[2019-09-05] Fewer People Are Sending Bitcoin to Largest Crypto Exchanges - page 2.

figmentofmyass

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Quote from: stompix on September 05, 2019, 03:54:19 PM

Quote

To increase user loyalty and the amount of fees they can charge, a number of exchanges, such as Binance and Bitfinex, have rolled out or expanded availability of margin trading, letting users borrow funds to speculate. Binance began user testing its futures products this month, after allowing traders to lend out their funds to others in August.

Damn, I always said that those exchanges are going to turn into something far worse than BoA, DB or HSBC but I never thought it would be that fast.

bitfinex has been offering p2p margin lending since 2013 so it's not even a new development. it's also not the same as fractional reserve deposit lending at banks. the margin loans are collateralized and are for trading only. positions are liquidated if there is a risk that collateral can't cover the loan.

i still don't think the lending rates justify the risks, but compared to banks that are offering customers virtually nothing in interest, i can understand the temptation to lend.

stompix

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Blackjack.fun

Quote from: o_e_l_e_o on September 05, 2019, 02:34:41 PM

With the ongoing growth of buying and selling options like bitcoin ATMs and well functioning DEXs like BISQ, there are more options available and less need now than ever to use a centralized exchange.

No, just no.
DEXs maybe but ATMs no, simply no. With 5% (if you're lucky) to 15% fees, nobody will sell more than a couple of mbits via those.
We're talking about people sending coins, that usually means for selling, so people who have bought them, hodl them for a while and that know how much they've paid in fees when they bought and how much those should be, not some noobs trying an atm for the first time.

But, I'm starting to like the press section again, four topics I really liked from the news perspective lately..
And this one it's a piece of pretty good news, fewer people sending coins means fewer sellers or more hodlers keeping their coins in a damn personal wallet, not on some bank-like exchange.

Quote from: hatshepsut93 on September 05, 2019, 03:00:05 PM

That's what is actually happening, they should have looked at metrics like new account registrations per month and fiat deposits, though this data is only available only to exchanges.

I'm pretty sure all exchanges are overinflating every bit of data they can in order to look like they have billions of customers.

Quote

To increase user loyalty and the amount of fees they can charge, a number of exchanges, such as Binance and Bitfinex, have rolled out or expanded availability of margin trading, letting users borrow funds to speculate. Binance began user testing its futures products this month, after allowing traders to lend out their funds to others in August.

Damn, I always said that those exchanges are going to turn into something far worse than BoA, DB or HSBC but I never thought it would be that fast.

hatshepsut93

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Quote from: figmentofmyass on September 05, 2019, 02:00:07 PM

if less people are sending coins to exchanges, how does that equate to less new buyers? Roll Eyes

perhaps less coins are being sent to exchanges because that's what happens during bull markets---the ask side dries up. that's partly what drives the price up. the same thing happened in the run-up to the 2013 and 2017 bubbles.

That's what is actually happening, they should have looked at metrics like new account registrations per month and fiat deposits, though this data is only available only to exchanges. But they are right that interest in Bitcoin trading is lower now than it was a few months ago - other indicators like Google trends support it too. But there's nothing wrong about it, Bitcoin is currently in a "boring" sideways phase.

Quote from: o_e_l_e_o on September 05, 2019, 02:34:41 PM

With the ongoing growth of buying and selling options like bitcoin ATMs and well functioning DEXs like BISQ, there are more options available and less need now than ever to use a centralized exchange.

I checked CMC and it shows that BISQ has $1.9 mil volume, and $1.7 mil is traded on XMR/BTC pair. Those numbers are really unimpressive compared to even small centralized exchanges.

squatter

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STOP SNITCHIN'

Quote from: o_e_l_e_o on September 05, 2019, 02:34:41 PM

Quote from: figmentofmyass on September 05, 2019, 02:00:07 PM

it could also be that liquidity is leaving these particular exchanges.

It could be that liquidity is leaving all centralized exchanges. The number of exchange hacks and shady behavior is forever on the increase, even amongst the big exchanges. Coinbase selling customers' data, the Binance KYC hack, Bitfinex likely being insolvent, Bithumb hack, the list goes on. And the hacks of smaller exchanges are becoming too numerous to even keep track of. Perhaps investors are finally realizing the centralized exchanges are not safe. With the ongoing growth of buying and selling options like bitcoin ATMs and well functioning DEXs like BISQ, there are more options available and less need now than ever to use a centralized exchange.

Rather than this showing a "lack of interest", it might actually be demonstrating that users are becoming more interested in learning how to use it safely and privately.

