Quote from: bytemaster on September 19, 2014, 12:53:24 pm

Monday will change all of that.  We will create a trading bot that will buy all the usd it can short at 99.5% of market price.

The bot is live I guess...

Can the devs confirm status? Be interesting to know if the bot is running..

Post here:

http://www.reddit.com/r/Bitcoin/comments/2h7cdt/killer_app_for_bitcoin_incentivized_meshnets/

Not sure if this has been discussed, but seems like an ideal application for a DAC.

Perhaps combined with DNS as a one-two punch?

Quote from: troy61 on September 22, 2014, 07:41:33 pm

Quote from: bytemaster on September 22, 2014, 05:54:33 pm

To be accurate:  placing an order costs a fee, canceling an order costs a SECOND fee.

This is even worse than I feared. First of all I placed a small order to test, which I cannot cancel anymore because the fee is larger than the trade amount.

Second, if there is a fee for cancelling orders and placing new ones at a a different price for example, that makes the whole decentralized exchange idea uninteresting to me. How do you expect someone to start an arbitrage bot and to support the market peg, if cancelling or changing orders costs money. I for myself go back to traditional exchanges.

You can "update an order" with a single transaction (technically) and pay a single fee... but every order on the blockchain burdens everyone so these are not "free" and everyone is playing the same fees / risks.  If we had no fees then obviously someone could flood the network at no cost.

An arbitrage bot at normal exchanges charge you a percent of your volume... compared to a flat rate regardless of volume and depending only upon update frequency.   The whole market moves slower... so assuming you were to update your orders every single block you would pay a total of $400 per day in fees.    If you have a spread of 1% and work it with $40,000 in volume you would be break even.   

The good news is that you rarely have to update your orders every 10 seconds.   If you do it once per minute then your costs are $65 per day.  If you are a large trader with $100,000 in volume then you will be paying $250 per day on BitStamp vs $65 per day on BTSX.    

If you drop down to lower volumes then the big exchanges charge higher fees.     

So I think the fee schedule for BTSX is better for "low frequency traders"... given the fee schedule on BitStamp there is a minimum spread of 0.5% for small orders.

Given a choice between paying .5% or paying $0.05 per order, I think BTSX is far cheaper for all orders greater than $10.

This sort of info is marketing gold.

Really hope that when the time is right Brian & Co. capture these tidbits!

This is an incredible concept that could go viral if marketed well. 

I bought my first BTSX today (small fish).  I thought that when bitcoin goes up alts often go up and when bitcoin goes down alts often go down even more (not that bitshares-x is a mere 'alt') so it could be a good time to buy.  But who knows it's so young it's incredibly difficult to know how to value it.  But if this market peg keeps working allowing a market of endless assets to exist with so many uses and dacs too, I can see that becoming huge potentially, which is why I thought its worth hedging a little from bitcoin.

Welcome, great to have you aboard!

Anyone cashing out a significant number of coins is will do so off-market/OTC.

Theories that rationalize the price drop as large holders cashing out on-market do not hold water.

No one with enough wherewithal to accumulate thousands of coins is going to use exchanges to liquidate.

The slippage and security issues are a non-starter.

The price is dropping because folks are acquiring larger amounts of coins off-market and, very reasonably, dropping the price via the exchanges to facilitate accumulation.

Ironically, the good news of the last few months may be the reason for the drop.

Bigger money is now taking the tech seriously and that means folks are going to want open positions.

This is the way smart money opens a position.

Has the protocol failed? No.

Has a government announced a ban? No.

Is adoption decreasing? No.

Is VC investment decreasing? No.

Are adoption, VC investment and transactions increasing? Yes.

Hmmm...

what do you mean? the traded volume of btsx has fallen and the reason price is up in satoshi is because bitcoin has fallen

Have been watching bter, bids keep nibbling up.

Volume down, true, but usually price drops with volume.

Seems like there's a few folks buying... guess I'm hoping BTC value is looking for an alternative and finding BTSX.

 

In the past 24 hours, BTC price has dropped by ~5% and BTSX has raised by 5% (relative to BTC). So of the $250million has left BTC, maybe $3million (at most) went into BTSX. So maybe something like 1% of the BTC volume out has maybe went into BTSX.

That would be a trickle...

BTSX is holding its own. Almost flat right now in the face of a huge BTC/crypto slide.

I'm hoping this may encourage at least some BTC value to step on over.