seleme
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June 12, 2014, 01:47:06 AM

Your assumption is not too unlikely, but with bitcoin we have no option for high speed trades between exchanges, except if they were conducted over an interchanging platform off-blockchain.

Bitcoin arbitrage is meh, the transaction time is slightly too slow to allow consistently efficient arbitrage.

Unless someone had accounts on both exchanges where they maintained a balance of fiat and Bitcoin depending on what Bitcoin was doing.

i.e. If someone has 100 BTC on Stamp and 100 BTC on Bitfinex, and a pile of USD on both, why not take advantage of times like these to take advantage of the cheap BTC on Stamp by switching to 150 BTC on Stamp, and 50 BTC on Bitfinex. Doing so would give the trader the same amount of BTC, but more Fiat. There must be people in Bitcoin who are set up in this way. Anyone with a considerable stake in Bitcoin must infact be set up this way.

That's only valid in flat market which Bitcoin rarely is.

If you are in bull market than you don't give a shit about arbitrage and fiat, and if you're in bear market than you don't give a shit about arbitrage and bitcoins.