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/biz/ - Business & Finance

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5356549 No.5356549 [Reply] [Original]

So, /biz/, I was wondering something, on coins with lower transaction fees than BTC, why isn't there a market in transferring LTC/ETH/whatever to markets with variants in price?

For instance, right now LTC is 245 on Basecamp, but 230 or so on Binance. Why aren't people transferring large amounts of LTC from Binance to Basecamp?

Or do these differences in price reflect the fact that sales are temporarily blocked on one?

>> No.5356852

>>5356549
When BTC started crashing everywhere the Luno exchange was going gradually down, but the price was MUCH higher. It still is. When BTC hit $15k on Kraken the equivelant price on the SA Luno exchange was still just below $20k. If I held bitcoin I would have used that life line for sure.
So I am pretty sure there are anons keeping similar, but perhaps less extreme doors open for themselves across exchanges.

>> No.5357060

>>5356852
But why does this happen? Like in stock exchanges it doesn't happen for long because as soon as prices differ traders instantly arbitrage until the price equals out.

Likewise, when coinbase freezes trades does it still allow the withdrawal of coins?

>> No.5357411

>>5357060
I can't say about Coinbase.
Many exchanges have a very localized customer base and the value of coins develop separately. Remember, whenever you trade coins you are trading with an actual person doing a transaction, not the exchange or some larger central authority.
Take Zimbabwe for instance. If you bought Bitcoin at ATH and want to make a killer profit right now, go sell it in Zim. Their local currency has long since crashed and they have been trading with USD for years, but cannot keep up supply. So they merchants started using bitcoin and the value for it there is far, far more than anywhere else I am aware of. Because it matters little what the USD value of BTC is down there. They are using the coin itself as a proper currency.

>> No.5357791

>>5357411
But those people can't actually cash out, right?

>> No.5358465

>>5357791
Dude they are using as you are using your fiat to buy bread, make rent etc. They dont need to cash out anything. They have btc wallets and they semd cash around to pay for stuff.

>> No.5358568

>>5357791
The country still uses usd as an official currency. So you can fly there and get people to pay you usd in cash for you coin.

>> No.5358646

>>5358465
>hello i like to buy loaf of bread
>that will be .0000001 bitcoin + $49 for the fee
>but i make $3 a month
how the hell does that work

>> No.5358670

>>5358465
how are they using bitcoin when the transaction fees alone are higher than their monthly salaries you stupid fuck?

>> No.5358732
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5358732

>>5358670
He probably thinks they are all using LN

>> No.5358851
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5358851

>>5358670
Go read a book, you nerd

>> No.5358889

>>5358851
I'll copy paste my question once more, because you're apparently a 75 IQ brainlet.
>how are they using bitcoin when the transaction fees alone are higher than their monthly salaries you stupid fuck?

>> No.5358924

>>5358851
Are you mentally disturbed? You actually think they "use" it for something

>> No.5359135

>>5358889
Read up on the economics there and it will make sense. The BTC trade is informal there. Read up on their governance. They just evicted their dictator who ruined the country and didnt give a fuck how the people traded or survived. So it is extremely easy to pay for labour or anything else with a different kind of payment. They create their own demand for btc and it carries more value for them than dollars because the usd supply is unreliable there.

>> No.5359489

>>5359135
>The BTC trade is informal there.
like they print out paper bitcoins pretend they are real? what the fuck are you talking about
the only way this could work is if some central body held bitcoin and then issued physical tokens that would be backed by the bitcoin in their possession

>> No.5359779
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5359779

>>5358851
>apefricans

>> No.5359829
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5359829

>>5359779
>hurr durr early crypto adopters

>> No.5359960

>>5356549
OP

Then what, what do you do with that USD?

That is generally not how you do arbitrage because it's too slow and expensive.

Let's say you deposit 200 dollars on exchange A (and pay fees, and it's probably not instant), then buy 1 Litecoin with it. Transferto exchange B then sell for 215 USD. But you cant transfer back your USD to A.So you cash out (lolbtwyoucant) and pay more fees. Then there's a delay. Then you have you have to deposit it again on A (more fees). And the price might've gone up to 230$ before you actually get your money back on A.

Arbitrage is: trade coin X for coin Y because it's cheaper on exchange A than on B. Then transfer and trade back, then come back to A and repeat. It gets more complicated you can have to go through multiple exchanges/coins to get gains.

But yeah, people do that. Bots do it too. That's how I make most of my money.

>> No.5359987
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5359987

>>5359829
do you think the niggers will invest in agriculture and infrastructure with their gains or will they spend it all on white t's and jenkem?

>> No.5360256

>>5359987
literally dindu nuffin