Silk Road forums
Discussion => Silk Road discussion => Topic started by: modziw on April 10, 2013, 08:16 pm
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Bye bye free money :(
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Might actually be hello more free money, plus proving this isn't a bubble. Price has dropped drastically to ~10-110 on some exchanges earlier and already back up past $150-160 from all the demand. I believe what's happening is a DDOS or attack on BTC artificially but the attackers are about to realize the BTC is here to stay :)
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I just watched over 50+ btc sell at 170 in a matter of seconds at bitfloor...not a bubble. an attack is all. things will level out.
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Following up on the attack idea, here's what someone posted on another forum:
An insider email was leaked onto r/bitcoin a couple weeks ago. Basically a group of rogue traders on Tor organizes a planned DDOS of MtGox at a specific date and time - thus locking out everyone from creating new trades - while simultaneously creating a sell off over 4 hours. The fact that no new trades can be created combined with the price dropping precipitously causes a panic, which grows. At the height of the panic, they buy back in (because they are the ones controlling the DDOS, so they get to make the profitable trades). Everyone else loses their ass who reads the price manipulation as true market price and panics. More people need to understand this because no one is actually panicking at first; it's price manipulation through the DDOS dropping the price, not actual mass sell off. Still people just blindly look at the price of MtGox and don't consider this as a possibility even though it's happened frequently over the last few months. Information is power.
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Lag time on mtgox trades is currently 8 minutes. something very fishy going on here.
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This is one of the most entertaining afternoons I've had in a while.
8)
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Following up on the attack idea, here's what someone posted on another forum:
An insider email was leaked onto r/bitcoin a couple weeks ago. Basically a group of rogue traders on Tor organizes a planned DDOS of MtGox at a specific date and time - thus locking out everyone from creating new trades - while simultaneously creating a sell off over 4 hours. The fact that no new trades can be created combined with the price dropping precipitously causes a panic, which grows. At the height of the panic, they buy back in (because they are the ones controlling the DDOS, so they get to make the profitable trades). Everyone else loses their ass who reads the price manipulation as true market price and panics. More people need to understand this because no one is actually panicking at first; it's price manipulation through the DDOS dropping the price, not actual mass sell off. Still people just blindly look at the price of MtGox and don't consider this as a possibility even though it's happened frequently over the last few months. Information is power.
i wish i could give you +1 for this but im not quite there yet...
this is a valuable pice of information to know when working with bitcoin. im no computer genius but im assuming this means a virus was planted which made bitcoin drop. unless im reading this wrong which is a distinct possibility in my fucked up state...
thanks again
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This is one of the most entertaining afternoons I've had in a while.
8)
For me as well. I have average 42'' screen on my wall and this site on clearnet
http://preev.com/btc/gbp
AND I IS LIKE A GANGSTA MOVIE!
;)
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Following up on the attack idea, here's what someone posted on another forum:
An insider email was leaked onto r/bitcoin a couple weeks ago. Basically a group of rogue traders on Tor organizes a planned DDOS of MtGox at a specific date and time - thus locking out everyone from creating new trades - while simultaneously creating a sell off over 4 hours. The fact that no new trades can be created combined with the price dropping precipitously causes a panic, which grows. At the height of the panic, they buy back in (because they are the ones controlling the DDOS, so they get to make the profitable trades). Everyone else loses their ass who reads the price manipulation as true market price and panics. More people need to understand this because no one is actually panicking at first; it's price manipulation through the DDOS dropping the price, not actual mass sell off. Still people just blindly look at the price of MtGox and don't consider this as a possibility even though it's happened frequently over the last few months. Information is power.
i wish i could give you +1 for this but im not quite there yet...
this is a valuable pice of information to know when working with bitcoin. im no computer genius but im assuming this means a virus was planted which made bitcoin drop. unless im reading this wrong which is a distinct possibility in my fucked up state...
thanks again
I'll give it to him for you.
Plausible explanation. Thanks astor +1.
