The Litepresence Report on Cryptocurrency

[muh_roads]

GBTC stock is live.

 

[RonPaulIsGreat]

GBTC stock is live.

I still don't know the point of it.

 

[presence]

I still don't know the point of it.

On a fundamental level. Anyone with an etrade, etc. account can now buy "shares in" BTC. On a realistic level... nobody with shares is actually selling.

 

[FSP-Rebel]

http://www.otcmarkets.com/stock/GBTC/quote

 

[muh_roads]

The community is arguing over increasing the block size from 1 MB to 20 MB. Can someone fill me in? Why be against that?

Wouldn't happen until March 2016.

 

[presence]

The community is arguing over increasing the block size from 1 MB to 20 MB. Can someone fill me in? Why be against that?

Wouldn't happen until March 2016.

currently the bitcoin network can only handle 7 transactions per second; at 20mb that number would be closer to 150/sec. The argument against it is the flat cost per node increases, which means greater consolidation and fewer nodes. Another argument is that increasing block size will increase the percentage of zero fee transactions that pass through... which incentivizes not paying mining fees; as transaction fees will ultimately pay miners in the long run... this is not a good move for the longevity of the network. It is also argued that the change is unnecessary and that not making the switch will force a 3rd party move to do "trusted peer" transactions between exchanges for example where accounts actually settle only once daily.

 

[muh_roads]

increasing block size will increase the percentage of zero fee transactions that pass through...

Is that even a thing? I've never had a transaction go thru without a fee anyway. Last time I tried my funds were stuck in limbo for 3 days until blockchain.info refunded it.

I don't think any mining pools accept 0 fees. I've always done 0.0001 as a fee just to be safe.

Anywho, thanks for the info.

 

[presence]

Is that even a thing? I've never had a transaction go thru without a fee anyway. Last time I tried my funds were stuck in limbo for 3 days until blockchain.info refunded it.

I don't think any mining pools accept 0 fees. I've always done 0.0001 as a fee just to be safe.

Anywho, thanks for the info.

Its not really a thing currently because we're nearly at capacity; 7 transactions per second. So those paying fees effectively push those not paying to the back of the line. However if we moved to 20mb; 150 transactions per second, as I understand, this may not be the case and there would plenty of "room" on each block to allow freeloaders; which theoretically would encourage the practice. Myself... I always pay the $0.20 to be safe.

 

[muh_roads]

I heard the new AlphaPoint software they just hooked up destroyed the account of anyone who trades futures. Numbers are all over the place...

 

[presence]

HB z11 is currently holding BTC.

3d sma30 is rising!

Has BTC bull market begun?

 

[FSP-Rebel]

http://quotes.freerealtime.com/dl/frt/M?IM=quotes&symbol=GBTC&type=Time%26Sales
The volume has been increasing everyday, currently around 1153 today. Lot's of coins (shares) purchased in the 550-650$ range earlier.

 

[amonasro]

Nice push up after a failed retest of the lows. Whoever was dumping there totally got denied. Pretty dumb move to try anyway as the market was not showing much interest to the downside at all.

I'm long @ $232, looking for resistance ~$255 with a probable pullback/beartrap and possibly a retest of range highs if the market stays above $260. However that is weeks away and a final big shakeout to $200 is still possible. The difference now is that if the market gets to $280ish, that is flirting with the 200 day MA (also the 30 week MA) which could be a big technical breach and a very bullish sign.

 

[muh_roads]

I'll post the articles. But does anyone have hard nipples? You should.

- itBit is the first US exchange to get a banking license and be FDIC insured in NYC. Holy shit.

- GBTC bid/asks are leveling out and down to 500 now, matching the exchanges soon. Liquidity is moving in. But people are moving their IRA's in. Volume is good on GBTC. Volume is growing healthy.

Did TPTB get their fill before announcing all of this? Mewn time within the next few months? You should check out the itBit counsel that works there. Jesus all former gov't employees. Don't use itBit...LOL

Things are gonna be choppy as hell. Be greedy for BTC, but don't make mistakes. This feels like a volcano is starting to erupt.

Is it just me, or are we bouncing between 200-300 faster and faster?

 

[presence]

This feels like a volcano is starting to erupt.

Is it just me, or are we bouncing

Its time to rally round tha family!

 

[presence]

Although I suspect the market has turned bull long again...

1) it will be hesistant to quickly bounce back after this long year of decline

2) economically it makes sense that as BTC matures growth rates will be slower



If I could peer deep into the future I'd expect something like this:

meaning we'd still be sub $1000 for another 2 years.

 

[muh_roads]

Although I suspect the market has turned bull long again...

1) it will be hesistant to quickly bounce back after this long year of decline

2) economically it makes sense that as BTC matures growth rates will be slower



If I could peer deep into the future I'd expect something like this:

meaning we'd still be sub $1000 for another 2 years.

Interesting chart. Do you get 2 years from the time between the 2011 low and the early 2013 bubble? If that was scaled up and overlaid on what we have now...the 2 year time frame would be more like the year 2030 or something until the next bubble, heh.

