The Bitcoin Index may change significantly if exchanges which have been left out before are now considered, according to plans by BitcoinAverage. Technical market analysis usually involves mathematical calculations of certain averages and is usually influenced by the volume of trades over a given period of time. In the Bitcoin world it is known that some exchanges don’t charge fees on either side of trades. Exchanges that manipulate volume of trade
Exchanges which do not charge fees are mostly omitted on the Bitcoin index. This is usually due to the suspicion of the “faking” of the volumes traded.
Shaun Gilchrist, Founder and CEO at BitcoinAverage , explains to CoinTelegraph: “A lack of fee means technically unlimited trading on a very tiny spread, and the short of this is hugely increased volume.” Without trading fees it’s easy to bloat the volume, whether bots or some person sitting in a room manipulating figures at the push of a button or at the shout of a command, it’s artificial, and noticeably so. Back in December a social media user posted an image showing over BTC 1 million traded in a single day at the Beijing-based exchange, Okcoin which is known as China’s largest Bitcoin exchange.
According to Gilchrist, such exchanges can no longer be ignored. We must consider a fair structure
Speaking to Cointelegraph, the Managing Principal at Citizen Fusion, Stephen Corliss, says that the subject of fragmented markets has been discussed and debated for nearly a century. He points out that as far back as 1976, the idea of a CLOB (Consolidated Limited Order Book) was first proposed to the SEC by Professors Mendelson, Williams, Jr and Peake shortly after Congress told the SEC to create a National Market System.
Corliss says that the idea of a CLOB is based on one very simple […]
