for-hire” scheme where he enlisted one Silk Road user to murder another Silk Road user who was threatening to release the identities of all of the website’s users.
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More: http://nation.time.com/2013/10/02/a...iam-ulbricht-arrested-3-6m-in-bitcoin-seized/

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The immediate result has been a quick and brutal dump in the USD-equivalent value of the BitCoin currency itself as can be seen on the chart below:
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More: http://www.zerohedge.com/news/2013-...owing-us-government-seizure-silk-road-website
 

ancona

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I read the article, but it did not show that the individuals named in the charges had anything to do with bit-coin. There is an inference somewhere that says they may have used bit-coin instead of traditional cash to hide their drug transactions or something, but said nothing about them being involved in bit-coin or the parent organization.

So this appears to be another in a series of actions by the government to de-legitimize bit-coin. Fuck these assholes and their fascist counter organizations.
 

rblong2us

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All attempts to discourage the use of bitcoin seem to be having the opposite effect

http://www.zerohedge.com/news/2013-11-06/bitcoin-spikes-record-high-270

Hope you held in there Unbeatable -

"Personally I actually believe bitcoin does have some utility but very, very risky. I bought in @ $36 and not planning to sell any till $150, so I might still lose my initial investment/gamble."


And will you sell on this peak or wait for the next one ? (-:
 
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DCFusor

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I'd probably be selling. A possible reason for the jump is that so many bitcoins went out of circulation, at least temporarily when they arrested that Silk Road guy. I forget whether it was 20's or 40's of millions of bucks worth (at the old price). FBI has his hard drive, but *so far* can't decode them and therefore put them back on the market as they often do with seized things - usually at not-great prices as the .gov doesn't know how to trade well. I suspect the keys will be broken, just a matter of time and NSA computer cycles - it's enough money to be worth it.

There is now a theoretical attack on the bitcoin system, involving groups of "greedy miners" that works similar to quote-stuffing or que jumping in HFT. No one seems to be saying it is happening yet, just that in theory it can be done - it takes a fair amount of computer power...we know who owns quite a lot of that and it's not just citizens. I'd at least be worried since we know that some people with a lot of computers want this dead.

Not the best explanation I've seen, just the one I could find quick.

http://arstechnica.com/information-...of-bitcoin-rally-other-greedy-selfish-miners/
 

rblong2us

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Those greedy miners can only speed up the process of creating a finite amount of bitcoin.
Once they are all created there can be no more and we are asked to believe that the codes cannot be forged, as all mining claims have to be peer reviewed ........

I have no bitcoin, only worringly large quantities of Au and Ag that are still down 20% and cannot be used to settle a transaction .....
 

DCFusor

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Well, yes, there's a limit to the total BC in existence, unless someone changes the rules, which isn't very likely at this point.

The trouble comes with the same things we bitch about with the fed. Who spends first, gets more for it than later, so the closer to the source you are, the less "inflation" you experience with your new-minted currency than the next guy. A bit of a fine point, but those here seem pretty up on how that sort of thing works.

I think the real issue is that it seems almost every CB/government wants this dead, and they tend to get their way. "Don't steal - the government doesn't like competition" - seen on Ron Paul's desk.
 

Unbeatable

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All attempts to discourage the use of bitcoin seem to be having the opposite effect

http://www.zerohedge.com/news/2013-11-06/bitcoin-spikes-record-high-270

Hope you held in there Unbeatable -

"Personally I actually believe bitcoin does have some utility but very, very risky. I bought in @ $36 and not planning to sell any till $150, so I might still lose my initial investment/gamble."


And will you sell on this peak or wait for the next one ? (-:
Hi Rblong2us & everyone else! It's a long time since I posted, hope everyone is doing well :cheers:

Yes I held in there :) My original strategy was

sell enough... to recoup my initial investment + a 50% return and keep 60% of the coins I initially purchased in Bitcoin.
This is pretty much what I did. (Sold at an average price of $160 after purchasing at $37)
 

Unbeatable

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As for selling now, no. (I may consider selling into some of the price rises but only so I can buy on dips, but otherwise I don't pay much attention to the price.)

THEN (April 2013) & NOW (Nov 2013) - just 6 months later!

My concern back then was whether Bitcoin had the ability to rapidly adapt and evolve to threats and challenges

- The big illegal site Silk Road was shut down but another version opened a month later with better security features.

- Back then MTGox was handling 80% of the volume, this was a major centralised weakness for a decentralised currency but now there are 3 main exchanges in 3 different jurisdictions http://bitcoinity.org/markets/list?currency=ALL&span=7d

(There is a big exchange opening in the UK which may well end up being the most advanced and most compliant therefore attractive to the big players and institutional money.

http://www.wired.co.uk/news/archive/2013-10/29/coinfloor-launch



That no. 10 door is the UK version of the White House :)

Of the new exchanges China is the most exciting, it is growing very rapidly at the moment. http://www.coindesk.com/btc-china-beats-mt-gox-bitstamp-become-worlds-1-bitcoin-exchange/

“The people here are really getting it, and it is being spread by both the general media and by word of mouth,” he said.
- 'Baidu', China's largest search engine has started accepting bitcoins http://rt.com/news/china-baidu-accept-bitcoin-276/

- The first Bitcoin ATMs were launched in Canada. They had a bumper first week & the shops in which they were placed have never been so busy. http://www.zerohedge.com/news/2013-...-processes-100k-transactions-its-first-8-days

A new Bitcoin ATM in Vancouver is off to a fast start, conducting $100,000 (Canadian) worth of transactions in its first eight days of operation.
- IT has been recognised as private money in Germany. http://www.cnbc.com/id/100971898

Virtual currency bitcoin has been recognized by the German Finance Ministry as a "unit of account", meaning it is can be used for tax and trading purposes in the country.

