Wow, MtGox price is almost half that of Bitstamp:<p>MtGox: $346 for 1 BTC<p>Bitstamp: $651 for 1 BTC<p>When MtGox re-enables bitcoin withdrawals, will there be a surge of arbitrage trading?<p><a href="https://encrypted.google.com/search?q=define:+arbitrage+trading" rel="nofollow">https://encrypted.google.com/search?q=define:+arbitrage+trad...</a>
There are several flaws that are still not fixed. This known vulnerability only "suspended trading" because people started using it too much. The other vulnerabilities aren't "in the wild" but offer similar exploits. I suspect that as soon as MTGox resumes we'll see a new exploit take its place.<p>If I were a conspiracy nut I'd tell you that the Merchant Services companies were responsible. But more likely I think that these issues are just the result of there being enough money at play now that there are those looking to beat the system and so instead of being a community of "hippies" who just want peace and love, the BTC community now has armed muggers and cat burglars. That's what happens when the hippies get to a point that they could buy mansions with imaginary coins they trade.
MtGox team can easily do arbitrage trading. They can buy a lot of bitcoins for half price at mtgox market, transfer them to bitstamp and sell (they admins, they have options to do it by hand). In a few minutes they can earn 100% from arbitrage trading.
What exactly are these Bitcoin withdrawals? I hear they tend to take a lot of time. I own some Bitcoin, but I bought them at a site that's not MtGox, though I think that site used the MtGox exchange, and stored the bitcoin at blockchain.info, which immediately had the bitcoins I purchased. No noticeable waiting for the transaction to be verified or anything.<p>So what exactly is the problem here? Are my bitcoins at blockchain.info safe? Do I care what happens at MtGox? Am I required to transfer them there before I can sell them there? (Very unlikely I'd ever want to use MtGox at this point, but you never know.)
Does anyone have any experience buying BTC at Bitstamp? was it good or bad?<p>I am planning on buying some BTC and did not know about this exchange, so I am curious about it, if anyone can share any info on it it would be great. Thanks!