Topic: Bitcoin is a game of quantity (Read 474 times)

The problem is that OP is looking at Bitcoin as a "Commodity" and this is where a lot of people are losing the plot. Take Forex trading as an example..... People use "Fiat" as a currency ...but it is also tradable.  

You can do both.. by just buying more and more bitcoins on a regular interval to enable you to be able to buy goods and pay for services and then trade it or convert it to Fiat, when you want to profit from it. (Buy Low / Sell high)  

The precious metals sector has seen some correlation with BTC in the past. Although we cannot be 100% sure that the movements were correctly interpreted, but usually when the crypto market dips to a smaller extent than a huge crash, there is an uptick in gold prices and when there is a massive (>15%) selloff in crypto, gold and stocks both drop.

The demographic difference is there. Gold traders are usually veterans in commodities trading. They usually did not try their hands in cryptocurrencies yet. Also the gold trading is not based on holding but on regular buying selling. So on the asset front, both might seem like high value assets, but their market psychology is different.

For the time being, since there is bitcoin minting still happening, we can keep aside the deflationary statement. With that, the average daily movements on bitcoin is higher than stocks.

You are saying that because the value keeps on increasing . imagine that bitcoin kept losing value in the last decade would you have said that? So, the value of what you are investing in still goes down to its value when compared to other assets.

So, the reason why you have plans of investing more in Bitcoin is because it keeps increasing in value. That’s the normal thing that you have to do when investing in assets ,you have to keep buying more of it to be able to make better profit when it starts to get more value. The main reason for investment is for you to be able to make more from it in the future and if it is not doing that then it is not worth it.

So if you have 10 BTC in 2009 you shouldn't be concerned about how much (value) the BTC is? Doesn't make sense to separate quality and quantity. They're dependent on each other and one is worthless without the other.

The only reason someone would be satisfied with how many coins they have is if they anticipate they'll be valuable in the future. No one is satisfied with crypto that's worthless. Have one million of any coin that's worth 1/100000th of a satoshi and ask them how they feel about having a million coins.



Buy high, sell low, is what you're saying. Your phrasing is a bit odd.

I take it you don't think it makes sense to hold a bitcoin bought at more than $30,000 for an extended period of time?  I don't quite agree with this. 

It is very likely that within the next 10 years the price of 1 bitcoin will exceed $1,000,000.  This will give the investor a very large profit.  If you bought 1 bitcoin at a price of $50,000, and in 2029 the price of 1 bitcoin is $1,000,000, then your initial capital has grown 20 times.  This is a very good investment result. 

Yes, this is a lower return than the original investors who invested in bitcoin in 2010.  But, nevertheless, this is a very significant profit. 

At the same time, active trading can bring both profit and loss.

Many people think that too many bitcoins are confusing, but if we study properly then this large number proves that bitcoin was designed for the future with the hope that the majority of the earth's population can use bitcoin, and this is what makes the price of 1 bitcoin today still cheap and ideally $1 for 1 satoshi or 1 btc worth $100 million.

I heard that there are people hodling bitcoin for so long. Fine, it is good especially for early adopters.(people that bought at $4000 and below) They know that whatever happens to bitcoin they will still be in great profits. But anyone that bought bitcoin when it crossed $30k should not hodl for life. They should be able to sell and rebuy at dip.
But, every cryptocurrency is a game of quantity. No matter how quality your project is, if people are not interested in your project, it will not prosper.

Yes, this is a very smart strategy.  

Bitcoin is a deflationary asset.  At the same time, the modern world economy is based on a constant rise in prices for all assets, that is, it is inherently inflationary.  

Therefore, the price of bitcoin will rise in the long run.  Bitcoin has a fundamental value.  It is a potential global reserve currency.  Bitcoin has such a valuable property as decentralization.  Bitcoin is a great store of value.  The first cryptocurrency allows you to easily move capital from one country
to another.  Bitcoin is a universal value, it unites all people on planet Earth.  

Therefore, it is important for an investor to maximize the amount of bitcoins he owns.  This is the smartest long term strategy.

