How to Convert Bitcoins to Dollars: 11 Steps (with Pictures)

Issuing money by global central banks is a great opportunity for stablecoins," says Digital Gold Advisor Dr. Walter Tonetto

Issuing money by global central banks is a great opportunity for stablecoins,
Last week we talked with our adviser and CEO at Nusantara Trust Dr Walter Tonetto. He answered a number of questions that interest our customers.
How did you land in the cryptocurrency / blockchain space?
I was advising startup businesses in the technology space, and when 2016 came around, I asked Scotty, the feisty chief engineer of the U.S.S. Enterprise, to beam me into the heart of the finance system; I felt more and more the irresistible tug towards remodeling the current toxic financial system. Purposive remodeling, of course, is going on all the time, and it’s a knife that cuts into two directions. The vast majority of the ‘woke’ crowd actually believe that they can ‘disrupt’ the power of the elites that control all money flows. Bathing limestone statues – registering about 4 on the Mohs scale and 0 on the scale of reason -- of past leaders in district waters may give you a feeling of breathing the air of revolution and tiring unknown muscle-groups in your shanks, but think of it like a father watching his child toss around shovels of soil in a sandbox; he smiles benignly from afar, knowing it won’t change a thing; all the luxurious appointments at home won’t get touched. It is a grave illusion to suppose that by playing around with payment systems and technologies we will actually change the role and the emission of money. You may be permitted to become the shoe-shine boy in the royal household, but don’t think you will marry the princess and dilute the royal blood! But understanding the constitutive parts of power aggregation, and working over significant time-frames, allows for approaches and solutions; -- but these should come not from another adversarial position, thus merely marking a displacement of the incumbent, a change of guard, but from an authentic re-orientation, of making benefits much more widely possible and not creating monetary systems that are grossly imbalanced and highly destructive. That, and not building tech stacks, is the challenge!
What was your initial reaction to bitcoin?
Well, I was following the file-sharing service Napster since it started, around 1999 – when the U.S.S. Enterprise was sitting pier-side at Huntington Ingalls Newport shipyard, rusted and gutted, and to me the P2P sharing paradigm was always present in my mind, shining buffed and radiant, so even the centralized Napster was something wholly natural to me – Dr Sheldrake calls it morphic resonance. We live with a great deal of blurriness, though. On the one hand, we think of the virtues of sharing; on the other, there is a seemingly indefatigable impulse to control and dominate. Sean Parker, after founding and floundering with Napster, became a cocaine-snorting egotist and president of Facebook. Collecting money for a charity, he gets aggressive with people who do not follow suit. A control-freak in overdrive. Notwithstanding the technical variations, BTC, seemingly freeing us up from fiscal controls and yet showing our craving for money, exemplifies the flawed perception at the root of things. Monero, which sounds like a much faster, highoctane vehicle, a CV8-Z of the crypto-track, beats BTC in regard to privacy and fungibility, though BTC has advantages in other areas.
Which is a much more common trend nowadays?
It’s hard to make out the shapes of wild-life in the current kangaroo market we’re in. The bulls and bears have mauled one another, and the kangaroo, bereft of oxygen on account of wearing a tight mask, is hopping wildly everywhere. But clearly the possibilities of digital currencies became un-tethered via Bitcoin and the querulous and hidden Satoshi. I like to think of him more as an idea rather than as a person; an idea is generally more malleable and consequential. For instance, rather than laud the benefits of crypto for FX and cross-border payments, the possibilities of a central-bank issued digital currencyENCOMPASS THE POTENTIAL to inscribe new roles for programmable money; for how money is issued, how it is used, and what role custodial mechanisms (traditionally in the hand of commercial banks) might have. I see HUGE potential for private firms to enter the equation here, but we need more open-minded and intelligent regulators that do not always look for the rungs of the career-ladder in any move they make! A DAO could be most helpful here, but we are currently under the terror of algorithms that are not concerned with the welfare of the greatest number of people. If I had the time I would coauthor a book on this theme with a skilful mathematician (perhaps with my son, who is completing a Ph.D in near-term Quantum Algorithms).

