MtGox to resume withdrawals soon according to official ...

Breaking: MtGox Now Testing Bitcoin Withdrawals

Breaking: MtGox Now Testing Bitcoin Withdrawals submitted by gldtalk to CryptoCurrency [link] [comments]

MtGox is now testing withdrwals Confirmed!!!!

http://altcoinpress.com/2014/02/breaking-mtgox-now-testing-bitcoin-withdrawals/
submitted by ad004fr to Bitcoin [link] [comments]

Some light on the horizon for Gox

I've been watching the mtgox transaction stream for the last hour (https://data.mtgox.com/api/0/bitcoin_tx.php) and it seems transactions are going through. You can check for yourself, download a copy of the output on that link, check again 10-15 minutes later and you'll see that some transactions are missing. If you enter the missing transaction IDs on the blockchain, you can see they went through. Here are some I found:
https://blockchain.info/ntxid/2bf78fb8e8765ee8dc1224e74739f60c1a3e50515a41792fc6862aeeb95ab568 https://blockchain.info/ntxid/ad86f98e259314cf53eb242c18d92cc7aefcc73f36d824bfe96ca8ec0dd51317 https://blockchain.info/ntxid/057457615c3f1bd9adee741265e11b08041f0fdf768fb40000ad3dc7c0da4e80
Add to that the reports that some users have received their $5k - $10k withdrawals initiated in early January, I'd say that thing are looking up :-)
Edit: Proof part #1:
As idlestabilizer pointed out, the status of a transaction may be queried using the mtgox api like this: https://data.mtgox.com/api/1/generic/bitcoin/tx_details?hash=6a88f7d50024f6e1d27c803b0df5324d44c1889bcce7557b1f13c50712a1812b As you can verify on blockchain.info, hash "6a88f7d50024f6e1d27c803b0df5324d44c1889bcce7557b1f13c50712a1812b" belongs to transaction id with ntxid 2bf78fb8e8765ee8dc1224e74739f60c1a3e50515a41792fc6862aeeb95ab568, using the URL https://blockchain.info/ntxid/2bf78fb8e8765ee8dc1224e74739f60c1a3e50515a41792fc6862aeeb95ab568 .
This proves that this transaction is 1) confirmed and 2) originated from mtgox.
Update: as I just found out, this API URL returns info for all valid TX hashes (though a little delayed), not just the ones originating from mtgox. So, still waiting for one of the transactions to confirm which I uploaded into this pastebin (see below). New transactions have been added on the tx feed, this implies they are making progress on their announcement of testing their withdrawal queue. Some of those queued transactions have been confirmed, but, none of them have confirmed yet since my post. I'll update here as soon as that happens.
Request: Kometes_ kindly suggested this might show activity of internal withdrawals due to Bitcoinbuilder. Can anyone with a verified mtgox and bitcoinbuilder account please step forward to test this? :-) (If you have bought goxbtc, could you verify + post proof that there was a deposit on your mtgox deposit address as a result?). It seems an interesting theory to pursue, but I'm not sure what the outcome would be. Do internal balance changes actually show up on the block chain, or are these handled internally by mtgox' ledgers?
Update on request: two users have indicated bitcoinbuilder transactions do not show up on the block chain. Also, Ancercopes says bitcoinbuilder transactions occur at a different time and are executed manually.
Edit: Proof part #2:
Confirmed withdrawal is confirmed :-) In this pastebin I posted earlier as preparation for hard proof, this transaction was included, and that transaction is now gone from the mtgox tx feed, but it's sitting on the block chain as confirmed!
Edit: Proof part #3:
And another one just came through from the most recent pastebin: https://blockchain.info/ntxid/702e8e986d98267a8a11582311f0972aa742be001f41ccccc442a3d8122a1b7b
Edit: And another one https://blockchain.info/ntxid/e2d43be866549b424324d01f0ff17bd739d9d17dfea12b1b50393941b396c1c5
Edit: Please find nuance in Bitcoin core dev's thread http://www.reddit.com/Bitcoin/comments/1ymwzj/mtgox_still_authoring_invalid_transactions/cflxc0t .
Edit: Some more nuance: as nullc indicated, mtgox is still authoring transactions which will not be relayed by other nodes, but will confirm eventually with high probability. These transactions are not malformed, but generally frowned upon by the network because they contain immature coins. This is a known problem at mtgox. What we're seeing now is that there are also new (possibly test) withdrawals which did not get stuck. And at least fiat withdrawals still seem to be flowing out of mtgox. This is not a complete solution yet, but it is shred of hope as far as I'm concerned.
submitted by bcn00b to Bitcoin [link] [comments]

A word of caution. All major exchanges are not even fiat gateways. The actual fiat in the system is likely grossly overestimated. Crypto is decoupled from USD. Implications.