Modzi
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Following up on the attack idea, here's what someone posted on another forum:
An insider email was leaked onto r/bitcoin a couple weeks ago. Basically a group of rogue traders on Tor organizes a planned DDOS of MtGox at a specific date and time - thus locking out everyone from creating new trades - while simultaneously creating a sell off over 4 hours. The fact that no new trades can be created combined with the price dropping precipitously causes a panic, which grows. At the height of the panic, they buy back in (because they are the ones controlling the DDOS, so they get to make the profitable trades). Everyone else loses their ass who reads the price manipulation as true market price and panics. More people need to understand this because no one is actually panicking at first; it's price manipulation through the DDOS dropping the price, not actual mass sell off. Still people just blindly look at the price of MtGox and don't consider this as a possibility even though it's happened frequently over the last few months. Information is power.
i wish i could give you +1 for this but im not quite there yet...
this is a valuable pice of information to know when working with bitcoin. im no computer genius but im assuming this means a virus was planted which made bitcoin drop. unless im reading this wrong which is a distinct possibility in my fucked up state...
thanks again
A virus planted in gox and the exchanges? Maybe but I doubt this is what actually happened(I could be wrong). A DDOS attack is when a massive amount of computers are directed at one site to force it to it's maximun possible connections, either making the site crash or keeping other people from connecting. I don't know if it is an actual organized DDOS (malicious attack) or an unorganized DDOS (massive amount of people signing in at the exchanges because of the panic of watching the price drop from $250 to $105) It could easily have been both a malicious attack and an unorganized clusterfuck of people panic trading.
I feel asleep with BTC at $250, woke up today and it was at $130 then noticed the low on Gox was 105. $145 drop within a few hours is the most volatile I have ever seen BTC at and as of right now as i am writing this it has gone back to $180 (correction--- just checked the ticker at $165, it is probably going to be all over the place for a while and all of this is from Gox. I'm not watching the other exchanges as closely as I should be) from the low of $105 earlier today.
My advice to everyone is to not panic. Stay calm, the price is fluxing all over the place, I've watched from $130 to $190 back down to $160 so just try and relax. I for one am not going to panic sell and will only panic buy if I see it crash well below $70 (which so far as I am writing this it has not) Either way it goes, don't be like me and do panic trades.
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Lag time on mtgox trades is currently 8 minutes. something very fishy going on here.
The lag was 40+ minutes at one point, which is why I believe that explanation of a coordinated DDOS attack has merit.
Is it bad that bitcoin can be manipulated so easily? Of course, but it's also good that there wasn't a sudden loss of confidence by the whole bitcoin community. In fact, that explanation doesn't make sense, since there was no news to trigger -- no hard fork, no new regulation, etc. Why would everybody suddenly and randomly lose confidence in bitcoin?
Also keep in mind that the attackers did this in order to buy low with the full expectation that bitcoin will increase in price. So I'm not worried about it. We should be back around $250 in a few days.
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Dam,
I also watched the number run around on MtGox today...
It was hopping like $20, $50 a second..... Boom $140 boom $170....boom $120.....boom $160.
Fuck I need order some shit...
I also feel like its a DDOS attack, mishapp.
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$145 drop within a few hours is the most volatile I have ever seen BTC
Yeah, because it wasn't worth $145 until 6 days ago. :)
That's what we have to remind ourselves, because the latest price instantly becomes the new normal. The low was $105, but that's still higher than BTC had ever been in its history until like 10 days ago, and it was higher than most of the prices at which people predicted crashes.
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I am investing everything on a price drop. I'm telling you people once this subsides the coin is going to rise like a pedofile who found the hidden wiki.
Chaos
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Lag time on mtgox trades is currently 8 minutes. something very fishy going on here.
The lag was 40+ minutes at one point, which is why I believe that explanation of a coordinated DDOS attack has merit.
Is it bad that bitcoin can be manipulated so easily? Of course, but it's also good that there wasn't a sudden loss of confidence by the whole bitcoin community. In fact, that explanation doesn't make sense, since there was no news to trigger -- no hard fork, no new regulation, etc. Why would everybody suddenly and randomly lose confidence in bitcoin?
Also keep in mind that the attackers did this in order to buy low with the full expectation that bitcoin will increase in price. So I'm not worried about it. We should be back around $250 in a few days.
+1
I've also been trying to tell people this
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You would think that Gox being the most popular exchange would get use the money they make to expand their server capacity so no one can take advantage of their limited bandwidth but maybe that's what their in the process of doing as we speak (also $127 now that I'm looking at it)
The past few months and including today is the most volatile I have ever seen it, I just never expected a $145 drop within a few hours and BTC not only surge past it's previous record of $30 in 2011 but also jump more than 7 times it's 2011 record within 1 month.
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The price is extremely volatile. There was a $50 bid-ask spread earlier, but even now I saw the price jump from $187 to $130 to $150 within 15 minutes. I wouldn't put much stock on it. Let things settle down and check back tomorrow.