As we know that if we have 1 btc it is equal to 100 million satoshi, of course this is a large number, many people often argue with the real number of bitcoins in the hands of users, there are even reports believing that the missing amount or not can be used more than the existing stock, and this is what makes the quantity of bitcoin such an important factor.

Because they are speculators and they just want to make a quick profit, they don't really care about the real value of bitcoin.
Apart from people who have a rich life, I still see many people who don't have much money but they still work hard and accumulate little by little to invest in bitcoin. They save bitcoin on a monthly plan and keep it for the long term because they see the value of bitcoin in the future. They have faith in bitcoin that will help them have a better life.

We have to think about that too because investment is not just putting money into coins and holding it,
when investing we will not immediately get the profit we want and that is why the need for patience in investing,
we must have money or have income from other sources

Actually, people think BTC is overpriced right now and because of its high volatile nature, they could take huge losses they can not bear. I think their concern is not invalid at all because if you compare BTC with any other commodity then you will see the return of investment of BTC is insane for early adopters. Many think that now only having a fraction of BTC will not be a huge financial gain for the future as it was for early investors because it's overpriced.

That's right I hardly see anyone who is ready to invest in Bitcoin and hold it for a long time. It is really a difficult thing for most people and I do understand that it is because they do not have much money to spare.

Those who are able to invest in Bitcoin and hold it for a really long time is because they have enough money for them to spare. And the money they're investing in Bitcoin doesn't really affect the one that they will have in their bank to handle all the emergencies or expenses that they might have. So, it is really important to have enough money for you to invest and still have enough left to carry on with other things you might have to do.

a deep drop in price is a purchase at a discount when we allocate it in bitcoins. the thing to remember is that bitcoin supply is limited and currently only a few people in the world are in it. That way, actually buying at any current price is still safe for long-term investments. especially if we take advantage of the bearish season to buy, of course, the greater the profit that will be obtained. but the biggest enemy is ourselves who often panic sell by looking at price reactions

to become a payment standard that is approved by countries globally may be impossible,,, because most countries now have their own currency and they don't want their currency to be less popular than bitcoin

I disagree because the reason why many choose to invest on bitcoin is as result of weighing it value compared with fiat, if bitcoin value is found to be lesser than the fiat USD then it value begin the depreciate, what is the essence of keeping bulkiness of what has lesser value when thousands of commodity items could be an alternative asset to store of value. the main reason behind investing on any form of asset is to derive profit after you would have considered it value.


i agree with this but you have to understand that to understand that, speculating on price is not the major determinant to how valuable bitcoin is because of it volatility in nature. One can only invest in bitcoin as an asset because of the conviction that bitcoin will always maintain profitability with time despite the dip and rise, and you cant loose the entire investment you made but rather make profit over time.

Ohh I see now the greater picture, since when I read the topic I was only thinking that this applies to all, not only bitcoin. If you have a lot of property over time, the price will increase. So that makes me confused. When we say that when all bitcoins are mined the price will really stabilize, but prior to that, we know that the price will increase. That is the time when the most bitcoins in a person's wallet has the most value of all since the supply is not locked at 21 million.

You are right in what you say, it is for this reason that when some markets are compared with Bitcoin they do not have much relationship, that is, when an analysis of the BTC market is made with respect to gold, they do not have any correlation, when it is done a correlation of BTC with the stock market there is also no correlation that can be extracted.

But when a correlation is made with both markets, gold and the stock market, if there is a correlation, they are similar markets to each other but with many differences in terms of concept, but there is also another peculiarity, when a correlation of btc with gold is made and the stock market there is a correlation but in the very short term, this is something that shows that the btc represents money but its deflationary nature and that it obeys other economic principles makes it move away from these.

That could be terrible for you and me if we were to talk about fiat, because if they hoard fiat, then there won't be any fiat left and then governments print more and causes inflation. Here in crypto, they can hoard as many bitcoin as they can but there won't be any left, hence the last ones that are left will worth a lot.

It means that if they are spending so much money on buying as many as possible and not selling them, that means our bitcoin will worth a lot more thanks to them spending money. They are the ones who are spending billions, but we are the one that make the profit from it because our coins worth more thanks to their investments.

