3 ms·
A float only has to cover volatility in the rate of deposits and withdrawals, because if ins == outs you can simply turn around the BTC from Peter to pay Paul.
by JulianMorrison 13y ago
A float only has to cover volatility in the rate of deposits and withdrawals, because if ins == outs you can simply turn around the BTC from Peter to pay Paul. So the amount needed may be smaller than you think.
- maxerickson 13y agoSo put some numbers down. Let's say the transaction limit out of the float is something like 1 bitcoin, or 0.1 bitcoin (lower than that and you basically shouldn't be advertising any liquidity). How much skew should the float be able to cover there? 5 customers at the limit? 50? More? edit: some small percentage of customers would be a smarter measure than some specific number.