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Coinbase down for maintenance

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Re: Coinbase down for maintenance

#61

Post by chrisco255 »

AndrewBissell wrote: post #20
sk2code wrote: post #7

I never want to reuse my comments from other thread but this time I just can't resist. No one really anticipated what we all are currently experiencing and Coinbase is not different. It seems Coinbase struggling to cope up: $0000 - $1000: 1789 days $1000- $2000: 1271 days $2000- $3000: 23 days $3000- $4000: 62 days $4000- $5000: 61 days $5000- $6000: 8 days $6000- $7000: 13 days $7000- $8000: 14 days $8000- $9000: 9…

It would make more sense to put this on a logarithmic scale. The move from $18000-$19000 is nowhere near as meaningful as the move from $0 to $1000. Also, the move to $19,000 seems to have been some kind of liquidity issue on GDAX, the price did not get that high on other exchanges.

That being said, does price matter or does volume matter, in terms of Coinbase? Their infrastructure should be indifferent to price. I understand there's a correlation there, but daily trading volume would be the ultimate determinant of Coinbase's performance.

Re: Coinbase down for maintenance

#62

Post by joshuahedlund »

Snackchez wrote: post #39
spelunker wrote: post #14

Earlier quoted context omitted.

I think you can take off your tinfoil hat. Lots of price movement motivates more traffic to the exchanges, resulting in DDoS. As the bitcoin market grows GDAX, Bitfinex, etc are probably going to have to borrow some ideas/talent from NASDAQ & other big electronic exchanges to stabilize things.

Tinfoil hat off! Shouldn't an exchange be able to handle volume? Seems like a basic requirement. Regardless, I still believe that with the introduction of shorts, were going to see bigger swings.

> Shouldn't an exchange be able to handle volume? Seems like a basic requirement.

Exchanges have incentive to handle as much volume as possible to make as much via fees as possible, but no site can handle infinite volume. The coinbase app has been climbing the iTunes charts into the top 20 the last couple days. Just before the site went down the price was running up by hundreds of dollars per minute, attracting tons of trader traffic trying to profit from it. Even if they have basic scaling measures in place for the basic infrastructure, they most likely experienced unprecedented exponentially increasing volume that was inevitably bound to break something

Re: Coinbase down for maintenance

#63

Post by syntaxing »

I'm curious what the implications are that all these exchanges go offline whenever there is a huge spike in bitcoin.

That being said, anyone care to elaborate how the price of bitcoin is determined? I mean it's easy when there is a large central bank monitoring this figure. However, how exactly does it work for bitcoin? What makes it worth the $15K value when there is no "goods" to back it up. Are there anyone here buying bitcoin as an investment?

Re: Coinbase down for maintenance

#64

Post by TFortunato »

I do wonder if after the Ether "flash crash" recently (https://blog.gdax.com/eth-usd-trading-update-5d8142b5bdc1), if Coinbase / GDAX instituted some sort of "circuit breakers" on their exchange to prevent this type of thing from happening again. Bitcoin and the other cryptos, trades at a pretty low volume relative to their market cap, so if a lot of people we're trying to dump large orders this morning to take a profit at the new ATH, I could see that causing similar issues that they may have been trying to prevent.

Re: Coinbase down for maintenance

#65

Post by wskinner »

syntaxing wrote: post #63

I'm curious what the implications are that all these exchanges go offline whenever there is a huge spike in bitcoin. That being said, anyone care to elaborate how the price of bitcoin is determined? I mean it's easy when there is a large central bank monitoring this figure. However, how exactly does it work for bitcoin? What makes it worth the $15K value when there is no "goods" to back it up. Are there anyone here b…

What makes it worth 15k is that people will pay that much for it. The price is determined by buyers and sellers, trading with each other on markets called exchanges.

Re: Coinbase down for maintenance

#66

Post by JumpCrisscross »

w-ll wrote: post #56
JumpCrisscross wrote: post #36

Earlier quoted context omitted.

> big money institutions are testing pump and dumps for when short contracts come into play Big-money institutions won't do this. Random individuals taking advantage of the fact that lots of value rides on relatively little volume? Much more likely. Combined with the fact that the exchanges, intentionally or unintentionally, lock liquidity when volatility spikes and it's 1907 all over again.

24 Hour Volume is north of 17 Billion. https://coinmarketcap.com/currencies/bitcoin/

Given the incentives involved (and history of exchanges, everywhere, before regulation) a good fraction of that is wash trading. (A better measure for the risk at hand is the effect of small out-of-market bids and offers on the overall price, i.e. how much it costs to move the price $1.)

[1] https://www.investopedia.com/terms/w/washtrading.asp

Disclaimer: This is not securities advice. Do not buy or sell anything based on this Internet comment.

Re: Coinbase down for maintenance

#67

Post by castis »

Snackchez wrote: post #39
spelunker wrote: post #14

Earlier quoted context omitted.

I think you can take off your tinfoil hat. Lots of price movement motivates more traffic to the exchanges, resulting in DDoS. As the bitcoin market grows GDAX, Bitfinex, etc are probably going to have to borrow some ideas/talent from NASDAQ & other big electronic exchanges to stabilize things.

Tinfoil hat off! Shouldn't an exchange be able to handle volume? Seems like a basic requirement. Regardless, I still believe that with the introduction of shorts, were going to see bigger swings.

I imagine they've spent a lot of time already beefing up their infrastructure, you can anticipate high loads but until you know what that looks/feels like, you cant compensate for it. They'll get there eventually. It'll just take some time.

Re: Coinbase down for maintenance

#68

Post by DINKDINK »

sk2code wrote: post #7

I never want to reuse my comments from other thread but this time I just can't resist. No one really anticipated what we all are currently experiencing and Coinbase is not different. It seems Coinbase struggling to cope up: $0000 - $1000: 1789 days $1000- $2000: 1271 days $2000- $3000: 23 days $3000- $4000: 62 days $4000- $5000: 61 days $5000- $6000: 8 days $6000- $7000: 13 days $7000- $8000: 14 days $8000- $9000: 9…

>No one really anticipated what we all are currently experiencing

Actually, those in the Bitcoin economic space have been saying this was going to happen for ~3 years

Hyperbitcoinization - Daniel Krawisz - March 29, 2014 http://nakamotoinstitute.org/mempool/hyperbitcoinization/

Re: Coinbase down for maintenance

#69

Post by tomp »

Snackchez wrote: post #39
spelunker wrote: post #14

Earlier quoted context omitted.

I think you can take off your tinfoil hat. Lots of price movement motivates more traffic to the exchanges, resulting in DDoS. As the bitcoin market grows GDAX, Bitfinex, etc are probably going to have to borrow some ideas/talent from NASDAQ & other big electronic exchanges to stabilize things.

Tinfoil hat off! Shouldn't an exchange be able to handle volume? Seems like a basic requirement. Regardless, I still believe that with the introduction of shorts, were going to see bigger swings.

No, most stock exchanges aren't exposed to the public like bitcoin exchanges are.
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