The thing that will probably save it is that demed actually will rise when price rises.
People get greedy and get FOMO. Their only option and thought is to buy. That is just how humans work.
Now price is declining, they are selling like mad men, when the price has risen again, they will be buying.
Losing money, yes, but appearently how humans work.
Topic: big BTC players continue accumulation and barely ever sell. - page 2. (Read 1806 times)
Yes, very rational observation. The current price action is reflective on only a tiny fraction of what is likely the same coins being traded around by speculators on exchange. The rest of the coins are slowly but surely being accumulated.
In this context I am reminded of this passage from one of Mircea Popescu's blog post :
In this context I am reminded of this passage from one of Mircea Popescu's blog post :
Quote
On the Bitcoin supply side, conversely, things look quite grim. Up until recently Bitcoins were generated via mining at the rate of about three million a year. Starting with the current year mining rewards halved, which means yearly Bitcoin generation is 1.3mn tops. Out of this, a fraction between a third and a half will have to be sold to pay operational costs of the miners - so about 600`000 Bitcoins are meeting the market this year (although part of them are possibly meeting the market straight in the pockets of their owners, who bought mining gear in the first place to acquire Bitcoins, so they've paid for the rigs and electricity in fiat, are registering the tax-deductible loss thereof and keeping the Bitcoin).
Other than this ~4% of the Bitcoin monetary mass, there may be as much as maybe 10ish% that is looking for dollars for whatever reasons. Then again, that 10ish% could be as low as 1%.
Now let's remodel : what happens when a 300% increase on the supply side meets a 5% increase in the demand side ? There's pretty much literally nothing those extra dollars nobody wants can do to increase the Bitcoin supply. It's very, very inelastic, and consequently the only stability point is when equilibrium is reached. Two billion dollars divided by 600`000 Bitcoins comes to three thousand dollars and change per Bitcoin.
Will people stop throwing dollars at Bitcoin because Bitcoin prices in dollars are rising ? No, they will not. If anything the converse is more likely. Will people start throwing Bitcoin at dollars because Bitcoin prices in dollars are rising ? No, they will not. If anything, the converse is more likely.
Other than this ~4% of the Bitcoin monetary mass, there may be as much as maybe 10ish% that is looking for dollars for whatever reasons. Then again, that 10ish% could be as low as 1%.
Now let's remodel : what happens when a 300% increase on the supply side meets a 5% increase in the demand side ? There's pretty much literally nothing those extra dollars nobody wants can do to increase the Bitcoin supply. It's very, very inelastic, and consequently the only stability point is when equilibrium is reached. Two billion dollars divided by 600`000 Bitcoins comes to three thousand dollars and change per Bitcoin.
Will people stop throwing dollars at Bitcoin because Bitcoin prices in dollars are rising ? No, they will not. If anything the converse is more likely. Will people start throwing Bitcoin at dollars because Bitcoin prices in dollars are rising ? No, they will not. If anything, the converse is more likely.
if you watch the biggest wallets, those over 1000 coins, who hold almost 50% of all BTC, you know how many they sold in the move from $500 to $300? guess?
28000 coins out of around 7 million. And I bet when the dust settles they will have even more coins than before this sell off.
so.... who do you think is running around like chicken little panic buying and panic selling? it is not the big boys.
big players are doing hold and / or accumulate, and have been for years now, that made my decision to get back into BTC.
Wait until ETF and halving occur, there will be less and less coins around to pump and dump.
28000 coins out of around 7 million. And I bet when the dust settles they will have even more coins than before this sell off.
so.... who do you think is running around like chicken little panic buying and panic selling? it is not the big boys.
big players are doing hold and / or accumulate, and have been for years now, that made my decision to get back into BTC.
Wait until ETF and halving occur, there will be less and less coins around to pump and dump.
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