Ninjastic
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Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
virtualfaqs
on 29/01/2014, 01:05:00 UTC
Quote from: billyjoeallen on January 29, 2014, 12:55:57 AM
Quote from: virtualfaqs on January 29, 2014, 12:49:53 AM
Quote from: billyjoeallen on January 29, 2014, 12:29:20 AM
Quote from: JorgeStolfi on January 29, 2014, 12:21:32 AM
Quote from: billyjoeallen on January 29, 2014, 12:05:18 AM
Who in their right mind in transferring fiat to Gox now?

Unfortunately, many novice bitcoin owners will choose to sell their BTC at MtGOX because (a) it seems to offer the best price, by far; and (b) it is still cited in the news, blogs, and chart sites as one of the main exchanges.  

read more carefully. Many would-be arbitragers have sent bitcoin to gox, but nobody would send or is sending USD or fiat to Gox. All it takes is ONE arbitrager to drain the entire fiat account totals left on Gox  by selling bitcoin there, transferring the fiat to another exchange, buying bitcoin on the other exchange at lower prices, transferring the bitcoin back to Gox to sell at higher prices, rinse and repeat. Everyone including me is buying bitcoin at whatever price we can get to transfer to another exchange and sell there to cut our losses.

What? You're saying someone would market order dump BTC at that outrageous price and get stuck with Mtgox fiat. If that was going to happen, it would have happened long ago. That doesn't make any sense. You can't transfer Mtgox fiat to another exchange easily. Mtgox has no problem getting fiat. It has BTC which they can sell.

Geez, c'mon. Pay attention. I can't get fiat out of Gox. You can't get fiat out of Gox, but if ONE PERSON can get fiat out of Gox, they can get ALL the fiat out of Gox.

There are people who can get fiat out of Gox - Japanese. But it's not consistent enough to do any major arbitrage unless yesterday was what was happening.