Is trading on exchanges inflating the transaction volume?

PigUsher

newbie

Activity: 14

Merit: 0

Quote from: w00t on June 27, 2016, 06:49:12 PM

I mean transaction volume - doesn't matter if it's 10mBTC or 10 BTC it's still one trade but are those trades going onto blockchain? I don't think so.

Currently, ~3 transactions per second is all Bitcoin can handle, which means it can't handle the volume of even one Chinese exchange Sad

RyNinDaCleM

legendary

Activity: 2408

Merit: 1009

Legen -wait for it- dary

Quote from: w00t on June 27, 2016, 06:49:12 PM

I mean transaction volume - doesn't matter if it's 10mBTC or 10 BTC it's still one trade but are those trades going onto blockchain? I don't think so.

Trades aren't transactions on the blockchain. When you and everyone else sends coins to an exchange, it is just held in a wallet by the exchange and your balance is just a row of their db. When I sell you BTC, your account rises in BTC and drops in Fiat and my account drops in BTC and rises in Fiat. It's all just added and subtracted by the site's back end software. There is no need to broadcast all the trade volume.

w00t

full member

Activity: 188

Merit: 108

I mean transaction volume - doesn't matter if it's 10mBTC or 10 BTC it's still one trade but are those trades going onto blockchain? I don't think so.

iwasneverhere

sr. member

Activity: 588

Merit: 251

I suppose large trade volumes affect price just like any stock. But i think whales dumping and then buy back then pumping again is what makes bitcoin rise and fall sharply. I would even go as far to think this is done meticulously to buy back lower and then try to make bitcoin break $1000 again eventually.

w00t

full member

Activity: 188

Merit: 108

We all know that there are bots trading nonsense on the exchanges - making fake volume. But are those transactions actually going into Blockchain volume?

I mean how much of this: https://blockchain.info/charts/n-transactions?timespan=all&showDataPoints=false&daysAverageString=1&show_header=true&scale=0&address=

are bots trading? Since nobody probably has precise answer to this I put it in speculation.

Thanks for your opinions!

Topic: Is trading on exchanges inflating the transaction volume? (Read 490 times)