Topic: Bitcoin exchanges segmentation is the reason for Bitcoin bubbles and crashes (Read 538 times)
January 21, 2015, 01:31:14 AM
wise foresight
January 20, 2015, 06:24:35 PM
Quote
You're thinking too small 
https://www.cryptocoinsnews.com/medici-will-real-bitcoin-2-0-stock-exchange/
I would be totally cool with an old school centralized solution in this case. https://www.cryptocoinsnews.com/medici-will-real-bitcoin-2-0-stock-exchange/
January 20, 2015, 06:04:02 PM
I will keep this short and sweet -
the main driving force behind inexplicable price moves is the fact that most exchanges have separate order books and are connected only through arbitrageurs.
Each separate order book is quite shallow, so it's easy to suppress or pump the price with a relatively small amount of money. So you easily move the price at one exchange and it ripples through all the other exchanges.
If the exchanges had a common order book that would simply be impossible. When there's a NASDAQ-like network connecting exchanges and offering global order book Bitcoin price will be as stable as the price of major blue-chip stocks.
Let's make it happen.
the main driving force behind inexplicable price moves is the fact that most exchanges have separate order books and are connected only through arbitrageurs.
Each separate order book is quite shallow, so it's easy to suppress or pump the price with a relatively small amount of money. So you easily move the price at one exchange and it ripples through all the other exchanges.
If the exchanges had a common order book that would simply be impossible. When there's a NASDAQ-like network connecting exchanges and offering global order book Bitcoin price will be as stable as the price of major blue-chip stocks.
Let's make it happen.
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