Ninjastic
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Board Speculation
Re: Wall Observer - MtGoxUSD wall movement tracker - Hardcore
by
Coinseeker
on 20/05/2013, 19:07:10 UTC
Quote from: Rampion on May 20, 2013, 06:59:26 PM
Quote from: Coinseeker on May 20, 2013, 06:51:13 PM
Quote from: Rampion on May 20, 2013, 06:49:06 PM
Quote from: moocowpong1 on May 20, 2013, 06:46:55 PM
Quote from: Rampion on May 20, 2013, 06:34:50 PM

And think about this: OpenCoin will hold to 50% of the total Ripples created. You need to grant them a LOT of trust to place money in XRPs. They can crash the market with a fart, and they may be very well decide to hold onto 80% on the XRPs. Or to 90%. They won't tell you, because they don't know, they will just do what it suits best to them.

Now compare that shit with BTC, my friend.

You only need to trust them if you hold XRP. Who cares if the XRP market crashes when you're using Ripple as a distributed cryptocurrency exchange?

What are you talking about? You do not exchange cryptocurrency in Ripple. You exchange a) XRP's or b) other cryptocurrencies IOU's

IOU's which owner can default or decide not to honor them. Only thing which is not an IOU in Ripple are Ripples - quite convenient for OpenCoin, don't you think so?

You have no idea what you're talking about.  You're just regurgitating Tradeforest talking posts and you're not even doing a good job of it.   Roll Eyes

Sorry? I'm using Ripple. I've been trading real money in there, as I wanted to understand it. I sent REAL BTC to Bitstamp, and they sent me BTC IOU's to Ripple. Yeah, my BTC never left the Bitstamp BTC address - they are holding them, and they sent BTC IOU's to Ripple, but they can actually do whatever they want with my BTC. They can spend them, and I would still have the BTC IOU's on Ripple. Then, Bitstamp can decide if they honor or not the IOU's they sent to my Ripple address.

Yeah: welcome to fractional reserve, welcome to creating money out of thin air.

After receiving my BTC IOU's from Bitstamp, I exchanged them for USD IOU's - and then exchanged the USD IOU's for Ripples.

The only asset you hold in Ripple are Ripples. The rest, is debt (IOU's), which issuer can decide to honor or not.

The question is do you trust your gateway or not?  What's stopping you from sending your BTC's back to your wallet?  Nothing...just send the IOU's back first.  I've been using it too and it works just fine for me.  I can sell BTC's in the Ripple client, send the fiat to Bitstamp, buy more BTC.  Imagine when Gox comes on board, you won't have the spreads across different exchanges because you can immediately exploit the differences because you can move fiat or BTC, wherever you choose, for next to nothing.  

Without Ripple, if you're trading on Gox, you trust Gox with your fiat and BTC, right?  How is that any different?  Gox doesn't have to pay you.  They can run away with your money at anytime they want, so your argument is ridiculous.