Sources: The Verge, BitCoin Talk
quote: Good luck getting governments to back currency that has[...]
quote: The only value they have is based upon the demand for illegal transactions.
quote: I have no idea where you got your numbers from, but the trade volume in the last 30 days on MtGox alone was 2.4 million bitcoins
quote: What makes you say that MtGox is not credible? Of course they are credible, and absolutely I trust them with millions of USD.
quote: There have been single orders on MtGox in the several hundred thousand USD value range in the past, so someone certainly trusts them enough to deposit at least 6 digit amounts of USD.
quote: I think it's prudent to avoid being trolled too badly.
quote: Liquidating the 5.6 million worth of bitcoins that this article mentions would not be very difficult.
quote: As for MtGox regulation, it depends what you mean.
quote: I merely suggested from the live data that there are users that have made 6 figure USD orders on MtGox, and therefore must have deposited at least 6 figures worth of USD or bitcoins.
quote: I have personally moved a fairly large amount through MtGox without issue.
quote: Their information is available by the same methods that all Japanese incorporations info is available.
quote: Otherwise, you can trade face to face with someone locally, or use one of the many other exchanges, or both.
quote: I am responding to your argument that bitcoins are not liquid
quote: These are strawmen.
quote: MtGox may facilitate 80% of bitcoin transactions, but that doesn't mean that bitcoin has multiple different values. It's value is the aggregate total of all exchanges.
quote: The US dollar is exchanged in many different places, and its exchange value is the aggregate total of all of those exchanges as well. Your bank gives you a different Canadian dollar to USD exchange rate than the currency exchange kiosk at the mall does.
quote: What you've said is like saying that the NASDAQ arbitrarily sets the price of Apple stock.
quote: That is absolutely not true. The price of a bitcoin gets set by the traders on bitcoin exchanges, MtGox is one exchange. MtGox simply facilitates trade.
quote: No, they're facts.
quote: Mtgox and other exchanges want you to believe there is some "value" that you can spend a couple thousand on a mining rig and eventually turn a profit
quote: Do you see what Apple stock has that bitcoin doesn't
quote: You're putting way too much faith into an unregulated company
quote: This is like a ponzi scheme with a little obfuscation.
quote: Set by traders or did you mean set by the market?
quote: The differences in currency exchange rates are typically set by an analysis of the two
quote: Not so with bitcoins, whose values fluctuate based on the mood of the people involved in the transaction.
quote: The differences in currency exchange rates are typically set by an analysis of the two countries' respective economies
quote: Even if they are facts, they are in response to arguments that I haven't made.
quote: Trading bitcoins has little to do with mining
quote: You are now comparing a stock to a bitcoin, which has nothing to do with what we were discussing.
quote: I was illustrating how MtGox does not arbitrarily set the price of a bitcoin
quote: Bitcoin is not a company. It is just a protocol.
quote: The traders are the market makers... Without traders, there is no market.
quote: You have completely misunderstood. The currency exchange rate of a USD to YEN will be different depending on which exchange you ask.
quote: No, the value of a bitcoin is determined by the trade price on exchanges -- the same way that the value of the USD vs the YEN (or any other currency) is determined.
quote: The value of a Bitcoin is determined by traders also, however they determine the value based on different criteria.
quote: The price of an ounce gold is determined by traders as well. It is not important that gold is not backed by a government, we can still assign a price to it.
quote: Anyway, you keep arguing about things like whether Bitcoin has backing and whether it's exchange rate is stable.
quote: But I haven't made any arguments about those! Who are you arguing with?
quote: That Bitcoins have value, because people will pay for them
quote: And bitcoins are useful, whether they replace a government currency or not, is irrelevant to my point.