First of all i should disclose i'm fully out of crypto since last Sunday, i'm just waiting for my EUR wire from Bitstamp as that has been my gateway since 2014. I would like to thank bitcoinmarkets for the good times, i've been around for a long time but not really participating that much, and even when I did i used throwaways. I decided to make this topic as a warning and to explain why I got out and why I think you should be very careful.
So we have a situation in which:
1) 80% or more of trading is in USDT (tether)
2) Coinmarket cap is an accomplice to Bitfinex which implies USDT-USD parity. To which degree this is intentional, irresponsibility or just incompetence I would not know. Basically conimarketplace lumps all USDT trades and prices with actual USD trades and prices. If you go there https://coinmarketcap.com/ and try to select PAIR, you get THIS. No USDT, even though most exchanges are USDT. Even if most of liquidity is USDT. Again, this is a major factor in implying parity along with what Bitfinex/Tether try to do. As if this wasn't enough, they also willingly or stupidly inflate USDT price itself. I have to remind you Coinmarketcap is THE point of reference for all cryptosphere. It's oscilating Alexa rank is 100-400. Betfair (real life gambling company) for example uses coinmarket price average for their own system. etc.
3) If/when tethebitfinex crashes, not only does bitfinex crash, it will crash all crypto pairings using USDT on all exchanges using USDT.
4) There are very few fiat gateways. Until recently I assumed the major(top) exchanges have some kind of fiat pairing. I mean.. any respectable exchange would have some way of actually getting money in and out, right? I didn't even think to check. Well, they don't. Literally all the major exchanges are USDT (and/or another stablecoin or proprietary coin) and nothing else. No USD, no EUR, no fiat whatsoever. https://coinmarketcap.com/rankings/exchanges/ . Only the 11th one has actual USD pairing. Didn't check lower but most exchanges don't have fiat. I did a full check on Binance myself as it's the biggest exchange and I had an account there for lulz. There is no fiat.
What does this mean? It means that an allegedly 200 BILLION market cap of all crypto has a fiat gateway of only a couple of exchanges. Most exchanges not using any fiat are not only immune to the risk, they offload risk on the much smaller exchanges that are fiat gateways. And on clients, of course. The cash side of the actual exchanges would need to have to siphon even a fraction of this are unimaginable. If any of these exchanges use crypto to evaluate their own fiat balance (it is illegal but crypto is hardly regulated or audited), they're fucked.
5) If the first four points looked bad, this one is by far the worst. The system is running on a presumed liquidity provided by Tether and on presumed USD capital. Even if tether was legit it's just 2b USD rolling 200b USD. And that 200b USD is just presumed quantity of USD that is in. We don't know how much USD is in the system, there could be and there probably is way less, as over the past 8 years or so crypto ran mostly on funny exchanges that could "provide" whatever USD value they wanted. More so, even if they went bust, people would usually get to withdraw crypto and store it on some other exchange. Even when an exchange was slowly withering, people just pulled out crypto and the exchange actual liquidity was hardly tested out. Or btc-e crashing or MtGox crashing. Their cash side crashed but "crypto" side did not crash. It was bailed out so to speak. So we have crypto running around that should've been worth 1/10 or 1/100 of it's price but it's instead running on par value with crypto on legit exchanges. This grossly inflates price.
Even if tether (or other stablecoin) is legit, it can be drained in a couple of hours. What happens to the pairings of crypto/USDT? People just trade one bitcoin at the presumable price of 6k for 6k USDT that are 100% backed but have no value because there's no USD in the treasury? Who is stupid enough to deposit USD there to get stuck waiting for another fool to bail him out by getting himself stuck?
edit: [Even if tether is 1%, it holds much more assumed/created value, which is the actual issue. Look at it this way. It only adds 1 cent to a real dollar market buy order for example. Each buy order made in a system that implies USDT:USD parity is now worth 1% more than a true USD purchase. Now repeat that buy order millions of times. It's not 1.01+1.01 times 1 million. It's more like 1.01$1.000.000 Each added value comes from USDT injection and USDT has to be liquid on the way down as well. It's added value to the market value is NOT it's market cap. That's a shitfest all "stablecoins" inject into the market, no matter how backed or audited they are.]
As I was saying, all the exchanges that are not holding any fiat are immune to any crash or actual liability. If/when cryptos fail, they'll give you back any number of cryptos/stablecoins you had, even if they're worthless. It's just entries in a database. If/when USDT fails, all it's corresponding crypto prices will go to infinity. If you're holding any USDT, you can't get out of the exchange because 1 btc will cost infinity. If you're in any margin position, no matter where your stops are you'll get margin called instead, as stops are just suggestions in high/extreme volatility. You can't get out through fiat cause there's no fiat.
Your only hope is you were actually holding crypto and they don't block withdrawals. Best case scenario you move your crypto to a fiat gateway exchange and hope to cash out there as fast as possible because it will have had become evident that cryptos were overvalued because of USDT (and even hypothetical USD in the system). Will most likely be too late as people that were already in fiat gateway exchanges already sold/cashed out. There will be enormous sell pressure. And no buyers.
The whole stablecoin issuance is idiotic and I just hope it crashes now and we won't see another bubble built on presumed capital, cause that will hurt way more people. All of this is a mess. Crypto is completely decoupled from real fiat now. The potential money that are in the crypto sphere is exponentially greater than available money to trade out of. Or maybe we should be grateful for stablecoins for finally crashing a system that would've crashed anyway in the long run.
submitted by 5ty54y5yh45 to BitcoinMarkets [link] [comments]

MtGox seems to be stress testing withdrawals, possible good news on Monday?

  1. On friday, on the blockchain we saw a splitting process of 180k that allegedly belong to Gox: https://blockchain.info/tree/114688199
  2. Today we see a withdrawal activity from Gox: http://coinsight.org/mtgox.html although the site itself is still down.
So my best theory is that Gox was splitting the coins from the cold storage to prepare for withdrawals, and they are now stress-testing their system by withdrawing to the addresses they themselves own. Hoping for some positive news on Monday.
It's not likely to be laundering, since it is transmitted over their API, which they could've silenced to not draw any additional attention.
UPDATE (unverified): thick plotens http://www.reddit.com/Bitcoin/comments/1zx90e/twobit_idiot_news_early_release/
submitted by brokenmusic to BitcoinMarkets [link] [comments]

The Gox announcement

"Tokyo, Japan, February 17th, 2014
Dear MtGox Customers,
We apologize for the inconvenience caused by the recent suspension of external bitcoin transfers. Fortunately, as we announced on Saturday we have now implemented a solution that should enable withdrawals and mitigate any issues caused by transaction malleability (please see our previous statements for details on this issue).
Thanks to our friends at Blockchain.info, MtGox now has a workaround that will use a unique identifier created by Blockchain to show whether transactions have been modified or not. This will prevent any fraudulent use of the malleability issue and protect the assets of our customers.
Resuming Withdrawals
With this new system in place, MtGox should be able to resume withdrawals soon. At the beginning we will do so at a moderated pace and with new daily/ monthly limits in place to prevent any problems with the new system and to take into account current market conditions.
In order to launch the new system, we are going through the following steps:
We will update everyone again by Thursday at the latest.
Additionally, you may have noticed that we have added a new login system that sends you an email when you successfully access your account. This is an additional security layer, but as always we strongly encourage our customers to use the 2-step authorization options available in our Security Center.
Thank you again for your support, and we look forward to resume bitcoin withdrawals as quickly as possible.
Best regards,
MtGox Team"
edit: formatting
submitted by SiriusCH to BitcoinMarkets [link] [comments]

Speculation: Why would Mt Gox stress test withdraws now?! They Finished their little project and are coming back online. TwoBit knows, and so does the foundation.