In 2018 I was keynote speaker at the BlueWhale forum in Seoul, and I spoke about an Algorithm of Peace. I had a clutch of people approach me straight after the talk, some from Korea, others from the U.S., and ask me to develop my ideas in book form.
Where do you see the price of bitcoin going over the next few years?
I wouldn’t speculate, but since everyone is shilling it, it is bound to keep pushing north, occasional blockages otwithstanding. I always look for twists and incongruities in the usual narratives on offer. Many BTC fans talk about the unbanked, but BTC is held by what will become another elite in due course, and the unbanked will later be serving them the chilled drinks between innings, as usual.
Do you think that there’s a time for altcoins to break out and move away from the movements of bitcoin? What’s that tipping point that needs to take place?
I have some notions under which alt-coins can take the lead and leave bitcoin behind, but it’s too complex to explain the conditions for that to occur. Once very solid use-cases have been established with a clutch of alt-coins, bitcoin might begin quavering in his boots. That alt-coins should take BTC as a benchmark speaks volumes about the lack of maturity of this young and over-eager market. The fuzzy umbilical cord is always present like a foot-tangle; alt-coins must find their own ground, and clip the connection to a vagrant father. Finance needs clarity and not fuzziness. Keep in mind that many sovereign nations bridle at the calamitous influence of the US on payment systems, so nations are building their own messaging systems outside SWIFT, and their own securities exchanges are following. But remember: these are all crumbs: the U.S. can shut down payments to any recipient accounts by informing the payments company and doling out threats. And since all alt-coins and fiat currencies are connected to payment gateways in some form, the U.S. would have to begin reforming its archaic ACH structure to enable efficiencies in the financial pipes, which does not offer real-time payments functionality. This accounts for the relative simplicity (and success) of the PayPal business model (which Venmo and Dwolla later emulated without using credit cards). But understand that the elites will always protect the real crown jewels, and incite wars (or street battles and racial squabbles, as we’re witnessing in the U.S. in mid 2020) so that they can get away with major financial heists in broad daylight. It’s all smoke and mirrors, and scorched talons if you look closely: you cannot trust the reflection you will receive on a smoky pane. Only the big players know the predetermined outcome.
One fundamental misprision occurs amongst alt-coin apologetes: they fail to understand how markets move and what the designated role of money is in markets. Even if you want to displace something, you first need to understand exactly what you’re dealing with, but that is rarely the case. Yes, banks are structurally and constitutionally part of the problem, but no government will dare cross swords with them: there is still too much aggregated power. Ripple and Stellar are two Blockchains that are working with, and not against, banks, and that likely makes them much better candidates for wide acceptance.
What’s one must-read book you recommend to everyone?
That depends so very much on who’s sitting opposite me! I wouldn’t push what is not naturally aligned. But I would push a couple of films urgently, as essential viewing for everyone:
“Vaxxed: From Cover-Up to Catastrophe” (and a sequel), which profoundly shocked me, but confirmed my suspicions. Talking about books: one gets a good sense of the kind of books I would counsel people not to touch, unless an overweening impulse bade them otherwise. For instance Steve Pinker, a favourite author of Bill Gates. Pinker in Gates’ hands explains a lot about the character of the reader, the latter of whom I consider one of the most dangerous people on the planet at the moment. If we stay with Pinker for a moment, since he’s famous and fashionable (Harvard professor with a Medusa hairdo and an effete libertarian air, who in “Better Angels of Our Nature” has affirmed that man is not innately good), we note in his presentation in regard to his ineptly titled book “Enlightenment” that he falls prey to the very flaws he chastises, the classic Münchhausen trilemma (in Jakob Fries’ phrase). Picture Baron Münchhausen pulling himself out of quicksand by his own hair! That he is beholden to neoliberal befuddlement becomes clear when two of the opening images of his talk show Vladimir Putin with a rifle andDonald Trump speaking on a podium. The classic neoliberal Harvard think-tank shows reason to be failing and drowning in pious gestures to the cognoscenti and anointed. I like to look for effective counters for specious and shallow argument: for instance, Rupert Sheldrake’s “The Science Delusion” is a splendid book that bucks the Dawkins’, Pinkers and other materialists of this age. You see, if one listens to Pinker with the head alone, his pedestrian epistemology might not irk, and some ideas might appear plausible enough in a desultory encounter, but if you really want to know the meaning of things, and discover how it relates to the heart, you feel betrayed and given short shrift by him. Among the platitudes he gives out in carefully parsed syllables, the movement of his forehead and eyes betray the spirit behind the façade. Yet I always look, like Yeats, for those who “had changed their throats and had the throats of birds”!
What’s the rainbow trout of the year? Nut-like flavour, the eye still gleaming, with tender, flaky flesh? There are many books I could cite for different genres. The vast majority of modern writers, for all their accomplishments, lack genius, don’t really understand the art of writing, and so cannot hold my attention for long. For those who are open-minded and spiritual, “A Course in Miracles” cannot be bested, but don’t touch it unless you’re really willing to dive deep. There is no need to save the world, since it is nothing but projection; there is no world. You might experience the deepest sigh of relief, as if Atlas had cast off a burden after the Titanomachy. Paul Celan once remarked that “reality is not simply there, it must be sought for and won.” Snorkeling near the surface and blowing bubbles won’t cut it.
We are living in times of great manufactured unrest, which will only heighten in coming months and years, and so I would offer a guernsey to Seamus Heaney. I had met him many years ago, alas cursorily, at a symposium at Waseda University where I was working as a Gaikokujinkoshi, an Associate Professor, where another Nobel laureate, Kenzaburō Ōe and he were giving a reading. Heaney was inspired to write “The Grauballe Man” on the basis of the bog man that he had seen in a book of prehistoric times, but the troubles in Ulster were alive in him, too:
As if he had been poured in tar, he lies on a pillow of turf and seems to weep
the black river of himself. The grain of his wrists is like bog oak, the ball of his heel
like a basalt egg. His instep has shrunk cold as a swan’s foot or a wet swamp root.
Talking of Japan here, methinks, is an aculeate observation of Japan:
Cross the intersection at Shibuya Station in Tokyo on a forbidding wintry evening — touted as the world’s busiest cloverleaf — and you will feel this is Eliot’s London Bridge revisited, with quaggas (think half zebras) preserved in the tar of the five crossings; — flattened ebon bones dreaming the dreams of Pleistocene mammoths — as the mass of the dead mill past you, chasing some mirage, and often accompanied by a revenant that must have been disgorged from a Pachinko parlour. Blanched lilacs float in minarets of light beyond these bituminous quaggas, bidding the odd-toed ungulates in their psychotropic dernier cri and fuddy-duddies in theirstygian suits to sup here or buy over yonder: all tethered to their devices. One might be surprised that no cracks are forming at these arced crossings with strange requisitions folding into the hiemal air. And yet it is still more odd that so few people see this as a primped and pimped potter’s field, a graveyard for those who’ve lost their way. We’re living in an age where the multitude of the dead are pacing among us in perdurable trysts with other zombies.
The above text is from one of my unpublished works; again it speaks to me – and perhaps to you – about the quiddities of this age. There is a distinct sense of zombification taking place on the planet at the moment. Is your lineage that of Dolly, or are you magnificent and free?
Do you have any theories about who Satoshi is?
I don’t really, though I follow the haughty chit-chat at times, especially in the jejune forums LinkedIN provides. I think the person has a good reason to remain concealed (forever), but that is also a major factor why I have never fully trusted bitcoin as an investment proposition.
Keeping the provenance concealed suggests a number of things, none of them conducive to embracing bitcoin as a common form of payment.
What do you think about the prospects of gold in connection with the uncontrolled money printing by different Central Banks?
Gold is what BTC can never become, especially when its provenance remains totally unclear – as well as its likely endgame! Central Banks engage in quasi-criminal activity – and one hopes the future prudent regulator won’t be making it too difficult for people to hold gold bullion. The Perth Mint might be a splendid little dot on the global map, but beware of holding your assets in the form of gold coins: many governments will regard them as forms of payment, and may impose all manner of restrictions on the possession of it.
