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Yep, you'd expect to eventually see a sustained divergence to price in an elevated level of counterparty risk (like we saw back at Mt. Gox). In the short run, t

Yep, you'd expect to eventually see a sustained divergence to price in an elevated level of counterparty risk (like we saw back at Mt. Gox). In the short run, though, arbitrage bots gonna arbitrage.

cperciva 9y ago
In the short run, though, arbitrage bots gonna arbitrage. Don't people who run arbitrage bots usually understand concepts like counterparty risk? Do they not realize that by moving money into Bitfinex they're potentially acquiring a large amount of assets which will end up being devalued?
- ThrustVectoring 9y ago
  It depends on the experience level of people running them. Cryptocurrencies have a good deal of enthusiasts YOLO-ing on them, as far as I can tell.
  - askmike 9y ago
    Can confirm: I created an open source TA tool[1] for crypto markets that can function as a trading bot. If only I got a penny every time someone emailed me saying they are total beginners, looking for help installing it and hooking it up to their $xx,xxx account. [0] https://gekko.wizb.it/ https://gekko.wizb.it/
    - lawlessone 9y ago
      interesting branding :)
- xapata 9y ago
  It might be easier to commit money to an arbitrage bot than to understand the risks involved.