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RE: Witness Feed Publishing with Automatic SBD/USD Peg
thank you
I would like to ask two questions.
The first thing is as follows. Do you consider that BTCUSD benchmark calculated based on index ( Bitstamp , Coinbase , Bitfinex , OKCoin , BTC-E ) seems a bit inaccurate once those exchanges only covers 1.2% of global traded volume of bitcoin?
https://steemit.com/bitcoin/@airmike/global-market-overview-btc-sep-16-2016-quiz-included
The second thing . Are you going to change SMD/USD if some of the different exchanges will list SMD and STEEM and traded volume will be higher than traded volume on Bitfinex and Bittrex?
thank you
Volume on zero-fee exchanges is not trustworthy and for data to have any real legitimacy, they must be excluded. If there isn't sham trading on those exchanges why don't they charge 0.01% fees? It would be a goldmine.
The
btc_usd_ticker()uses OkCoin.com price. The .com version does charge regular trading fees. None of the Chinese exchanges with questionable volume are used as a source of price feeds.Just small additional comment. BTCC as a main critic of printing volume has 222k BTC in last 24 hours. (Okcoin 868k and Huobi 747k) . This explains everything. Even you have slowest messaging and no printing algorithm you can outperform rest of the world only by location.
I agree that volume on the zero-fees exchanges is not accurate. In the other hand I can assure you that any of the Chinese exchange do greater volume than rest of the world together.
I explained this volume issue in this post.
https://steemit.com/bitcoin/@airmike/bobby-lee-may-be-wrong-btc-curiosity-series
Long story short. " printing of the volume " is a way how the exchanges protects themselves against HFT predatory algorithms (order-flow algorithms and front running algorithms). This situations are rare. The situations happens only when LPs pulling their orders from the orderbook very quickly in high volatility. This mechanism of printing is only temporary protection (definitely not 24/7). When volatility is low most of the volume is accurate. Printing is not needed.
There is lot of mystery on the Reddit and other discussions about this issue. Most of the people do not trade high volume so they don't know whats going on there. BTCC is only one exchange which haven't been using this type of protection, yet. They use different type of protection. " they do it by slowing of the messaging" you can not get confirmation of your trade in scale of milliseconds. There is plenty of solutions how to solve this problem but important thing is that we shouldn't ignore 98% of traded volume around the globe and calculate index from ridiculously small exchanges (one of them is at bankruptcy already).