Let's dream a little. How stablecoins can be used after 5 years from now?
I believe the great RESET is coming – even Davos and the U.N. are alerting us to that. The Covid19 panic has been declared by more than 1500 German physicians as a “global Mafia-style deception”, and while Big Pharma and Bill Gates will likely earn trillions of dollars by the useless and potentially dangerous vaccines that will be foisted on “free” citizens, the finance system as a whole will need to be RESET. We are already receiving an inkling of how draconian and void of reason and concern for the people most governments of the world are reacting to a harmless lab-manufactured virus (virologist Prof Luc Montagnier, Nobel Laureate in medicine in 2008, said that), so it’s possible that regulators may become more tyrannical, and under some pretext or other forbid the use of alt-coins. STABLECOINS can be over-collateralized, allowing absorption of pricing fluctuations, but it will be hard to call. I believe many are bound to fail, and that even earlier, despite all their most valiant efforts: as soon as the RESET comes, which is likely to come with all manner of encumbrances. There are many reasons for the issuance of stablecoins, some having opposing views, but all are dependent on trust – and we don’tknow yet if digital currencies that governments will issue will by regulatory over-reach (including absurd compliance requirements) displace other contenders, but you can assume that the tyrannical forms of governance we are currently experiencing suggest that all kinds of skullduggery are possible.
Do you see the problem of fiat stablecoins in the fact that annual inflation constantly depreciates them? An investor who bought $1000 USDT now and sold these tokens in 10 years for $ 1000 will receive much less money.
The problem occurs if we’re converting things back into payment forms that are fundamentally flawed. Inflation and Black Swan events are the major threats to stablecoins, and tethered crypto-values to natively burdened propositions recalls my earlier idea that we have not yet cut the umbilical cord to bitcoin. On the other hand, stablecoins in their current flavour are perhaps best viewed as transitional schemata that will need later revisitation.
You are a very successful Crypto and ICO Advisor, what is the secret behind this success?
I’m not sure if I’m very successful, but I always try to shoot a straight ball. Here are two instances where my input has not been heeded in any way.
I recall one of the first ICOs I advised. I was sitting with the owner on a Telegram Channel, and after some power Q&A sessions online, we were literally hearing the millions of dollars tumble in neat digital hashes into the inbox within a couple of hours of the ICO opening. He had a bottle of Scotch on his table, and by the end of the session he had reached his hard cap and was besotted to boot! The age of digital money had placed the foolscap on his pate, but the script was no longer legible. I cannot determine if his sobriety ever returned. The prudential advice I had been giving him previously – and that we had discussed in great depth -- was over coming weeks thrown out of the window, and I assume other bottles of Scotch ended up on his desk and didn’t last long.
Here is another example. At one time a well-known ambitious individual in the U.S. cryptospace, a young lawyer, asked me if I wanted to start a crypto compliance organisation with him.
When I think of him now and the feathery assistants he congregated around him, I think of the lines in Dickens’s “Bleak House”: “Mr. Tangle’s learned friends, each armed with a little summary of eighteen hundred sheets, bob up like eighteen hammers in a pianoforte, make eighteen bows, and drop into their eighteen places of obscurity.”
Simply to continue serving wine from the same sour vats won’t do. I saw that as a prospective idea, and offered some important advice to get the ball rolling. Soon we had recruited many eager beavers to the exercise, and there was talk of it becoming an influential body. I was naïve enough to assume at the time that my co-founder, a black college asketballer with body tattoos who had a write-up in a major paper on account of his ambition and aggression, was actually interested in asking some fundamental revisionary questions about compliance in relation to the freedom of the citizen. When I suggested we don’t just copy the traditional compliance template and rather probe more deeply, he became insolent and very aggressive. That confirmed my instinct that most ambitious players in the crypto-space are actually dyed-in-the-wool bourgeois, and don’t care about improving the system itself.
What is your advice for upcoming Crypto startups and investors?
You might know the technology well, but do you know the business? Does it really deeply address, even solve, a problem? How much life experience do you have, and how well do you know the market? Can you create a market for your product or services? If yes, how will you do that? Have you only got yes-men around you, or are you willing to listen to those who speak Tacheles to you? If you’ve come to water the plant of your ego, your business will flounder. Most achievers keep their ego initially in check, and get the work done.
For investors the answer I would give is rather complex, but here’s a brief response: often the mandate of investors is very narrowly girded, and they trust their old boy networks, and rarely venture out and follow their instincts. That is foolish, and also the recipe for a dull life.
Perhaps a general observation that everybody might ponder with profit is the idea that we know really so very little of the world; that the news and information we are are offered and digest, even when it is tendered by so-called ‘experts’, is often seriously ignorant. It seems our perspective is getting narrower all the time, as if our mind is shrinking and we block out knowledge.
Let me give another current reference point. In 2020 everyone is fearful of viruses. Viruses currently have a bad rap! We have no idea what they actually are. We are always hobbling around with our fearful partisan gaze, and what is good today becomes bad tomorrow. Yet viruses are adroit and malleable messengers of inter-species DNA, in some sense regulating vast populations of organisms. Think of them as cellular simpletons: mere protein shells with few genes, but endowed with the ability to replicate easily despite their paucity of genetic instructions! They form alliances, you might say, with other forms of life. And they are deeply mysterious to our acquisitive and ignorant segmenting intelligence: how can the papillomavirus cause horns to grow on rabbits; and at the same time cause hundreds of thousands of cases of cervical cancer every year? Is one good and the other bad? It would seem so. Such simple summary, like Pinker’s reductionist view of the world, might becalm for a moment, but does not offer lasting satisfactions. To read the world along the axes of like and dislike, as the Buddha had warned us, leads to great suffering.
I’m told by someone who met Bill Gates a long time ago that the man was apparently even then obsessively fearful of viruses (imagine a pendant to Lady Macbeth, continually cleansing his hands). But do we have any clue what viruses actually are, and how they benefit us all in so many incalculable ways? When the child crawls around, it picks up antigens (bacteria and viruses) and on that basis builds its immune system. At various points of that contact and exchange new forms grow, and other forms decay and die. Like CO2, viruses are suddenly declared dangerous and that we need to shield ourselves against them. Yet how many people know that marine phages rule the world, and rule the sea? This was not discovered until 1986. An electron microscope showed that every litre of seawater contained up to one hundred billion viruses, almost as much in dollars as BillGates expects to make off vaccines in 2020. If you put these viruses end to end, they would stretch out forty-two million light-years! Viruses offer stunning genetic variety, and they are the very pulse of life! When viruses swallow oceanic microbes, they release a billion tons of carbon every day: imagine squalls of marine snowfalls, powdering the porous sand of the deep. Imagine the white nights of St Petersburg under water, celebrating the magic of life with the same skill and abandon as the Mariinsky Theatre, to an audience of gastropods, deep-water fish and lovelorn mermaids.
Seamus Heaney, when he passed in 2013, spoke the word Noli timere (“Do not fear”) to his wife as he breathed his last. Instead of being fearful, we might do well to assert that we understand nothing of the manifold wonders of this world! Let us cultivate the virtue of wonderment, and fear will find no habitation in our house:
And lonely as it is that loneliness Will be more lonely ere it will be less— A blanker whiteness of benighted snow With no expression, nothing to express.
They cannot scare me with their empty spaces Between stars—on stars where no human race is. I have it in me so much nearer home To scare myself with my own desert places.
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Two Years in Ark - A Brief Retrospective

