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May 19, 2013, 06:00:05 AM |
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Hi, just wondering if someone can help me understand this. After all announcements around Bitcoin 2013 conference this weekend, I seem to see new exchanges popping up like mushrooms. Take e.g. WebMoney or the new BitInstant. Where do they harvest the coins needed to provide some market depth without slippage? I mean if I can crash BitStamp/BTC-E prices with just a thousand coins, how can these new players guarantee the prices to stay stable on their exchanges that have much lower volume? Do they have some secret agreements for a partially shared orderbook with BitStamp, maybe Gox and BTC-E, maybe Ripple-alike but simpler? Or are they doing fractional reserve banking selling you bitcoins they don't have or buying them in advance with cash they don't have yet?
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