Bitcoin Forum

Looks like we're on our way to hell for now at least. There probably won't be a legit bull run for a decent length of time now. When the next one comes it will dwarf the one we've just witnessed just as 2013 was this time.

With this in mind do you reckon that exchanges will be ready for the next one or will there even more seizures, crapping out and closures to new users?

With the way crypto explodes and then dies I really don't see how any exchange can afford to train and employ enough people to be ready for something that may be months or years away. If volumes are pitiful then there aren't enough earnings to prepare and employ them in wait.

Bigger companies such as Circle are coming on board, but Circle themselves dropped BTC retail when interest died off.

So will they do it right or will we get more of the same?

Other side China and Russia planning to make the bitcoin as a legal currency. But here we see the bitcoin and other alts started dumping in the market. It reaches more than 7k USD when use the price range on the 2015 time to now.

Newbie investors may fear about the fund they have invested already here. So they may sell the bitcoins when there is little bump and does not have the knowledge to understand it will bump back in the market.  Please do not disappoint yourself. Keep hodl the funds mate.

There is no such a thing as legit bull runs, there never has been. Each bull run we experienced created a fake sense of increased popularity, while in reality of nothing really has changed. Exchanges will never be able to completely adapt to the situation, because as pointed out, the hypes attracting people to sign up always fades away after a while, and that makes exchanges not upgrade too far ahead, which directly explains why they are reluctant to pump big capital into expanding their operations. Coinbase and a few other services have experienced numerous days where more than 100,000 people signed up, but I very much doubt that even 10% of that number actually end up walking themselves through the verification process. Overall, exchanges just try to balance everything in a way where they are still able to somewhat cope with the increased demand, but not in a way they have to break their bank for it. Quite often we keep hammering too hard on exchanges, which in some cases is well justified, but in some cases also not.

Basing into your presumptions i dont even believe that it would reach out 10% for people who would really comply such KYC policy.I would rather believe that only 5% would go though.For the on the current situation of the market,im sure they are already thinking of this thing thats why same as you said they dont really put up big amounts to extent this business.Why? They do know the risk when the market goes upside down. We are going down as of now an i would really observe each exchanges behavior into this one.

I really doubt that they'll make any major changes to their business model.

The rally that we saw last year really brought out the worst in exchanges. For example, you've got poloniex and bittrex which were previously pretty trustworthy exchanges have people completely lose faith in them because of the fact that they've got no support. Cex.io closed new registrations for a bit, numerous other exchanges are having issues as well.

But at the end of the day, they're still making money from fees and commissions. Plus, the new regulations are not in their control, and governments are more likely to act when the prices are going up.

I predict a move towards p2p trading and decentralised exchanges over the next few years, instead of current exchanges doing any better.

to hell? I say we are headed to heaven with all the discount we are getting 8)

I completely agree with this.

nothing about exchanges is going to change as long as we don't demand it from them. and so far it seems like people are satisfied with the crappy, unsafe, and untrusted services all the exchanges are offering them!

this is actually why I think regulation for exchanges can be a good thing. they may be forced to follow some industry standards in order to operate and also it definitely increases their trustworthiness and because of that the market can grow a lot bigger and consequently the manipulation and volatility will be reduced. it is like a chain reaction...

Exchangers will not change a thing, coz they actually do not care of crypto prices, they earn on fees and that's the only thing they care about. But crypto newbies really can loose control on such falls and they may start to sell their coins and that will move the price even lower.

I don't think it's a case of failing standards in most cases, it's just being overwhelmed.

You can't legislate enough customer service reps into existence. Ultimately it has to be paid for by someone and there won't be enough people using the exchanges to do it. By the time all those reps can be paid for and are vital it'll be too late and we'll have the same situation but possibly many degrees more insane.

Unless exchanges come under the wing of much, much bigger organisations with people in place already to spare I dunno how this problem will be addressed.

