High-Frequency Trading and Bitcoin

Posted on April 7, 2014


Interesting thought – could HFT moving from markets to Bitcoin lead to the next bubble/crash?


There are certainly trading bots and arbitrage bots running on Bitcoin exchanges. Is the p2p-albeit-fairly-focused (on a few exchanges) infrastructure up to a locust invasion?

Or are HFT and Bitcoin both inevitable in an algorithmic economy? Given Bitcoin’s in built resilience to Moore’s Law through adjustable difficulty, are we one step further on than traditional markets through inherent automated feedback loops?

Posted in: Finance, Shorts, Trading