I'm going to argue that people selling at those low prices are noobs either panicking their faces off or speculators hoping to capitalize on other speculators and the noobs.
Because of the latter, scalpers increase volatility for no good reason other than to increase the volatility to make a profit.
I don't think it's fair to describe all panicers as noobs. I think it's legitimate to panic about if you know the market is moving- FAST and moving DOWN, but there is no way to get any timely information regarding market. Being in the dark is scary, for anyone. Because the market is limited with regards to how much FIAT can enter it, and the rate at which is can enter, but it's almost unlimited in the ability for fiat to LEAVE the market and the rate at which it leaves, it's a de-facto panic situation for everyone.
Well by definition they are newbs. Maybe not 'n00bz' but the panic sellers are often those who haven't watched the coin long enough to know daily ups and downs are our bread and butter.
Because of the latter, scalpers increase volatility for no good reason other than to increase the volatility to make a profit.
Absolutely. The bitcoin has such strong momentum that smart traders with deep pockets have recognized that movement in either direction often takes a while to stop. Long enough for them to capitalize.
Yeah sure, when people panic sell at $33 after it was at $49, that definitely removes volatility.
Without many scalpers who have their orders on both sides of the book (real orders from real scalpers with the intention to be filled, not fake and bait orders from quote stuffers), orders that absorb parts of the panic-volume (and convert the loss of the n00bs into profits for themselves) it would drop even faster and much further on every temporary panic event.
I think you are pretty right here. It's nearly habitual.
Yeah sure, when people panic sell at $33 after it was at $49, that definitely removes volatility.
Just kidding, that causes volatility.
Noobs racing to the door does not somehow improve the market. It just wreaks havoc for merchants and makes Bitcoin look silly fucking terrifying and wonderous to behold to outsiders.
FTFY
