Row 39364
Content Data
This page contains data entry 39364 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.
I don't think you understand how markets work.
It's not like Coinbase itself has a million bitcoin and they decide the price to sell it at and customers just come to their website to buy the bitcoin that Coinbase is selling at the price they have decided to offer. From your question it seems that is how you think it works.
Coinbase is just an exchange. If there is a million btc on the exchange that means people are holding a million bitcoin with coinbase. The buying and selling is just done by market participants (people, companies, etc), not by coinbase itself. The price at any given time is the spot price, but people put in "limit" buy and sell orders which is just them setting a lower than spot price they want to buy at or a higher than spot price they want to sell at, and this is what creates the "order book".
Also realize that the order book and the amount of bitcoin Coinbase holds are not at all the same thing. You can hold bitcoin on an exchange without specifying a price to sell it at. So the available bitcoin to buy from other people (the order book) is a subset of the bitcoin Coinbase holds for people. If you wanted to buy all the bitcoin on Coinbase's order book you could just keep making large market buys and you'd keep scooping up any market sells people are doing at the same time in addition to scooping up all the sells on the order book, with the price going higher and higher up the order book as you buy it all up.
Looking at the Depth Chart on Coinbase currently, there are about 4620 BTC on the order book going all the way up to a price over $122k for a total cost of about $387 million (there may be sells set higher but the Depth Chart only zooms out that far). So at the moment if you put in a market order for $387 million on Coinbase you'd buy up the entire order book of sells, getting an average price of about $83,750. If you did it all in one market buy then there'd probably only be a small amount of market sells that you'd pick up as well. But that's only \~4620 btc. A small fraction of all the bitcoin being held on Coinbase by customers at any given time. But you can only buy what is available to buy. And soon after your buy the price would drop back down from where you left it ($122k) back to around where it had been previously because you are no longer holding the price up with more buying.
There would then be news stories about how Bitcoin briefly spiked from $70k to $122k and then came back down, with people investigating whether it was a glitch on the exchange or if someone actually bought it all up haha.
| Field | Value |
|---|---|
| text | I don't think you understand how markets work. It's not like Coinbase itself has a million bitcoin and they decide the price to sell it at and customers just come to their website to buy the bitcoin that Coinbase is selling at the price they have decided to offer. From your question it seems that is how you think it works. Coinbase is just an exchange. If there is a million btc on the exchange that means people are holding a million bitcoin with coinbase. The buying and selling is just done by… |
| label | r/bitcoin |
| dataType | comment |
| communityName | r/Bitcoin |
| datetime | 2024-05-22 |
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Raw Record
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"text": "I don't think you understand how markets work.\n\nIt's not like Coinbase itself has a million bitcoin and they decide the price to sell it at and customers just come to their website to buy the bitcoin that Coinbase is selling at the price they have decided to offer. From your question it seems that is how you think it works.\n\nCoinbase is just an exchange. If there is a million btc on the exchange that means people are holding a million bitcoin with coinbase. The buying and selling is just done by market participants (people, companies, etc), not by coinbase itself. The price at any given time is the spot price, but people put in \"limit\" buy and sell orders which is just them setting a lower than spot price they want to buy at or a higher than spot price they want to sell at, and this is what creates the \"order book\".\n\nAlso realize that the order book and the amount of bitcoin Coinbase holds are not at all the same thing. You can hold bitcoin on an exchange without specifying a price to sell it at. So the available bitcoin to buy from other people (the order book) is a subset of the bitcoin Coinbase holds for people. If you wanted to buy all the bitcoin on Coinbase's order book you could just keep making large market buys and you'd keep scooping up any market sells people are doing at the same time in addition to scooping up all the sells on the order book, with the price going higher and higher up the order book as you buy it all up.\n\nLooking at the Depth Chart on Coinbase currently, there are about 4620 BTC on the order book going all the way up to a price over $122k for a total cost of about $387 million (there may be sells set higher but the Depth Chart only zooms out that far). So at the moment if you put in a market order for $387 million on Coinbase you'd buy up the entire order book of sells, getting an average price of about $83,750. If you did it all in one market buy then there'd probably only be a small amount of market sells that you'd pick up as well. But that's only \\~4620 btc. A small fraction of all the bitcoin being held on Coinbase by customers at any given time. But you can only buy what is available to buy. And soon after your buy the price would drop back down from where you left it ($122k) back to around where it had been previously because you are no longer holding the price up with more buying.\n\nThere would then be news stories about how Bitcoin briefly spiked from $70k to $122k and then came back down, with people investigating whether it was a glitch on the exchange or if someone actually bought it all up haha.",
"label": "r/bitcoin",
"dataType": "comment",
"communityName": "r/Bitcoin",
"datetime": "2024-05-22",
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}
Entry Information
- Entry ID: 39364
- Repository: Axioma AXP
- Dataset: arrmlet/reddit_dataset_36
- Total Entries: 100,000