Analysing this topic from a critical aspect and OP's point of view, due to the limited supply of bitcoin (21 million coin limit), it will be wise to focus more on gaining numbers on the amount of btc you own while you still can easily than being affected by the fluctuating value. Very wise indeed!

In a long run, prolly when all bitcoins have been mined, the value of bitcoins then will be even more than what we can predict and i believe it will be more stable, the person who held on to getting more bitcoins and owns the most bitcoins, will hold the most valuable asset with the greatest value.

True,If you focus on the price of your bitcoins, you will be affected by emotions and will be moved to sell. Stick to the plan, acquire more while you can and hodl.

Limited bitcoin stock and 1 BTC consisting of 100 million satoshi makes Bitcoin enough for human needs on earth currently amounting to 8 billion, of course 1 Satoshi will continue to be worth so that someday people will transact with satoshi units, and now more and more Countries that legalize Bitcoin so that I believe Bitcoin is a recognized payment standard.

It can't always be beginners. There are many experienced users among speculators, too. But still, the investment strategy is always much more profitable and contains less risk than short-term speculation. With bitcoin, playing short-term speculation is very dangerous because bitcoin is very volatile. Have you noticed that the internet often calls bitcoin a high-risk asset? Mostly short-term investors call it that, because it is very hard to predict how bitcoin will behave in a short period of time. It can fall by 50%, and then easily grow back, all in a short period of time. Long-term investors, on the other hand, often refer to bitcoin as a low-risk investment.

Those companies has weakness positive impact from bitcoin that is attracting other companies to introduce bitcoin into their channel. Those channel has helped many bitcoin users to acquired more knowledge about bitcoin and how to use it to improve other businesses in the societies.
Many countries knew bitcoin through social media such as, CNN, Facebook, Twitter and telegram that gave the government to legalized bitcoin in the country to help their youths and to improve their economy in the country.  

People will always remain under the control of the government, however they might fancy using bitcoin to break from the control, in the end they are always bound to the earth they live in and the government they live under. Use bitcoin, but dont keep that "government control" BS in you head, it is not necessary and it only brings in paranoia which can hurt your trading sentiments.

Why will whales not be able to hoard? It is an easy thing to do once you have some idea about portfolio management and therefore whales do it regularly.

Bitcoin should be used for its advantages while taking care of its disadvantages with fiat, it should not be a cult like following in my opinion, otherwise the global acceptance will not increase.

on the other hand, the difference between those who make long investments is because they have set goals at the beginning and use free money, and are supported by strong psychology. In contrast to new investors today who use hot money to invest with the aim of doubling their money in the near term, from their point of view, a fragile psychology will be very detrimental in the crypto world, because high volatility will make the heart beat fast every time.

I know that decentralization is part of the reason bitcoin is moving fast as it is doing because people like freedom and breakout of the control of government through the fiat. I can't understand it though that coins can be hoard, whale may not be able to hoard but it can buy a large amount of coins and hodl it longer.

Long-term investors and large institutional investors are exactly what you wrote about. They are the ones who buy up all the coins, hoarding them, regardless of price or market conditions, buying for years, maybe even decades. They will never sell on a decline.

The main problem with novice investors is that they want to make a profit as quickly as possible. And if the market decides to go into a correction, they get scared of it and try to save at least a lot of their money. Many people have a speculative approach to the market, a trader's view, not an investor's. People don't want to learn, people want to make money, and preferably as quickly as possible.

I think you have misconceptualized other coins or assets which are under crypto space. Honestly the whole market in the crypto is about the quantity plus quality. Yes, the value rises proportionately if you have good hold on the number of coins in your pocket.

But its not like, its just applicable to the BTC only. In the long trade, all the coins are limited when they are first minted. Some of them are too less in circulation and liquidation while others are comparatively higher in number. However, at the end they are limited here and thus whoever holds the most coin will gain the opportunity to earn more profits out of it when the coin moves by little value in the bull market.

Unlike, stablecoins which has unlimited submission things are pretty different. They stay stable in value by overcoming the demand of market with unlimited supply.

