3 ms·
Yes, you cannot, in the general case, securely trade cryptocurrencies with 10 microsecond timing without accepting huge counterparty risk. If you want to park
by throwaway22032 4y ago
Yes, you cannot, in the general case, securely trade cryptocurrencies with 10 microsecond timing without accepting huge counterparty risk.
If you want to park your car on the side of a free flowing motorway you are at risk. You can do it, but it's dangerous. People get hit all of the time. It might be more convenient to check your map. It might be faster. But you really probably should get off at the next exit or find a rest area and take that theoretical efficiency hit, cause it works most of the time until it doesn't.
This is a demonstration of that risk. It's not the first, likely it isn't even the 100th.
- bcrosby95 4y agoYou're missing the point. You can't trade anything with 10 microsecond timing without accepting counterparty risk. Crypto is not special here, except that it's full of fraudsters or people that think they're smarter than they are.
- kasey_junk 4y agoThe person you are commenting against understands you’re point. They want crypto to be special. In their mind crypto should be the antidote to counterparty risk and they are willing to give up liquidity to achieve that.
- throwaway22032 4y agoThe counterparty risk is significantly higher because cryptocurrency transactions are irreversible in the general case.
- quickthrowman 4y agoAnd the exchange is also clearing transactions instead of a third party clearinghouse which ups the counterparty risk substantially.