I'd like to think that's true, but I doubt it. People are highly driven by convenience and ease of use -- that's not P2P and decentralized exchanges. I like Bisq, but hardly anyone is using it compared to centralized exchanges.

I'd be curious to see the numbers for Coinbase, who I think is more representative of what new or typical users are doing. Their wallets don't seem to be listed on Wallet Explorer, though.

o_e_l_e_o

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Quote from: figmentofmyass on September 05, 2019, 02:00:07 PM

it could also be that liquidity is leaving these particular exchanges.

It could be that liquidity is leaving all centralized exchanges. The number of exchange hacks and shady behavior is forever on the increase, even amongst the big exchanges. Coinbase selling customers' data, the Binance KYC hack, Bitfinex likely being insolvent, Bithumb hack, the list goes on. And the hacks of smaller exchanges are becoming too numerous to even keep track of. Perhaps investors are finally realizing the centralized exchanges are not safe. With the ongoing growth of buying and selling options like bitcoin ATMs and well functioning DEXs like BISQ, there are more options available and less need now than ever to use a centralized exchange.

Rather than this showing a "lack of interest", it might actually be demonstrating that users are becoming more interested in learning how to use it safely and privately.

bittraffic

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Fewer people are now trying to sell BTC nor buy altcoins using BTC, they could just be holding preparing for the next big thing. Its no surprising they are waiting for the price to take a big spike to more than $15k. If I have bought BTC while the price is $3k, I would really be holding onto it for it will be rarer than ever when finally the price slums all these sell walls.

figmentofmyass

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Quote from: bomj on September 05, 2019, 01:51:25 PM

Fewer people have been sending Bitcoin to major exchanges in recent months, according to crypto data tracker TokenAnalyst. After peaking in 2017, the number of unique addresses sending the world’s most-popular cryptocurrency to exchanges such as Binance and Bitfinex has been declining, it found.

The number of addresses sending the token to the Bitfinex trading platform is at a two-year low, while the amount on Malta-based Binance -- the world’s largest crypto exchange by volume -- dropped to early 2018 levels, according to TokenAnalyst.

That signals a “lack of retail interest in general currently in crypto,” said Sid Shekhar, co-founder of London-based TokenAnalyst. “If we go by the ‘Bitcoin as safe haven in times of recession’ narrative, the number of new users/buyers should actually be increasing.”

if less people are sending coins to exchanges, how does that equate to less new buyers? Roll Eyes

perhaps less coins are being sent to exchanges because that's what happens during bull markets---the ask side dries up. that's partly what drives the price up. the same thing happened in the run-up to the 2013 and 2017 bubbles.

it could also be that liquidity is leaving these particular exchanges. bitfinex is in a legal clusterfuck and binance is giving USA traders the boot in a week.

Quote from: bomj on September 05, 2019, 01:51:25 PM

Other data point in the same direction. Bitcoin exchange trade volume in U.S. dollars is at its lowest point since May

that's what happens during sideways consolidations. get ready for a breakout soon!

Theb

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It's just the timing of the news on where the current market situation is now. Obviously if the market lacks activity in terms of price jumps then can't expect new people pouring in more money in the crypto market. It's like you are asking people to put more money on a market where it's future is still uncertain as of the moment. The article itself didn't gave any explanation why this is happening and went ahead with their point without explaining why it is happening. Such as shame to see that even Bloomberg is not telling all sides of the story in their news. For newbies reading this don't lose your hope because we are just in a market phase that lacks action as a result of big price movements we had earlier in this year.

bomj

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0xbt

The notion that more people are trading cryptocurrencies? Well, it just may be wrong.

Fewer people have been sending Bitcoin to major exchanges in recent months, according to crypto data tracker TokenAnalyst. After peaking in 2017, the number of unique addresses sending the world’s most-popular cryptocurrency to exchanges such as Binance and Bitfinex has been declining, it found.

The number of addresses sending the token to the Bitfinex trading platform is at a two-year low, while the amount on Malta-based Binance -- the world’s largest crypto exchange by volume -- dropped to early 2018 levels, according to TokenAnalyst.

That signals a “lack of retail interest in general currently in crypto,” said Sid Shekhar, co-founder of London-based TokenAnalyst. “If we go by the ‘Bitcoin as safe haven in times of recession’ narrative, the number of new users/buyers should actually be increasing.”

Other data point in the same direction. Bitcoin exchange trade volume in U.S. dollars is at its lowest point since May, and has been trending down since peaking in 2017, according to Blockchain.com. Web traffic to Binance and Hong Kong-based Bitfinex is at a four-month low, according to tracker SimilarWeb.

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