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If I had to guess I would say bitcoin is going bonkers.
But that's just an educated guess, not a scientific one. So take that with a grain of salt.
Disclaimer: This is solid financial advice.
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C.I.A ? cashing in ?
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fuck!
thought id wait till the morning to make an order for the average to catch up.
now its all dropped
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£100 trade range :o
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This is quite unfortunate, I bought 265.00 worth of bitcoins this morning and am currently down to about 185.00, I was planning on making my first international order but now I don't have enough Bitcoins.. Maybe it's a sign.. I'm just glad I didn't buy like 1500.00 worth of bitcoins!
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OK So I went to MtGox, and read this in The NEWS Feed.
This is exactly what is happening and we are 100% right guys...DDOS
Copied and pasted..
*********************************************************************************
It's been an epic few days: What happened?
TOKYO - JAPAN - April 04, 2013
Dear Mt.Gox users and Bitcoiners,
It’s been an epic few days on Bitcoin, with prices going up as high as $142 per BTC. We all hope that this is just the beginning!
However, there are many who will try to take advantage of the system. The past few days were a reminder of this sad truth.
Mt.Gox has been suffering from its worst trading lag ever, 502 errors, and at one point some users were not able to log in their account. The culprit is a major DDoS attack against Mt.Gox.
Since yesterday, we are continuing to experience a DDoS attack like we have never seen. While we are being protected by companies like Prolexic, the sheer volume of this DDoS left us scrambling to fine-tune the system every few hours to make sure that things don’t go beyond a few 502 error pages and trading lag.
Why has Mt.Gox become the target of a DDoS attack?
It is not yet clear who is behind this DDoS and we may never know, but these actions seem to have two major purposes:
• Destabilize Bitcoin in general.
It is not a secret Mt.Gox is the largest Bitcoin exchange with more than 80% of all USD trades and more than 70% of all currencies. Mt.Gox is an easy target for anyone that wants to hurt Bitcoin in general.
• Abuse the system for profit.
Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.
What can be done?
Believe it or not, there is pretty much nothing that can be done. Large companies are frequently victims of these kinds of attacks. Even though we are using one of the best companies to help us fight against these DDoS attacks, we are still being affected.
There are a few things that we can implement to help fight the attacks, such as disconnecting the trade engine backend from the Internet. By separating the data center from the Mt.Gox website, we will continue to be able to trade.
What can you do?
Like our favorite author here at Tibanne says… Don’t Panic!
“Panic-selling is a wide-scale selling of an investment which causes a sharp decline in prices. Specifically, an investor wants to get out of an investment with little regard of the price obtained. The selling activity is problematic because the investor is selling in reaction to emotion and fear, rather than evaluating the fundamentals.” (Source: Wikipedia)
I understand that many of you have a lot at stake here, but remember that Bitcoin, despite being designed to have its value increase over time, will always be the victim of people trying to abuse the system, or even the value of Bitcoin decreasing occasionally. These are not new phenomena and have been present since the beginning of time when humans first started trading.
Trade Engine Lags
Lag affects everyone, not only us, but also major, world-renowned exchanges like the NASDAQ and NYSE. We can fix lag, but we cannot eradicate lag. Only small exchanges with low volume and liquidity are immune to lag.
Does this mean that we are giving up fighting lag? Hell, no. We are working on it by creating a new trade engine that will solve many problems, but it’s not a magic bullet. We can always try to scale our servers, but we cannot predict what happens from external sources: DDoS, panic selling, immediate increase of buyers, etc. Lag will always be there, but our mission is to make lag as small as possible.
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OK So I went to MtGox, and read this in The NEWS Feed.
This is exactly what is happening and we are 100% right guys...DDOS
Copied and pasted..
*********************************************************************************
It's been an epic few days: What happened?
TOKYO - JAPAN - April 04, 2013
Dear Mt.Gox users and Bitcoiners,
It’s been an epic few days on Bitcoin, with prices going up as high as $142 per BTC. We all hope that this is just the beginning!
However, there are many who will try to take advantage of the system. The past few days were a reminder of this sad truth.
Mt.Gox has been suffering from its worst trading lag ever, 502 errors, and at one point some users were not able to log in their account. The culprit is a major DDoS attack against Mt.Gox.
