[2017-12-01] Exchanges Struggle With Massive Influx of Users

[davey76]

A rollercoaster ride of a week for Bitcoin has seen exchanges suffer outages as current and new users clamored to trade the sought-after virtual currency.

Popular exchange Coinbase and other exchanges saw a massive surge in the volume of traffic on their exchange - causing delays for users on their platforms.

More: https://cointelegraph.com/news/exchanges-struggle-with-massive-influx-of-users

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[1Referee]

Exchanges are cheapskates. Instead investing in more capacity to offer people a reliable platform that even at peak moments functions without any problems, they try to tweak everything and here and there remove certain features, just to avoid putting money on the table. Result is that people lose out on great buying/selling opportunities, and people as frustrated that they are, have to suck it up. Coinbase is the wealthiest business in this market, and that by far, but I am fairly sure that the lacking will to invest in themselves might be something that's the result of the share holders not willing to take a hit. It's not the first time that Coinbase can't handle the increased user demand, and likely not the last.

[davey76]

On the other hand: Exchanges make money with every trade users make. It would make sense that they prepare themselves at high traffic times, downtime will only cost them money.

[kueyen]

On the other hand: Exchanges make money with every trade users make. It would make sense that they prepare themselves at high traffic times, downtime will only cost them money.

I'm with you, but it could be the case that they legitimately were not prepared for this as well. After the $10K limit was reached, the popularity of bitcoin skyrocketed like I had never seen before. People around me who had no idea what bitcoin was until then, started talking about how one could obtain it. If even a fraction of such people signed up on exchanges, they may have overloaded their backend systems.