The exchanges having the high number of customer service executives also did not give the right response to the traders and part time buyers when there is any issue at the trades already done.
Then exchanges does not need to learn about this bubble. Already number of visits on the all top crypto currency exchanges has been reduced than 40 percent when compare with the last month same day.

Sometimes or mostly, newbie in crypto trading make a wrong decision cause of the lost emotion when bitcoin goes down like this past few days. If this continue, they will lose more and never learn anything but regret memories.

As long as exchanges are still making money, they won't change anything.

Plus, it'll be hard for them to do so because it's completely unexpected when a bull market suddenly comes and there is a load of new users. There is no warning before that happens, and the volume is way too much for their support or their trading engines to handle in the back end.

When the bull market stops, they don't have any use for the excess support staff anymore. I assume they get rid of some. Even if they don't that amount of support staff could be too little for the next bull run. It's a sticky situation.

They should really learn a lesson or two, make their capacity much bigger than the current averages so that if there was an unexpected surge in volume or users, they are prepared. But as I said, as long as they are making money off their existing customers I don't think they'll give two damns about any of this.

But Circle knew later that they made a bad mistake in dropping BTC. So what did they do to get back in? Buy Poloniex.

They made a good decision too, because they are back in cryptocurrencies and the purchase also made Poloniex a legitimate altcoin exchange.

Dont know but I see no changes in the exchanger. Your saying the right thing here that their interest might just get died off due to the continuous fall in the crypto currency volumes. But look closer to the exchangers volume, and you know what you will see in reality? The volume of the influx is actually increasing day by day and exchangers are making huge money out of it. Thats sufficient for themselves to sustain for the long period of time and give trained employment.

You speak about the 2013 crashes, though unrelated I would suggest you to check the volume differences then and now. Not just the year but the most recent 2017 year also you can check. This could be because of the low prices of the different coins giving people to stage to enter and buy more. So the effect could be somewhat opposite of what you saying.

I'm pretty sure each exchange operators know that the crypto market is constantly changing and can one day have so much volume and the next day, no volume at all. At an employer's standpoint, why would I hire people who are not used to these kind of stress and only to fire them once I don't need them whereas I can only focus on my trusted employees to do the work for me and just raise their salaries in such high-pressure scenarios? That doesn't only save time, but also money on the part of exchange operators. Pretty sure that's also one of the reasons why most exchanges require 24 hours before they can get back to a certain ticket because they only have a few but capable people who get the job done.

I think it's about time for a change since we have been using such crappy services, some of them are having a countless complaints and they can't do anything to all of them. I think it's better if there were a limit of users for every exchanges if they really want to improve their services to every users but i'm afraid it won't happen to such exchanges if no one implements it.

I like your perspective here, very positive.  ;D

We're still working our way down from the peak. There's still lots of volatility. Exchanges probably make more on the crashes, but the real dead zone is once the crashing is over, everyone loses interest and it melts into endless sideways. They can also be much longer periods of time than crashes or bubbles and that's where their intention to up their game may become impossible to sustain.

Exchange owners at this time are expected to be experienced in the way the business in the crypto world runs and most times they are not ruled by the activities of the moment because they know its something that won't last long. In every business there are peak periods and off-peak periods but when it comes to crypto its just too uncertain and any business owner who makes enormous decision based on waves of the moment will have himself to blame.

The exchange sites that came when there was so much activities will have difficulties at this time but not those who have stand the test of time as they have witnessed both the good times, not so good times and the bad times and that is why when there are several issues concerning customer support of exchange sites, they don't just go overboard to start employing rather they make use of their resources to the maximum because they know it won't last long.

It seems some trading/exchange sites are turning into a scam or has some issues in withdrawal many users here in bitcointalk has been reporting this. Especially in this section looks like with the recent price crash it would be unlikely for the trading sites to profit from it. But for me this is a chance to earn more btc cause after the storm surely will comes the sun.

