I had a few questions I was holding eth for more than 6 months and got an increase of only 2$ but right when I sold all the eth I had the price changed and rised to 15$.
I know a bit on how the price of bitcoin works but i was wondering suddenly why was there a huge increase in price of eth.
All that raise of altcoins (even litecoin jumped...) reminds me of this:
A stockbroker was cold calling about a penny stock and found a taker.
“I think this one will really move said the broker, it’s only $1 a share.”
“Buy me 1000 shares.” said the client.
The next day the stock was at $2.
The client called the broker and said, “You were right, give me 5000 more shares.”
The next day the client looked in the paper and the stock was at $4.
The client ran to the phone and called the broker, “Get me 10,000 more shares said the client.”
“Great!” said the broker.
The next day the client looked in the paper and the stock was at $9.
Seeing what a great profit he had in just a few days, the client ran to the phone and told the broker, “Sell all my shares!”
The broker said, “To whom? You were the only one buying that stock.”
Remember, with these altcoins it is a zero-sum game. If there is a winner, there is a loser. If BTC/ether/dash/monero jump to all-time highs, everyone is a winner (everyone bought these coins at lower prices!). How can that be in a zero-sum game? The answer is that all of the profit is just paper profit. It is not possible for all to redeem their coins to dollars (or altcoins to BTC)... Once people start selling these coins, their price will drop very-very fast.
