tpeng

13 ms·

61.
by tpeng 13y ago
The specific example given in the book is that an existing ask sized at 100,000 is already sitting on the order book when the buy order goes in at the ask price. The ask then disappears before the order executes. This is very different from
62.
by tpeng 13y ago
People ITT are not making a distinction between different types of HFT. Katsuyama and Lewis do not criticize all forms of computerized trading, but specifically computerized scalping that is aided and abetted by exchanges. Their chief compl
63.
by tpeng 13y ago
Bitcoin doesn't eliminate security risks, it pushes the costs onto consumers. It's inconceivable to me that regular users can be trusted to maintain and secure their own wallets, so the only solution is an online wallet. But those
64.
Forget Bitcoin, African E-Money Is the Currency-Killer(bloombergview.com)
3 points by tpeng 13y ago|0 comments
65.
by tpeng 13y ago
There's a big difference between the dot-com IPOs of the late 90s and the IPOs of today: revenues. Some may express surprise that Candy Crush generated $1 billion of revenue, or that Facebook generates $8 billion / yr; and some ma
66.
by tpeng 13y ago
My thoughts on the BAML report: The calculation of BTC's value as a currency uses the correct methodology, which I had previously outlined in this post: https://news.ycombinator.com/item?id=6829518 BAML uses M1 (cash +
67.
by tpeng 13y ago
BTC value is directly related to its velocity and the value of the goods and services that are transacted in BTC. I held the purchasing power of USD constant, simply to derive a value of BTC in 2013 dollars. If USD experiences a large shift
68.
by tpeng 13y ago
We could debate what the velocity of bitcoin is/will be, but the relationship between velocity, money supply, and transaction volume is definitional. http://en.wikipedia.org/wiki/Velocity_of_money
69.
by tpeng 13y ago
Price-implied expectations http://www.amazon.com/Expectations-Investing-Reading-Prices-...
70.
by tpeng 13y ago
There's no obvious reason why BTC velocity should go lower than USD velocity. If anything, its electronic nature and potential for fast settlement times should indicate a much higher velocity than USD M2.
71.
by tpeng 13y ago
A higher money velocity => lower BTC/USD, but yes, the current price implies a huge future growth of the bitcoin economy. This is what sam is saying and I agree. I happen to think that we will not see that growth/adoption, but
72.
by tpeng 13y ago
The way I value bitcoin is to take the fully diluted market cap (21 million * $850 ~= $18 billion) and apply a money velocity which I assumed to be similar to US M2 velocity of 1.6 ($18 billion * 1.6 ~= $28.5 billion). Since global ecommerc