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Topic: MtGox: Reason for imbalance in market depth (bid/ask) (Read 1754 times)

legendary
Activity: 1246
Merit: 1016
Strength in numbers
More and more I'm beginning to agree with cypherdoc... (the nerds know not what they have created)  Huh

That's silly because it was designed to be exactly what it is. Maybe they didn't know there would be general interest, but certainly he/they knew what it would be if it did get traction, that was the whole point of the work.

"Oh, wow, we just realized what this is and the people who made it just had no idea" is quite patronizing.

Yeah its a bit of a misnomer with the way its worded, but what he means is that the ones who are actually using it (early adopters) often dont understand the fundamental economic situation and are therefore astonished by its performance.

I suppose there are early adopters like that, but I've experienced a 300x increase in value and I often wonder what is taking so long.
legendary
Activity: 1288
Merit: 1000
Enabling the maximal migration
More and more I'm beginning to agree with cypherdoc... (the nerds know not what they have created)  Huh

That's silly because it was designed to be exactly what it is. Maybe they didn't know there would be general interest, but certainly he/they knew what it would be if it did get traction, that was the whole point of the work.

"Oh, wow, we just realized what this is and the people who made it just had no idea" is quite patronizing.

Yeah its a bit of a misnomer with the way its worded, but what he means is that the ones who are actually using it (early adopters) often dont understand the fundamental economic situation and are therefore astonished by its performance.
legendary
Activity: 1246
Merit: 1016
Strength in numbers
I think some part of it might be that it is so easy to get coins to the exchange that people just wait until they want to make a serious ask to deposit them. With fiat deposits you never know how long it could take so you leave it loaded up, and if it is going to be loaded up anyway you might as well pick some low price where you'd love to pick up some coins and leave a bid there. This has the effect of really clearing out a ton of the asks when there is a general rise in prices.
hero member
Activity: 1302
Merit: 502
Eeek yeah, sorry, I derped hard there.
legendary
Activity: 1904
Merit: 1002


Logarithmic growth since last year.

Do you mean exponential?
hero member
Activity: 1302
Merit: 502


Logarithmic growth since last year.
full member
Activity: 140
Merit: 100
1221iZanNi5igK7oAA7AWmYjpsyjsRbLLZ
It may be that many small investors are trying to move USD -> BTC https://bitcointalksearch.org/topic/avalon-asic-batch-2-pre-sale-thread-139704
legendary
Activity: 1246
Merit: 1016
Strength in numbers
More and more I'm beginning to agree with cypherdoc... (the nerds know not what they have created)  Huh

That's silly because it was designed to be exactly what it is. Maybe they didn't know there would be general interest, but certainly he/they knew what it would be if it did get traction, that was the whole point of the work.

"Oh, wow, we just realized what this is and the people who made it just had no idea" is quite patronizing.
legendary
Activity: 1288
Merit: 1000
Enabling the maximal migration
More and more I'm beginning to agree with cypherdoc... (the nerds know not what they have created)  Huh
hero member
Activity: 784
Merit: 1000
It's hard to say. Trading volume isn't very high yet. It appears Bitcoins are not selling fast. Is there still dark pool trading?

If some big investors are accumulating Bitcoins, they certainly would not do so in one go, lest the price will be pushed up too quickly.
I suspect it's the reason behind the slow, methodical rise we see recently.
legendary
Activity: 1078
Merit: 1006
100 satoshis -> ISO code
My reading of the imbalance is that the majority of those trading bitcoins are long-term bullish.

So the sellers are simply not there to match the buyers. However the buyers are not completely chasing the price up either. They are waiting with low bids in hope that a flash crash will get them into a larger position at a cheap price.

Some of the recent momentum is other buyers who are thinking that the bottom is in and that if they wait with low bids they will miss the train - forever.

A lot of the bitcoin forum members have been here for years and *expect* slow progress. However, bitcoin may be where the WWW was in 1995 (four years after it was invented), not yet mainstream, and just before it morphed into the dotcom boom of late '90s.
hero member
Activity: 763
Merit: 500
Is there still dark pool trading?
not on mtgox, but certainly, mtgox is not the only place where trading happens.
donator
Activity: 1736
Merit: 1014
Let's talk governance, lipstick, and pigs.
It's hard to say. Trading volume isn't very high yet. It appears Bitcoins are not selling fast. Is there still dark pool trading?
sr. member
Activity: 255
Merit: 250
What might have caused the imbalance of bid/ask in MtGox's market depth?



Do you think one of the reasons is that people don't sell Bitcoins because (at the moment?) it takes quite a long time to transfer Fiat money (USD, EUR, ...) from MtGox to your bank account?
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