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Step 1: give money to ExchB, "founded May 2011". Has been in business MORE THAN A MONTH, therefore is ULTRA-TRUSTWORTHY. The invisible hand of the market says

Step 1: give money to ExchB, "founded May 2011". Has been in business MORE THAN A MONTH, therefore is ULTRA-TRUSTWORTHY. The invisible hand of the market says so! Step 2: ExchB gets hacked or gets "hacked", your money disappears Step 3: profit! Caution: the profit in step 3 may not be your own.

bproper 15y ago
Betabeat did put some money into the Bitcoin wallet MyBitcoin.com and lost it all when the site got hacked. http://www.betabeat.com/2011/08/02/digital-derivatives-bitcoin-markets-wall-street-bankers/ http://www.betabeat.com/2011/08/02/digital-derivatives-bitco...
javert 15y ago
Step 1: Give money to ExchB. Step 2: Withdraw bitcoins from ExchB. That's pretty much how BitCoin is supposed to work. You store the coins in a secure place, like your hard drive. The only real vulnerability is if ExchB gets hacked or rips you off between Step 1 and Step 2. So don't do humongous transactions, and do one at a time (which is probably what you'd do anyway). Your argument is pretty much worthless. It's a straw man. If you don't understand BitCoin, don't pretend like you do. If you do understand BitCoin, don't make silly arguments. Non-disclaimer: I am totally not affiliated with ExchB at all. I don't even own any BitCoins.
- wmf 15y ago
  There's not much risk for a one-time transaction, but Bitcoin daytraders need to keep a balance at the exchange.
  - javert 15y ago
    I agree with you, I don't think daytrading with bitcoin is practical at all right now, without trusting the exchange. (If any bitcoin insiders want to prove me wrong on that, I'd be delighted.) Anyway, the point of bitcoin isn't daytrading. I think a service like this facilitates moving dollars to bitcoins for people who want to actually use it for bitcoin transactions, so the snide remarks about this service that I've seen are just unwarranted.

bproper 15y ago

Betabeat did put some money into the Bitcoin wallet MyBitcoin.com and lost it all when the site got hacked. http://www.betabeat.com/2011/08/02/digital-derivatives-bitcoin-markets-wall-street-bankers/ http://www.betabeat.com/2011/08/02/digital-derivatives-bitco...

javert 15y ago

Step 1: Give money to ExchB. Step 2: Withdraw bitcoins from ExchB. That's pretty much how BitCoin is supposed to work. You store the coins in a secure place, like your hard drive. The only real vulnerability is if ExchB gets hacked or rips you off between Step 1 and Step 2. So don't do humongous transactions, and do one at a time (which is probably what you'd do anyway). Your argument is pretty much worthless. It's a straw man. If you don't understand BitCoin, don't pretend like you do. If you do understand BitCoin, don't make silly arguments. Non-disclaimer: I am totally not affiliated with ExchB at all. I don't even own any BitCoins.

wmf 15y ago
There's not much risk for a one-time transaction, but Bitcoin daytraders need to keep a balance at the exchange.
- javert 15y ago
  I agree with you, I don't think daytrading with bitcoin is practical at all right now, without trusting the exchange. (If any bitcoin insiders want to prove me wrong on that, I'd be delighted.) Anyway, the point of bitcoin isn't daytrading. I think a service like this facilitates moving dollars to bitcoins for people who want to actually use it for bitcoin transactions, so the snide remarks about this service that I've seen are just unwarranted.