jm + investing   3

The “Bart” — sudden hundreds-of-Bitcoin pumps or dumps, to burn the margin traders
Finance journalists need to stop treating crypto as an efficient market that responds to concerns. It’s a thinly-traded unregulated playground for whales, out to wreck the margin traders. A $400 dip in fifteen minutes is not a “market signal” — it’s a deliberate dump to manipulate the price.

Though there’s still downward pressure on the price — all the suckers from the bubble have gone home, so they’re not buying … but the miners still have to sell coins for actual money to pay for their electricity.

And even more so now that the price of mining one bitcoin is at — or above — what you could get for selling that bitcoin.

So one minute you’ll see a sudden $100 increase in the price that cost 130 BTC of dollars — and those are actual dollars going in — followed the next minute by a matching $100 drop that came from selling only 30 BTC. It’s much easier to drop the price than raise it.
investing  bitcoin  via:harikunzru  cryptocurrency  pump-and-dump  barts  finance  margin-traders  currencies  fraud 
4 weeks ago by jm
SEC vs April Fool's Day
I think that materiality means what it says, and if people or algorithms do dumb things with trivial information that's their problem. But markets are a lot faster and more literal than they were when the materiality standard was created, and I wonder whether regulators or courts will one day decide that materiality is too reasonable a standard for modern markets. The materiality standard depends on the reasonable investor, and in many important contexts the reasonable investor has been replaced by a computer. 
algorithms  trading  stock  stock-market  sec  materiality  april-fools-day  tesla  investing  jokes 
april 2015 by jm
Why Amazon Has No Profits (And Why It Works)
Amazon has perhaps 1% of the US retail market by value. Should it stop entering new categories and markets and instead take profit, and by extension leave those segments and markets for other companies? Or should it keep investing to sweep them into the platform? Jeff Bezos’s view is pretty clear: keep investing, because to take profit out of the business would be to waste the opportunity. He seems very happy to keep seizing new opportunities, creating new businesses, and using every last penny to do it.
amazon  business  strategy  capex  spending  stocks  investing  retail 
october 2014 by jm

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