oda.krell
Legendary
*
Offline Offline

Activity: 1470
Merit: 1007



View Profile Personal Message (Offline)

Ignore
April 16, 2014, 08:05:17 PM


Of course there are moment when some other exchanges take control for short time but this time, beside his usual biased bullshit Jorge is right in general.

We can deny it as much as we want but Bitcoin is currently China's bitch and largely depends on each fart coming from that part of the world. Their government decisions or even only rumors about them are moving the market as a wheel. It might change at some time surely but right now we are under China's mercy completely and that's awful thing, specially for people who are trading as no skills and indicators can beat a single news coming from China. And their exchanges are in most cases the market leaders.

Well, the details matter here, and jorge's polemics didn't include those: just like, on an average (or not so average) day Bitstamp and Huobi influence each other, so do they on the larger scale.

If your model has a rigid structure where Bitstamp price is purely a function of Huobi price, then you will fail to see the (inevitable, in the long run) decoupling of the other markets from China when (and if) China drops out of the game entirely.

Didn't say that'd be painless, by the way.