Most Bitcoin Trading Faked by Unregulated Exchanges, Study Finds

[HolyGrailSeeker]

You can use bitcoin at overstock.com and microsoft xbox store. So its not like this a completely useless currency.

Gresham's law, bad money will chase good money out of circulation. Thus, bitcoin will by nature of people hodling increase in value over a long period of time.

 

[HolyGrailSeeker]

That's not what the article is saying, though. They are alleging that most of the daily volume is not real trading but rather painting the tape by exchanges.

PS. I don't trade crypto, but my thinking is that the fake volume is much lower, on the order of 30-50%. Simply thinking that about 60%-70% of volume goes to large exchanges who have no incentive to paint the tape while smaller exchanges fake most of the volume (say 95%, as this article says or even almost all of it) on the residual. It's a scary thing nonetheless

Fake volume is still volume just that the bots are from the exchanges and trade between themselves. It gives the lower cap coin liquidity so its not a bad thing.