That's slippery slope logic. If the pricing is right at
1s, why pour money and talent into getting it right at
100ms?
I'm saying there are negative externalities[1], which are known to cause market inefficiency. Negative externalities typically look like "slippery slope" arguments, when in reality there is an appropriate level of penalty/tax/etc that restores efficiency.
Meanwhile, you're effectively vouching for a comment
that models the markets as a closed system of people
dividing up a single pot of money. Isn't it plain that
such a model is wrongheaded?
I'll concede it's not zero-sum, but surely you also will concede diminishing returns to liquidity. I'll also concede that my original "money sink" comment was hyperbolic & inflammatory.
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[1] http://economics.fundamentalfinance.com/negative-externality...