It’s still buying and selling. I don’t get it. Bots aren’t magically making btc and devaluing or by anything like that. Seems like bots buying and selling is the part of the game in a number of various markets.
Seems like it’s part of the future and If your not okay with that go buy bonds or something.
Another ridiculous WSJ article. This Qin guy says “We’ve had to build in error-handling functions to check for hostile and potentially illegal activities”, while he is running a bot farm of his own, as if he is a knight in shining armor. Obviously it's a game and he's crying because he's losing.
After reading about high frequency trading on Wall St., I've concluded that no market is more rigged than the USA stock market.
Buttcoin is trash but WALL street journal??? Cmon we're better than this get some real sources... I understand if you're American than you have an excuse for not knowing real sources but for the rest of us this is unacceptable.. Posting fake news just makes us look dumb
Bots of different kinds have been around in the Bitcoin space for a while. The Willy bot at Mt. Gox, for example, was more explicitly fraudulent, though, not just a trading bot that was playing by the rules. See here: https://bitcoinmagazine.com/articles/study-late-2013-bitcoin-bubble-fueled-suspicious-trading-activity-mt-gox/
One of the best nuggets is in the comments section:
There are hedge funds engaged in crypto currencies. That´s a fact. BUT: these hedge funds consist of so-called "crypto fanatics" and free riders. People like Michael Novogratz have been global macro hedge fund managers and left the "hedge fund building" because they couldn ´t perform anymore in their "traditional" asset classes. Ask him how his performance was in the last couple of years at Fortress Investment Group! Maybe the WSJ wants to do some investigative reporting on him?
There are no broad based investments by hedge fund managers in the crypto space. Full Stop. There are around 10.000 hedge funds worldwide. Most of them can be tracked in databases like Prequin, Eurekahedge, Barclayshedge, Hedge Fund Research, Morningstar - to name a few. The vast majority is not invested.
I've posted this before but I'll post it again. I know a guy that works at Novogratz's family office (where the investments in crypto are made). Michael invested in this stuff for shits and giggles a few years back fully expecting it to be a bad ROI (and recognizing how stupid/useless it all was). Maybe 50bps of the portfolio was invested in crypto, but it went up 20x and suddenly it was 10% of his net worth.
That's when he started all the shilling and crypto investment bank nonsense. The dude knows crypto and blockchain are worthless technologies, but at 10% of his next worth (now more like 4%) he has to pump his book.
If your limit order is not filled you can just place a new one. You can just keep trying to match an order in the orderbook until you succeed. It is slower of course but at least you know the price up front.
Ok, so there's tradeoff right? Market orders have a place because they can be executed faster then a new limit order. Have you noticed how fast moves are now?? The whole idea of manipulators is to move faster then pleb algos can react. I've implemented several arb strats in past. You can use market and limits to good effect. There is no always perfect arb strat and implementation is very exchange dependent.
You are right my initial comment was a bit crude.
Using market orders especially places you at risk when someone buys up a large chunk of the orderbook. In these (rare) cases placing a market order can lead to a large losses. I think that generally, if your initial market order misses, the arbitrage opportunity passed. This means that a lot of the time pressure is also relieved.
Funny lots of people in crypto think its the banks and government manipulating the price of crypto (gold too). I guess everyone has their own conspiracy and its a shame the WSJ charges people for theirs.