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Volume is not synonymous with flows. For example ~50% of US equity market volume is HFT. Yet this trading has virtually no impact on the large-scale direction o
by dcolkitt 5y ago
Volume is not synonymous with flows. For example ~50% of US equity market volume is HFT. Yet this trading has virtually no impact on the large-scale direction of the market. That's because they don't accumulate sizable positions. Most of the volume is very high turnover, so there's no large aggregate impact.
Similarly, most of crypto volume is Tether, because Tether is used to arbitrage between exchanges. Tether is a way to transfer money significantly faster than the fiat banking system. Particularly for exchanges in segmented banking markets. It's much cheaper/faster to get USDT from Coinbase to ByBit than it is to send an ACH wire.
- defaultprimate 5y agoIt's much cheaper/faster to use USDT because if you are the "in crowd" you don't have to actually pay and back it, and if you own/print it, you can wash trade to infinity with it. The point is that the amount of money that supposedly exists in the crypto ecosystem (which is, at best zero sum, but really negative sum in most cases) is as imaginary as tether's backing.