You are viewing a single comment's thread from:
RE: This biggest reason steem prices are falling: The Arbitrage Sabotage Steem-Dollar Teeter-Totter
like i said, i have no problems with the arbiters exploiting this. Its what theyre supposed to do in a free market. But the powers that be should take a real look at whats happening, because AFAICT, the arbitrage window always ends with the price dropping back to the initial levels. That is to say the arbitrage kills growth in value.
The price drop is being affected by 100% inflation per year also, the arbitrage should spread the volumes across all the exchanges. There might be more stability with shapeshift recently coming on and Kraken in the future
no, its really not. the money supply theory of inflation is a complete myth.
As to additional exchanges, etc. I don't think any amount of volume will cancel out the negative effect of the arb.... because at the end of the day it can use very little capital to produce a massive downward pressure on the currency value.
@cryptofunk i proposed some ideas at the end of the post. There is no pretty solution... either get rid of the internal market entirely or put a time delay into the trades... make the proceeds available after like 15 minutes or something...
What do you think could remedy this so that we have stability or upward trend?