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RE: This biggest reason steem prices are falling: The Arbitrage Sabotage Steem-Dollar Teeter-Totter

in #steem8 years ago

The price drop is being affected by 100% inflation per year also, the arbitrage should spread the volumes across all the exchanges. There might be more stability with shapeshift recently coming on and Kraken in the future

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no, its really not. the money supply theory of inflation is a complete myth.

As to additional exchanges, etc. I don't think any amount of volume will cancel out the negative effect of the arb.... because at the end of the day it can use very little capital to produce a massive downward pressure on the currency value.

@cryptofunk i proposed some ideas at the end of the post. There is no pretty solution... either get rid of the internal market entirely or put a time delay into the trades... make the proceeds available after like 15 minutes or something...

What do you think could remedy this so that we have stability or upward trend?