Two Years in Ark - A Brief Retrospective

It was two years ago, June 11, 2017 at 2:40:26 AM EST, when delegate arkmoon officially registered on the ARK mainnet.
It had been roughly 4 years since I'd even looked at anything crypto-related, considering the fall of Mt. Gox had shaken investors to the core. Back then, crypto was still mostly the Wild West. You could only get Bitcoin through sites like Virwox after losing 20-40% in fees as you transferred from PayPay to Second Life Linden to Bitcoin... or shady sites where you had to use Dwolla or mail someone a money order and pray they didn't rip you off... or try your luck mining some of the new Bitcoin forks (e.g. Vertcoin, etc.) but odds are you weren't going to break even for at least 6 months, and I was too poor to buy and hodl long term.
When I heard "bitcoin" mentioned on a mainstream radio station in May, 2017, I scrambled to dig out old hard drives, CD-R's, laptops. Anything I might have had an old wallet on, but alas, I had sold it all in 2013 at a loss (anything that hadn't been stolen already).
Ethereum. "Hmm, that's new," I thought. And so, down the rabbit hole I fell, trying to decide now what to invest in. Bitcoin, yes, and some Ethereum. Ok, but the blockchains for these took days and weeks to download before I could even use them. There were new exchanges, such as Kraken and Bittrex. The fees were lower, and so I got started.
Then, one night in June, I found ARK. I'm not sure exactly how. Going through the list of coins available, ARK stood out in the fact that you didn't need to download an entire blockchain to start using it. You just downloaded the desktop wallet, and you had coins transferred in 8 seconds. So easy, it was something your grandma could do.
And then I continued to read about it. What it was built on, and how it worked. "Delegated Proof of Stake", definitely more affordable and environmentally friendly than running GPUs and ASICs with thousands of watts for mining POW coins.
"ARK, then."
I registered arkmoon delegate in an effort to solve a problem. Back in June, 2017, Ark delegates had a problem with pool hoppers. Delegates would schedule manual payouts either once per day or once per week. And right before a payout would happen, these pool hoppers would jump in and vote, essentially stealing potential rewards from loyal voters.
My initial delegate proposal was simple. Vote for me; I want to create a system that credits voters at the block-level, so they earn only if are voting for you, and you'll never have to worry about blacklisting pool hoppers again. I got virtually no support, which was frustrating. It got to the point where I simply removed myself from Ark from about June till September since no one had been voting for me. I'd like to take a second here to give a shoutout to delegate jarunik, who offered words of encouragement during this stressful time. Eventually, in October, 2017, a mysterious benefactor with over a million Ark decided to give me a chance by voting for me. Eventually, they slowly backed away while I gained my own voters organically through my dedication and higher share rate. For this chance, I am eternally grateful.
Around this time, the first biz delegate was created from 4chan, fat-fingered his payout and was begging for my solution. biz or the person behind it lasted a week, then was voted out in favor of the much more responsible GoldenPepe and his team biz_classic, who were able to release the first block-level payout script that was eventually adopted by (most) delegates. I say most, because there were several who never adopted it, and suffered as a consequence.
As time went on, we had our fair share of scammers; people who would write decent proposals, and would run off with their forging rewards. Delegates who had zero technical skill who doubled forged on the network. We've had a delegate publish their private passphrase on the blockchain. But all-in-all, things continued forward, and dedicated delegates appeared to mostly where we are today.
Then, we hit the big bull run in December, 2017 and everything was peachy. I had only been a delegate for less than 2 months, and really didn't have anything accumulated, but 2018 looked promising, so I kept working hard on building e-commerce and tax assistance sites to support the Ecosystem. As we all know now, we've been full bear mode for the past two years, but I have stuck with Ark in spite of it all simply due to the dedication I've consistently seen from the core Ark team and its delegates.
The Ark team has been consistently improving the stability and security of the blockchain, even as the price has fallen as low as it's been. Delegates such as alessio are dedicated solely on making sure the blockchain is secure, and delegates such as goose and I have been trying to develop useful tools to help both delegates and potential ARK users alike. We have cams_yellow_jacket producing professional videos, and thegoldenhorde continually impressing the community with their merch and awesome designs. Delegate arkland has amazing raffles. I can honestly say that I am proud to be part of this community.
Now, with the Ark Deployer, we are starting to see new people pop up in the Slack channels, asking how they can start up their own blockchains. The first person to start up their own chain is an accountant by profession, with little server-side experience and was able to get an Ark sidechain running in less than 24 hours. The true Ark Ecosystem is starting to form, and I am hopeful for the future.
I'd like to just take a moment to thank all my voters, and to all of you in the Ark Ecosystem for your continued support. I don't know what the future holds for us, but I am thankful for how far we've come.
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Peter R’s Theory on the Collapse of Mt. Gox

TL/DR: A young man had a secret. To keep it hidden, he kept digging until the hole was a billion dollars deep. This is a speculative tale of a great bitcoin theft from MtGox in 2011 and the efforts that this man undertook to fix it. The tale explains the bitcoin bear market of 2011, the explosive rally of 2013, delayed fiat withdrawals, malled transactions, and a bot named Willy.
By the time you realize that real life has begun, you are already three moves in.”—Author unknown
It was June 19, 2011. Mark, a 26 year-old young man—a boy really—was ecstatic. He had recently purchased MtGox—a small, online exchange for trading virtual tokens—and business was booming. These virtual tokens were called bitcoins and Mark loved them.
Bitcoins were an obscure curiosity: a peer-to-peer electronic cash system that allowed users to store and exchange credits with any other user in the world, nearly instantly, and without the assistance of a third-party or the permission of an authority. All that was needed was a 78-digit secret number—a key if you will.
In order for his customers to withdraw their bitcoins over the internet, MtGox stored some of these keys on its online server. The remaining keys were stored on USB drives and backed up on paper to prevent theft should the server be compromised.
But theft was hardly a concern. In October of 2010, bitcoins were trading for $0.10 and the half a million bitcoins held by MtGox was worth only $50,000. But still Mark took precautions, diligently moving bitcoins to offline storage and leaving only what was necessary for customer withdrawals online. He truly wanted both his business and bitcoin to succeed.
By April, the bitcoin price had risen to $1 and by June it had exploded to $30. Between June 1 and June 15, an additional one million bitcoins were sent to MtGox and immediately sold, crashing the price back to $10. It was a hectic time, with hundreds of customers needing help, visits from the FBI related to the Silk Road black market, and stress related to the recent market crash. Young Mark was becoming a victim of his own success: there simply wasn’t enough time to get everything done. On this very day in June 2011, the keys to the recently-deposited 1,000,000 BTC were still sitting on his server.
Later this day, a group of hackers gained access to MtGox servers and executed fake trades that the world could see, driving the nominal price of bitcoin near $0. Mark was frantic. He quickly regained control of the servers and learned the dark truth: the million bitcoins that had recently flooded in earlier that month were gone. Mark admitted publically to the hack, rewound the false trades, but kept the truth of the missing coins a secret.
How could this 26-year old explain to his customers that he had lost their bitcoins? And if the world found out, would this kill the thing he loved so dearly? Would he go to jail? Or worse yet, would someone kill him? Mark decided that he would do what he thought was right: he would slowly earn back the lost bitcoin with MtGox trading fee profits and eventually make his customers whole again. He still had over 500,000 BTC left—he moved 424242.42424242 BTC between bitcoin addresses and convinced the community that MtGox was solvent. As long as withdrawals didn’t exceed deposits over a long period of time, no one would ever find out the truth. Or so he thought.
Meanwhile, the bitcoin thieves slowly mixed their coins with other coins, obfuscating the chain of ownership, and then re-selling these coins on MtGox using sock-puppet accounts. Mark tried to stop them, but there was no way he could know for sure which accounts were fraudulent—he even accused innocent people of bitcoin laundering. The constant selling of these stolen bitcoins drove the price down to $2 in November 2011. Mark faithfully used all of the MtGox profits to purchase coins back during this decline. But he would never use customer funds—that was a line he swore not to cross.
The selling of these stolen bitcoins continued at a diminished rate over 2012, and Mark continually purchased coins using the MtGox trading fees. The bitcoin economy was growing and new exchanges were opening up across the world. His bitcoin reserves weren’t building fast enough but the price of bitcoin kept rising (along with the dollar value of the missing bitcoins). He was worried that other exchanges would suck coins out of Gox and reveal his secret. He decided he needed to take decisive action: for the first time, he used customer funds to purchase real bitcoins. These large purchases by Mark further increased demand and ignited the great rally of spring 2013 when the bitcoin price shot from $20 to $266. Mark had reduced his liability in bitcoins, but in dollar terms the coins that were still missing were worth more than ever before.
On May 15, 2013 the US Department of Homeland Security seized millions of dollars from the MtGox Dwolla bank account. MtGox dollar reserves were already depleted at this point, and with the recent seizure, Mark could no longer make good on customer withdrawals in US dollars.
Under the guise of “banking problems,” MtGox slowed US dollar withdrawals to a trickle in the summer of 2013. Customers became increasingly worried and began to bid up the price of bitcoin on MtGox, as this was the only way to escape with their funds. MtGox had little fiat and very little bitcoins, but it learned one thing: as the price differential between Gox and BitStamp grew, the outwards flow of bitcoin slowed dramatically.
And so Willy was born. Willy was a bot, discovered by Wall Observers from and named by Opet on Bonavest's trading show, who would consistently purchased bitcoins at regular intervals between November 2013 and February 2014. Evidence that Willy belonged to Mark was revealed when both web and API trading at Gox was disabled for a brief period of time, exposing Willy as the only one left buying.
Willy served two purposes: he drove the price of bitcoin on the MtGox exchange high, thereby slowing and sometimes reversing the outward flow of real BTC, and he reduced the number of GoxBTC held by clients. Of course, this meant that Willy eventually became the owner of a huge number of GoxBTC (that were of course no longer backed by real BTC).
By December, the situation at MtGox was grim. In a desperate attempt to attract more funds, Mark offered reduced trading fees under the guise of celebrating their 1,000,000th customer. This partially worked, but Mark knew it was too late. If MtGox collapsed, it must appear that he didn’t know about the theft until now—for it was better to appear incompetent than criminal.
It was time to cover his tracks.
He purposely mixed immature coins into bitcoin withdrawals to delay the outward flow of coins, and later began malling his own transactions. He added the Gox malleability weakness not as a bug, but as a feature, so that it would seem plausible that outsiders had recently stolen the coins without his awareness. No coins were actually lost to malleability.
The MtGox coin supply dwindled to 2,000 BTC and on February 7, 2014. He had no choice but to disable bitcoin withdrawals. The end was near.
The problem Mark faced was that his customers had $150,000,000 credited to their accounts, yet the MtGox bank account only contained $38,000,000. He could blame the missing bitcoins on transaction malleability, but how could he explain where the fiat money went?
He shifted Willy into reverse and cranked the throttle. Willy relentlessly dumped bitcoins into the open bids. The price fell further and further, eventually dropping well below the BitStamp price. But still not enough people were buying! He needed his customers to buy the GoxBTC. Willy kept dumping coins until finally the price dropped below $100. MtGox even acquired new USD bank wires from customers looking to purchase the cheap coins. By this time, the majority of Gox customers had converted their dollars into bitcoins.
On February 28, 2014, Mt Gox filed for bankruptcy protection in Tokyo, reporting 6.5 billion yen in liabilities, 3.8 billion yen in assets, and 750,000 of customer bitcoins missing. Willy had failed to completely close the fiat solvency gap and Mark finally admitted to having lost the coins.
Now we watch the rest of the story unfold. A story of how an oversight during a hectic period, an untimely theft, and an attempt to cover it up, lead to the greatest loss in the history of bitcoin.
Cross-posted from:
submitted by Peter__R to Bitcoin [link] [comments]