Moreover, many large companies are also collaborating with cryptocurrencies, especially Bitcoin, thus making crypto more attractive.
for now it can be said that Bitcoin is already widely known by many people and is not foreign anymore,
with a market that is constantly moving, of course news about Bitcoin will always be there

Decentralized
Anonymous
Actual utility in terms of payment
Investment possible profits

These are the most common traits on why it did really get soo much attention and support.
As for hoarding or accumulation then its understandable that people who are financially capable could always
be having the advantage which it isnt surprising.

Diversifying the assets might come with a lot of probelms as well there can be things you cannot see coming and it can very easily liquify.

- Real estate continues to be the asset if choice as well
- Precious metals are more likely to provide you with real term benefits considering where you live, some governments have high percentage of taxes on certain one's.
- I always find that education is the most important asset of all, one might be able to earn a lot more in the long run certainly, investment in yourself is always a (+) point

Then again bitcoins is a better off asset in any case, you should definitely hold a certain percentage of it, it's definitely going to be worth a lot more in the future. Trading) holding both are very good options.

Thats true. We know the price can go up and down, buying a fraction and a goal of getting more is good for an investor.

Its best to not look at the price of your Bitcoin that you own but focus on buying more while the price is in dip. Keep on accumulating while you still can because in Bitcoin (or crypto in general), investors who own many has a high chance to be a huge gainer for not being complacent in just one.

There's the connection of its fiat value and the quantity of bitcoin that you can get.

Whether you focus on the quantity that you're going to invest but your pocket is empty. You really have to wait until the price drops so that it's more affordable to you and you'll be getting more bitcoins.

There's no difference on it because whether you want to take more, you still need to consider the price of bitcoin upon purchase. The lower the price, the more that you can get unless you don't mind that and you're the regular DCA guy and you'll do that until you're satisfied.

Are you sure of this? I think pricing of the coin is the reason here. You not comparing the price of bitcoin to altcoins . You can get loads of altcoins with just one btc so it is not exactly about the supply of the coin but the price. There are some coins that have lesser than 21m supply but they are not priced high like btc. So use of the coin does matter. So because you have large number of the coin reflects on the profit, bitcoin is not cheap but highly valuable because it is decentralised.

Was it the opposite? Bitcoin is already a proven payment method and investment asset so having less of it can still make sense and you can still earn lots of profits because bitcoins value are always increasing due to inflationary properties.

For other non-quality coins, you need to have more of it in order to feel that you have earned some decent profit because their supply is huge which can make their value less. Not sure if I understand you correctly but you are saying that we should continue selling even if the market is falling? And we will use the profit that we make by buying more btc? That's fine to do only if your still in profit but if not then you should not sell at a loss.

Sorry but to me the fiat value of btc is important, we can use that as an indicator if its good to buy now or not and we can use that as a measurement if how much btc we can have with this money we have.

There is a use case and pros/cons of bitcoin too, not just a faith, otherwise it would be another cult with no outcome. But while trading the faith part comes into play a lot more because there are newbie traders who get in at wrong price timings and they suffer for their mistakes.

While accumulating bitcoin at low prices is a good thing, it is equally important to sell at highs and recycle the money. Compared to stocks that give dividends, we dont sell them at high price but only buy.

While gold can be said to be accumulated similarly, these markets are different and they function in real life differently. But both are profitable if you know what you are doing.

So you wanna say if you treat bitcoin like early investor then you will get the save profit? It doesn't work like this.



If I already have enough crypto in my portfolio then why da hell should I be willing to get more coins? It is always good to diversify assets and don't go full crypto.


Sure, people shouldn't give a shit about the price. Just buy a coin at ATH and be a happy idiot.


Every market works like this. Not only crypto.

I'm not sure this is the kind of reasoning running inside everyone's minds right now. I doubt it. We cannot speak of the "how many= quantity" as if it is completely independent to "how much= value." In the first place, the how much is the very reason why people are chasing the how many.

Anyway, I'm replacing value with price, because people are investing in Bitcoin. They're not simply converting their fiat to Bitcoin. I'm more than sure that majority of the people are getting into Bitcoin not because it is decentralized and censorship-resistant and seizure-proof and immutable and whatnot, but because it rises from 0 to $1,000, to $5,000, to $10,000, $20,000, $50,000 and so on.

