serious question, how do lower fees help drive price up? fees usually increase spread and decrease liquidity. I don't see how lower fees and higher volume mean higher prices.

ok, what happened at BTC china the last few months of 2013?
They had zero fees and insane volume, and the prices rocketed from 130 to 1000 really fast.

What happened was this...

Market was pumped, people deposited money, they purchased (fractions of BTC) for large dollar amounts...

Then... The pump stopped, and the ones who pumped began to dump, taking that money, with little actual BTC lost in the process...

Why did it stop... Because now it takes MORE BTC to get that same $1000 than it did at the top of the pump, where they only lost (fractions of BTC), to get that money.

Now they withdraw cash... and no-one has money left to buy the overpriced BTC. Thus, price fall.

Welcome to the world of "Trades and exchanges"... Hope you learned enough this time, to thrive next time.

Who can trust exchanges right now.

If MtGox has issues other exchanges will have the same issues sooner or later.


Don't trust any exchange company and get out your bitcoins right now that you can do it, later you can end like mtgox customers without nothing.

or just ran transparent business, it can be done with bitcoin.

that would be just temporal

That's quite far away from central price planning.
You just waive the fees temporally to stimulate the market in time of crisis.
Then the market sets the price. I would call it "help" instead of "central planning"

Well I don't think that private companies will keep their profits low for too long.
So, there is no danger that to happen here, it's not a government.