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Title: Petition Exchanges to take measures against volatility: Asymmetric fees Post by: anu on April 03, 2014, 07:14:52 AM A large spread and volatility are among the biggest impediments for wider adoption of Bitcoin payments. Too many people take liquidity and too few add it, making the book shallow, particularly around the current price. There were even times in the last few days on Stamp when the spread was more than $10 and trades happened all the time: As a result, people sold $10 cheaper than others bought, nearly simultaneously. That's 2.5% loss, sometimes more.
Under such conditions, Bitcoin payments are not cheaper than commercial payments, certainly more expensive than Paypal. Measures are needed to reduce the spread and volatility. A very powerful measure is to create incentives to add liquidity. To increase the competitiveness of Bitcoin payments I propose to petition the exchanges to introduce asymmetric fees: If you add liquidity, you pay less. Maybe it should be even free. If you take liquidity, you pay more, or even all of the fees. |