How to buy these cheap coins right now

Since we've all been goxxed now is the time to buy those $50-60 coins floating around and profit from everybody else's misery. Or you could wait for Gox to come back online and crash down the price even further but good luck trying to do any trading there to buy coins, the trading engine is already broken I don't expect the new one to work flawlessly due to epic 3yr history of GOXXING
To pay into this exchange, you need a BTC-E code, PM or Okpay. Take pics of your ID and utility bill and pay the $10 to Okpay for 'quick verification'. You can pay bitcoins directly into your Okpay account for initial funding or wait and see how long it takes for reg verification.
Now either wire money, or instant money transfer (MoneyPolo, Contact-sys, Unistream) to fund your account or find an Okpay exchanger somewhere. Or Ukash/CashU. Just because contact-sys is Russian doesn't mean there aren't sending points in every country in the world.
BTC-E codes you buy on #bitcoin-otc from verified gpg authenticated traders with good ratings, or on forums in the currency exchange forums.
Perfect Money is a shady HYIP digital currency run by Russians much like Liberty Reserve. You sign up for free, and load your account with wires (if verified) or you use an exchanger. This is what is for to find legit exchangers. I use to wire WU/Moneygram and get PM. Click on 'Interkassa' payment method in BTC-E and select Perfect Money. Instant load.
You can also obviously dump Litecoins you bought on Vircurex to fund the account, or a gagillion PPcoins
Fastest way to deposit is through CapitalOne P2P or cash deposit
Be aware Bitfloor is insolvent due to owing 25k bitcoins that were stolen last year but they have a repayment schedule that may or may not bankrupt them. Use at own risk but most ppl trade there everyday with no problems.
Great exchange in Slovakia? I think. You have to pay with Euro SEPA wire, then for some stupid reason they convert the money to USD. You can pay in here using if you're from UK, or XEtrade and other Forex online money transfer companies. Google 'free money transfer fx' and review your options. Most don't charge you anything if over a certain amount of money. They take your internet billing or other local payment, convert to EUR and send SEPA for you if you request it. If they don't then check with Bitstamp what a SWIFT wire costs (probably nothing, I think they use Latvian banks that charge no receiving fees). If you want a bank account in Latvia then sign up here: if you have a local corporation or business where you live you can, maybe a personal account too. You can always incorporate a dirt cheap Delaware LLC or Oregon LLC from anywhere in the world and use it to open up worldwide bank accounts.
Takes direct wires, all sorts of other methods: You can also use Liqpay if you have a USD or EUR card. Sign up to, then they block a small verification amount you have to sign into internet banking (for the card) to check. It's usually $1.something or less. After that you are verified to load $1-100 or so, but I'd just try $50 at first. Any more than that and Liqpay will seize the funds and ask for your bank to authorize a fax they send which no bank will do because of privacy reasons, so pointless to load anymore money. Liqpay may also call you to verify card details this is normal. Liqpay is meant for Russians and CIS countries to use like Ukraine so due to epic fraud of credit cards don't expect to load too much this way unless you find a Liqpay exchanger, but what's the point when you can just wire money to bitcoin-24 anyways.
Good exchange, had some problems due to DDoS but so did all exchanges. They only accept BTC, altcoins and VouchX for payment. You buy Vouchx here: or from somebody on Bitcointalk, or IRC (with rep). You can buy a bunch of litecoins anywhere to fund this exchange such as the bitcointalk forums or IRC. Warning: the so-called official twitter account is fake, don't use it.
Can only fund if in Canada, they accept cash deposit and internet billing. Price has been steady at ~$90 all day though no panic selling. various easy methods, new exchange in Canada that takes intl wires and shockingly Interac deposits (easily frauded).
Bitcoin China fast growing exchange, you pay in with Alipay or Tenpay both Chinese methods that westerners can't use or figure out due to no translation. You can probably use Alipay if you find and exchanger to load it, they do exist. **Edit they now support Liberty Reserve deposit and withdrawal
Check english forums to see if anybody exchanging Alipay or taking wires.
Accepts money orders, and CapitalOne P2P payments. Also accepts Dwolla but you need to be verified.
Just had a major outage due to instawallet hack, appears to be back online. You get your own quasi-bank account when you verify here much like how (liberty reserve) does banking so can transfer to other users legally with vouchers. You can buy a voucher p2p on Bitcointalk forums or IRC or send a bankwire.
You can pay with Paypal to get Second Life "Linden Dollars" then convert to BTC, or at least you used to be able to. I have no idea if this is still the case I've never used them.
Or course there's all the fixed price exchangers and for everything from Moneypak to Skrill. You can also risk buying coins on Silk Road with moneypak
==============R U L E S ================================
Enjoy buying all the way down the crash once Gox comes back online and the great sell off begins! Hold them for a year and they'll be worth 10x as much just like the 2011 crash. Bonus points if you speculate on Litecoin, rumor has it Gox will be trading them when they come back online but again, this is MtGox we are talking about so the site could implode on the zerg rush of people trying to get into their accounts or trading engine could sell all your coins for $0.0001 again like they did in 2011.
Great successez!
submitted by Derpcoin to Bitcoin [link] [comments]

