What happens if bitcoin get hypertraded?

[Beamin]

You guys know much more about computers then I. What would happen if bit coins were to get hyper traded like they do with stocks on the us stock market? Would the block chain explode? Would it cripple the network? Whats cool is if you own just one coin and you day trade it it is so volatile you can make a few hundred bucks a day. Try that with regular stocks. I'm trying to set up an account where I do that. I have such a simple way of doing it. It varies by +/- 250 each day so sell when it reaches +100 wait for it to fluxuate buy when it drops by -100 and just watch it every 15 minutes for it to go up again. As long as you keep the trades up you won't have any long term risk. When you are done trading end on a high or sell at break even then try again the next day or hour since the market never closes and japan trades a lot in the AM. -

[thm_w]

By hyper trading I assume you are referring to high frequency trading or similar. With bitcoin the speed to process the transaction depends on how much fee you pay: https://bitcoinfees.21.co/
This is a serious fee and applies to both sides of the trade (buy and sell).

High frequency stock traders pay absolutely minuscule fees, and sometimes only on one side of the trade or not at all: https://www.quora.com/What-are-per-trade-commission-fees-for-HF-traders

[Vtile]

Nibblecoin.org on trade now. Why get a bit less, when you have passion 4 more.

[EEVblog]

As I understand it, the faster you want to trade (have your transactions verified) the more you pay. So it's kinda self regulating.

[rbm]

Doesn't the proof of work problem limit the speed at which BTC transactions can be verified and therefore the rate of trades which is about 10-15 minutes?  I'm not Bitcoin expert; just read some stuff and seen comparisons of transaction rates for various financial instruments (Visa = 27,000 peak t/s versus BTC = 7 peak t/s for example). Bitcoin might trade faster if buyers/sellers are willing to take more risk. a trader may be willing to accept a buy without waiting for the transaction verification completion knowing that the trade holds the potential for fraud but they would command a greater commission to cover that risk.

[Beamin]

Heres an interesting screen shot. The lines are my predictions of when to sell or when to buy. It almost seems too easy to make money at this as I have already made a hundred bucks in the last week just playing with this. But I'm sure its just beginners luck.

[daybyter]

https://m.imgur.com/r/Bitcoin/4NKXJMY

^^

[Beamin]

https://m.imgur.com/r/Bitcoin/4NKXJMY

^^

It went into a hyperloop with all the investors money!

[Mr. Scram]

Heres an interesting screen shot. The lines are my predictions of when to sell or when to buy. It almost seems too easy to make money at this as I have already made a hundred bucks in the last week just playing with this. But I'm sure its just beginners luck.

That reminds me an awful lot of that story of someone who got very lucky in a booming market and thought the world of himself, only to find out he wasn't a financial prodigy when it all came crashing down.

But I don't mind being proven wrong. When I see a squadron of Gulfstreams spelling out "HAHA!" over my house, I'll eat my words.

[Beamin]

Heres an interesting screen shot. The lines are my predictions of when to sell or when to buy. It almost seems too easy to make money at this as I have already made a hundred bucks in the last week just playing with this. But I'm sure its just beginners luck.

That reminds me an awful lot of that story of someone who got very lucky in a booming market and thought the world of himself, only to find out he wasn't a financial prodigy when it all came crashing down.

But I don't mind being proven wrong. When I see a squadron of Gulfstreams spelling out "HAHA!" over my house, I'll eat my words.

I will admit that I bought into this recent bubble. Not a huge deal since I plan on holding onto to it for at least a year if not longer. All these trends have been over a few years: bubble crash but still higher then before the bubble and repeat every time.

[daybyter]

I guess, we'll see another dump, when okcoin closes. Maybe a comeback after that.

[BrianHG]

As I understand it, the faster you want to trade (have your transactions verified) the more you pay. So it's kinda self regulating.

Is this fee a portion of the number of bitcoins your wish to purchase, or, a fixed fee per transaction?

Say I'm getting ready to purchase 10M$ CDN in bitcoins, that's just over 2000btc today, for the highest speed transaction, will I be charged the transaction price 0.0000014-0.0000016btc, or, multiply that base by 2000 and get -> 0.0028-0.0032btc, in other words, not a few cents, but, 15.50$ CDN for the 10000000$ CDN.

