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19

When you buy a bottle of soda at the convenience store, where does the money go? The money goes to the party that sold it to you -- that party owned the bottle before you owned it. You might be able to trace ownership of that bottle all the way back through the supply chain, to the point at which it was manufactured. It probably had several prior owners ...


8

If you have 0.1 BTC and the Bitcoin price is $10,000, it is worth $1000. If the Bitcoin price becomes $20,000 you will still have 0.1 BTC but it will be worth $2000.


8

It's like when you buy anything else. When you trade your dollars for somebody else's eggs, you get the other person's eggs, and they get your dollars. You can then sell the eggs to somebody else if you like - then you get their dollars, and they get your eggs. If you are able to sell your eggs for more than you paid for them, you make a profit. Instead ...


6

That's exactly the service https://www.bitinstant.com/ provide, it should be fairly simple and I think they and mtgox have the API necessary to do this by a bot.


5

Directly to people who are currently selling (if you don't count the minor exchange fees).


4

It is fantastic to see companies accept Bitcoin, even if it is just an "alpha / trial" like the method Wuala provides. While Lacie (Wuala) is likely the largest company to accept bitcoins directly as payment, that is a specialized product of interest to a smaller subset of the bitcoin community. Their volume of bitcoin commerce probably is a fraction of ...


4

Transferring bitcoins is usually free. You just need to wait around 1 hour for confirmations from the network. Transferring USD is fairly easy if the exchanges support Bitinstant (currently it is only available at MtGox, TradeHill and CryptoXchange). Bitinstant transfers usually takes less than a minute and cost around 1%. If the exchange doesn't support ...


3

At Cryptsy the order is First In First Out influenced by the account's trading history. If the server were to receive buy orders at the same time assuming there is enough coins at the specified price to fill the orders, the server looks at each account and the one with the most trading history gets processed first, then in order to the account with the least ...


3

This is why there are some juicy arbitrage opportunities between the exchanges when the prices are volatile -- few traders keep much cash idle in different exchanges so when the price rises as the result of a whale at Mt. Gox, exchange rates at the other exchanges might lag until either new funds are transferred or the sellers wake up and readjust their ...


3

I think the answer to this question is currently unknown. There's currently an ongoing discussion about it on the bitcointalk forums. I'll update this answer if anything comes of it.


2

I know it's an old post, but I stumbled on it while asking myself the same question. The answer is to use the ActiveOrders method (which I don't think is implemented in the c# BtceAPI)


2

The usual process is this: You create an account on the exchange. You go through their menus to deposit bitcoins. They give you an address to send bitcoins to. You withdraw from Coinbase to that deposit address. You wait about an hour. You now have a bitcoin balance on that exchange that you can trade.


2

There is a missing piece in your picture, the trade offers selling BTC/Bitstamp for XRP. The values you give won't work currently since the best offers in the order book are in the range of 8300 XRP/BTC or 830 XRP for the 0.1 BTC you mention. If the values you give were adjusted or if we assumed an alternate reality where 10 XRP could buy 0.1 BTC/Bitstamp ...


2

Bitminter has an auto cash out function. On the Account homepage, you can set a Bitcoin address to which your coins are deposited as soon as you reach a certain amount. I assume you already have a Bitcoin wallet somewhere that can give you an address to enter in the auto cash out form. If you don't, visit this page on the Bitcoin website and create a wallet....


2

Bitcoin has no concept of borders. There are many trades in which the buyer doesn't know the seller and vice-versa (or both, like in a dead drop where neither knows anything about the other). So it is entirely plausible to cash out bitcoins in a foreign country without any other parties other than you and the seller knowing about the transaction. Your ...


2

I'm not sure when you say "If I buy half a bitcoin at $500" whether you mean you paid $500, or whether you mean the price of one bitcoin was $500 and you paid $250 for half a bitcoin. If you buy half a bitcoin for $500, that means the value of one bitcoin is already $1000. The price can not increase from $1000 to $1000. If you buy half a bitcoin when the ...


1

1 kg tomato is $10,000 today. If you buy 1/2 kg tomato today, you would have paid $5000 today to buy that. If 1 kg tomato becomes $20,000 tomorrow. What you have in hand is still 1/2 kg of tomato. but you can sell that 1/2 kg of tomato for $10,000.


1

You can use https://shapeshift.io/#/coins to convert your Bitcoin to Ripple and other cryptocurrencies.


1

you can try Cubits, they are Bitcoin payment processor based in UK and Germany.


1

263.95 [USD/BTC] / 233.56 [USD/BTC] * 1 [BTC] = 1.13 [BTC], i.e. for each BTC you sold at the higher price, you can rebuy 1.13 BTC at the lower price. The underlying concept is explained on Wikipedia: Cross-multiplication.


1

The trade engine itself does not withdraw or deposit coins. It would be terrible for the exchanges, because it slows the trading down enormously, and also the fee they collect is reduced (or the fee you pay is increased). When you want to withdraw some coins, the site checks the wallets they own who have enough balance. From one of those (Im not sure how ...


1

According to this answer it allocates according to rule #1 - First Some First Serve.


1

Have a look at the documentation (unfortunately it's in russian, but google can translate): https://btc-e.com/api/3/documentation I think it's finished trades. Look at the Depth method to get open orders https://btc-e.com/api/3/documentation#depth If you are looking at the btc_usd pair, then the price is in USD, and the amount in BTC


1

It just depend on the site you are seeing, on market charts/stats (like http://bitcoincharts.com/ or http://bitcointicker.co/) volume refers to trade volume, which indeed is not the money sent to the exchange, it is the BTC that changed hands inside the platform (there is no need to come from external and the same "coin" can be traded several times a day). ...


1

The same way gold or any commodity did, the person buying bitcoins valued the idea or thought it had potential and payed someone money for their bitcoins. Price is what people are willing to pay anyways. Mining is the same concept, miners are paying with their hashing power (it isn't worthless!) to the bitcoin network. It was as shabby and undocumented as ...


1

As of October 2012, it was determined that around 78% of all bitcoins minted (as of May 13 2012) were being hoarded "in user accounts that have never participated in outgoing transactions", meaning that all other trading and commerce was actually being transacted with a "float" of the remaining 22% (i.e. less than 1 in 4); and there is really no way of ...


1

The issue with FinCEN and Regulatory compliance is this- How do they know that the Bitcoin Mr X is trading, exchanging, using, purchasing etc was not just gained for the sale of child porn, drugs, internet gambling, etc. A credit card company can block internet gambling, it can disallow the use of its card to openly pay for illegal stuff like drugs, ...


1

Regulators have not yet really figured out how to deal with Bitcoin, so things can change in the future. It should be noted, however, that a Federal judge in Texas has ruled that Bitcoin is a legal currency. This came about when a guy set up a Bitcoin ponzi scheme and then tried to claim that he couldn't be persecuted because Bitcoin isn't a real currency. ...


1

Right now Bitcoin is the round peg in the regulator's square hole. If Bitcoin is deemed to be a security, then certain restrictions might apply on how it is bought, sold, and held. But Bitcoins themselves are not a debt, or a promise, or anything similar so it probably isn't a security. If Bitcoin is deemed to be a commodity, then certain restrictions ...


1

There's a Python script that generates a database of all Mt. Gox transactions ever, along with a pre-scraped database of all transactions, here: http://cahier2.ww7.be/bitcoinmirror/phantomcircuit/


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