If you have any interest in the world of finance, the previous few months have been some of the best months for you. You don’t need to be an investor in cryptocurrencies to be able to appreciate how strange things have been the past few months. Bitfinex has announced that they will not be taking on any more, new customers. Why? Simple, because too many people were trying to sign up and start trading. Here’s part of the message you get when you try to create a new account on Bitfinex.
“Thank you for your interest in opening a Bitfinex account. However, due to extraordinary demand, new account creation has been temporarily paused. Bitfinex focuses on serving professional traders. The reason we have decided to temporarily stop accepting new accounts is that we cannot undermine the quality of our services for our existing traders by flooding the system with new, small accounts.”
This is a great move and it shows that Bitfinex is exactly the type of company you should work with. Many other exchanges did not do the same and their services suffered. People couldn’t login, couldn’t trade, and many other similar problems. Bitfinex chose not to participate because they want to position themselves as the professional trader’s website instead of another place for amateurs. In doing so they are going the opposite way of most other exchanges. Most trading websites are focusing on getting as many new people registered as possible, while Bitfinex only wants professionals.
Anyone who has invested in cryptocurrencies is obviously very interested in the latest happenings in the world of crypto-trading. However, even people who never have and may never invest in cryptocurrencies are following things closely if they have an interest in finance. There’s a very good reason for that – cryptocurrencies are blowing up the financial world in a way that nothing ever has.
The financial market is one of the most heavily regulated and complex markets out there. The big players in the industry decide some of the biggest parameters everyone can trade on, and changes are usually slow to happen. It has been built with efficiency in mind but there are a lot of circuit breakers built into the system to make sure nothing catastrophic happens.
Cryptocurrencies and trading in cryptocurrencies are definitely a part of the financial world, but they represent the wild, gold rush side of the industry. Here’s an industry dealing in billions of dollars of trading, without there being any proper regulations or circuit breakers. The potential for things to go wrong is always present, and never before seen things in the world of finance keep happening. We can’t imagine any trading house that deals with traditional asset having to tell people they can’t take new clients because too many people want to trade now.
We will see many more interesting things like the Bitfinex incident. Plus, with South Korea working on regulating cryptocurrencies, things will definitely stay interesting for the next few months.