This will probably get downvoted... but it was a fun theory and fun to write.
Top post on BitcoinMarkets right now: MtGox seems to be stress testing withdrawals, possible good news on Monday?
http://www.reddit.com/BitcoinMarkets/comments/1zw96b/mtgox_seems_to_be_stress_testing_withdrawals/
This will probably get downvoted... but it was a fun theory and fun to write.
Now lets say they are.... The only reason to do so is if they are either:
  1. Reimbursing people their coins
  2. Going to come back online

You don't just Test your system if you don't intend to come back online!

Remember Mark said that there was still hope for MT.Gox, and of course no one believed them.
Now they wouldn't just come back online all "business as usual"... They HAVE to have some card, ANY card to play...
And the last two months MT Gox seems to had been in a race against the clock.... But no one seems to ask what they were running toward.
Remember, "Midas Trading Engine"? It was supposed to be finished JAN 1st.
If the Midas Trading Engine is really the platform they've been bragging it is going to be, that gives them a hand to play.
They can:
Note:
1) The Foundation never once warned Bitcoin investors about keeping deposits in Mt. Gox, despite clear red flags dating back to at least April 2013. Nor did the Foundation craft or advocate for best practices such as technical transparency, deposit audits, or appropriate consumer protection disclosures. This was a colossal failure of leadership.
2) There is evidence that Bitcoin Foundation board members may have had direct access to Mark Karpeles which allowed them to personally deposit and withdraw funds from Mt. Gox, despite persistent delays for other customers.
5) Peter Vessenes has had a nine month conflict of interest regarding Mt. Gox given that his company CoinLab was involved in an active multi-million dollar lawsuit against Mark Karpeles and Mt. Gox, following a failed partnership. Both men remained on the board of directors, and the Foundation failed to draft adequate by-laws that would allow them to address situations such as this where directors had material conflicts, which would compromise their ability to act in the best interests of its members.
At this week's Texas Bitcoin Conference, I was fortified by near-unanimous agreement (and, at times, applause) that the current leadership must resign or be forced out of their positions on the Foundation. ** Yet I have also been warned that I am playing a dangerous game, with cunning and ruthless power brokers. I have been discouraged by corporate sponsors of the Foundation not to make a public stink which would be "counter-productive" and "irresponsible" for Bitcoin.** Most would prefer to let the Mt. Gox scandal blow over, but I would rather wipe the slate clean definitively, blood or no.
submitted by FixPUNK to BitcoinMarkets [link] [comments]

A word of caution. All major exchanges are not even fiat gateways. The actual fiat in the system is likely grossly overestimated. Crypto is decoupled from USD. Implications.

So we have a situation in which:
1) 80% or more of trading is in USDT (tether)
2) Coinmarket cap is an accomplice to Bitfinex which implies USDT-USD parity. To which degree this is intentional, irresponsibility or just incompetence I would not know. Basically conimarketplace lumps all USDT trades and prices with actual USD trades and prices. If you go there https://coinmarketcap.com/ and try to select PAIR, you get THIS. No USDT, even though most exchanges are USDT. Even if most of liquidity is USDT. Again, this is a major factor in implying parity along with what Bitfinex/Tether try to do. As if this wasn't enough, they also willingly or stupidly inflate USDT price itself. I have to remind you Coinmarketcap is THE point of reference for all cryptosphere. It's oscilating Alexa rank is 100-400. Betfair (real life gambling company) for example uses coinmarket price average for their own system. etc.
3) If/when tethebitfinex crashes, not only does bitfinex crash, it will crash all crypto pairings using USDT on all exchanges using USDT.
4) There are very few fiat gateways. Until recently I assumed the major(top) exchanges have some kind of fiat pairing. I mean.. any respectable exchange would have some way of actually getting money in and out, right? I didn't even think to check. Well, they don't. Literally all the major exchanges are USDT (and/or another stablecoin or proprietary coin) and nothing else. No USD, no EUR, no fiat whatsoever. https://coinmarketcap.com/rankings/exchanges/ . Only the 11th one has actual USD pairing. Didn't check lower but most exchanges don't have fiat. I did a full check on Binance myself as it's the biggest exchange and I had an account there for lulz. There is no fiat.
What does this mean? It means that an allegedly 200 BILLION market cap of all crypto has a fiat gateway of only a couple of exchanges. Most exchanges not using any fiat are not only immune to the risk, they offload risk on the much smaller exchanges that are fiat gateways. And on clients, of course. The cash side of the actual exchanges would need to have to siphon even a fraction of this are unimaginable. If any of these exchanges use crypto to evaluate their own fiat reserves (it is illegal but crypto is hardly regulated or audited), they're fucked.
5) If the first four points looked bad, this one is by far the worst. The system is running on a presumed liquidity provided by Tether and on presumed USD capital. Even if tether was legit it's just 2b USD rolling 200b USD. And that 200b USD is just presumed quantity of USD that is in. We don't know how much USD is in the system, there could be and there probably is way less, as over the past 8 years or so crypto ran mostly on funny exchanges that could "provide" whatever USD value they wanted. More so, even if they went bust, people would usually get to withdraw crypto and store it on some other exchange. Even when an exchange was slowly withering, people just pulled out crypto and the exchange actual liquidity was hardly tested out. Or btc-e crashing or MtGox crashing. Their cash side crashed but "crypto" side did not crash. It was bailed out so to speak. So we have crypto running around that should've been worth 1/10 or 1/100 of it's price but it's instead running on par value with crypto on legit exchanges. This grossly inflates price.
Even if tether is legit, it can be drained in a couple of hours. What happens to the pairings of crypto/USDT? People just trade one bitcoin at the presumable price of 6k for 6k USDT that are 100% backed but have no value because there's no USD in the treasury? Who is stupid enough to deposit USD there to get stuck waiting for another fool to bail him out by getting himself stuck?
Even if tether is 1% it holds much more assumed value, which is the actual issue. Let's say only adds 1 cent to a real dollar market buy order for example. Each buy order made in a system that implies USDT:USD parity is now worth 1% more than a true USD purchase. Now repeat that buy order millions of times. Each added value comes from USDT injection and USDT has to be liquid on the way down as well. It's added value to the market value is not it's market cap.
As I was saying, all the exchanges that are not holding any fiat are immune to any crash or actual liability. If/when cryptos fail, they'll give you back any number of cryptos/stablecoins you had, even if they're worthless. It's just entries in a database. If/when USDT fails, all it's corresponding crypto prices will go to infinity. If you're holding any USDT, you can't get out of the exchange because 1 btc will cost infinity. If you're in any margin position, no matter where your stops are you'll get margin called instead, as stops are just suggestions in high/extreme volatility. You can't get out through fiat cause there's no fiat.
Your only hope is you were actually holding crypto and they don't block withdrawals. Best case scenario you move your crypto to a fiat gateway exchange and hope to cash out there as fast as possible because it will have had become evident that cryptos were overvalued because of USDT (and even hypothetical USD in the system). Will most likely be too late as people that were already in fiat gateway exchanges already sold/cashed out. There will be enormous sell pressure. And no buyers.
The whole stablecoin issuance is idiotic and I just hope it crashes now and we won't see another bubble built on presumed capital, cause that will hurt way more people. All of this is a mess. Crypto is completely decoupled from real fiat now. The potential money that are in the crypto sphere is exponentially greater than available money to trade out of. Or maybe we should be grateful for stablecoins for finally crashing a system that would've crashed anyway in the long run.
submitted by 5ty54y5yh45 to CryptoMarkets [link] [comments]

