Proposal for smaller difference between Buy/Sell price on exchanges


#21

I do not say that do not apply. I am just saying it is too soon to know. There is no evidence that it will work as there is no evidence for the opposite.

The evidence you are showing, really means nothing for the crypto system’s applicability.

If you want to trully compare these systems go find the values of the spreads when dollar or GBP was 10 years old.

In order to compare two systems you have to obtain comparable data.

You cannot compare an economy as it is today with iteself at its beginnings. The inputs are different. And for the crypto system we do not even know the output.

You really cannot tell that a theory which applies to conventional economy, would apply to crypto too just because. You dont know it. You cannot compare it. There is no evidence to support it.

And really you cannot find an article (anyone nowadays can find whatever evidence he needs to be an expert) and say “this is my evidence, show me yours”. This is not evidence! This is nothing!

And also how can you ask for evidence from something new. There is none…yet.
Give crypto the time to create its data and then ask for your evidence…

Anyway, you have the right to believe to whatever “evidences” you want.
I believe that it is too soon to sit down and deal with this.
I wont argue anymore. All in all It is community’s decision, they can vote and change everything if they want.


#22

Can you point to any market, ever in history, where a smaller split between price quotes reduces an asset’s desirability and therefore reduces it’s value?

You don’t need to write an essay, or post to just get the last word. A simple “no”, or an example will do.
Thanks.


#23

So why dont you simply ask for a reverse split? It is the same thing and you will have the same result.
Lets decrease the total ammount of coins to 21M, get the coin’s value to 38000 sats, have a spread of 0.0025% and see what will happen.

And if you need evidence about what a reverse split can do to almost whatever is applied, you can find plenty in economic bibliography.


#24

The problem we are discussing occurs only when we are exchanged versus a token with more than 5 orders of magnitude difference.

Actually, the order of magnitude of a BTCz token is pretty good for normal barter. Much better than BTC, for example. Currently we are a fraction of 1 cent, but I think that will change, and being worth, say, 10 cents to a dollar puts us in a nice area.

A reverse split would indeed solve the exchange vs BTC problem, but would take away some of the special feature of BTCz. Adding decimals to the vs BTC exchange solves the problem free of side-effects.

One might argue that when we are 10 cents or so this won’t be such an issue. I agree, so long as BTC hasn’t gone up equivalently too. But we need to get to 10c. I’m not sure that will happen if we don’t keep BTCz useful. Down the road, once we are 10c, we can change policy again. Exchanges will be free to either follow that or not, and having the extra decimal(s) won’t be a negative.


#25

I totally agree with you that the max supply of BTCZ has to be untouched. There are some specific features that make this coin so great and under no circumstances these features should change.

One of this features might be the trading precision against BTC, but this is only my point-of-view.

I strongly believe that the situation we are dealing with now (high spreads) is just a coincedence of the general dumping mood that is hovering above all the crypto world. And I also believe that this mood is about to reverse. I might be wrong to that, but this is my opinion.

Anyway thank you about this great conversation. I think that everyone will find it useful in choosing the best for our common future.


#26

This is a non issue.
There are already pairs with much smaller spreads, for example BTCZ/LTC and BTCZ/ETH.
These other pairs get a tiny fraction of the volume compared to BTCZ/BTC.
Therefore, the market is happy with a 2.5% spread.


#27

How would it look if the market participants want to convert between BTC and BTCz and they were actually put off by a 2.5% spread?


#28

How would it look if the market participants want to convert between BTC and BTCz and they were actually put off by a 2.5% spread?

How would it look? They would convert their BTCZ to ETH or LTC first, then convert their ETH or LTC to BTC. This is clearly not happening. Stocks.exchange is the highest volume exchange at the moment:

BTCZ/ETH 24hr Volume:
457147 BTCZ

BTCZ/LTC 24hr Volume:
162038 BTCZ

BTCZ/BTC 24hr Volume:
5977845 BTCZ

The BTCZ/BTC has an order of magnitude more volume than the alternative pairs combined; even with a 2.5% spread!


#29

The strategy you mentioned may work, and it would be interesting to see if bearing in mind the fees and splits on the other currencies, whether it would in practise.

Bear in mind, even if such a strategy could work in practise, it doesn’t mean people won’t be put off. The suggested strategy makes trading more difficult. And anyone who considered using such a strategy needs to be aware of these other pairs, and needs to go through the process of evaluating the trade for current market conditions. An easy task fr an appropriately programmed bot, but not for a human.

I have not argued against the fact the other pairs are smaller. And that seems to stand to reason. Since if you are getting into crypto, you will nearly always be getting in through BTC.

My question still stands. If people under current conditions aren’t put off as the cited economic text suggests they would be, then what market conditions would put them off?

To put it another way. We have a theory of gravity. If you were to claim that in your room, the theory of gravity doesn’t apply, and you made that claim, and I made the claim that the theory of gravity does apply in my room, And I said, I think you are wrong, then who does the onus of proof fall upon?


#30

You raise an interesting question. I’m not sure how it would look for BitcoinZ in particular, but I took a quick look at other altcoins on stocks.exchange and BitcoinNote currently has a 800 - 1090 spread.

Maybe Stocks.exchange is just a crummy exchange.


#31

A great exchange pair is one where a lot of people come to the market to jostle for the next trade.

Whilst stocks.exchange isn’t the best in terms of user experience, it happens by fluke of history, to have attracted the thickest market. Probably because the temporary closure of C-Cex in December, and intermittent un-availability of the exchange wallet on tradesatoshi.

I think this can change very quickly if another exchange with a sensible pricing structure, and good functionality (crex24 perhaps?) added additional precision.


#32

This will never happen. Any alt is paired against BTC.

Unless I am wrong, please correct me. Coinmarket cap lists every coins against sats. And just how it works :slight_smile:

Even you mentioned 1000 sats. Exactly, BTC is the grandfather coin. The system would have to change completely to pair against USD. It won’t happen for many many years (but I think one day it will).

Additionally, when people buy coins they log into an exchange and use their BTC to buy a coin. Lets just say an exchange does list BTCZ against only some form of tether or usd. People would have to convert their btc to usd, and then buy btcz.

Aside from any exchanges that allow you to deposit fiat, it would be crazy.

Also, if you had 10 decimal precision, how would you then trade against btc or other alts? It would be great one day to see btcz as a trading pair against other coins. And this would stop it.