PSA - Dwolla worse than Paypal for accepting payments

I just want to share my experience this morning with Dwolla's curt, unhelpful customer service.
I have ocassionally been selling Bitcoins to people for Dwolla via LocalBitcoins. While I know that Dwolla transactions are reversible, it seems like they are harder to reverse, and Dwolla says they "work hard to protect you from unwarranted chargebacks." Dwolla also has a dispute resolution mediation system. I have had zero issues with chargebacks, so I've been pretty comfortable with it as a form of payment.
Today I woke up and my account had been closed.
Immediately I suspected someone I'd sold Bitcoins to had done a chargeback. So I called Dwolla customer support.
"Your account has been suspended because you are selling Bitcoins. That violates our terms of service."
What? I hurredly pull up the Dwolla ToS.
I search for the word "bitcoin" but find nothing. Then I see the've recently added a bit about the recent FINCEN guideline concerning virtual currencies, and a section that says you cannot sell virtual currencies for Dwolla.
Damn. Okay, I guess that's that then. I complain that I had no idea they had added this rule. I say that closing my account seems pretty harsh. Couldn't they have just given me a warning? And what happens to my Dwolla balance?
"That's actually not why we're closing your account."
What? But I thought you said it was...
It turns out someone sent me some money from a hacked/stolen account. Further, I was informed that Dwolla's security department had been able to recover the funds and return the money to the rightful owner (Yay! Good going Dwolla, I thought). So my next question was, how can I restore my account to good standing and working order?
"There is no way to continue." the service rep says.
Turns out I am banned from using Dwolla for life. The Dwolla account the fraudulent money was sent from is also blacklisted forever. No appeal. In other words, the accounts of the victims of fraud on Dwolla's system have been blacklisted. Further, I learned that, without contacting me, the Dwolla security team had gone around reversing a bunch of my previous Dwolla payments, including a deposit to CampBX. And now my account with CampBX has been suspended. My Dwolla account balance is forfeit.
Pretty drastic. The reasoning the representative gave me for this was: "We don't know whether you were also committing fraud."
So I am assumed guilty and they don't care whether I'm innocent. Dwolla also purposely got me in trouble with a bunch of vendors, including my favorite Bitcoin exchange, CampBX. There was no reason to do this. They could have contacted me, and I would have been willing to restore any lost funds to vendors. My bank account is linked to my Dwolla account and I even had incoming deposits from my bank to Dwolla through ACH.
I think this is an incredibly shitty way to treat customers, especially considering I went through their Know-Your-Customer process, uploading my ID and utility bills and all that. And I have had an account for over a year and have made many transactions, for which they have collected fees. I wasn't aware of their anti-Bitcoin policy. I have not committed any fraud, and I am the one who has been most victimized. I'm out money and my accounts are ruined all over the Internet.
Considering 20% of all Dwolla transactions involve Bitcoin in one way or another, I think this is a crap way to treat the Bitcoin community in general. They should be a bit more reasonable, considering how much money they make from Bitcoin. I say that Dwolla is even worse than Paypal, becuase at least Paypal gives you some recourse and tries to figure out who is at fault when there's a problem.
submitted by thechevalier to Bitcoin [link] [comments]

Why is it so difficult to buy BTC?

I really love the concept of bitcoin and I want to invest in it. I have thousands of dollars that I want to convert to BTC, but I'm finding it nearly impossible and extremely frustrating to get my hands on any. It is almost to point of giving up entirely.
My options: I've purchased 15, yes, FIFTEEN, whole bitcoins in the course of 2 weeks, because it takes a whole freaking week for them to transfer them, they cap it at 10 per day, and 99% of the time their capacity has been reached.
MtGox: I cannot believe that this is the #1 bitcoin exchange -- a year ago it looked and acted like it was implemented by cavemen. It was an abomination. It was hacked. And, even the name is stupid. They do not tell you what types of payments they accept unitl you sign up. The charts are offline half of the time I check.
Second of all, you have to provide them with all of your details, and a scanned government issued ID. Seriously? They had their accounts hacked a year ago and now they ask for my passport? My own investment banks do not ask for scanned ids. It is ABSURD.
Dwolla: Before I can even use MtGox, I need to set up another account that requires my entire life story.
So, let's recap what it takes to own this magical "anonymous" currency:
That's it! You're ready to buy bitcoin! Now you can order pizza!
Really, bitcoin, what the fuck? How is this ever going to take off if I, a savvy lifelong user of the internet, with ~$5k that I'm willing to invest in BTC, who already knows about it and wants it quite badly, cannot even get any? This is pathetic.
submitted by a-typical-redditor to Bitcoin [link] [comments]

After four months, I have some observations and lingering questions about bitcoins

I decided to put some money into bitcoins back in December (great price!) and since then have been buying small batches. I have a few observations about what I've learned:
There's no right time to buy
Bitcoin's price has been fluctuating crazily since I first bought in, and it probably wont stop for awhile. If you're thinking of buying in for the first time but want to wait, I'd suggest just go ahead and buy in now. There wont be a magic moment to buy in (unless you keep a sharp eye out for a quick drop) and the price will keep changing. At this rate, it will probably only go up, so you might as well get off the fence and make a decision. I wish I did back in November!
Buying bitcoins is annoying
People write all the time about how easy it is to buy bitcoins. I felt comfortable investing in bitcoins because of all those kinds of statements. But I'll go ahead and say it's misleading to say buying bitcoins is easy. Rather, it's easy to buy some kinds of bitcoins- and usually at a higher price. Here are the ways I know for buying bitcoins (note, I'm in the US):
Bitcoin transfers are not instantaneous
This was something that really caught me off guard at first. Here is this new type of money that is totally digital, so it should very fast to move around. And nearly everyone claims that it is. In my experience, however, that's not true at all. I've had simple transfers of btc that linger for hours. I have no idea where they go or why certain transfers take so long, but they just do. Eventually, everything shows up, but it's very disconcerting not knowing where your digital currency is in cyberspace. Services like coinbase highlight even more the non-instantaneous nature of bitcoins. If you stick to a major exchange like mtgox, you can expect much faster transfers, but don't panic if something takes longer than a few seconds, minutes, hours etc.
Real-time bitcoin data is not always available
This is important and has a significant impact on trading. There are several sites that track btc prices in close to real-time, but often there are significant lags. This is mainly due to mtgox. The real bitcoin trading currently occurs at mtgox and the market rate is pegged to mtgox. So any lapse in data or service that occurs at mtgox ripples through the other services relying on mtgox market rates. Why does that matter? If the price of btc starts dropping by a few dollars every few minutes, and then suddenly there is no longer real-time trading data, lots of people panic and start selling. The price drops even more. It's an artificial bubble popping of sorts. While btc is decentralized, unfortunately market rates/data is still pretty centralized. And that means that information can go offline...
There's a lot about bitcoins that may go unknown
I find, for most people, bitcoins are understandable up until a certain point. When me and my buddies discuss bitcoins, inevitably we get to the question: but what are bitcoins? While we all know they're rooted in mathematical equations in "blocks," none of us understands what that means. Maybe that doesn't matter, but for some people, it will be a hard sell if you want inspire confidence in this new currency. Here's some lingering questions I still have about bitcoins, even after four months of intensive use and familiarity:
Anyways, those are just some thoughts I've had recently and felt like sharing. Here's a tldr:
TL;DR: With bitcoins, (1) first time investor? there's no right time to buy, just jump in; (2) buying bitcoins can be very annoying and overly-costly; (3) bitcoin transfers are not always instantaneous; (4) bitcoin market data is mostly centralized and not always available; (5) there are bitcoin complexities and unknowns outside the grasp of most laypeople.
edit: thanks for the informative and helpful responses!
[edit: format]
submitted by name_ to Bitcoin [link] [comments]