Frankly, which has more weight to you, 1BTC=1BTC or 1BTC=$1,000,000? Or is it that 1BTC=1BTC only matters because it's price in fiat is generally increasing?

Sounds like an old gold bug strategy
It's a game of belief/faith as you think that the price will always go up, but be careful if something bad happens and the price dip below your tolerance level or if the price is pretty much swing at the same level for years, it will shake your belief like you've never experienced before (with Trump's accent).

It's not a case for everyone. If you obtained your bitcoins for free, for instance through forum giveaways, airdrops, signature campaigns, you won't feel the need to sell when price drops.
Also it may not be as easy for you to sell and buy later because you now have clean coins that aren't in any way connected to your real identity. If you send them to an exchange to trade you will not only take the risk of moving them to a centralized operator but also expose yourself to KYC. Not to mention that selling your coins might be a taxable event.
I agree that it's all about quantity and it doesn't really matter at what price you decide to get your coins. The price only determines how long you'll have to wait before you're in profit. If you by an ATH it could be another 3 years, but if you buy the capitulation it could be minutes.

I don't think we will see that price level again, the $8k level. They may want to re-assess the situation because they may be wasting their time waiting for that price. Anyway, the good thing about bitcoin is its fixed value. And a lot them are already lost, forgotten in circulation. That means, we have lesser amount of bitcoin that can possibly circulate in the future. And that may contribute to the increase of its value thru time because of the limited supply but more demand in the market.

Bitcoin game is a strategy to make it a futures investment or take advantage of a price movement
while value and quantity are two things that I think are the same for the holders only the difference is the trading strategy for profit (long term / short term)

A game of quantity since the supply is very limited and only 21 million will ever be in circulation. Panic is a part of human nature, and it shows that we have emotions, and why we respond to price drops, even long-term investors experience it, it all depends on how our minds are prepared to hold.
Unless you want to do a dollar-cost average (DCA) or buy when the price drops, bitcoin price is often difficult to predict. I know a lot of friends who are still waiting for the bitcoin price at $8000 bid order line up on exchanges, and bitcoin has yet to visit that low price.

Those who hoard bitcoin years ago and have them now already realize this, buying at the lowest price will give them more chance to acquire more bitcoin. At the price now of bitcoin it’s hard to have many bitcoins now but can still be profitable after a while if will be able to sell them in the future at a higher price. When it comes in bitcoin it’s on how long we can wait to save them and not sell them even when the price gets higher. Apparently, only few is able to not sell when they already in profit.

Sometimes people can only say that they really believe in bitcoin and its future potential, but in reality they never have bitcoin in their wallets. It doesn't seem reasonable to me because they have lied to themselves for nothing.

DCA is good advice for bitcoin investing and may be especially helpful when the bitcoin price down an erratic correction. We are in a period between $35K and $45K where both have become support and resistance after the $69K ATH. We could just buy bitcoins and take advantage of a correcting market and collect as much as we can, but there's nothing wrong with DCA as bitcoin can still go down even if it tries to recover above $40K.

It is sure that every investor anticipate for profit but not at all cost. I know that investors want to maximize their profit. They go for higher profit and not just any profit. For example waiting for low price to buy more is not same profit when you buy higher price. The profit when you buy now at $40k isn't same profit if you buy at $50k, so the profit are not the same. And yes if you buy lower, you buy more in quantity.

The idea to "have as many bitcoin as you can" instead of "have your bitcoin worth as much as possible" as a way of investment changes the approach people could have in crypto investments. The reality is that, if bitcoin dropped to 100 bucks today, I would buy dozens of bitcoin without thinking, there will be plenty of people selling (hence the drop) and imagine bitcoin is over, but why I invest into bitcoin will never be gone unless there is a hacking or something going on.

This is why crypto is almost always great and I want to own more crypto, my aim is not to have my crypto worth more even though that would be great, it was never my intention.

Is a fact that when the price of bitcoin increase or decrease, the unit of Satoshi still remains constant.