Since yesterday, we are continuing to experience a DDoS attack like we have never seen. While we are being protected by companies like Prolexic, the sheer volume of this DDoS left us scrambling to fine-tune the system every few hours to make sure that things don’t go beyond a few 502 error pages and trading lag.
Why has Mt.Gox become the target of a DDoS attack?
It is not yet clear who is behind this DDoS and we may never know, but these actions seem to have two major purposes:
• Destabilize Bitcoin in general.
It is not a secret Mt.Gox is the largest Bitcoin exchange with more than 80% of all USD trades and more than 70% of all currencies. Mt.Gox is an easy target for anyone that wants to hurt Bitcoin in general.
• Abuse the system for profit.
Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.
What can be done?
Believe it or not, there is pretty much nothing that can be done. Large companies are frequently victims of these kinds of attacks. Even though we are using one of the best companies to help us fight against these DDoS attacks, we are still being affected.
There are a few things that we can implement to help fight the attacks, such as disconnecting the trade engine backend from the Internet. By separating the data center from the Mt.Gox website, we will continue to be able to trade.
What can you do?
Like our favorite author here at Tibanne says… Don’t Panic!
“Panic-selling is a wide-scale selling of an investment which causes a sharp decline in prices. Specifically, an investor wants to get out of an investment with little regard of the price obtained. The selling activity is problematic because the investor is selling in reaction to emotion and fear, rather than evaluating the fundamentals.” (Source: Wikipedia)
I understand that many of you have a lot at stake here, but remember that Bitcoin, despite being designed to have its value increase over time, will always be the victim of people trying to abuse the system, or even the value of Bitcoin decreasing occasionally. These are not new phenomena and have been present since the beginning of time when humans first started trading.
Trade Engine Lags
Lag affects everyone, not only us, but also major, world-renowned exchanges like the NASDAQ and NYSE. We can fix lag, but we cannot eradicate lag. Only small exchanges with low volume and liquidity are immune to lag.
Does this mean that we are giving up fighting lag? Hell, no. We are working on it by creating a new trade engine that will solve many problems, but it’s not a magic bullet. We can always try to scale our servers, but we cannot predict what happens from external sources: DDoS, panic selling, immediate increase of buyers, etc. Lag will always be there, but our mission is to make lag as small as possible.
Thanks you for posting this +1
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**Clearnet Warning**
http://blockchain.info/largest-recent-transactions
lookit all thowz pretty bitcoins LOL
:P
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Anybody know what the current situation is with bitinstant?
They apparently were flooded with orders and could not keep up basically because they instantly fund your account but they themselves do not get the money you deposited to them for a few weeks which I could definitely see some problems with that in the current state of BTC flux and this started when the first DDoS happened to Gox at the start of this month so.... Anybody know if it is a good idea to use them right now or are you still dealing dealing with delays? No point using an "instant" service if they're having delays.
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So now that the market has crashed, do you all think it will stabilize again, now that people see the potential earnings they can make buy investing in BTC?
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Nice work, and these are important words of wisdom:
What can you do?
Like our favorite author here at Tibanne says… Don’t Panic!
"Panic-selling is a wide-scale selling of an investment which causes a sharp decline in prices. Specifically, an investor wants to get out of an investment with little regard of the price obtained. The selling activity is problematic because the investor is selling in reaction to emotion and fear, rather than evaluating the fundamentals." (Source: Wikipedia)
I understand that many of you have a lot at stake here, but remember that Bitcoin, despite being designed to have its value increase over time, will always be the victim of people trying to abuse the system, or even the value of Bitcoin decreasing occasionally. These are not new phenomena and have been present since the beginning of time when humans first started trading.
If you bought BTC in the last week, then you've lost money. Don't panic and hold onto your coins. The price will go back up. The market didn't lose confidence in bitcoin today.
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Great i went to bed with a feeling of this happening after i bought coins for a couple of SR purchases..i really didnt expect to nearly loose all my cash.
I am done, this currency is way to volatile and unstable. I mean even yesterday when i was buying coins i was hoping that it wouldnt go down mid btc transaction.
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made 3 transactions with BI a bit ago...went smoothly...no problems...
not saying you wont have problems..just sayin...
Peace,
ChemCat
8)
Hugs@astor :)
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Since bitcoin is taking a numero dose can someone please loan me 0.00233077 BTC so I can make a purchase? I think it only comes out to like 50 cents. I would really appreciate it since the price of the product will most likely go up due to the decrease in BTC value.
Thanks a million
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Nice work, and these are important words of wisdom:
What can you do?