Simplified analysis of Mt Gox btc withdrawal problem, without speculation!

As much as can gather from some long and technical discussions about Mt Gox's trading engine in several forums, translated and simplified. This is purely based on what people see in the code, mainly that generated by the MtGox API for the various btc tracking sites. Trying to leave the speculation and conspiracy theories out of it for now, as they can't be validated :)
The MtGox withdrawal system has been generating duplicate inputs on multiple transactions for a long time, so they are rejected as a double spend and have to be re-processed. Wasnt causing a major problem until btc withdrawals increased to a critical level, and then its like an exponential curve, with added "bank run" transactions making it even worse.
This is poor programming and should have been fixed a long time ago before it became a major issue. Now it has blown up in their faces they have to shutdown the system because its generating its own Denial of Service attack, which could leave them open to hackers. Sorting out the fix will take some time as they have to rewrite a large part of their transaction engine and then fully test it to make sure it is secure. And quite possibly they have to hire some developers who know what they are doing, as it sounds like they may have a skills shortage.
(That last sentence is somewhat speculative, most developers seem to think they are better than most of the others, so its hard to find an honest opinion)
Edit - For more detail by someone who appears to know what they are talking about read this analysis
submitted by MobiusMouse to BitcoinMarkets [link] [comments]

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
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.
Your're now ready to purchase any book you please!
Tip: If you have a house number then you dont need to use your own name(I used a different version of my surname so I have some deniability but similar enough that my house mates still assumed it was for me and thus didnt open the package).
A book about Modafinil was the first thing I bought just to test the system(and because I had exams to do, its a good read), reason being that its virtually legal. I bought it from the seller Coherence. Next I bought from the seller Ivory(A little pricey but he is UK based and thus the return address isnt suspicious looking), that book was an excellent read. After that I bought from DRamsterdam, he sold me cheap, high quality books and the amsterdam return address didnt seem to stop them! Those books had highly engaging stories from beginning to end.
Useful sites I use:
http://www.preev.com/
http://mtgoxlive.com/orders
http://blog.bitcoinwatch.com/
http://bitcoincharts.com/markets/
http://www.reddit.com/bitcoin/
http://stuffexists.com/
If the above sites seem a bit confusing, you can just ignore them and stick with a simple policy of only buying the bitcoins you need to cover a purchase and then using those bitcoins within a short space of time. This will avoid any crazy price fluctuations that might occur which could affect the value of your bitcoins/purchases.
EDIT: Thanks guys, lots of helpful suggestions, I modified the guide where needed.
As user Emerjesse pointed out, you can use PGP encryption for extra security on Silkroad( many sellers prefer it). Most vendors have a PGP public key in their profile, use that key to encrypt your delivery address and all your messages. You can do that simply and locally with a javascript tool: http://www.hanewin.net/encrypt/PGcrypt.htm You may in turn update your profile or tell the vendor of your public key, such that vendors can encrypt their answers, and you can also sign any further message. They all know how to deal with this.
Happy reading!
submitted by silkencrainn to Bitcoin [link] [comments]

Withdrew 20 BTC from MtGox, accounted debited, but no transaction, not even on block chain. What to do?

Last night I withdrew 20BTC from MtGox damn near most of my bitcoin. Instantly my account is debited and its visible in the history but there is no transaction on the block chain according to blockchain.info. Link: https://blockchain.info/address/16GQtP3iH75VHJrYLaUww7BjM6wmQydjm7
I've been around since 2011 and unfortunately I'm not bit rich or fiat rich. I don't know what to do. So sleep deprived it prevents me from freaking out right now lol.
edit: my transaction was just broadcat to the network!
edit 2: redshiftleft
If you know your txn hash, you can find the raw transaction here (https://data.mtgox.com/api/0>/bitcoin_tx.php) and then manually broadcast it using bitcoind sendrawtransaction "". That >fixed it for me.
More info: http://www.reddit.com/Bitcoin/comments/1c79a5/mtgox_has_closed_bitcoin_withdrawal/
He also posted script in that thread! Send him many upvotes
edit 3: From the thread
Quote from: samson on Today at 12:41:40 PM There's been some discussion on this in the #mtgox IRC channel.
Things are moving but there's a backlog.
Apparently you can get the data from this URL if it hasn't been sent within 2 hours : https://data.mtgox.com>/api/0/bitcoin_tx.php
And then rebroadcast/push the transaction using this URL : http://blockchain.info/pushtx
Mine hasn't showed up in the API link yet so I can't test it.
Some users said it's working ok after a multiple hour delay.
submitted by CrazyMiata to Bitcoin [link] [comments]

