Normalizing Bitcoin and exploring cryptocurrencies · Benjamin Small

EP 113: Normalizing Bitcoin, and exploring the cryptocurrency ecosystem w/ Benjamin Small Benjamin Small is an electrical engineering PhD. He’s worked in quantitative research roles since 2006, at UBS, Citadel, Credit Suisse and the stock exchange, IEX. Today though, Ben is head of market structure at Gemini—the world’s first fully licensed and fully regulated Bitcoin exchange, which is based in New York. During this chat, we get into; payment for order flow and high frequency trading, why there’s an incentive to normalize Bitcoin, the cryptocurrency ecosystem, potential outcomes for the future of Bitcoin, and becoming a cashless society. -- Show notes: https://chatwithtraders.com/ep-113-benjamin-small/

Comments

1. 51:20 how do you spell that equlibrium again?
2. Hi Aaron. Really enjoyed this episode. As someone very interested in the trend towards less (paper) cash, I was particularly interested in the discussion around this topic.
   
   I thought I would share a recent article from the Reserve Bank of Australia (RBA) which looks at the Future of Cash. The RBA suggests that there certainly has been a move away from cash payments towards digital payments which is likely to continue. However, there is still demand for cash, especially from specific demographic groups (in Australia anyway).
   
   http://www.rba.gov.au/publications/bulletin/2016/dec/5.html
   
   Also, I don't know if this is well known but the New Payments Platform (NPP) is due to be implemented in Australia this year. The NPP might change things in terms of cash payments as it has the potential to offer a solid alternative to cash in some typical cash-only situations, such as person-to-person transfers and payments to small businesses.
   
   http://www.nppa.com.au/
3. What i understand after 10 minutes that a scammer is trying to tell us how is better for him to make more money by not moving his white fingers at all. Stock market is the biggest scam in this whole wide world after that the banks. F them both and who works for them to make it more profitable.
4. BTC is 20 Billion now,
5. I just wanna say thank you to you Aaron, I have personally watched the majority of your videos and each one of them has delivered, no doubt. After only trading for 2 months, I've seen huge leaps of improvements week by week, and my only source of knowledge is through listening to your podcasts before sleep and a few google searches. Only since the past week have I felt so confident with my strategy. I've turned $40 into $500 in just 3 days (leverage really helps but highly risky) im currently profitable, but with a few adjustments in my strategy, i bet it will only get better. I can finally see myself making $1000 a day in next few months to come and im really excited. I just really wanna say thank you again Aaron, I appreciate your hard work and daily grind. p.s. if possible can you pls keep doing what your doing, i know it really helped me understand and learn the market, risk management, psychology and many more, and i know alot of other current and future traders really appreciate what your doing.
6. dude, cashless really? what sort of dystopia are you talking about? everyone must be "in the system" or unable to transact with his neighbor? give me a break. in prison, cigarettes are cash.
7. Re: "Alt coins" and scams: Stick with the big ones, if not just bitcoin. After a year or 2 of learning, you might feel comfortable with other coins (aka shitcoins). Look at coinmarketcap website for a list. Also, beware "proof-of-stake" or "pre-mined coins". Bitcoin is the main one though because at most exchanges, it's the only crypto you can buy with fiat, and so the on-ramp is established, and liquidity is much higher, and trading volume is much higher. Once people buy bitocin with fiat, then you can enter the land of altcoin exchanges, but be careful. Join reddit /r/bitcoin, or check whalepool.io for teamspeak on the subject.
8. When he compare Bitcoins to commodities at 53:25 he doesn't do enough to explain how it is comparable. For example, oil runs cars, wheat makes foods, gold has valuable feature that make it ideal for electronic manufacturing. All these assets have some type of reallife value due to necessity, but what can you do or need from Bitcoin that makes it comparable to commodities?