Re:The Bear Case for Crypto, Part II: The Great Bank Run
by vasilipupkin on Monday November 27, 2017 @04:53PM
(#15791851)
yes, that's the problem. the order book is already quite thin - and in a panic, it can disappear and reappear at a much lower price.
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Re:The Bear Case for Crypto, Part II: The Great Bank Run
by mrb on Monday November 27, 2017 @05:26PM
(#15792192)
Bitcoin's trading volume (and implicitly order book) is already bigger (impl. deeper) than stocks with comparable market capitalization, eg:
BTC: $160B market cap, ~$5B traded/day
INTC: $200B market cap, ~$1B traded/day
So if there was panic selling of INTC, the stock would presumably dive deeper and lower than a panic sale of BTC...
Re:The Bear Case for Crypto, Part II: The Great Bank Run
by vasilipupkin on Monday November 27, 2017 @05:48PM
(#15792371)
sure, panic selling is possible in INTC, absolutely. Valuing INTC is easier, though, because it actually pays dividends and because it can be compared to other stocks.
Re:The Bear Case for Crypto, Part II: The Great Bank Run
by paulpauper on Monday November 27, 2017 @06:31PM
(#15792777)
it is a lot lower than than that. you have to divide by the number of major bitcoin exchanges
Re:The Bear Case for Crypto, Part II: The Great Bank Run
by vasilipupkin on Monday November 27, 2017 @06:47PM
(#15792873)
Not sure I follow.
Re:The Bear Case for Crypto, Part II: The Great Bank Run
by ifdefdebug on Monday November 27, 2017 @04:56PM
(#15791884)
Very true. That's why a stop loss to market is a total suicide in this market. Better do a stop loss to limit and if the limit fails, keep your coins and wait for better times...