| Genuinely interested here. Would you mind explaining the terminology, or even better, expand on your thoughts in a blog post or something? Bitcoin exchanges are generally very illiquid, in the meaning that little funds are kept on the exchanges. (Because there are no regulations and guarantees.) Would you not expect "huge holes" in such an order book? Why not? What does "price level" mean? I read it as the distance between orders in the order book, but then your comment does not make sense. You are surprised these levels are farther apart than the bid/ask spread. Why? What does "unsophisticated" mean? It seems to me you mean this in a specific sense rather than the dictionary meaning of the word. How is it that no discernible pattern is indicative of a less sophisticated market? In the layman definition of the word, one would expect the opposite. I don't know if other markets behave the same but Bitcoin exchanges have large dark components to them. If the price moves dramatically, lots of coins move in/out of the exchanges. Some people believe the days-destroyed metric is indicative of these movements, but in practice things are of course not that simple. As you might understand, I do dabble with Bitcoin trading on the side on a pure hobbyist basis and I would be very interested in your views on this. I don't know if there is a personal message function on the HN board but any answer would be appreciated. I think a lot of traders on Bitstamp and other exchanges are hobbyists too, but I have the feeling that something happened during the runup to the October rally and would not be surprised if there are quite a few pros among us now. |