Bitcoin Currency Futures Exchange -- Preview

hi
I was working on bitcoin currency futures exchange servers as I've mentioned here and here.
Now it is ready for a preview, which means it is far from perfect, but kind of works.
Current version works with a single kind of contract -- capped futures bitcoins<->USD settled in bitcoins.
Here's how it works: Let's say Alice wants to sell 100 BTC for 30 USD each on 2011-06-10 and Bob wants to buy it. However they do not want to deal with USD because it is messy and instead settle in bitcoins. I.e. instead of giving Alice 30*100 = 3000 USD Bob will give her an equivalent in BTC.
Of course they need to decide what is equivalent. For example, they can agree on smoothed out MtGox price.
If MtGox price goes to 40 by the settlement date then Bob owes Alice 3000 USD / 40 = 75 BTC.
If it goes to 25 then it is 3000 / 25 = 120 BTC.
So Bob gives Alice 75 BTC and she give him 100 BTC back (amount of BTC sold). So if Bob agreed to buy at 30 BTC/USD but price went up to 40 BTC/USD he have earned 25 BTC and instead of sending money back and forth Alice can send him this sum.
Likewise, if price goes down (Bob bought BTC for higher price then real price is) Bob has 20 BTC loss and needs to send this to Alice.
But as bitcoins are kinda anonymous it is hard to enforce this contract (if Bob have lost the bet he will pretend he is dead), so Alice and Bob ask a trusted 3rd party -- let's call him killerstorm -- to make sure that agreement is enforced.
Killerstorm will take money both from Alice and Bob and hold it as a reserve. At the date of settlement he will compute who owes whom how much and will move money, returning unused reserves. But now we have to deal with situation that reserves are finite and need to be available at date of agreement, not at date of settlement. Each party's profit is limited by reserve his counterparty have made and his loss is limited by reserve he made. So each party is interested in making reserve as small as possible. (Also it is possible that they don't have that much BTC on agreement date so reserve percentage limits contract amount.)
Reserve amounts define price range in which settlement will be exact. For example, if Bob reserves 20 BTC and Alice reserves 25 BTC then they can settle exactly as long as price is in 25..40 USD-per-BTC range. If it shots to 45, for example, Bob will get only part of his possible profit. This is why we call them capped futures.
Note that it doesn't make sense to reserve more than 100% of contract amount for seller -- seller never takes loss higher than what he sells. Buyer's loss in BTC is potentially unbound, though -- if BTC price drops to, say, 0.01 he would need lots of BTC to settle the contract.
I hope it is clear enough how it works, now let me present the exchange: http://killerstorm.xen.prgmr.com:31337/st/main.html
Current version works with TESTnet, not real bitcoins and also it does not allow withdrawals.
EDIT: Due to apparent lack of interest in testnet it now works with real BTC, but I urge you not to deposit more than a few cents because software is not well tested! Withdrawals still do not work yet.
Settlement is done on each day around 00:00 UTC (GMT). Spot price is price quoted by MtGox averaged out for last 24h.
So here's how you can try my service:
  1. Go to http://killerstorm.xen.prgmr.com:31337/st/main.html, choose login/password and click register.
  2. It it works you'll see your account (empty) and address to fill it. Note it is a TESTnet address, not Bitcoin address. If you don't have testcoins you can get them from the Faucet. Then you have to wait for a single confirmation, ~10 minutes and hit 'update balance'. (Note: if server sees your transaction address will change, but it will show money only when 1 confirmation is made).
  3. Meanwhile you can explore 'order book' (probably empty at start) and spot price sections.
  4. Once you've got money on balance go to My Orders and hit 'place new order' button. You will see a dialog which is fairly obvious. Maturity is in days, e.g. +1 is next day. Price is how much USD you think one BTC will cost. Sellebuyer reserve percentage is relative to order amount in BTC, e.g. 100 BTC contract with 50% percentage means that 50 BTC is reserved. Placing order costs you 0.0001 (t)BTC. Once you place it it can be filled partially from orders currently in order book and the rest will show up in 'my orders'. When exchange sees orders in different directions which agrees in price it destroys them and creates corresponding contracts. Go to 'my contracts' to see them.
  5. At around 00:00 UTC (GMT) settlement will be made. Orders and contracts will be wiped, you will get money on balance and you'll see how much you've earned/lost.
So, testing will take about 10 minutes to move money and <24h to see settlement.
If there is an interested in playing with real Bitcoins rather than test ones I can launch another server (EDIT: done, real server replaced test server), but I cannot guarantee that it works correctly and you won't lost your money.
submitted by killerstorm to Bitcoin [link] [comments]

Can Litecoin (or cryptocurrencies in general) really replace fiat currency in the future?

