4 ms·

Short term betting (for or against) Bitcoin is unlikely to result in much profit.

• 0003 9y ago
  It is not so much a directional play as it is a force for arbitrage opportunities.
  • grandalf 9y ago
    True, but those arbitrage opportunities will stabilize the price and make other similar opportunities less profitable. I suspect that the real reason these haven't all been ironed out (exploited already) is because Bitcoin exchanges lack the infrastructure guarantee that transactions close when they are expected to, and thus the fee levels wash out much of the arbitrage (for now). But arbitrageurs operating outside the exchanges can use this to their advantage and probably harvest a bit of profit on the chaos for the time being.
    • 0003 9y ago
      Yeah - exactly.
  • burger_moon 9y ago
    Yep, this is a good explanation of how it's done, https://en.wikipedia.org/wiki/Convergence_trade https://en.wikipedia.org/wiki/Convergence_trade