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/biz/ - Business & Finance

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15887345 No.15887345 [Reply] [Original]

Riddle me this biz
Why whenever I buy something in bulk best case scenario I get a discount worst case - price stays the same as per one unit
But on a crypto exchanges it’s different
Take LINK for example
Somebody bought 400mln worth of it, price almost doubled. What gives?

>> No.15887360

>>15887345
Scarcity

>> No.15887406
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15887406

>>15887360
My pants are scarce too.
Doesn’t mean they double in price whenever some creep wants to buy a big portion.

>> No.15887430

>>15887360
Btw, will the price of ether double given the same circumstances? The supply isn’t fixed.

>> No.15887456

Bump

>> No.15887482
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15887482

/biz/ is too brainlet for this shit apparently

>> No.15887528

>>15887345
Do you know how order books on exchanges work?
If not, then read this post:
https://www.reddit.com/r/Bitcoin/comments/dfjpsf/comment/f34awdb

If you do, or if you've now read that post, then you should know why the price increases as you buy more.

The next question is, why do you get a discount when buying commodities in bulk? Well, you have to have an arrangement to get a wholesale discount.

If you walk into Walmart and buy everything on the shelf, you don't get a discount (unless they have a specific promotion that says so). The same thing with buying off the order book, you are buying RETAIL.

If you want to get a wholesale/bulk discount, you gotta make arrangements to buy wholesale, not just buy retail.
e.g. buy OTC

>> No.15887549

>>15887345
Niggle me dis /bis/
If Heath is dead how come niggas be Ledger postin ?

>> No.15887788

>>15887345
When you buy things in bulk that have storage costs the merchant usually gives you a discount to encourage you to do so so they have less storage costs, digital currencies are intangible and have no storage costs associated

>> No.15887984

because most exchanges are run as walrasian auctions, uniswap being the only one off the top of my head that is a completely different model. there are no models I'm aware of that would give you a discount as you buy more, except possibly OTC but I don't know if that's common practice. it could be a cool idea for an exchange if it was set up like a dark pool that would give you a marginally lower rate per unit if you bought large amounts. it could possibly attract large sellers who want to sell more quickly. it doesn't seem like it would have any advantages really though, for the seller, compared to what already exists