that is a graph of the function
(XMR/USD)÷(BTC/USD)
obviously USD denominated
because *thats what prices are*
Discussion
It doesn't matter. There are actual trades directly between xmr and btc, with no USD in the middle
XMR is a stablecoin via its use in darkweb markets and vendors fiat-bound prices - the inverse curve is very much the same shape as the USDBTC pair (the inversion of the one that's around 100k right now, some number like 0.000001 in other words
Yeah my furtive foray into darkweb markets showed xmr being used. I was only there to see what's going on.
all those trades follow the relative USD price of each asset.
if they deviate from that ratio (and they do sometimes) a million bots jump into the arbitrage opportunity for free fiat.
and push the price back towards the equation above.
that's what USD being the Unit of Account and "most saleable asset" means.
That's irrelevant. Millions of bots do that to every conceivable trading pair. They exploit differences in the pairs offered on different exchanges, not anything fundamental to assets
correct
market actions always push the trading pair back toward the relative UoA denominated prices.
(X/USD)÷(Y/USD)
fiat denominated.
i almost took a commission to build an arbitrage bot like you describe... it's not difficult to do given an adequate decision of the conditions for execution and the sizing parameters