Topic: 25k coins bought, $10 jump - page 4. (Read 6312 times)
None of this explains why Bitstamp, CampBX and btc-e all recorded the same magnitude jump simultaneously
Maybe, but I'd think anyone with that much money at stake would be working with Gox to get the money transferred our rather than taking a $250k haircut. Unless they have some inside info that Gox's collapse is imminent.
It is only a $250k haircut if they immediately sell at another exchange. If they move the coins to another exchange and just wait for the price to rise they could get out without losing any money.
waiting a few weeks is just not risky enough is it. their no fun to be had.
hero member
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It's all fun and games until somebody loses an eye
Maybe, but I'd think anyone with that much money at stake would be working with Gox to get the money transferred our rather than taking a $250k haircut. Unless they have some inside info that Gox's collapse is imminent.
It is only a $250k haircut if they immediately sell at another exchange. If they move the coins to another exchange and just wait for the price to rise they could get out without losing any money.
There are a lot of rich people who might want to get their cash out of Gox as the bank situation is iffy. The easiest way to do this - and no, it's not arranging a wire transfer and waiting 3 1/2 weeks - is to buy BTC and transfer it out.
Once these people transfer their BTC out of Gox to another exchange, you might assume, with your simple human mind, that they will immediately think, "Ok, time to sell it all back to USD now."
But come on now, they didn't get rich by making the least profitable decision at every opportunity - in fact, they do the opposite. Hence the richness. They think "Hey, me and all my rich buddies just boosted the price like crazy, just getting our BTC out. Might as well have some fun while we're at it. Mad profit$ yo!"
This is why we don't have Gox buys immediately translating to exactly the same volume of Bitstamp and CampBX sales, and why we have upward price movement. Even getting money out of Gox (via buying BTC and transferring) is just another way for the whales to make even more money.
And of course, it shows quite clearly the "intrinsic value" of BTC. If you have gold in a vault in Idaho and you're worried about seizure or lack of access, or even counterparty risk, you can't click a button and transfer it to a vault in BC or into your own vault. BTC has value specifically as a highly transportable medium of exchange that solves both the proof problem and the counterparty risk problem common with other moneys. Only downside is that it requires electronic infrastructure. In a post-apocalyptic world of rolling blackouts and EMPs it would only be of marginal utility, but would still function so long as the necessary infrastructure was available and functioning. But this is why most of us (hopefully) don't see cryptocurrency as "the one" solution to all the world's monetary troubles - it is just one of numerous, equally ingenious solutions.
Once these people transfer their BTC out of Gox to another exchange, you might assume, with your simple human mind, that they will immediately think, "Ok, time to sell it all back to USD now."
But come on now, they didn't get rich by making the least profitable decision at every opportunity - in fact, they do the opposite. Hence the richness. They think "Hey, me and all my rich buddies just boosted the price like crazy, just getting our BTC out. Might as well have some fun while we're at it. Mad profit$ yo!"
This is why we don't have Gox buys immediately translating to exactly the same volume of Bitstamp and CampBX sales, and why we have upward price movement. Even getting money out of Gox (via buying BTC and transferring) is just another way for the whales to make even more money.
And of course, it shows quite clearly the "intrinsic value" of BTC. If you have gold in a vault in Idaho and you're worried about seizure or lack of access, or even counterparty risk, you can't click a button and transfer it to a vault in BC or into your own vault. BTC has value specifically as a highly transportable medium of exchange that solves both the proof problem and the counterparty risk problem common with other moneys. Only downside is that it requires electronic infrastructure. In a post-apocalyptic world of rolling blackouts and EMPs it would only be of marginal utility, but would still function so long as the necessary infrastructure was available and functioning. But this is why most of us (hopefully) don't see cryptocurrency as "the one" solution to all the world's monetary troubles - it is just one of numerous, equally ingenious solutions.
parabolic rise v2.0
the proper question is not: how many are bought, but: how many are left?
Maybe, but I'd think anyone with that much money at stake would be working with Gox to get the money transferred our rather than taking a $250k haircut. Unless they have some inside info that Gox's collapse is imminent.
They probably want to get their money out of gox and have no choice in the matter? Buy BTC and transfer out?
Someone just bought 25,000 coins on Gox? Anyone got info to share?
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