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RE: The Economics Behind the Steem Dollar Arbitrage..
Your buying 5-10k Steem, and then selling it to see what happens..? You net affect on the market is zero in this case.
I don't see how this proves anything. When you buy, you either prop up the price , or force it up. When you sell, you either keep the price at a floor, or it falls..
My point is that, the net affect of you action is zero. The same way the net affect of an arbitration trader is.
Well, buying and selling it a bunch of times, but yeah effectively.
What youre saying is true if both of the markets are denominated in the same currency. ANd if one of the markets isnt based on a pegged convertible note.
WHat it comes down to is that in two properly functioning markets the buy and the sell will cancel each other out. If one of the markets is less responsive they will not.
WHat i'm going to prove is that theinternal market is less responsive.
The hilarious thing is that after I do this and tank the price by half of however much is left of it by this afternoon, you'll be right back on here (along with the usual suspects) calling it a coincidence. Because to do otherwise would be to admit a there was something wrong, and lets face it, thats not how you make money on this site.