I don't get what you're so worried about. We've been here before. In February we went straight to 6000 and it was fine. Now we're not going down that fast and getting a lot of resistance on different levels. What makes you think that 6000 won't hold?
If you really want to compare this to 2013/14 then we didn't have that period of stabilization in the 70% ATH range. In the price fell from 1000 and then traded for 600-700 USD for months in Summer 2014. If we are to repeat that it's a great moment to buy.

I couldn't give a shit about price.

This is about whether exchanges will be any more robust when the whole scene explodes next time. It'll be much larger so they'd better be. I can't see much evidence of it yet.

That is why people only recommend good exchange site to void this kind of scenario though sometimes others still complain about their withdrawal with a certain site I think they have issues and they just make it big. Nothing is perfect and something goes wrong we can always find ways how to solve it of course we have to be patient though because we all know that there are plenty of users and only few supports.

I know that those exchanges know what they are dealing with which is the very volatile virtual currencies. They already accepted the possibility that it will either go positive or negative right from the start.

There is really nothing to learn because most of the exchange sites (the legitimate ones though) are only acting as a market place that brings the buyer and the seller together while providing liquidity for the market in the case of those who want to cash out which is not all the time. It is then safe to say, they are day traders where every of their decision is short term as we all know that price fluntuates several times in a day, even within the hour, they are still protected what would happen is to see w drop in their revenue and a smart one would have mop up enough for this trying times during the peak periods.

It's normal to experience some difficulties especially with the nature of this kind of market. It's part of business to sometimes experience some losses especially for something as volatile as bitcoin. There may be some now which choose not to adopt BTC because of how risky it is for them to lose their money and after the hype last 2017, it has died down. All exchanges may do now is adapt to the situation. Having a coin which is popular may still be beneficial for them even if the price goes down significantly.

When the next bull run comes and popularity of cryptos increase again, exchanges would be able to prepare for it but there would still be lapses because they don't know how much volume they would be able to get and I think in the next run, it would be larger than the recent one last December. They would be able to anticipate it through the increase sign ups and the volume getting larger.

Cryptocurrencies would be a hot topic in the mainstream media so people would be aware of it so during this time, exchanges should already be ahead of the game and ready for the influx of traders because it is their loss as well if their system would not be able to handle it. They still have ample of time to get ready especially this time when crypto are lying low and people are not that interested yet.

Business wise, I think exchanges will just react to the current situations. If we see another dramatic rise similar to December, then I guess they need to re-organized and hire more people. If this goes to worst, I mean bearish trend continue up to end of the year, then there will be no ramp up on terms of there employees. I don't think by this time they are looking at the future, training people cost money, and with this kind of volume, not enough funds to throw in hiring, thy will just have to wait before making their move.

Current market isn't lying low, but just busting out normal volumes that are still enough to exceed the $10 billion daily volume mark. Hype volumes and demand don't represent the reality, and should be discarded.

The crypto market looks very healthy as it is right now, and even in current times exchanges badly struggle to get things right, or to open up their registrations again. Their backlog is only growing larger, and that won't stop.

The only thing they can hope for is that there won't be another insane burst of speculative hype usage further putting them into backlog debt. We'll see how they fare next year, but I don't have high hopes.

Well lots of the exchanges are in better shape than they were in December. Kraken fixed it's trading engine, Coinbase and others finally enabled segwit and enabled batching transactions. Most purchased new servers in December. So the whole experienced has forced them to improve - it's a pity they didn't act earlier.

I think exchangers really don't care about bubbles but they have toggles so they can easily avoid any problems. As they already did, for example cex blocked registering of new members. Some of them blocked accounts which had many bitcoins and this way they could avoid losing of much money (price changes daily so they sometimes freezed money for weeks).

These are possible things that would really happen on where exchangers might really be done come from behind.Either those reasons might be true or not but basing on what they are performing now when it comes to issues and delays we can really make presumptions that those things are true.They dont really care about price bubbles but those plans can really be done if they do really have that kind of motive.