Announcing CoinFueled - The Easiest Way to Buy Gas with Bitcoin

CoinFueled is a new service to make the purchase of gas station cards with Bitcoin effortless. Based in Seattle, WA our mission is to bring life on Bitcoin one step closer for everyone. Now your daily commute can be fueled by Bitcoin.
Why Buy From CoinFueled? We are the easiest way to buy gas with Bitcoin! Selection includes the major gas station brands in the US The exchange rate we use is regularly updated and consistently better than what is available on exchanges Purchase and delivery is simple and professional
How it works 1. Visit our site at 2. Select the gift card that's right for you 3. Pay with Bitcoin and provide shipping information 4. Your gas card will arrive in 3-5 business days
We regret that we are not able to ship cards internationally, to APO/FPO addresses, or to Puerto Rico.
Q & A
Q: Why not use Gyft? A: Gyft does not sell gas cards, presumably because wholesale discounts are less than 1%
Q: Why wouldn’t I use BitSumo?
A: CoinFueled is more convenient. BitSumo can be great for one off purchases that can’t otherwise be bought with Bitcoin but for purchases with a BItcoin option the savings and hassle don’t add up. With BitSumo it looks like they have a flat $3 fee plus a 2.5% service charge. So on a $100 purchase that would be $105.50 plus shipping. Anyone going this route still needs to find a gas card for sale online at face value and then needs to submit the link for it to BitSumo. Shipping also would still need to be added. They then quote you the amount in BTC. Assuming the exchange rate is good you then pay with Bitcoin. They then turn around and place the order on your behalf... alternatively just make it a turnkey Bitcoin purchase on CoinFueled.
Q: Why would I pay face value? / Why would I pay the Shipping and handling fee?
A: Because gas cards are hard to find below face value. There is no discount for resellers that do under $100K buys and finding gas cards at face value are rare and even more so if you want to pay in BItcoin.
Q: Lyoness offers a better price, why shouldn’t I just do that?
A: Lyoness is a multi-level marketing (MLM) business that is a loyalty program shopping network. You need to be invited into the program by a sponsor who is already in. To make a purchase once you are in you then need to cash out Bitcoin at an exchange (variable fee), transfer the coins to Dwolla, then transfer from Dwolla ($0.25) to Lyoness and use those funds to buy a gift card. All this for a 1% discount and you pay still pay $5 shipping unless you spend more than $300... Or keep it easy and buy from CoinFueled.
Q: Wasn’t CoinFueled previously known as Coinoline?
A: Yes but we decided CoinFueled was a better name. We also improved our pricing.
More Questions? More info is also available on our FAQ page at!faq/cqh1 or you can reply to this post.
submitted by CoinFueled to Bitcoin [link] [comments]

AMA Request: Coinlab

I have some major questions about the Mt. Gox to Coinlab transition process which can be divided into three main areas.
1.) Technology transition 2.) Business transition 3.) Legal transition
Technology transition: Are you guys writing your own code, website, etc. to perform bitcoin exchanges between people? Or are you using Mt. Gox's code? Or is Mt. Gox still hosting the technology side with only the logo change? If you are using Mt. Gox's code I feel like your programmers won't be intimate with all of the code. Remember when Bitcoinica transferred to Intersango? They gave a Ruby website to non-Ruby developers which led to unprecedented chaos. CHAOS. If Mt. Gox is hosting all of the technology side then I imagine there will be problems since the team is split into two different hemispheres. If you are writing your code from scratch it will be untested. What language are you using? Can you describe some of your coding practices? Database? Are you using the Amazon cloud? The cloud is known for going down (Coinbase uses the Amazon cloud and it goes down from time to time. Who knows how Coinbase runs the qt client in the cloud or if they run multiple instances of the qt client to get it to scale.)
Business transition: Mt. Gox has a team of at least four people, and I know they hired some more to handle the volume. What kind of team do you have in place? Will your site still be able to handle Dwolla, bank transfer, etc. types of transactions? Mt. Gox was hacked because the original founder leaked his access to hackers. Will you give access to Mark? How is the GPU processing going or are you pivoting to this new business model? How many businesses can you run at once with the funding that you have? "Wall Street" was mentioned to handle high-net worth individuals. What kind of progress have been made here? Are we talking about a Nasdaq ticker or a fund of some sort?
Legal transition: For verified users, Mt. Gox has all of our documents. How will this be handled? Will you report all trades to the IRS? Or, will you consider Bitcoin a commodity? How do you deal traded coins vs mined coins in terms of taxes? If the gov't has a warrant for info on an individual how will you deal with this? It seems like you would have no choice but to comply with the gov't or risk going to jail. What if the president makes bitcoins illegal (as was done with gold in the 1930s).
Sorry if there are so many questions...because there are. :P
submitted by jimgolian to Bitcoin [link] [comments]

Cash out your Bitcoins to Paypal via

Hello Bitcoin Community, is designed to let people sell their Bitcoins to PayPal. We plan on doing the same with Dwolla or any other service which sends cash, if you want to suggest one let us know below and we'll add it.
Couple of advantages with using our service:
How can you do this?
With PayPal we never carry a balance. We are simply using cards tied to the account to send you the amount of money you requested.
Thanks for reading and look forward to your business!
submitted by cashcrypto to Bitcoin [link] [comments]

Why I'm buying Bitcoins

I first saw Bitcoin in December of last year, downloaded and ran the client, saw an exchange at $0.24, and was like, "meh" - another attempt at a currency. Good luck with that. I spent about half an hour, and moved on.
Last week, they came back on my radar, and after about a day of reading, and I decided to buy some (they were at $9.5USD/BTC then). I've seen a whole lot of people argue about a whole lot of different reasons and theories, but frankly, my reasons are simple.
However, the price of a Bitcoin is determined only by demand and utility. If no one wants them, the price goes down, if people do want them the price goes up. Given that that Bitcoins can be accepted by anyone using a computer - I think lots of people all over the world will want to use them, and their price could be extremely high, breaking through 100,1000, or many 10s of thousands or even higher in the months to come.
submitted by jmdugan to Bitcoin [link] [comments]

