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Author Topic: State of Wall street trading - where BTC is headed?  (Read 822 times)
gjgjg (OP)
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March 17, 2014, 06:31:05 PM
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...or is BTC already subject to this new method of automated trading? The price stability recently would suggest not but can't see how it can be avoided - isn't the block chain limited to x transactions per second?

https://www.youtube.com/watch?v=aq1Ln1UCoEU


edit: for those who don't want to watch the video,basically it looks into the world of 'automated' trading systems that are taking over how stocks are traded on wall street. Basically the systems are causing large price swings and could possibly crash markets and (of course) are largely left unchecked.
Since BTC has a large number of speculators buying and selling, I guess BTC will start to become increasingly assessed by Wall street traders as it becomes more mainstream, but if that happens it's subject to the 'wrath'of these automated systems.

My post was to make more people aware of the rise of the automated trading world, and maybe see who has any insight into how affected the BTC world is by this - or if theres just some opinions on it.
cheers

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CurbsideProphet
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March 17, 2014, 06:55:00 PM
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I would image most of these high frequency trades would be off-chain.  Similar to Gox or any other exchange, it's more or less an internal movement.

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March 18, 2014, 12:26:18 AM
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High frequency trading alone does not create large price swings.  Actually it significantly narrows spreads and makes markets less liquid.  It represents innovation, not a reason to be fearful, as many people like to claim HFT is. And yes if bitcoin survives it will be traded like this by many firms.

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March 18, 2014, 12:39:59 AM
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High frequency trading alone does not create large price swings.  Actually it significantly narrows spreads and makes markets less liquid.  It represents innovation, not a reason to be fearful, as many people like to claim HFT is. And yes if bitcoin survives it will be traded like this by many firms.

do you mean less volatile? i was under the impression that speculators add liquidity to markets.

this sentence has fifteen words, seventy-four letters, four commas, one hyphen, and a period.
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March 18, 2014, 12:44:14 AM
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High frequency trading alone does not create large price swings.  Actually it significantly narrows spreads and makes markets less liquid.  It represents innovation, not a reason to be fearful, as many people like to claim HFT is. And yes if bitcoin survives it will be traded like this by many firms.

do you mean less volatile? i was under the impression that speculators add liquidity to markets.

yea, thats what I meant, my bad.  Yes they do add liquidity.

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March 18, 2014, 03:59:30 AM
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Logically speaking, with more big money being thrown at bitcoin on a daily basis,  it would be hard to imagine the prices over the medium to long term going down...
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