Ever since I started buying a few years back, I rallied for Litecoin in particular not only for it's fast transaction speeds, but also because Charlie(coblee) has been nothing but incredibly open, transparent, and supportive to the community (something which can't be said for most other cryptocurrencies out there). I don't think I trust any other creator of a coin apart from Charlie at the moment.
However I have a few concerns which I really do think needs to be addressed before the ultimate goal of having a truly stable decentralised currency can be reached based on my personal experience of the last few years.
My Story: I was extremely lucky when I first bought bitcoin at MtGox that I immediately transferred out to buy litecoins at a different exchange before they stopped all withdrawals. I bought 3 bitcoins at the time and converted it to Litecoins. Together with a bit of arbitrage and mining I made up 90 Litecoins. At the time I encouraged some of my housemates to buy and try out Litecoins as well (one of my best friends now currently hold 30 LTC after losing the other half to Cryptsy). I held fast even as Litecoin went down to 1-2 USD. I even got out of the Auroracoin lies relatively unscathed.
I used some of my Litecoins for purchases such as on Namecheap for domain names and was left with 54 Litecoins. Unfortunately for me I used Cryptsy at one point and ended up losing all my 54 coins which really broke my heart. My wallet - (https://imgur.com/pQNwkju)
My Concerns:
Massive Fluctuations in Price - With the rapid rise in the values of these coins, is it really stable enough to purchase actual products using cryptocurrency? Let's say I buy a domain name for 5 litecoins one year, and now it's worth 1K. Although the fiat currencies have inflation as a disadvantage, it's relatively stable. You would definitely feel "robbed" if you ended up paying for a 8 USD domain name one year, only to regret using it at all when it is now worth several hundred USD the next year. Wouldn't this kill our goals of trying to use crypto as a currency rather than just a tool for trading and investments?
Safety - Whilst I agree that Wallets are the safest place for keeping money, exchanges really should be under a lot more scrutiny and we need a lot more stability.
We have no real choice currently but to use exchanges extremely frequently to change back and forth to fiat currency not only because of the limited marketplace for buying products directly in crypto, but also what I said about the massive fluctuation in pricing. In the fiat currency world, we can essentially trust the majority of the banks to hold our money safe one year to the next. We currently cannot trust exchanges to this extent (perhaps apart from coinbase, but even then the insurance/assurances have not been tested). Even BTC-e that has been there for years had a large amount of their assets seized recently.
The Fees - Coming to the above point about safety, the fees are definitely a lot higher than they were before. I don't disagree that fees are required for transactions to take place, but some of these fees are much higher than you would expect, again from a standard bank in Europe. This discourages people to put their money into a safe place (which is counter-intuitive of what the community advises anyone who wants to buy into crypto).
Final thoughts - I'm not trying to talk down on crypto, I remain a huge fan despite my heart break of losing my Litecoins. But these concerns highlight some limitations to our goal of making a true crypto society and I hope they can be addressed in the near future bfore crypto becoming a massive pyramid scam. I think Litecoin is way ahead of all other coins in this regard, but still a lot of work is needed.
submitted by Ornitier to litecoin [link] [comments]

Does the Mt. Gox situation just scream "Yakuza" to anyone else?

...because it sure does to me.
One of the most persistent elements of this whole debacle is how it seemingly makes no sense. Even if Karpeles is incompetent, it's very odd that a business which had been running and generating significant revenue for years suddenly imploded like this. It seems clear now that the idea of "fixing" technical problems was just a smokescreen for the fact that Gox has been insolvent for a while.
But how did things get this way? A "leak" from a cold wallet? I'm not buying it. Even if you really believe they wouldn't notice that much BTC leaving their system and their reserves dropping to zero, why this string of bizarre behavior afterward? Is this just a case of an inexperienced CEO with bad communication skills? Or is something else going on?
It seems like we're all ignoring the obvious elephant in the room here. What I'm describing above fits a very common pattern in Japanese businesses which have been infiltrated by the Yakuza. Think about it...the Yakuza have already taken over parts of TEPCO, they took over and completely dismantled Olympus. Do you really think a company like Mt. Gox would be difficult for them to muscle into, or that it wouldn't be on their radar? A small company with HUGE cash assets, experience converting that cash into a form perfect for near-anonymous international transfers, and incompetent/inexperienced management?
Take a look at the last paragraph of the recent joint announcement regarding Mt. Gox by Coinbase, Bitstamp, et. al. (emphasis mine):
Bitcoin operators, whether they be exchanges, wallet services or payment providers, play a critical custodial role over the bitcoin they hold as assets for their customers. Acting as a custodian should require a high-bar, including appropriate security safeguards that are independently audited and tested on a regular basis, adequate balance sheets and reserves as commercial entities, transparent and accountable customer disclosures, and clear policies to not use customer assets for proprietary trading or for margin loans in leveraged trading. It does not appear to any of us that MtGox followed any these (sic) essential requirements as a financial services provider.
So, here is what happened: the Yakuza approached Karpeles and said, "We need you to loan us some BTC." Over a long period of time, they drained the company of all its reserves. When the transaction malleability bug became public and caused them to halt withdrawals, the resulting lack of confidence then caused many more people to try to withdraw their BTC, and since there wasn't actually any BTC in the system to withdraw, that was the end of that.
So, for all the people saying that Karpeles fears for his life and is buying himself time to flee, you're right that he fears for his life, but not for the reasons you think. Most likely he has been operating under threat of death for quite a long time now, and he has little option but to continue to remain silent as he has thus far.
In any case, hopefully this puts into perspective some of the arguments here, and the potential recourse for those who lost money. TLDR; the pattern of events fits the Yakuza's M.O. to a T, they are the ones who stole your money, and going after the remains of Gox or Karpeles personally is a waste of time. Sorry, everyone.
submitted by anon_because_yakuza to Bitcoin [link] [comments]

Choosing an exchange to buy/trade BTC. Bitstamp vs BTC-e vs Kraken vs Gox vs Others.Thoughts and discussion.

Hi guys,
Been in the game for awhile now and own both BTC and LTC. Thinking of allocating a significant amount of money to outright purchasing BTC and/or LTC PLUS trading.
Been trying to weigh out the pros and cons of the various exchanges. Apologies if this is a bit of a rambling post...
Exchange Pros Cons
MTGox 1. Great volume 2. Decent interface for investing (ie not trading). Withdrawals take forever.
BTC-e 1. Again, good liquidity 2. Ability to trade in multiple markets/currency pairs 3. MT4 support 4. API Support Variable experiences with transactions - from extremely quick transfers to coins going missing to other secondary issues. See here
Bitstamp 1. Decent liquidity 2. Good interface for trading. 3. Support seems to be decent. Again, variable experiences reported by varying users, from great to account closure. See here
Kraken 1. Poorer liquidity in comparison 2. Great UI and liquid interface. Quasi US based, making me somewhat hesitant due to potential future restrictions.
Coinbase 1. Good reputation 2. Decent platform for investing. 1. US based. 2. Only accepts US based bank accounts. 3. Visa cards have ridiculous fee charges associated.
BTC-China 1. Largest market = greatest volume. 2. Have not tested trading platform yet. 3. Has API support 4. Interestingly has Level II quotes in real time. 1. Trading in Yuan - may need some getting used to. 2. Support language barriers (??potentially) 3. Don't understand the withdrawal methods - i.e. Tenpay + Chinese Banks?? 4.Issues with API (see comments below)
Anyway, I would be interested in hearing more about other people's experiences including:
1) SEPA transfers
2) International wire transfers
3) Trading platforms
4) Exchanges not listed above - PM me and I'll append the table above
5) Correction or elaboration of points in list above
6) Getting money withdrawn from Gox - for those of you that have successfully done so.
Cheers and thanks!
submitted by badboyant to Bitcoin [link] [comments]