My recent experiences with Bitinstant, Mt. Gox, Silk Road, and BTC in general

I just wanted to take a few moments to talk about my recent experience with bitinstant and the recent troubles that we’ve all seemed to be having when trying to exchange fiat for bitcoins.
I began exchanging for bitcoins in order to purchase the wekk known nootropic Modafinil over the internet. Over the course of a couple days of serious research, I felt comfortable enough making my first transaction. The process was simple on both the front and back end. Bitinstant worked like a charm and I was able to send the payment to receive my product from the vendor.
I became intrigued because of how well everything went. I knew that soon I would be getting involved as a buyer on the Silk Road so I began making a few more deposits via bitinstant, and soon after I made my first purchase on the SR. Life was good and so was the product… Until I needed to order again.
Around June 18th I tried to do a deposit via Bitinstant, and that’s when I ran into every error possible. Bitinstant seemed to be having issues with one of their “third parties”. I began looking into reasons why this issue could be happening. I tried a lot of different things to remedy this, including registering for an account.
Even after registering for an account I kept getting problems, so that’s when I decided to look at alternative methods of obtaining bitcoins. My first plan of action was to wire transfer money to the evil Mt. Gox. I used them because I had previously been verified after creating an account there when I first got into bitcoins when I didn’t know what I was doing. I personally bank with a credit union and the cost for international wire transfers are $40 USD. I have maintained a great relationship with my credit union and have accrued enough member points to waive the fee for the wire transfer. (hint: banking at a credit union is FAR better than a bank). I was actually able to complete the wire transfer online through a secure portal while communicating via online chat with my credit union rep, cool eh?
Anyways, two days later I got an email and my money was in my Mt. Gox account. I then exchanged the money for bitcoins, moved the bitcoins through a few wallets, and I was ready to go again. That’s when I began looking even further into alternative methods of obtaining bitcoins after having the transaction go through successfully with Mt. Gox. I have since created an account with both coinbase and dwolla as backups. I don’t really see myself using dwolla, but coincase looks very promising to me. I have also heard that coinbase is working on getting a system in place like Bitinstant where customers can make cash deposits for bitcoins.
Now, I set up a secondary checking account to accommodate any future transactions with coinbase. Setting up a secondary account that is exclusively used for online purchases is always a smart idea. If you ever run into any issues, it isolates the problem to an account that doesn’t receive things like direct deposit or have automatic bill payments. I worked many years in a bank and would advise this to everyone.
Though I had a relatively painless experience when using Mt. Gox, I don’t foresee myself using them in the future because of all the negative things I keep hearing about them.
With everything being said, yesterday I was able to successfully transact for BTC via Bitinstant for the first time in nearly two weeks!!!!! I had been in communications with their support staff for over a week because I was having issues with getting my account validated and verified. In hindsight, I’m kind of still pissed off a bit because of how slow they were in responding to my inquires, but I’m sure they had thousands of people flooding them asking for help. There are a lot of things going on behind the scenes that I don’t fully understand, so I don’t want to jump to conclusions.
I don’t really consider myself somebody who should be providing advice to others in regards to bitcoins because I have limited experience with them. The intention of this post is to provide a semi detailed look-in to how my recent experiences have been when trying to get bitcoins.
Hopefully bitinstant continues to work like it did yesterday, as I feel that making a cash deposit is the easiest way for me (and many others) to obtain bitcoins. In the back of my mind I do indeed wonder about the future of BTC as Governments are getting more and more involved in trying to control this beautiful currency.
submitted by srthrowaway54868 to SilkRoad [link] [comments]


My partner and I have decided to share the wealth and offer all of you an opportunity to bring your Mining Rig or Rig's to the next level.
After countless hours of testing multiple server psu's to find the right one, we finally found it.
I am using these PSU's to run my 7 x 7970's Ghz editions and all 7 risers. I also am using the 5v on the PSU to run my GPU's on/off. One PSU per rig is plenty for my setup and I could even add 1 more GPU and riser if my MOBO would let me. ;D For you 7950 users, you could potentially run 2 or three rigs off of one of these, depending on how many cards per rig you do.
We are asking $299+shipping for the PSU. This PSU will come unlocked ready to use. It also comes with a 10ft 12 guage power cable with the correct 20amp 240v plug on the end. The PSU's will be set up in a semi-modular fashion, which will allow you to easily hook up each GPU.
We will also provide pre-made PCI-E cables with two 6+2 connectors on them for only $10 each. You are welcome to make your own cables, however if you do not know anything about proper wire sizing and length, I would let us do it.
Folks, this is no joke. This is the real deal. If you want to bring your mining to the next level, this is what you want. Clean, stable, highly efficient 12volt power. If you are building a new rig, perfect!
Keep in mind, you will need 240v circuits available to use these. Most homes in the US only have these circuits for Electric Dryers and Stoves. So you might need an electrician to add some more if possible. This is serious power and should not be taken lightly.
We will ship almost anywhere. Buyer pays shipping.
WARRANTY: We are modifying used/refurbished server power supplies, which have no warranty. However we will be giving a 90 day exchange policy, if it is defective. Buyer pays for shipping back to us, however we will refund your shipping cost if the PSU is DOA and we confirm it. Anything after 90 days we will not leave you in the dark and will handle on a case by case basis.
Payment: Full prepayment is required. We will accept Litecoin, Bitcoin, Dwolla, or PayPal. Payments are final. No refunds unless we are unable to provide you a power supply.
Timing: We will start ordering in what is needed as soon as we start getting orders. We can get these parts fairly quickly, so I am hoping we can have them shipped within 10 business days of purchase, possibley sooner.
Again, these PSU's have made my mining life so much better. They are running perfectly and made me much more confident in my rig's stability. These Power Supplies were designed to do exactly what we need them to do. That is, run full speed 24/7. ATX PSU's just don't compare. Considering a cheap 1600 watt ATX costs the same price, it seems to be a no brainer for me.
Please feel free to ask as many questions as possible. I will answer them the best I can. You can also email me at [email protected] if you would like.
I look forward to doing business with you. Happy Mining! :)
submitted by GEM-ROSE to litecoinmining [link] [comments]

What do people think about a 1-1 USD backed currency?

Basically, a legitimate company or govt. decides to buy and sell a coin at a 1-1 ratio. For the sake of the conversation, let's say that we are doing this to the USD w/ a well structured and clairvoyant company.
From here, we may use the digital currency as though it were any other alt-coin. We could trade it on exchanges, provide ourselves a more secure way to keep our money, and trade it with btc and other altcoins on exchanges, and even utilize it in smart contracts.
This would mean that we essentially just made a 'smart' usd. People would feel comfortable buying it in the wild because it is backed by a (potentially multiple) trusted institution. In the US, this would likely be a bank. In other places around the world, it could even be the govt. itself.
I realize that this introduces a single point of failure, but many of us are already trusting tons of money to exchanges that charge on average 1% for btc->usd conversions... This limits the money markets that we see today.
Furthermore, we can have many potential uses for coins that are largely limited by the volatility of btc. Yes, I can isolate my risk by setting up a merchant account with an exchange, but I'm still looking at a significant fee (~1%). In this situation, I'd much rather use Dwolla @ $.25.... which is a centrally controlled network.
This may be implemented in several ways. I can see it being implemented as an altcoin, but it could also work on top of existing projects (ether, ripple, a bitcoin sidechain, etc.)
So, what are people's thoughts? I'd like to get into the pros and cons on this idea as well as how we could mitigate challenges.
Migrating from /Bitcoin/
submitted by InsanelyADHD to CryptoCurrency [link] [comments]

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