This may be a dumb question, but what is the point of a bitcoin exchange like coinbase new exchange? All traders are doing is exchanging BTC for USD. Seems like most trades are around market price. So why don't people just buy bitcoins at market price on Coinbase?
Like, no one is going to sell a Bitcoin for $1000, so there is no money to be made.
Am I missing something here? This is a serious question. Please explain to me what the point of coinbase exchange is at the present? Thanks
If you're serious then I think that you are missing something. The price of bitcoin is always in flux. You said why dont people just buy "at market price". Well, they do. But people may have differeing ideas about what the market price is, and that price varies. Exchanges allow people to hash that out in real time. You say 'no one will sell a bitcoin for $1000' (I'm guessing you mean no one will buy one at that price because I'd certainly sell a bitcoin for 1000$ at the time of this message), however, I may go onto an exchange and offer a bitcoin at 1000$ and when (if) the "market price" changes, ie, when someone walks along willing to pay that, my trade will go through.
In sum, exchanges allow for the "market price" to be discovered. There is no "market price" without the buying and selling at whatever price people are willing to buy/sell for on a certain moment.
