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JorgeStolfi
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Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
February 03, 2014, 04:21:50 AM
#87675
In the context of stocks, it does not seem to be useful to think of "the Apple stock market" or " the Google stock market", except when "market" is short for "supply and demand".
It seems more useful to think that there is just one stock market, where the stocks of all companies are traded together. That's because traders can quickly sell one stock and buy another as they see fit. New investment money that comes into one stock promptly "diffuses" to other stocks. Thanks to arbitrage traders, one can even think of all stock exchanges of the world as a single market.
Methinks that the same is happening in the world of crypto-currency, with regard to both the exchanges proper and the support network.
The most reputable (or least disreputable?) crypto exchanges seem to be well connected by arbitrage, so that prices tend to rise and fall together. Several already trade two or more crypto-coins, against each other and against national currencies. Many traders already own and play with several types of crypto-coins at the same time. So perhaps we should start thinking of "the crypto-coin market" instead of "the Bitcoin market", "the Litecoin market", etc.
As for the support network, it seems that many miners will direct their efforts to whatever crypto gives the best return at the moment. So, even though the blockchains are independent, we should perhaps think of just one Crypto-Coin Network, that supports all cryptos according to usual cost/profit principles.
Does this make sense? " |
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