People must panic when price drops because if you are not hodling for a long time, you are hodling for short time and short time requires to sell at appropriate profit time and if at the time you are about to sell then it starts to drop, panic set in. You talk about not looking at price dropping but to keep buying but this isn't easy, things are difficult.

Currently, there is no other possibility of buying bitcoin with any other asset other than fiat. Because the base currency is often the same for the average number of people. I am not considering an altcoin millionaire, they can buy heaps of bitcoin with their altcoin.

So it boils down to one spending fiat to buy bitcoin. Therefore the price will lead you into a net profit or a net loss situation. But you can increase your stash of bitcoin gradually over time as more and more dips happen. Buy during every dip, depending on your mileage and soon you will have a stash worth boasting of, though I dont recommend boasting.

In the long run, this will pay off because then you will have enough to sell on a bull market and recycle the money over and over again. Just keep track of the movements and go opposite - that is sell when bull market arrives and buy when bear market arrives.

As long as fiat is involved in buying btc there will always be concern for the price if it drops below the buying price, you target to own 1btc for instance, you will also determine when is the best time to buy it, at the top during ath or when there is a correction! It is impossible to ignore the price value simply because you intend to increase the quantity. They are both important factor to consider.

Get it right how many = quantity, how much = value that is the difference between the two concept. Let me break it down for If you have 2 plots of land the value doesn't change the quantity of land you posses. If the price drops or rise the number of land you own remain the same.

Now in the area of bitcoin the target is to own more coin not the value. if you owned 0.5btc and the price keeps dropping it's wiser to target a new high before further decline to first sell then buy more in a new dip. hope u get the concept

What are you trying to say?This doesn't make any sense.What's the difference between how many and how much?
I get what you are saying about general assets needing quality,in order to guarantee their high value.
Stocks,that are issued by good and profitable companies get a higher value.Gold that has 24 karats is way more valuable than gold with lower karats,because it's purified.
I guess that you are trying to say that Bitcoin is different and more special than the traditional financial assets,which isn't the case.At the end of the day,most Bitcoin traders/investors are buying/selling BTC in order to get more fiat profits,not to acquire more Bitcoins.

At some point you will panic if you need to use that money in case of emergency or for urgent use such as paying your bills, electricity fees, rent, housing and other basics of life.

Also, the behavior of Bitcoin recently has become similar to stocks and therefore it is difficult to find the necessary liquidity to buy more, which means that you have to think of Bitcoin as an asset to buy from with money that you do not want to use (you have to be wise to have such a surplus) or take the risk And invest all your unnecessary money in it.

In general, even if you do not buy more, try as much as possible not to sell unless your goal of buying is achieved, at some point you will sell sooner or later.

What you described above is Dollar Cost Averaging, yes if you're use this strategy you should buy Bitcoin on whatever price based on which times you set before e.g. a day(s), week(s) etc. They're already trust in Bitcoin and only looking for the return in the long run. But we can't blame if people are looking based on fiat price or trends, they might a trader so they must know the price they bought and sold to know how much the profit/loss they made.

Though Bitcoin does really have bright future but don't forget to diversify your assets e.g. real estate, precious metal, gold etc.

Unlike other general asset that depends on quality to quantify it's value, bitcoin makes more sense based on how many btc you have not just how much of it. The earlier investors come to appreciate bitcoin based on it's own personal value not based on it's fiat value the better for their investment skill. The goal when it comes to bitcoin investment should be focused more on owning more coin not even on what the price is in relation to fiat

There are always huge promising future for bitcoin  so even in the dip the target should be focused more on when to sell so as to buy more coin. buying shouldn't be a focus of the fiat value but rather a focus of how many btc is available in your custody. To get the best of Bitcoin investment the focus of how many of this coin you are investing should be the major concern and not the fiat value thereof.

For example if you own 0.1btc whose value is $4042.79 at the moment of posting and the price eventually drops the panic shouldn't be the fallen price, it's best to sell at a lower high and buy back at a lower lows in all the concern should be to get more coin, taking advantage of the dip to buy more. The major concern for bitcoiners is to make profit no matter the market trend. Every investor always anticipate to be in profit no matter the trend and the only way out is focusing more on the quantity and not the value