3 thoughts on “Bitcoin exchanger loopholes

  1. Your argument does not account for other sellers and buyers. There is no guarantee that someone else will not sell at $100 and you cannot raise the price without waiting for him to be bought out but any number of other sellers could replace him. What you are talking about is arbitrage between exchanges, it happens all the time. Google it, it is very interesting to learn more about it.

    Exchanges rely on you trusting them, they make money all day regardless of the price they earn their %, they have no incentive to collude for some short term gain.

    What you are talki

  2. I agree, there is not guarantee and that’s why you’ll have to re-raise several times (I had to do it twice before getting the price I wanted [10$ over]) and it was on a small exchanger. Actually, this is not a rule, I was just saying that you could try to manipulate the market a little bit if you want. The fact that the transactions are fast and that the fees are very low allows everyone to try this kind of strategy. Is it a problem? I don’t think so, but it’s quite impressive to see it work and I assumed that it could be repeated if I wanted, but I might be wrong.

    On another note, I wasn’t aware of the arbitrage practice. You’re right, it’s interesting. Actually, I talked a little bit with someone else before my post and he sent me on this site http://www.bitfinex.com
    which would be kind of what I was talking in this post.

    Well, I don’t know if they collude, but if I was mtgox (which has a bunch of exchangers with different currencies), I would buy and sell as long that there is a value imbalance between the exchangers.

  3. Pingback: Bitcoin exchanger loopholes | Bitcoin (BTC) | rgrigga

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