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Author Topic: How smart was MtGox move to take commission to 0% in this moment?  (Read 796 times)
urwhatuknow
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April 12, 2013, 04:33:20 PM
 #1

Guys

just to add insult to injury, as if all the recent turmoil wasn't enough, MtGox decided to take commissions to 0% for the next 2 days.
This move is basically allowing day traders to try any possible strategy to take a quick profit, multiplying by many times the number of daily transactions.
As a matter of fact the higher the commission the less likely is to make a profit on instant moves.
The result is almost 400,000 bitcoins traded in a few hours, but several downtimes even if they upgraded their system.
I'm scratching my beard and asking myself: is it because they are idiots or they made it on purpose?

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1508753699
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Le Happy Merchant
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April 12, 2013, 04:36:59 PM
 #2

I think it was done strategically to save face and escape the persecution of the market. I made 0.2BTC within 3 minutes testing out the validity of the claim, so I guess I am appeased.

massivebitman
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April 12, 2013, 04:37:59 PM
 #3

obviously on purpose.

they're load testing their servers.

plus some people won't rush to withdraw funds this way. People will have fun day trading for a while

zarl
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April 12, 2013, 04:38:04 PM
 #4

Guys

just to add insult to injury, as if all the recent turmoil wasn't enough, MtGox decided to take commissions to 0% for the next 2 days.
This move is basically allowing day traders to try any possible strategy to take a quick profit, multiplying by many times the number of daily transactions.
As a matter of fact the higher the commission the less likely is to make a profit on instant moves.
I'm scratching my beard and asking myself: is it because they are idiots or they made it on purpose?

They make alot of profit on daytraders.
Maybe they try smoothen things out littlebit, after many people are negative about lag among other things

Just would be nice if the site not go down every 10 min ;(  !!!
superduh
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April 12, 2013, 04:38:22 PM
 #5

it's fine if they disable all the .01 transactions and limit orders to extent

ok
cbeast
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April 12, 2013, 04:40:33 PM
 #6

Maybe they think it will take the profit motive out of day trading so Bitcoin can find its natural price. When day traders aren't competing for smaller margins, anyone can compete for prices. That may be nice in theory, but it doesn't address the lag issue.

Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
HappyBitCoinUser
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April 12, 2013, 04:41:22 PM
 #7

Everyone accused them of trying to make profit from fees during panic buys and panic sells, so they did this to save face.

Now what are the unforeseen consequences? Yeah, that's to be discussed.
urwhatuknow
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April 12, 2013, 04:45:38 PM
 #8

I believe speculators should be kept calm and not given an incentive in this difficult moment for bitcoin.
Bitcoin was taken off guard as everyone of us was fully invested in bitcoin to squeeze the recent rally to the last drop and nobody had the liquidity to fight against the selling orders.
The effect of the 0% commission is that price fluctuations have been wild for the whole day and I believe it will continue to do so until monday, when fresh cash will arrive and the price will skyrocket again.
Let's hope by that time the price won't be down to single digits....
Use your brains folks and read the message between the lines

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Worldcore
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notme
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April 12, 2013, 04:49:06 PM
 #9

I believe speculators should be kept calm and not given an incentive in this difficult moment for bitcoin.
Bitcoin was taken off guard as everyone of us was fully invested in bitcoin to squeeze the recent rally to the last drop and nobody had the liquidity to fight against the selling orders.
The effect of the 0% commission is that price fluctuations have been wild for the whole day and I believe it will continue to do so until monday, when fresh cash will arrive and the price will skyrocket again.
Let's hope by that time the price won't be down to single digits....
Use your brains folks and read the message between the lines

Lower fees reduces spreads. Volatility is not caused by eliminating fees.  Volatility is caused by a conflicted market.

https://www.bitcoin.org/bitcoin.pdf
While no idea is perfect, some ideas are useful.
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ManBearPig
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April 12, 2013, 05:08:35 PM
 #10

Absolutely necessary and a nice touch.

I took some coin from the swings and see it as kind-of a payback.

I tweet crypto nonsense: https://twitter.com/DunningKruger_
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