3600 bitcoins dumped everyday = bearish brainwash propoganda - page 2.

zoinky

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Quote from: jasonjm on January 21, 2015, 11:26:59 AM

wow, never was there a more bunch of delusional people than bitcoin longs.

probably 95%+ of miners sell coins immediately.

if they had wanted to speculate on bitcoin they would have just bought bitcoin.

PS love how you describe people who agree with your world view as "savvy".

when winklevoss ETF is denied, bitcoin at under $20 within 6 months, watch.

and yeah inflation is a real big problem for bitcoin when interest has dropped off a cliff.

it takes almost $1 million dollars a day, even at these low prices, just to keep bitcoin where it is, assuming no one is dumping coins. Good luck with that.

Go look at fresh blocks and show me the coins that are moving to exchanges immediately.

jaredboice

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^

ROLMAO

jasonjm

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wow, never was there a more bunch of delusional people than bitcoin longs.

probably 95%+ of miners sell coins immediately.

if they had wanted to speculate on bitcoin they would have just bought bitcoin.

PS love how you describe people who agree with your world view as "savvy".

when winklevoss ETF is denied, bitcoin at under $20 within 6 months, watch.

and yeah inflation is a real big problem for bitcoin when interest has dropped off a cliff.

it takes almost $1 million dollars a day, even at these low prices, just to keep bitcoin where it is, assuming no one is dumping coins. Good luck with that.

jaredboice

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The death by inflation argument is a very RETARDED argument considering how transparent it is that only 21 Million Bitcoins will ever be generated. Everyone knows about this cap. Therefore everyone knows that this inflation will slow down dramatically, especially with the next halving in 2016. Knowing this, investors will want to get their hands on more Bitcoins now while the spigot is flowing twice as fast (and 4x as fast as the halving after the next halving, etc..)

ivyleague1985

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Quote from: ivyleague1985 on January 21, 2015, 11:08:59 AM

Let's assume there are three types of miners existing in the market.

1. Perma-bear miner that doesn't believe in bitcoin at all. They will sell whatever they mined for fiat.

OK. Those guys are dumping. But how much % of them are out there? If they are perm-bear, why not short directly on exchange but enter the business of mining instead?

I will say at most 5% of the miners are perm-bears.

2. Savvy miners that does calculation before any mining/selling activities.

The calculation is easy: if expected return of holding > the interest rate of borrowing, it would be beneficial for miners to borrow fiat, rather than sell bitcoins, to pay for the maintenance.

So if miners can sell at $250 within a year from now, they can generate a 25% more intrinsic return comparing with selling today at around $200. And what is their borrowing cost at the moment? 1% or 2%? Everyone can see through that 25% return is way greater than 1% interest rate, right?

I guess there are 50%-60% savvy miners out there. And they will hold given the low interest rate and the high expected return.

3. Perma-bull miner that totally endorse the potential of bitcoin. They will not sell until bitcoin is widely accepted and price is largely appreciated. They are the remaining 35%-45% out there.

From this guesstimate, you can see NOT ALL 3600 coins are dumped everyday! Miners will do calculation before dumping. Miners can borrow fiat and can wait for a better price to sell (if any). And by reserve selection, bears will not choose to enter the mining business in the first place.

Don't get manipulated by bears' brainwash without your own analysis.

You know why the price hit $200 and still dumping? 10% inflation

~~Miners can borrow fiat and can wait for a better price to sell~~ NO, THEY DON'T DO SUCH RISK THING, most of miners dump immediately, sad fact but you have to take it

Only dumb ass who doesn't do any calculation will directly yield to the conclusion. Doing business = taking risk. If the expected return is good, why not take some risks?

It is entrepreneurs who opened mines and entrepreneurs have stronger and braver hearts than wonkers like you.

ivyleague1985

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Let's assume there are three types of miners existing in the market.

1. Perma-bear miner that doesn't believe in bitcoin at all. They will sell whatever they mined for fiat.

OK. Those guys are dumping. But how much % of them are out there? If they are perm-bear, why not short directly on exchange but enter the business of mining instead?

I will say at most 5% of the miners are perma-bears.

2. Savvy miners that do calculation before any mining/selling activities.

The calculation is easy: if expected return of holding > the interest rate of borrowing, it would be beneficial for miners to borrow fiat, rather than sell bitcoins, to pay for the maintenance.

So if miners can sell at $250 within a year from now, they can generate a 25% more intrinsic return comparing with selling today at around $200. And what is their borrowing cost at the moment? 1% or 2%? Everyone can see through that 25% return is way greater than 1% interest rate, right?

What if one miner believes that he/she will never see a $250 price within one year from now? Good question, but the answer is simple. If his expectation is that low, he will choose to quit now and will not remain in the business.

So weaker hands are also shaken out in the savvy miners camp. The more stronger hands, the less dumping from this savvy miner group.

I guess there are 50%-60% savvy miners out there. And they will hold given the low interest rate and the high expected return.

3. Perma-bull miners that totally endorse the potential of bitcoin. They will not sell until bitcoin is widely accepted and price is largely appreciated. They are the remaining 35%-45% out there.

From this guesstimate, you can see NOT ALL 3600 coins are dumped everyday! Miners will do calculation before dumping. Miners can borrow fiat and can wait for a better price to sell. And by reserve selection, bears will not choose to enter the mining business in the first place.

Don't get manipulated by bears' brainwash without your own analysis.

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