Silk Road forums
Discussion => Security => Topic started by: goblin on April 16, 2013, 01:15 pm
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I saw Max Keiser's show today (the Keiser Report) and it was all about bitcoin, and what a stark ciontrast with some tv idiots like cnn that don't know the first thing about bitcoin!
What I took away most from the show is how Max and Stracy outlined the problems that bedevil bitcoin are not the coin itself, nor the merchants nor the network; rather the worst, weakest kink in the bitcoin chain are the exchanges, and the worst of them is Mt. Gox, as it seems to be using some very antiquated technology, and with the unfortunate 80% or so of the total coin transactions that go through it, any hiccup they have will be an earthquake in the total bitcoin landscape, such as happened last Wednesday.
The exchanges, according to Max, lack what a real, solid exchange ought to have: the ability for someone to step in and make the market. In other words, on stock exchanges around the world, when extremely heavy buy or sell orders occur for whatever reason, there are agencies that can come in and make the market function more smoothly by being the seller or buyer of last resort, thereby smoothing out the gyrations in prices and calming things down.
Mt. Gox is especially terrible in that respect. Max and Stacy mentioned that what is most urgent right now is teh creation of more exchanges, but done professionally, using the above mentioned procedures to smooth things out and averting panics like we've been having the last few years.
I sure hope that savvy people out there head this advice and start to do this, and take market share away from Mt. Gox. The best would be to have no exchange having more than say, ten percent or so of the total bitcoin transactions.
It was a terrific show, and I hope some of you will tune in to see the repeats throughout the day, and maybe it will be shown on Max's website, maxkeiser.com, or even on youtube.
gioblin
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Didn't anyone else catch this? I'd love to hear what you think about all the info that was presented.
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Didn't anyone else catch this? I'd love to hear what you think about all the info that was presented.
I did watch this yesterday and thought it was well put together. I like how he mentions that the matching mechanisms in Mt.Gox are broken, everyone knew this, but now a "verified" financial professional said it. Also I like how he explains the different sections of the bitcoin economy. And that as it is, Gox is our centerstone or weakest link so to speak. If someone wanted to De-stabilize the currency all they have to do is make Gox unusable. I do hope that his plans to implement an exchange using his "Virtual Specialist Technology" as this would be both a better exchange model, and more de-centralization. Both of which are desperately needed in the Bitcoin economy.