I would think the latter...

[tggzzz]

Trading in orange juice doesn't involve movement of liquid. Movement of the juice only happens after trading has ceased.

[helius]

Is this fee a portion of the number of bitcoins your wish to purchase, or, a fixed fee per transaction?

Say I'm getting ready to purchase 10M$ CDN in bitcoins, that's just over 2000btc today, for the highest speed transaction, will I be charged the transaction price 0.0000014-0.0000016btc, or, multiply that base by 2000 and get -> 0.0028-0.0032btc, in other words, not a few cents, but, 15.50$ CDN for the 10000000$ CDN.

I would think the latter...

wrongly. The transaction fee is paid to the miner to include your transaction in the block. The miner doesn't care at all how much the transaction is worth, only its size in bytes. The amount of money you are "trading" is completely irrelevant. Most normal transactions have the same size, but some specialized types ("multi-sig") used for smart contracts are larger and would need to pay higher fees. In the past when the network was less busy people included all kinds of data in their transactions, including text and pictures.

[BrianHG]

Is this fee a portion of the number of bitcoins your wish to purchase, or, a fixed fee per transaction?

Say I'm getting ready to purchase 10M$ CDN in bitcoins, that's just over 2000btc today, for the highest speed transaction, will I be charged the transaction price 0.0000014-0.0000016btc, or, multiply that base by 2000 and get -> 0.0028-0.0032btc, in other words, not a few cents, but, 15.50$ CDN for the 10000000$ CDN.

I would think the latter...

wrongly. The transaction fee is paid to the miner to include your transaction in the block. The miner doesn't care at all how much the transaction is worth, only its size in bytes. The amount of money you are "trading" is completely irrelevant. Most normal transactions have the same size, but some specialized types ("multi-sig") used for smart contracts are larger and would need to pay higher fees. In the past when the network was less busy people included all kinds of data in their transactions, including text and pictures.

How can I know the transaction size in advance?  It cant be too big then.
I've read that the fastest transaction speed is 2bits/byte and the average transaction is 226 bytes.
I'va also read that 0.00000001 BTC is charged per byte.  Does this mean that 0.00000226 BTC will be my charge per transaction, or around 1 cent for the top speed transaction?

[helius]

How can I know the transaction size in advance?  It cant be too big then.

Your client knows the transaction size in advance because that is the data that you submit to the network. For a normal type transaction, there is an overhead of 10 bytes, plus 179 bytes for each input to the transaction, plus 34 bytes for each output. It's possible to make a transaction with only 1 output, but at least 2 outputs is more common, I think. If you want change, you need at least 1 output to one of your own addresses.

The bitcoin protocol always spends a previous TXO completely. So if you don't send the remainder to one of your own addresses, it will be taken by the miner as a fee. This is also how you set the amount of fee you want to pay.

I've read that the fastest transaction speed is 2bits/byte and the average transaction is 226 bytes.

People use an unnecessary profusion of units. a "bit" is just a µBTC.

I'va also read that 0.00000001 BTC is charged per byte.  Does this mean that 0.00000226 BTC will be my charge per transaction, or around 1 cent for the top speed transaction?

I think currently you may need to use higher fees. 0.0004 BTC is more like it.

[BrianHG]

Ooops, when multiplying, I had the decimal place in the wrong location with the source BTC price.  So my transaction would cost me around 2.25$ cdn...

[Beamin]

As I understand it, the faster you want to trade (have your transactions verified) the more you pay. So it's kinda self regulating.

Is this fee a portion of the number of bitcoins your wish to purchase, or, a fixed fee per transaction?

Say I'm getting ready to purchase 10M$ CDN in bitcoins, that's just over 2000btc today, for the highest speed transaction, will I be charged the transaction price 0.0000014-0.0000016btc, or, multiply that base by 2000 and get -> 0.0028-0.0032btc, in other words, not a few cents, but, 15.50$ CDN for the 10000000$ CDN.

I would think the latter...

The trading fees are almost nothing making it so you don't need 25000USD to day trade. The biggest fees are when you buy off coinbase or when you first turn the usd into btc. Much cheaper then using fidelity or a tradition bank.