Author Topic: Why BTS trading on external exchanges (not just in the DEX) is impotant too  (Read 2971 times)

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Offline cube

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OP-er. Wrong!

@tonyk is correct, but with one huge caveat - there absolutely must be an IOU backed by real off chain crypto in order for BTS price to have any meaning at all in a system where BTS only trades internally.

It becomes the external exchanges' turn to have a price feed of the DEX.
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Offline monsterer

OP-er. Wrong!

@tonyk is correct, but with one huge caveat - there absolutely must be an IOU backed by real off chain crypto in order for BTS price to have any meaning at all in a system where BTS only trades internally.
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Offline Samupaha

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I'm quite sure that there is no need for outside trading of BTS.

The price discovery process will work just fine even if it's exclusively on our blockchain. There will be lots of market pairs: BTS <-> smartcoins, BTS <-> cryptocurrency-UIAs and BTS <-> fiat-UIAs. When all these have good liquidity, we can be pretty sure that price of BTS is accurate for price feeds.

Offline BunkerChainLabs-DataSecurityNode

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This is a view that somehow the dex is not the real world, not the real market. And it is a real market like all other markets. It might be small now but it does not have to be, it can be as big or bigger than any exchange. This believe is similar to the believe that New York SE needs other exchanges so its trade or prices are legit and real...

Additionally  the on-dex price "feeds" provide much better solution than the current system in all respects, including to the somewhat funny current forced liquidation rules.

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Offline cylonmaker2053

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Any trading is good trading IMO, whether it's on our DEX or in another exchange. Each has pros and cons. one big benefit of external markets is that we benefit from their internal network of traders and their liquidity. it doesn't make sense to favor one or the other IMO bc they're not mutually exclusive. i'd welcome the NASDAQ open up for BTS trade :)

Offline mf-tzo

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I couldn't agree more with TonyK...

Maybe some people need to see again the original video from BM of what is bitshares https://www.youtube.com/watch?v=5BV55IrZi7g
Just look at the meme of matrix at 3.39 ...That meme was the only thing that convinced me that bitshares and bitassets is the future and unless members of this community start changing the mentality of old fiat, centralized institutions manipulating stocks, money, prices no one else will do..
 

Offline tonyk

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OP-er. Wrong!

This is a view that somehow the dex is not the real world, not the real market. And it is a real market like all other markets. It might be small now but it does not have to be, it can be as big or bigger than any exchange. This believe is similar to the believe that New York SE needs other exchanges so its trade or prices are legit and real...

Additionally  the on-dex price "feeds" provide much better solution than the current system in all respects, including to the somewhat funny current forced liquidation rules.
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline abit

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Price feeds can come from BTS/OPEN.USD etc if the volume/depth is high enough.
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Offline Ander

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Yes, we would all like to see more BTS trading inside the DEX.  It generates fees for the network.  It is the real use of the token.  This represents actual use of BTS (not just speculators buying, selling, or hodling BTS).

Yes we want more people to move BTS into their wallet, and use it to trade on the DEX.


However, sometimes I get the impression that some people want 100% of the volume of BTS to be internal to the dex, with no trade between BTS and BTC/CNY/USD happening on poloniex or btc38 or other exchanges.  But that would cause a big problem!

BTS' internal market mechnisms rely on witnesses to provide price feeds to the blockchain, telling it the price of BTS relative to that of smartcoins.  The blockchain needs to know how many BTS a USD is worth, how many BTS an ounce of gold is worth, and so on.  It needs to do this so that it can enforce margin calls on the smartcoins, so that the peg remains in place.  Without the price feeds, the system doesnt work. 


The value of the price feed relies on the price of BTS on poloniex, btc38, etc.  If those trading markets are too thin, it allows huge spikes in the price of BTS, which then results in too much volatility in the price feeds, which then results in margin calls and the internal DEX not working.


Therefore two things are needed:
1) We need solid volume on external exchanges (polo/btc38), to provide a good price feed, and keep voluatility low enough that we dont have extreme black swans.

2) We need solid volume on the internal DEX, representing real use of BTS.


Both of these are beneficial to BTS.

Obviously we are doing better so far in terms of BTS volume on external exchanges, so getting more volume on the BTS DEX would be good right now.  But we should always keep in mind that our gateway from the BTS world to the outside world is also important!
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