3 ms·

The exceptions prove the rules of course. Currencies do not have (>10% of volume of transactions) investors, they have (>90% of volume of transactions) users.

by jbooth 14y ago

The exceptions prove the rules of course. Currencies do not have (>10% of volume of transactions) investors, they have (>90% of volume of transactions) users. Currencies are primarily mediums of exchange and occasionally used as an asset class. Bitcoin is primarily used as an asset class and very occasionally used as a medium of exchange. I don't think you're really disagreeing with me, we're just quibbling on semantics.

chollida1 14y ago
> Currencies do not have (>10% of volume of transactions) investors, they have (>90% of volume of transactions) users. Are you sure about your numbers? from the fx exchange wikipdeia page: > As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks. According to the Bank for International Settlements,[3] as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion.[4] If you are right that less than 10% of fx transactions are traders and there is 4 trillion in fx trades a day then there must be 36 trillion in non trader transactions a day. That seems a bit high to me:) I think if anything you've got your values transposed:)
- Locke1689 14y ago
  Why does 36 trillion seem high? Sounds about right, especially since some of the forex trades are for legitimate currency changing, not speculation.
  - chollida1 14y ago
    Mostly based on the Wikipedia estimate of 69 trillion as the world wide GDP. Though as I said, it's also very much a gut feel:)
    - Locke1689 14y ago
      You should look a little more into what GDP means. The "money" you see is very much the tip of the iceberg.
      - chollida1 14y ago
        > You should look a little more into what GDP means. The "money" you see is very much the tip of the iceberg. :) I work in finance. I'm well aware of what GDP means. I appreciate you trying though:)

by jbooth 14y ago

chollida1 14y ago

> Currencies do not have (>10% of volume of transactions) investors, they have (>90% of volume of transactions) users. Are you sure about your numbers? from the fx exchange wikipdeia page: > As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks. According to the Bank for International Settlements,[3] as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion.[4] If you are right that less than 10% of fx transactions are traders and there is 4 trillion in fx trades a day then there must be 36 trillion in non trader transactions a day. That seems a bit high to me:) I think if anything you've got your values transposed:)

Locke1689 14y ago
Why does 36 trillion seem high? Sounds about right, especially since some of the forex trades are for legitimate currency changing, not speculation.
- chollida1 14y ago
  Mostly based on the Wikipedia estimate of 69 trillion as the world wide GDP. Though as I said, it's also very much a gut feel:)
  - Locke1689 14y ago
    You should look a little more into what GDP means. The "money" you see is very much the tip of the iceberg.
    - chollida1 14y ago
      > You should look a little more into what GDP means. The "money" you see is very much the tip of the iceberg. :) I work in finance. I'm well aware of what GDP means. I appreciate you trying though:)