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by heptathorp 2552 days ago
It's based on what people are willing to buy or sell it at. Like anything else...
1 comments
CaptainZapp 2552 days ago
Obviously, I'm not disagreeing per se.

What I'm arguing, though, is that the market making "algorithm" is highly intransparent.

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heptathorp 2552 days ago
The market making algorithm for Bitcoin is: the highest bid and the lowest ask.
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CaptainZapp 2552 days ago
Personally I have more trust into established banks as market makers than into unregulated crypto exchanges, when it comes to market making.

But we probably have to agree to disagree here.

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umanwizard 2552 days ago
The exchanges aren't market makers, they're exchanges. Totally separate concept. The NYSE isn't a market maker for stocks, for example.

Your confusion seems to be that the exchanges are coming up with the prices, which is not at all how it works. Again, the price is set exactly the same way as it is on the NYSE, by matching bids and asks.

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mateuszf 2552 days ago
You can just go to any online exchange and check the order books and history. How much more transparent can it be?
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