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Not only is it inflated, but it has more volatility. I no longer own any bitcoins, but if I were going to invest or purchase from an exchange, it would not by M
by samsnelling 13y ago
Not only is it inflated, but it has more volatility. I no longer own any bitcoins, but if I were going to invest or purchase from an exchange, it would not by MtGox because of all the HFT that happens there.
- selectodude 13y agoHigh frequency trading minimizes volatility. And MtGox is notorious for not taking weeks to pay out. So I'm not entirely sure what you're on about.
- smtddr 13y ago>>And MtGox is notorious for not taking weeks to pay out. There must be a typo there. The word "not" should be removed. MtGox is a mess. It doesn't matter if MtGox values bitcoin at $999,999 each. You'll never see a dime. I'm curious to know who is using that exchange and how well it's working for them. Maybe they're daytraders who don't actually feel like getting fiat yet. I know I've been trading coins<--->fiat on btc-e.com but haven't actually requested the USD of my profits yet. When that time comes, I plan to buy bitcoin ---> coinbase.com ---> bank account. And in this way I pay the rate coinbase.com will give me. If you try to go MtGox--->BankAccount, failure. So the fiat/BTC rate on MtGox is meaningless unless you're lucky enough that it actually worked for you.
- samsnelling 13y agoselectodude, Can you explain how HFT minimizes volatility? I was always under the impression HFT made the swing wider as when the price drops, naive algorithms sell anticipating a wider drop.