Like our favorite author here at Tibanne says… Don’t Panic!
"Panic-selling is a wide-scale selling of an investment which causes a sharp decline in prices. Specifically, an investor wants to get out of an investment with little regard of the price obtained. The selling activity is problematic because the investor is selling in reaction to emotion and fear, rather than evaluating the fundamentals." (Source: Wikipedia)
I understand that many of you have a lot at stake here, but remember that Bitcoin, despite being designed to have its value increase over time, will always be the victim of people trying to abuse the system, or even the value of Bitcoin decreasing occasionally. These are not new phenomena and have been present since the beginning of time when humans first started trading.
If you bought BTC in the last week, then you've lost money. Don't panic and hold onto your coins. The price will go back up. The market didn't lose confidence in bitcoin today.
+1 :)
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60+k BTC's? LOL
**Clearnet Warning**
http://blockchain.info/address/1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx
Now that's alotuh Coins LOL
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60+k BTC's? LOL
**Clearnet Warning**
http://blockchain.info/address/1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx
Now that's alotuh Coins LOL
Selling
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There is something fishy about this and I believe the DDOS is the biggest red flag in it. The price will return to normal in the next week or so but there will be a crash...sometime but something tells me we've probably seen the lowest btc will ever be today at $105 on mtgox.
The price will rise again and keep going until 20/4/13 at least and to those who sold during this flash crash never ever ever play poker.
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bought 3.1 bitcoin at a really low price and slr still was working of the high weighted average... put 700 in using zip zap and walked away with 780 in my account... first time i didnt lose a hudge amount due to fees and different values
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People need to stop selling bitcoins on MtGox, it's dangerous that they have such a monopoly on sales, whether this was result of DDoS or not, its just not right that trade of a decentralized currency is so centralized on one company's servers, especially a company has such poor infrastructure.
Forget MtGox, spread the BTCs across more exchanges to strengthen the currency.
And don't worry about the crash, the worst thing you can do is sell off, either trade them or hang onto them and you'll be glad you did this time next week.
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It's already back up to $180. I hope no one panicked and sold all their BTC if they bought them in the last week. I think BTC will continue to rise in here. The past week has been crazy though. I'm not the gambling type, so I've been buying BTC only when I need to make a purchase.
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Totally sucks though, since my account amount just dropped $12+ :( Went ahead and made my purchases just in case it dropped more and I couldn't afford what I needed!! Hopefully it stabilizes soon.
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People need to stop selling bitcoins on MtGox, it's dangerous that they have such a monopoly on sales, whether this was result of DDoS or not, its just not right that trade of a decentralized currency is so centralized on one company's servers, especially a company has such poor infrastructure.
Forget MtGox, spread the BTCs across more exchanges to strengthen the currency.
You echo the sentiments of many people in the bitcoin community. It would be nice if Coinbase started their own exchange. They are well positioned to do so anyway.
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The more exchanges the stronger the currency. :D
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So now that the market has crashed, do you all think it will stabilize again, now that people see the potential earnings they can make buy investing in BTC?
Yes it definitely will, you answered you're own question, people see the value and the mass demand in comparison to the finite amount shows it is not only a good currency but a good investment
made 3 transactions with BI a bit ago...went smoothly...no problems...
not saying you wont have problems..just sayin...
Peace,
ChemCat
8)
Hugs@astor :)
Thanks man, been a little wary to send them any business if they are too backlogged with orders
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im sure if most are like me. they watched the price plumet...but instead of being bummed out we lost a bunch of money, were bummed that we dont have more cash on hand to buy up more coins...no faith was not lost.
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im sure if most are like me. they watched the price plumet...but instead of being bummed out we lost a bunch of money, were bummed that we dont have more cash on hand to buy up more coins...no faith was not lost.
^^^This :)
+1
Peace,
ChemCat
8)
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im sure if most are like me. they watched the price plumet...but instead of being bummed out we lost a bunch of money, were bummed that we dont have more cash on hand to buy up more coins...no faith was not lost.
^^^This :)
+1
Peace,
ChemCat
8)
It's an opportunity of sorts. Just play the game of the ddos hackers. Buy low sell high, rinse and repeat. Use this situation to you benefit.
Chaos
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well said :)
some dont have the means...however..a smart investment could set one on a path of less stress :)
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It's an opportunity of sorts. Just play the game of the ddos hackers. Buy low sell high, rinse and repeat. Use this situation to you benefit.