Mt.Gox to resume Withdrawls

FOR IMMEDIATE RELEASE" " " Tokyo, Japan, February 17th, 2014! " Dear MtGox Customers,! " We apologize for the inconvenience caused by the recent suspension of external bitcoin transfers. Fortunately, as we announced on Saturday we have now implemented a solution that should enable withdrawals and mitigate any issues caused by transaction malleability (please see our previous statements for details on this issue). " " Thanks to our friends at Blockchain.info, MtGox now has a workaround that will use a unique identifier created by Blockchain to show whether transactions have been modified or not. This will prevent any fraudulent use of the malleability issue and protect the assets of our customers. " " Resuming Withdrawals! " With this new system in place, MtGox should be able to resume withdrawals soon. At the beginning we will do so at a moderated pace and with new daily/ monthly limits in place to prevent any problems with the new system and to take into account current market conditions. " " In order to launch the new system, we are going through the following steps:" " -" Re-indexing the entire Blockchain (approx. 32 million entries)" -" Fully deploying the new NTX ID" -" Implementing a new bitcoin withdrawal queue that needs to be tested" " We will update everyone again by Thursday at the latest. " " Additionally, you may have noticed that we have added a new login system that sends you an email when you successfully access your account. This is an additional security layer, but as always we strongly encourage our customers to use the 2-step authorization options available in our Security Center. " " Thank you again for your support, and we look forward to resume bitcoin withdrawals as quickly as possible. " " Best regards," " MtGox Team
submitted by johnnykabuki to Bitcoin [link] [comments]

[ANN] getBspendB.com, the new way to BUY and SPEND bitcoins!

Introducing: getBspendB, the new way for you to GET and SPEND bitcoins!
getBspendB is a marketplace that connects bitcoin "Spenders" and bitcoin "Buyers" by leveraging Amazon wishlists. By creating a platform for Buyers to easily, safely, anonymously, and quickly purchase bitcoins, the Spender gains wide selection of Amazon merchandise at BELOW FIAT prices.
So how does GBSB work?
  1. First, the Spender creates an Amazon wishlist and shares the wishlist link featuring delicious coconut water priced at $26.99 with GBSB. The price is calculated and discounted (at 4% during beta), so the order will cost $25.91 or ฿0.2029*). If Spender's account balance is sufficiently funded, the order will be place in the orderbook for Buyers to grab.
  2. Bitcoin Buyers shares with GBSB how much BTC he wants to buy. GBSB returns him several similarly valued options to choose from. Buyer then purchases the products in the wishlist and selecting the Spender's hidden ship-to address (known only to Amazon).
  3. Amazon ships the items directly to the Spender. Buyer provides the tracking number to GBSB and Spender for an ETA.
  4. Upon receiving, Spender confirms with GBSB that package has arrived, and the bitcoins (minus a 5% fee) are released from escrow. Buyer can then withdraw the bitcoins to his private wallet, or use it as he wishes.
Seems kinda complicated you might say. There are so many parties involved in this single transaction.
Our Implementation focuses on the user experience. We aim to make the entire transaction eat no more than 20 minutes of each user's time. GBSB aims to be a fresh and unconventional method of exchange, that addresses several problems in the bitcoin ecosystem.
Currently available options for Buyers
It's too difficult to acquire them and buy things with them.
-theymos, admin of bitcointalk.org
It has only gotten harder since.
  • Traditional exchanges like BitStamp and MtGox are easily the cheapest methods of purchasing bitcoins in volume. However, an international wire costs at least $50 in wire and deposit fees while taking 2-5 days before reaching BitStamp. This high barrier prevents anything less than several thousand dollar transactions economical. The long paper trails and heavy scrutiny may be an additional concern for customers that value privacy. Policy transparency vary between exchanges: BitStamp provide timely warnings for customers to accommodate for regulatory conformity, while MtGox has been less inclined to disclose their situation.
  • Fixed rate meta exchanges such as the US based Coinbase takes advantage of the ACH system to remove the transfer cost completely. The 1% fee makes Coinbase a top choice for US buyers after the initial gauntlet. ACH has higher fraud risk than wire transfers, so Coinbase wisely minimize that risk by curating clients through ever-increasing levels of personal information verification steps, limiting customer purchasing power, and delivers bitcoins some point between 3-60 days (average is closer to 7 for the first time user). Occasionally clients report of being declined after days of waiting or frustration over verification steps. Coinbase's operation is highly opaque, with security holes that by pass limitations, sudden changes due to manipulation, and knee-jerk policy changes without warning. Coinbase however is backed by Silicon Valley big shots, so they are well funded enough to absorb the cost of the occasional mishap.
  • Since regulatory pressure tightened, the most recommended and fastest growing exchanges are decentralized exchanges, namely localbitcoins. The unqiue ability for closely proximate bitcoin traders to meet in person and safely trasact using good old cash. They help build personal relationships and trust between traders and provides an outlet for newer users to learn from more experienced ones. Of course, there is the occasional awkwardness, or the nearest seller being 3 hours away, or the insurmountable fear of leaving your basement (it's okay, we understand). Localbitcoin's online exchange is another method that offers any payment option imaginable by hundreds of bitcoin sellers online at all times. Prices vary, methods vary, user honesty also vary. This is perhaps the only major exchange at the moment that preserves anonymity of trades resonably well today. The reason for their success, is the same for bitcoins. Decentralization; peer-2-peer. I am a huge fan of localbitcoin and often traded there. However, their seemingly weekly feature updates, unintuitive UI and choice of words make navigation a bit tedious.
The GBSB Experience - Buyer
getBspendB is partly modeled after localbitcoin's decentralized nature, but serving a different purpose and offers many advantages over localbitcoin from Buyers' perspective. A fixed rate and fewer standardized options won't force Buyers from learning about all the different payment methods, or choosing between vendors based on their rate and reputation. The process needs only 20 minutes over 3 vists to the site, and 2-3 day wait to become the newest proud bitcoin user. Buying bitcoins is now literally as easy as shopping on Amazon.
  1. First visit requires registration, and selection a wishlist of suitable value to purchase for. Confrm the purchase after paying (Protip: Amazon Prime is your friend) and come back when Amazon has shipped.
  2. The second visit simply involves pasting the tracking number so everyone knows package ETA.
  3. Once package arrives, Spender confirms, Buyer logs back in one final time to withdraw the bitcoins.
Currently available options for Spenders
actual stuff selling for cheaper than dollars, rather than for more money than dollars
-nanotube, founder of #bitcoin-otc and Web of Trust, in private IRC conversation
The purchasing power of bitcoin has significantly improved in the past several months. 3 new types of "general stores" like Amazon have emerged on the scene.
  • The oldest is bitcoinstore. Users generally report competitive prices but tedious user experience. Bitcoinstore is in a unique position to be the Amazon of bitcoin, but they do not seem to be making an effort to improve the UI and search functions of the site, making potential savings less desirable. The sophisticated bitcoin users understand that time = money.
  • Another class of options is the all4btc and the defunct bitspend.net model. These services allow users shop as they normally would on their favorite sites, but rather than buying via credit card, they'd submit the item to these services, which return with a price in BTC to pay including an added processing fee for their effort to manually purchase the item for the customer. A more serious flaw of these businesses is an issue of unproven security and additional party to trust with your personal information. All4btc claims a 5% fee, but a quick test using same coconut water resulted in an invoice of ฿0.3672* or $46.08 in market USD cost. It wasn't clear as to what caused 70% markup, but the average US bitcoiner who probably has credit cards (or access to gift cards) has no economic incentive to pay any additional fee. There was a fee to buy bitcoins, so certainly there shouldn't be another to spend them. All4btc does have a seemingly cool chrome plug-in that can simplify purchases, but I got an error while trying to install so was not able to test. Bitspend is now defunct, partly due to their quick success and unscalability. Because orders were processed manually, the appearance of security and professionalism brought in enough customers that they were more often offline, waiting for mtgox withdraws. Abusing Amazon Prime TOS, Chase credit card benefits, and endless money cycling basically forced the bank to close their accounts.
  • Finally, several gift card vendors like gyft and egifter opens up many great merchants, including Amazon, to bitcoin consumers. Users comments are generally very favorable. The only drawbacks are the additional middlemen, smartphone app is sometimes required, and the bitcoins are likely converted directly to USD thus not actually expanding the bitcoin economy. Selection is wide enough such that if one dares to risk most of his net worth in bitcoin, he can at least stay alive.
    *rate of $125. 
The GBSB Experience - Spender
Because merchants benefits form near zero transaction costs of bitcoin and zero fraud risk, the reputable and competitive merchant must reduce the price (about 5%) on items paid in bitcoin. Given the hassle and cost of acquiring bitcoins, zero premium is still an uneconomic choice for the consumer. This lack of economic benefit is the sole barrier preventing bitcoin from becoming the glorious currency it should be. We aim to keep the fee low enough so that it's always cheaper for Spenders to replaced spent coins from exchanges in order to create a deep market for Buyers.
Remainder in comments
Or get on the list now!
submitted by getBspendB to getBspendB [link] [comments]