Wow, millions of coins changed hands during that March-May 2013 period...lol

 

[muh_roads]

Okay so I can't find articles on IRA's moving into GBTC, so I'll just post some twitter stuff here for now...

 

[FSP-Rebel]

KNC’s XBT Provider Launches First Ever Bitcoin Exchange Traded Note on Swedish NASDAQ

Announcing the launch of a financial product called “Bitcoin Tracker One”, XBT Provider has created the world's first regulated Bitcoin exchange-traded note.

Working with Stockholm based brokerage and investment bank Mangold Fondkommission, XBT Provider has received the approval of the Swedish financial supervisory body Finansinspektionen. This authorization means that the financial note “Bitcoin Tracker One” is allowed to be traded on the Stockholm Nasdaq Nordic.

Speaking about the news, Alexander Marsh, CEO of XBT Provider explained how he hoped the move would allow more investors to feel they can safely speculate on Bitcoin.

"We are proud to offer the world`s first "Bitcoin tracker" to be traded on a regulated exchange. By enabling this easy and secure way to invest in Bitcoin we hope to have eliminated the boundaries that earlier prevented individuals and companies from being able to actively invest in what we believe to be the future of money."

XBT Provider logo

The first day of trading is expected to be May 18, and individuals interested in the trading note will need to use a broker with a membership to the Nasdaq Nordic exchange.

Tracking the price of Bitcoin the US Dollar, Bitcoin Tracker One will be averaging the BTC/USD trading price from BitFinex, BitStamp, and OKCoin, subtracting a service fee, and translating the final number into Swedish krona. The movement of this figure will give investors, including hedge funds and pension funds, the chance to expose themselves to rising and falling of Bitcoin's price within a traditional trading framework.

http://cointelegraph.com/news/114112/kncs-xbt-provider-launches-first-ever-bitcoin-exchange-traded-note-on-swedish-nasdaq

 

[FSP-Rebel]

Damn, bitcointalk's server got hacked last night. They're sitting on a million dollars in coins over there so you'd think they'd have that forum state of the art by now.

 

[Zippyjuan]

Okay so I can't find articles on IRA's moving into GBTC, so I'll just post some twitter stuff here for now...

Fidelity used to allow Bitcoin IRAs but say they dropped them in 2013. Unless they changed that again. These guys do but have a $25,000 minimum: http://www.bloomberg.com/bw/articles/2013-12-12/the-bitcoin-ira

SecondMarket, a finance startup that has helped people invest in private technology companies, has been gathering the virtual currency into the Bitcoin Investment Trust. It has been buying Bitcoin for several months and currently holds about $70 million worth. About 90 people have invested in the trust. While SecondMarket makes direct investment available only for accredited investors or financial institutions, it also has worked out arrangements with several self-directed IRA platforms, including Pensco and Entrust, so that people can use their retirement accounts to invest in Bitcoin in increments as low as $25,000. Fidelity had also been involved but says it has decided to end its participation with the SecondMarket program.

Like a gold IRA you need a custodian to hold the Bitcoins for you. http://www.broadfinancial.com/bitcoin

Can I put Bitcoin in my IRA?
Yes. There are two standard methods in which Bitcoin can be placed in a retirement fund. The first is via an intermediary custodian who purchases Bitcoin on the secondary market. One of the popular destinations for this kind of purchase is SecondMarket. SecondMarket has bought a large amount of Bitcoin and offers shares to investors via a Trust. The major downside to this approach is one of economy. With this method, the investor is actually going through two middle men, the custodian and SecondMarket, and is paying associated fees to each. These fees can have a significant and detrimental effect on your retirement savings.

The second method to purchase Bitcoin is with a Checkbook IRA. This platform allows investors to purchase the Bitcoin directly from the exchanges, thereby cutting out the intermediaries and fees. This saves money, as well as a lot of time and administrative hassle. For those who are truly interested in the potential and versatility of Bitcoin, direct purchase is by far the preferred method.

http://www.coindesk.com/invest-in-bit-fidelity-iras/

No, You Can’t Invest in Bitcoin Through Fidelity's IRAs


Mutual fund Fidelity is denying claims that bitcoin can be used in self-directed IRAs (Individual Retirement Accounts) held through the company.

On Wednesday, CNBC and MarketWatch both reported that Fidelity's investors could choose to invest funds in the Bitcoin Investment Trust (BIT). However, Fidelity was quick to deny the reports.

Barry Silbert, CEO at SecondMarket, said: "The Bitcoin Investment Trust was previously approved by Fidelity as an eligible investment for accredited clients in their self-directed IRA accounts and investments began closing last week. We understand that Fidelity has decided to reevaluate this decision."

He went on to say BIT remains an approved investment on the PENSCO, Entrust, Millennium and Equity Institutional self-directed IRA platforms for accredited investors.

"We expect to add other platforms to the approved list shortly. Eligible investors can also invest directly through the BIT website," Silbert concluded.