If it was easy to do that, why didn't any of you sell at $260? :)
The problem with these day trading strategies is that you don't know you're in a sell off until you're halfway down, and you don't know you've hit bottom until you're halfway up.
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MtGox
Hi everyone, just a quick update on the situation and what happened last night.
First of all we would like to reassure you but no we were not last night victim of a DDoS but instead victim of our own success!
Indeed the rather astonishing amount of new account opened in the last few days added to the existing one plus the number of trade made a huge impact on the overall system that started to lag. As expected in such situation people started to panic, started to sell Bitcoin in mass (Panic Sale) resulting in an increase of trade that ultimately froze the trade engine!
To give you an idea of how impressive things were here are some numbers that we would love to share with you guys:
- The number of trades executed triple in the last 24hrs.
- The number of new account opened went from 60k for March alone to 75k new account created for the first few days of April! We now have roughly 20,000 new accounts created each day.
Due to these facts we have been busy working on improving things since last week and our team has been working around the clock to improve Mt.Gox to catch up with the demand. We will continue to release several updates today and in the coming few days to improve our system overall performance.
Also please note that we may have to close the exchange for two hours in the next 12 to 24hrs to add several new servers to our system.
Thank you for your understanding and continuous support!
I think it is time to buy....
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It's an opportunity of sorts. Just play the game of the ddos hackers. Buy low sell high, rinse and repeat. Use this situation to you benefit.
If it was easy to do that, why didn't any of you sell at $260? :)
The problem with these day trading strategies is that you don't know you're in a sell off until you're halfway down, and you don't know you've hit bottom until you're halfway up.
You know there's one guy who sold at 265$ everything and has spent the whole day today sitting back and enjoying the show.
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Thanks for the update!
First of all we would like to reassure you but no we were not last night victim of a DDoS but instead victim of our own success!
Indeed the rather astonishing amount of new account opened in the last few days added to the existing one plus the number of trade made a huge impact on the overall system that started to lag. As expected in such situation people started to panic, started to sell Bitcoin in mass (Panic Sale) resulting in an increase of trade that ultimately froze the trade engine!
So it was traders who DDOSed them. This is why we need more exchanges.
To give you an idea of how impressive things were here are some numbers that we would love to share with you guys:
- The number of trades executed triple in the last 24hrs.
- The number of new account opened went from 60k for March alone to 75k new account created for the first few days of April! We now have roughly 20,000 new accounts created each day.
Impressive numbers. And this is why BTC is not going back to $10 or even $50.
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It's important to point out again that there was no "correction", no mass cash out by early adopters, and no overall loss of confidence in bitcoin. It was a technical failure. Huge lag caused a panic, just like several times before.
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Following up on the attack idea, here's what someone posted on another forum:
An insider email was leaked onto r/bitcoin a couple weeks ago. Basically a group of rogue traders on Tor organizes a planned DDOS of MtGox at a specific date and time - thus locking out everyone from creating new trades - while simultaneously creating a sell off over 4 hours. The fact that no new trades can be created combined with the price dropping precipitously causes a panic, which grows. At the height of the panic, they buy back in (because they are the ones controlling the DDOS, so they get to make the profitable trades). Everyone else loses their ass who reads the price manipulation as true market price and panics. More people need to understand this because no one is actually panicking at first; it's price manipulation through the DDOS dropping the price, not actual mass sell off. Still people just blindly look at the price of MtGox and don't consider this as a possibility even though it's happened frequently over the last few months. Information is power.
Be careful when looking for explanations of market movements. I am not saying this is not the explanation, but most market participants know that trying to corner any market is a very rare and hard event to pull off. Now I'm by no means a tech expert and there are many things I do not understand about BTC and the operations of MTGOX that could make cornering the market possible, but if you are looking for an explanation to justify your market position, I suggest you don't. Whenever you start looking for reasons for your trade, you fall into a slippery trap. The reason for the sell off might be what you think it is, and it might not. If it's not, you become married to the idea that this sell off is not real. Then when the time comes to act you might hesitate because you have the idea that this sell off isn't real. Those who hesitate in the markets, lose.
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What made that explanation plausible to me -- in fact, even likely -- was the 40 minute lag. I honestly didn't think traders alone could cause it, but apparently MtGox's infrastructure is that laughably inadequate.
