71–80 of 98 posts
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Why would FIX support help? FIX provides a means of expressing useful order types, but it doesn't imply that there's a backend that implements them.
The presence of FIX in their offering indicates the company was built by or is run by someone who has some (possibly dated) understanding of what is going on when it comes to implementing trading systems.
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What would you recommend as introductory reading to a person interested in market microstructure and market making? (Background in finance and programming)
Rather heavy reading, but this is probably what you're looking for: http://www.amazon.com/Trading-Exchanges-Market-Microstructur...
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I've been holding Bitcoin since it was $10. In my view, Bitcoin has always been thinly traded because most people new to Bitcoin learn that they should acquire as much of it as they can afford to, and then withdraw all of it from a centralized service. For example, they learn that decentralized, trustless money can only be decentralized and trustless when there's no middlemen involved. Storing BTC on an exchange just…
> but it's not worth doing that when you consider taxes and reporting requirements That's like saying it's not worth owning stock because of taxes and reporting requirements; you're either very young, or you're just way off base.
1. Bitcoin is _very_ thinly traded. I'm speaking as someone who sold at $1100 and bought back in at $450, which at the time was very near the bottom. In a matter of seconds, the price was $500. In those precious seconds, I'd be shocked if more than 10000 BTC traded hands. That's barely enough room for a handful of traders to call the bottom. Like I said, very, very thinly traded.
2. I would never do the above, ever again. Speaking as an American citizen, there's no good domestic exchange. If you're dealing in amounts above $10,000 say hello to the FBAR. The BSA's online efiling site isn't quite as bad as healthcare.gov, but JFC. Ultimately you have to use IE on Windows, load a PDF through IE's Acrobat extension, and then fill out the form inside IE. You then have to sign the form with your given PIN, which execs some JavaScript if I remember correctly. Obviously the FBAR form isn't fun. I picked up a few more coins but at the cost of having to disclose all of my financials to the BSA, and I'm just praying that I did things correctly. On top of that, taxes. YMMV, but IMO it's not worth the hassle to sell.
Wow, looking at the order book of bitstamp [1] through the eyes of someone who lives in the world of market microstructure is eye opening:) There are huge holes everywhere in the order book and the liquidity at each offering level seems to be completely without reason. I just spent 20 minutes applying the sort of algorithms that'd we'd normally run on each stock to make markets in it and it can't detect any real patt…
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I'm confused as to why anyone would invest in Bitcoin companies as opposed to Bitcoins directly. The impression I got was that investing in companies provided added risks (co-founder separation, business failure, legal risks), without providing a significant advantage (risk mitigation, upside multiplication) over just buying Bitcoins directly.
Bitcoin companies may quickly move to focus on properties of the blockchain that are not related (and, perhaps more importantly, more profitable), than the bitcoin currency. Also, importantly, bitcoins may be extraordinarily profitable for a bitcoin company, but never increase in value, whereas if you purchased a bitcoin today for $700, and 5 years from now, the bitcoin was still $700, you would likely be unhappy.
What properties?
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> but it's not worth doing that when you consider taxes and reporting requirements That's like saying it's not worth owning stock because of taxes and reporting requirements; you're either very young, or you're just way off base.
Sorry, but you can't compare MtGox to the NYSE. Two points: 1. Bitcoin is _very_ thinly traded. I'm speaking as someone who sold at $1100 and bought back in at $450, which at the time was very near the bottom. In a matter of seconds, the price was $500. In those precious seconds, I'd be shocked if more than 10000 BTC traded hands. That's barely enough room for a handful of traders to call the bottom. Like I said, ver…
http://www.bna.com/irs-no-bitcoin-n17179891056/
Edit: Actually, I guess you meant your account on Mt. Gox, so nevermind.
Yup, the rich get richer.
I applaud Tim Draper and all the other notable bidders who help push Bitcoin one step closer to Wall Street and the mass market.
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Bitcoin companies may quickly move to focus on properties of the blockchain that are not related (and, perhaps more importantly, more profitable), than the bitcoin currency. Also, importantly, bitcoins may be extraordinarily profitable for a bitcoin company, but never increase in value, whereas if you purchased a bitcoin today for $700, and 5 years from now, the bitcoin was still $700, you would likely be unhappy.
> Bitcoin companies may quickly move to focus on properties of the blockchain that are not related (and, perhaps more importantly, more profitable) What properties?
Wow, looking at the order book of bitstamp [1] through the eyes of someone who lives in the world of market microstructure is eye opening:) There are huge holes everywhere in the order book and the liquidity at each offering level seems to be completely without reason. I just spent 20 minutes applying the sort of algorithms that'd we'd normally run on each stock to make markets in it and it can't detect any real patt…
The main driver behind Bitcoin is amateur speculation. As those guys don't stand any chance on real markets, they find opportunity in Bitcoin.