Post
Topic
Board Economics
Re: Nobody Can Have Benefit From a Big Pump
by
Beparanf
on 02/05/2017, 07:51:35 UTC
If Bitcoin price pumps from $1300 to $3000 in few hours, nobody would make profit from it, because the exchanges wouldn't allow you to sell your Bitcoins and make the fast profit, it would bring a big loss for exchange sites.

Do you agree with this?

If exchange itself is not trading, they basically don't care

More specifically, they care for fees, and trading fees obviously come from trades, so when there are abrupt price movements the trading volume spikes too. And it doesn't matter whether the price flash crashes or flash surges. So, they are in fact interested in volatility and price being "alive", therefore prices pumping to 3,000 dollars per coin would provide exactly that, i.e. insane levels of volatility

This is actually right. Exchamgr are having profit from transaction fee and they are not the one who buy and sell the coin you are trading. The devs of the coin is the one who is giving funds for the exchange to cover some buy/sell order and the majority of the order on exchange came from different traders too. So having a flash punp is not an issue for exchangr