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People need to stop selling bitcoins on MtGox, it's dangerous that they have such a monopoly on sales, whether this was result of DDoS or not, its just not right that trade of a decentralized currency is so centralized on one company's servers, especially a company has such poor infrastructure.
Forget MtGox, spread the BTCs across more exchanges to strengthen the currency.
You echo the sentiments of many people in the bitcoin community. It would be nice if Coinbase started their own exchange. They are well positioned to do so anyway.
Market makers, especially market makers with retail clientele like coinbase, make more money buying and selling to their customers than any exchange would. In the financial world exchanges like NYSE, MTGOX make very small fees and have high overhead costs. They make a living only by increasing trading volume, whereas market makers earn fat spreads between where they buy their coins and where they sell their coins to their retail clients. As long as they are good at managing their risk, Coinbase will most likely stay a market maker instead of taking on a low margin business like an exchange.
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I am investing everything on a price drop. I'm telling you people once this subsides the coin is going to rise like a pedofile who found the hidden wiki.
Chaos
Good analogy
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This is great for investors and the common people no doubt as it allows more to get on the bandwagon while weeding out the shaky hands but it's fucking horrible from our vending perspective and everyone else holding coin in SR.
Fuck you Mt.Lag/ddos.
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This is great for investors and the common people no doubt as it allows more to get on the bandwagon while weeding out the shaky hands but it's fucking horrible from our vending perspective and everyone else holding coin in SR.
Fuck you Mt.Lag/ddos.
True, but most of the money lost yesterday was money made the week before. I do hate to see the volatility because I know it make vendor life difficult, but I'm hoping that this is an event that lasts a few days and then BTC goes back to a more sustainable level and rate of appreciation...
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MtGox has suspended trading because once again they can't handle the volume.
You can buy bitcoins right now for $65 on btc-e.com (and dropping fast).
Damn, if I could fund a btc-e account, I could scoop up some coins really cheap. The only option that I recognize for funding an account is Bitinstant, and that doesn't sound safe from all the people complaining about it.
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MtGox
Hi everyone, just a quick update on the situation and what happened last night.
First of all we would like to reassure you but no we were not last night victim of a DDoS but instead victim of our own success!
Indeed the rather astonishing amount of new account opened in the last few days added to the existing one plus the number of trade made a huge impact on the overall system that started to lag. As expected in such situation people started to panic, started to sell Bitcoin in mass (Panic Sale) resulting in an increase of trade that ultimately froze the trade engine!
To give you an idea of how impressive things were here are some numbers that we would love to share with you guys:
- The number of trades executed triple in the last 24hrs.
- The number of new account opened went from 60k for March alone to 75k new account created for the first few days of April! We now have roughly 20,000 new accounts created each day.
Due to these facts we have been busy working on improving things since last week and our team has been working around the clock to improve Mt.Gox to catch up with the demand. We will continue to release several updates today and in the coming few days to improve our system overall performance.
Also please note that we may have to close the exchange for two hours in the next 12 to 24hrs to add several new servers to our system.
Thank you for your understanding and continuous support!
I think it is time to buy....
i heard that a national radio morning show talked about how much people were making on bitcoins, im assuming they had a lot of peoples interest spark and they created accounts yesterday after the talk show finished and that could have been the source
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MtGox has suspended trading because once again they can't handle the volume.
You can buy bitcoins right now for $65 on btc-e.com (and dropping fast).
Damn, if I could fund a btc-e account, I could scoop up some coins really cheap. The only option that I recognize for funding an account is Bitinstant, and that doesn't sound safe from all the people complaining about it.
At 60, I want to buy. Unfortunately, it appears to be tough to trade in this environment. Everyone is overwhelmed, it seems. I actually put in an order with Blue Sky Traders last night - I wonder if I'll hear anything and what they'll offer?
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Blagh.
I deposited a heft amount of cash to Bitfloor after having seen the crash. The prices are still plummeting and I was hoping to wait to buy in at a very low price (as I feel they will return).
However, by time I returned from my deposit, Bitfloor's website has gone under due to a "server maintenance issue". I call BS and think they have just frozen the market.
I hope they hurry! I want to stalk the peak and buy at an ultimate low.
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Blue Sky Traders is down for the day, too. Pretty hard to get coins in this environment.
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Bitfloor is back up, now. I'm just standing idle and watching the prices. =D
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Blue Sky Traders is down for the day, too. Pretty hard to get coins in this environment.
Like most independent exchangers, they probably trade on MtGox.
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https://bitfloor.com/ :o