currently it helps to keep the rate at sane levels
if you all leverage in one direction and there 75% of you of all mtgox volume of course things will slowdown
i don't know much about trading so i'm not playing that game and by looking how you guys play that game someone moving in opissite direction can take all your leverages or profits to themselves
how is it bitcoinica's fault that most traders bet in one direction? you play high risk game you should assume high risk.
if you all leverage in one direction and there 75% of you of all mtgox volume of course things will slowdown
i don't know much about trading so i'm not playing that game and by looking how you guys play that game someone moving in opissite direction can take all your leverages or profits to themselves
how is it bitcoinica's fault that most traders bet in one direction? you play high risk game you should assume high risk.
Ok, your not far off from my train of thought..
But consider this..
It delays the inevitable, and causes wild swings when the dam finally breaks, thus liquidating positions for these momentary wild swings..
It dosent so much stem the tide, but band-aids it up with a very very thin wall temporarily Then! you have no btc or USD availbility in the appropriate direction.
Now if he had the over head, the market will move where it wants to go. Good or bad..
Its like market procrastination so to speak.
And on top of that the mtgox traders moving to bitcoinica makes this worse..
The best thing Zhou can do is be his own exchange with leveraging, to compete with Mtgox, once they have it too, THIS will be helpful in the ways you are talking.. 2 exchanges with margins.
i may not know much about trading, i may not be well versed with trading lingvo
but looking at the following graph i'm seeing a very healthy growth. with bitcoinica or without there is no more btc and usd than there currently exist and inevitable can't be stopped either way
so i see the delays as a good amortization mechanism so we won't spiral out of control
