Are Crypto Whales rational actors? | Bitcointalksearch.org

Moon Assist

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Quote from: YuginKadoya on April 06, 2018, 08:47:47 AM

And right now as we can see the value of bitcoin today we can say that they have the most resources when it comes to bitcoin or maybe even in different coins too.

They are certainly whales across bitcoin and other coins. But bitcoin whales are a different beast, they are the biggest and earliest adopters in the most mature market. Their intentions will likely be different than whales in less certain crypto markets.

YuginKadoya

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Even if we like them or not they are here to stay they will never leave a most promising investment they have ever made and they are making big with bitcoin with just the fluctuations happening and I really think we can not do about it if they manipulated the movement of bitcoin down all we can do is wait for them to buy again and make a pump in the ocean of BTC, And right now as we can see the value of bitcoin today we can say that they have the most resources when it comes to bitcoin or maybe even in different coins too.

Moon Assist

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Quote from: fiulpro on April 04, 2018, 01:07:53 PM

Manupulating the market woukd require either selling off allot of btc or buying allot of them. This would be of no use for the whales because they are the ones who need to perform this buy-sell thing for the manupulation to work.

Interestingly, a recent FT article suggests that the current bitcoin price has absorbed liquidations of Mt Gox trustee and Fortress, worth hundreds of millions, in the last quarter.

Whales certainly still have power, but BTC is seeming more mature than people give it credit for if it can handle these large sell-offs.

fiulpro

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Because anyone can be in the platform, and since capitalism is what is followed, some one with more monetary strength is always there and it is inevitable. Now the question is if its of any concern or not. They are on tge market for reason. Not just to have fun. They are investors. They do want good returms for themselvea aswell.

Manupulating the market woukd require either selling off allot of btc or buying allot of them. This would be of no use for the whales because they are the ones who need to perform this buy-sell thing for the manupulation to work.

Its just taken as a serious possibilty, that such manupulation can be created. Not are they necessarily done .

Moon Assist

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Quote from: Xavofat on April 04, 2018, 12:35:19 PM

Not very. The volume is quite low compared to traditional investments and many people who are involved are amateur investors, which contributes to the price being so unstable. Whales have a huge amount of power over the price.

The bitcoin market may be more mature than its size implies. Investors like Ari Paul of BlockTower seem to think so, which raises an interesting point - how do you measure market maturity?

Mometaskers

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Quote from: Xavofat on April 04, 2018, 12:35:19 PM

When you have as much money as they do, you have to be careful to preserve it. I doubt that the biggest whales are doing all the thinking by themselves - I'm sure they have plenty of financial advice.

These people take calculated risks. They wouldn't be where they are now if they act on impulse alone. With regards to their crypto investment, I've always wondered if these people know each through social networks and would talk about when to pump it for maximum profit.

Xavofat

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Did you see that ludicrous display last night?

Quote from: Moon Assist on April 04, 2018, 11:25:11 AM

How rational are whales?

When you have as much money as they do, you have to be careful to preserve it. I doubt that the biggest whales are doing all the thinking by themselves - I'm sure they have plenty of financial advice.

Quote from: Moon Assist on April 04, 2018, 11:25:11 AM

Are whales inevitable?

Yes. Under capitalism, inequality is inevitable, just as there is inequality in fiat currencies. However, the extremely dramatic increase in price over the last several years has resulted in some people having much more wealth than they would otherwise have had, so the distribution will probably even out to some extent over a long time.

Quote from: Moon Assist on April 04, 2018, 11:25:11 AM

And how mature is the bitcoin market?

Not very. The volume is quite low compared to traditional investments and many people who are involved are amateur investors, which contributes to the price being so unstable. Whales have a huge amount of power over the price.

Moon Assist

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Quote from: BartS on April 04, 2018, 12:06:18 PM

Quote from: Moon Assist on April 04, 2018, 11:25:11 AM

Crypto whales own so much BTC that they can easily manipulate the market. While these whales may understand and care deeply about the technology, they drive price much more than speculators do. Should this be a concern? If whales left the market it would crash, but the same could probably be said about most markets if the largest players left.

How rational are whales? Are whales inevitable? And how mature is the bitcoin market?

The biggest difference we have in this market is that the whales are independent actors and are not related to the governments this can be good and this can be bad.

This seems to be a key difference between crypto markets and stock markets. Whales inherently exist in both, but the incentives change in crypto as they are independent actors and not governments or financial institutions.

BartS

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Quote from: Moon Assist on April 04, 2018, 11:25:11 AM

Crypto whales own so much BTC that they can easily manipulate the market. While these whales may understand and care deeply about the technology, they drive price much more than speculators do. Should this be a concern? If whales left the market it would crash, but the same could probably be said about most markets if the largest players left.

How rational are whales? Are whales inevitable? And how mature is the bitcoin market?

Whales are inevitable in any market you just need to look at the stock market and see that there are players like banks and governments that are able to manipulate the market as they see fit, the biggest difference we have in this market is that the whales are independent actors and are not related to the governments this can be good and this can be bad, since the whales will only look after themselves and not after the market if they see that they are able to get some profits they will take the opportunity without even thinking about it even if that means that a lot of other people lose money.

Crypdon

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It is hard to tell where the whales are but a cartel could crash the market if they got together and plotted between them. Not sure what the incentive would be as the whales would lose out themselves by cashing out now rather than at the top of a bull run.

tora

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Whales are not new to bitcoin. True,if they all sold at the same time there would be a huge price crash but price would eventually recover.

Moon Assist

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Crypto whales own so much BTC that they can easily manipulate the market. While these whales may understand and care deeply about the technology, they drive price much more than speculators do. Should this be a concern? If whales left the market it would crash, but the same could probably be said about most markets if the largest players left.

How rational are whales? Are whales inevitable? And how mature is the bitcoin market?

Topic: Are Crypto Whales rational actors? (Read 196 times)