[2017-01-18] BS: High-speed traders are taking over Bitcoin

[polynesia]

High-speed traders are taking over Bitcoin

http://www.business-standard.com/article/specials/high-speed-traders-are-taking-over-bitcoin-117011800027_1.html

‘Zhou Shuoji is not a Bitcoin believer. He says the cryptocurrency will never replace its traditional forebears, and he calls most of its proponents fanatics. But for Zhou, a 35-year-old high-speed trader in Beijing, Bitcoin is also too good to resist. His computers trade it 24 hours a day, seven days a week. Using lightning quick orders, they profit from tiny price discrepancies on the myriad venues where it changes hands. “It’s the golden age to be in the Bitcoin market, because it's imperfect,” said Zhou, a former IBM technology consultant whose firm, Fintech Blockchain Group, runs a bitcoin hedge fund and venture capital fund.

Forget libertarians, speculative individual investors and Chinese savers trying to spirit money overseas. The reality is that professionals armed with cutting-edge technology now drive as much as 80 per cent of Bitcoin trading, mimicking strategies honed by some of the biggest players on Wall Street. To them, Bitcoin is just the latest asset class ripe for conquering with machines.

[1713503388]

1713503388

[morantis]

High-speed traders are taking over Bitcoin

http://www.business-standard.com/article/specials/high-speed-traders-are-taking-over-bitcoin-117011800027_1.html

‘Zhou Shuoji is not a Bitcoin believer. He says the cryptocurrency will never replace its traditional forebears, and he calls most of its proponents fanatics. But for Zhou, a 35-year-old high-speed trader in Beijing, Bitcoin is also too good to resist. His computers trade it 24 hours a day, seven days a week. Using lightning quick orders, they profit from tiny price discrepancies on the myriad venues where it changes hands. “It’s the golden age to be in the Bitcoin market, because it's imperfect,” said Zhou, a former IBM technology consultant whose firm, Fintech Blockchain Group, runs a bitcoin hedge fund and venture capital fund.

Forget libertarians, speculative individual investors and Chinese savers trying to spirit money overseas. The reality is that professionals armed with cutting-edge technology now drive as much as 80 per cent of Bitcoin trading, mimicking strategies honed by some of the biggest players on Wall Street. To them, Bitcoin is just the latest asset class ripe for conquering with machines.

people have been doing this from the beginning, we have trade bots running most of the time, why would anyone not do this?

[lightfoot]

As long as they own the bitcoin, wgaf? The problem happens with 100x leverage and fractional reserve exchanges.....

C

[morantis]

As long as they own the bitcoin, wgaf? The problem happens with 100x leverage and fractional reserve exchanges.....

C

everyone with $50 in btc can power trade, no one knows what they are doing though

[bitcoinisbest]

Does he do on 1 exchanges or several and if several then there would be fees involved as well. Also like him there would be many using bot services and may also place better price then him isn't it?

[nizamcc]

For such type of trading, one needs geeky mindful thoughts as well as a lot of capital, and Zhou seems to have both of them which makes it easy for these people to decide how to run the markets the way they want. These guys can sometimes manipulate the markets if grouped with other high-range traders who are not too much into technology, but have tremendous portfolios and are into this just for profits.