Peter Vessenes: The Cause Of MtGox 202k Bitcoin Payout Delay Roger Ver on MTGOX Bankruptcy and Bitcoin MtGox Bitcoins to BTC Bitcoins in 50 seconds MtGox Bitcoins to BTC e Bitcoins in 50 seconds Roger Ver on MTGOX Bitcoin exchange - YouTube

Following MtGox’s statement last week on withdrawals being held, the Japanese Bitcoin exchange has released another statement on withdrawals soon being resumed. The statement mentions a workaround regarding the transaction malleability issues which was the reason MtGox initially halted the withdrawals. Along with BlockChain.info, MtGox has created a new unique identifier which should “fix ... MtGox suspended withdrawals last Monday after claiming it was hampered by a security flaw related to "transaction malleability ... MtGox said it was working with Bitcoin wallet provider Blockchain.info to come up with a temporary fix for the malleability issue until a longer-term solution could be found. "Thanks to our friends at Blockchain.info, MtGox now has a workaround that will use a ... Hackers do what they do to make money. That’s why they create ransomware like Linkup and Cryptolocker, and that’s why massive corporations like Microsoft pay bug bounties as large as $100,000 to anyone who can detect vulnerabilities in their software. It’s also why the Mt.Gox Bitcoin exchange did what it did last Friday, February 7th. […] So, withdrawals are matter of time. Source: MtGOX. I think it is not an solvency issue but if it does, you don´t lose your money playing MtGOX's game. I am sure that there is more people as Roger Ver that want to take the risk and change GOXcoins for Bitcoins, for a better price that in MtGOX. If you are scared about lose your money, you can ... my subreddits. edit subscriptions. popular-all-random-usersAskReddit-news-funny-pics-videos-aww-worldnews-gaminggaming-

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Peter Vessenes: The Cause Of MtGox 202k Bitcoin Payout Delay

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 ... Quelle: News Report on BBC This Channel is collecting Reports and Interviews about Bitcoin / Cryptocurrency. Is there any Clip that should not be on this Channel, or should I complete the ... -----2015 Update----- This video was made 7 months before the collapse of MTGOX. At that time, MTGOX was experi... #miningcity #mining_city #mining_city_registration #mining_citizens #the_zone Click The Link Below, Register and Join Mining City 👇👇👇 👉 https://me.miningcity... MtGox Bitcoins to BTC Bitcoins in 50 seconds BITCOIN PRICE , BITCOIN FUTURE in doubt http://youtu.be/eO-yrpQpIT8 What is NAMECOIN BITCOIN'S First Fork http:/...

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