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by drdeca
1869 days ago
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The phrasing probably wasn't ideal. I think they meant something different when they said "infinite demand" than what you mean. I think what they mean is that it assumes that the demand curve, uh, I guess goes off to infinity (or just, some extremely large number which can be practically modeled as "infinity") near the current price, meaning, that you could sell arbitrarily large amounts of it without substantially decreasing the price that people are willing to pay for it. Which, yeah, that assumption seems false in practically relevant ways. If you sell a whole lot of [cryptotoken X], the price is likely to go down? |
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I think that I understand what you meant. By infinite, they just mean that there will always be orders on both sides around the current price... but for that to happen, you need to have about the same amount of orders on both sides (the amount of orders don't matter and could be very small).