Bitcoin is not classified as e-money or a foreign currency, the Finance Ministry said in a statement, but is rather a financial instrument under German banking rules. It is more akin to "private money" that can be used in "multilateral clearing circles", the Ministry said.
________________________________________

The rapid worldwide progress & development of the infrastructure is very positive & pretty startling even by my expectations.

(Other nice anecdotal - Though their options were limited a couple already managed to travel round the world using btc to pay for flights, shelter and and food. http://www.theguardian.com/travel/2013/nov/01/bitcoin-currency-for-travellers )

So as long as I continue to see this kind of progress I'll be sticking with it, regardless of price action.
 

bushi

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BTCE: BTC/USD = $546,
MTGOX: BTC/USD = $605

Bloody hell!!! Sheeple is being taken for a steep ride ATM, that is for sure!!

I am thinking of buying the next big dip (judging by the speed by which things are going up here, and BTC history, the next dip shall be 30%-50% correction... Question is, when the correction will start eventually, and therefore - will the dip find itself below, or above the current price :)

Sure as hell, I am not buying on that rocket ride right now :)


DCF: IMO, BTCs are inherently deflationary, for one simple reason: finite amt of them can be ever created. Therefore, unlike fiat money, you can hardly benefit from creating & spending them all at once - if the thing is here to stay, the longer you hold on to it, the more purchasing power you gain, if the supply/demand curves apply here at all. If it is to survive long term, it would be an ultimate savings vehicle - very similar to PMs, in this regard.


EDIT:
from that link by Unbeatable:

"We should have competition in the production of money. I have long been a proponent of Friedrich August von Hayek scheme to denationalize money. Bitcoins are a first step in this direction,"said Frank Schaeffler, a member of the German parliament's Finance Committee, who has pushed for legal classification of bitcoins.
...now, this stuff is BIG! Ze Germans, one of the economic powerhouses on that planet?! Andtheir finance committee members are pushing into Hayek's direction?!?! Like, they actually UNDERSTAND what they are saying, and that neo-Keynesians are a statist hacks?

Just WOW! I shall seriously refresh my German speaking, I guess!

EDIT 2:
Max Keiser is recently talking about Bitcoin at every chance he has, which could possibly explain part of the ride, AND, well, given his track record with timings.... A contrarian top warning?
 
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rblong2us

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wow

BTC touched $600 today and currently back down to 503 having already had an $80 drop earlier in the day

Now that is a wild ride .......

Its become the new gold cos the old version isnt doing what it should )-:



Now $710 ....... up another $200 in 4 hours !

WTF is going on ?
 
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DoChenRollingBearing

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...

I was watching for awhile via fiatleak.com earlier this afternoon. I saw a whole bunch of BTC transactions headed for the USA (clustered together, all those little orange "B"s were overlapping), it was very impressive. So, at my next blog piece, I am going to include the screenshot I took there at fiatleak re trickling Bitcoin, and I am going to call it "A Golden Shower on the US$". Careful readers might note the use of arguably THREE puns there...

Earlier this evening, just before the Tylers posted their article re BTC (where I saw you drop by DCFusor), I saw a transaction cross the wire at $907 !!! I am still trying to get some BTCs, I may have found an inefficient way (but good enough, at least for now)...
 

bushi

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...can anyone think why there are such a HUGE spreads amongst the exchanges:

MTGOX: $765
BTCE: $689

I mean, what the f., isn't BCS a "frictionless" currency, why nobody is collecting the spread and making a killing???
 

benjamen

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...can anyone think why there are such a HUGE spreads amongst the exchanges:

MTGOX: $765
BTCE: $689

I mean, what the f., isn't BCS a "frictionless" currency, why nobody is collecting the spread and making a killing???
Go ahead and do it yourself?
 

pmbug

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...can anyone think why there are such a HUGE spreads amongst the exchanges:
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Yeah - competition.

Think of it like the difference between ebay and some auction site you've never heard of before. Which site do you think has more people competing to buy the product you want to auction off? Which will get you a better price?

I'm guessing there are more buyers than sellers on MtGox than the other exchange. It should balance out once the market sees that one exchange favors buyers and the other favors sellers and adjusts accordingly.
 

rblong2us

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think the big risk is that the exchanges cant keep up and that the price differential could easily shift during the wait.

Ive seen comments regarding trying to sell at $800 and the transaction actually concluding at $850 and another regarding someone destroyed by a margin call and even though prices quickly recovered he was caught in a shortlived downdraft.
 
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rblong2us

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Someone tried to knock bitcoin down today :pffftt:

It dropped $100 more or less instantly, then very quickly recovered.

I see $ 840 - $940 today and two up movements of $100

And now litecoin is moving up just as strongly, as those who feel its too late for bitcoin jump on board.

So any takers for the btc / Gold cross ?

If the trend continues, its sometime in the next few days ........:flushed:

I guess if there enough exchanges then there can be as many crypto currencies as you like.

Be interesting to see what the feds try to do to rein em in.
 
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