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Erm, how does everyone agree on an exchange rate? They would all have incentive to manipulate their exchange rate for arbitrage. That alone means that not every
by knowaveragejoe 13y ago
Erm, how does everyone agree on an exchange rate? They would all have incentive to manipulate their exchange rate for arbitrage. That alone means that not everyone or even any meaningful number of people can become exchanges.
- scotty79 13y agoWhat's wrong with arbitrage? Arbitrage keeps exchanges in sync. You don't need single rate everyody agrees on. If you can successfully manipulate price at one exchange to gain more than usual from arbitrage and more then you spend on trying to swing the exchange then I congratulate you and wish you best of luck. Somehow this sounds like a perpetum mobile for me or at least some serious gambling. Investors know more then one exchange an check prices on all of them when deciding whether to place or cancel an order.
- knowaveragejoe 13y agoOkay, but that doesn't hold up at all when everyone is an exchange...
- scotty79 13y agoI'm not sure what you have in mind. Not everyone has to be an exchange. But everyone can. All you need is ability to take and give bitcoins and traditional currency and bit of honesty and trust. Traders can deal with many such exchanges keeping them in sync by arbitrage and doing the usual trades.