I'm not sure why so many people think a volatility cap is a good idea for any exchange. To a certain extent I guess I agree, but half of us only trade crypto because of the volatility.
Most of us coming from forex/stock markets and any trader with 'more than 3 neurons' (as the BFX devs put it) would immediately abandon BTC markets if a strict cap similar to other markets was every put in place.
Its really a risk/reward problem, even trading bitcoin comes with the inherent risk that your exchange will just run off with your money not to mention the sort of problems people have discussing here with 'halted' trading. In addition if you have an experience with forex/stock exchanges/brokers trading bitcoin is like stepping back into the dark ages. The fees are insane, there's no regulation, support for the trading platforms in pitiful by comparison, none of your funds are insured.
My forex account is not only insured for 2 million but I also earn interest just on the deposit (not for lending just for having money on the exchange). In addition most brokers offer ninjatrader, metatrader, or some other kind of support (the working version I might add), along with a number of other custom trading tools.
If the volatility is gone the traders will be too.
Its not the volatility that bothers anyone, its the halting of the trades during volatility. I agree that traders love volatility but halting trading due to a cascade is much worse from a trader's perspective.
The circuit breaker is a "meet in the middle" compromise where we trade some volatility for more platform reliability. Ideally we wouldn't have any circuit breaker nor halt any trades and let the chips land where they fall, but we simply can't do that. BFX HAS to halt trades to prevent certain extreme forms of volatility causing a cascade.
If you think my rolling half-breaker is WORSE than halting all trades on both sides then let us know so we can discuss the issue.
I think MORE traders would be gone if they got their positions ruined due to halted trading.