Part 3/11:
The speaker shares a personal story from the 2017 cryptocurrency bubble, reflecting on how active trading can sometimes yield seemingly outrageous profits. He recounts an experience with an exchange where the sell-side was empty for Bitcoin, allowing him to set prices higher than the prevailing market rate. Initially drawn in by the allure of quick, sizeable profits, he quickly learned that as competition increased, the opportunities began to fade.
This narrative reveals a critical realization: those traders who seem to disrupt markets with their fast-paced activities can have a net positive effect by enhancing market liquidity and price accuracy. This blend of competitiveness ensures fairer prices for the average consumer, akin to market makers filling orders to minimize slippage.