Will a new cryptocurrency have to be made for high frequency trading?

[LurbQBurdock]

Right now, there is a huge impediment to the finance industry using Bitcoin - high frequency trading is impossible due to the slow transaction speeds (I've had a transfer take 1hr already) and the fact that the blockchain would grow humongous if used that way.

Does increased mining speed up the transaction speeds?  Is it currently feasible to make a cryptocurrency that could handle the volume of transactions required for high frequency trading?

[odolvlobo]

As long as transactions occur on the exchange, they can be internal to the exchange, and not go through the block chain. There wouldn't be a need to speed up transactions.

[samborambo]

He didn't mention anything about exchanges.

You mean instant confirmation services like https://www.bitinstant.com/ ?

If you're asking whether bitcoin can handle the throughput of a point of sale network, then no. Not right now anyway. The block size can be increased to accommodate this in the future but it's not needed right now.

Sam.

[MagicBit15]

Yeah I am unsure if you mean in the block chain or between people.

[🏰 TradeFortress 🏰]

He didn't mention anything about exchanges.

You mean instant confirmation services like https://www.bitinstant.com/ ?

If you're asking whether bitcoin can handle the throughput of a point of sale network, then no. Not right now anyway. The block size can be increased to accommodate this in the future but it's not needed right now.

Sam.

It won't ever be needed. You're not going to pay for a 0.0007 BTC cup of coffee on the blockchain.

[samborambo]

He didn't mention anything about exchanges.

You mean instant confirmation services like https://www.bitinstant.com/ ?

If you're asking whether bitcoin can handle the throughput of a point of sale network, then no. Not right now anyway. The block size can be increased to accommodate this in the future but it's not needed right now.

Sam.

It won't ever be needed. You're not going to pay for a 0.0007 BTC cup of coffee on the blockchain.

People already pay for a cup of coffee with bitcoin. Why would that change?

[poelling92]

He didn't mention anything about exchanges.

You mean instant confirmation services like https://www.bitinstant.com/ ?

If you're asking whether bitcoin can handle the throughput of a point of sale network, then no. Not right now anyway. The block size can be increased to accommodate this in the future but it's not needed right now.

Sam.

It won't ever be needed. You're not going to pay for a 0.0007 BTC cup of coffee on the blockchain.

Yup, you will have to use CC for cup of coffee. Bitcoin future is in speculation.

[Gator-hex]

Will a new cryptocurrency have to be made for high frequency trading?

High frequency trading is done with derivative contracts, when the contract expires you settle, only then do you deliver the coins.

But if you need a faster transaction coin, for that cup of coffee, Litecoin is Bitcoin with all the problems fixed.  

[odolvlobo]

He didn't mention anything about exchanges.

You mean instant confirmation services like https://www.bitinstant.com/ ?

If you're asking whether bitcoin can handle the throughput of a point of sale network, then no. Not right now anyway. The block size can be increased to accommodate this in the future but it's not needed right now.

Sam.

By "high frequency trading", I assume he means this: http://en.wikipedia.org/wiki/High-frequency_trading