True, but when 88% of the large ($1M+) exchanges and 95% of transactions are mostly fake volume, that's reflective of Bitcoin as a whole, wouldn't you say?
50% of phone calls made each day in the US are fake robocalls, that’s reflective of the phone system as a whole, wouldn’t you say?
The fake volume may be reflective of bitcoin price or the lack of regulation of bitcoin exchanges but I don’t think thenfake volume is reflective of bitcoin as a whole.
Yes, it is reflective of the phone system. If the phone system had appropriate safe guards to prevent faking of ANI data and other abuse prevention mechanisms, robocalling wouldn’t be an issue.
I’ll leave it to others to decide if you picked a bad analogy or if you just proved the point of GP, I’ve got no skin in that game and don’t care.
Yes, I would! I think that deregulation has enabled the phone system to become a terrible system. That's not a good analogy if you were trying to prove the opposite.
If the phone system keeps trending as it is, people will shut off service and it’ll eventually disappear.
To me it shows that: 1) Anyone can start an exchange (unregulated market) 2) Some exchanges are shady and untrustworthy
It's not that "most transactions are fake volume". Its that if you aggregate the data, you include a lot of bad data.
I think you misread/misquoted me. It's that 85% of the major exchanges are mostly fake volume, and that 95% of all transactions are fake volume. It's in the article.
Was not able to see it here: https://www.sec.gov/comments/sr-nysearca-2019-01/srnysearca2...
So, it's not 85% of the major exchanges, it's 85% of the exchanges top ranked by CMC's volume as reported by the exchanges themselves. Anyone could create an illusion of an exchange and do a fake-generated behemoth of an exchange within a couple months.
The majority of the top-ranked CMC exchanges are just fake-volume generators making money from all those ICO tokens/altcoins that hope that getting listed will help their price, or most commonly just sell more of their tokens to more uninformed victims.
For most of those exchanges you can't even find a single human name throughout their site. There was a big rise of using white-label crypto-exchange products, so you don't need much to get one of those online, they even provide "liquidity" network.
It's a shitshow, but it's irrelevant or a useless detail to bitcoin's value and trading, most big firms like DRW/Cumberland etc. breath this things and I'm sure they have talked to their SEC buddies about it.
But also take a look at the most promising sharding project: https://github.com/nearprotocol/nearcore
Two complete different approaches.