Bingo! You just hit the jack-pot. This is exactly the point that I was trying to
convey only a few posts earlier
that makes sense. however, this also means that other (wall street level) traders will most likely skip bitcoin as investment tool, which is quite sad as these people have the wealth to move this market to reach prices we have never seen before.
Let's assume, for a moment, that some high-profile trader bought half of all bitcoins currently traded. Evidently, he buys bitcoins only to sell them later at a higher price, i.e. to book profits. Now there is only half of the coins being traded, and the price expectedly spikes to new heights. Long-term Bitcoin holders happily cash out and the price drops back. And what is that Wall Street trader left with?
If he tries to close his position, this inevitably causes the price to crash below the point he bought at, and he is left with losses
early adopters, or whatever you like to call them, will indeed be a point of attention for any large investor looking to park a good portion of their money into bitcoin. that's assuming bitcoin stays in its current (small) form. if it somehow gets a playing field for plenty of institutional traders, just like how stocks are, then even the early adopters will run out of coins as the demand by these wealthy entities far exceeds the selling pressure coming from early adopters. maybe a far fetched comparison, but look at what happened with the apple stock
You don't get it. First, stocks have real companies behind them producing real goods and providing real services which are chosen and favored by consumers (e.g. Apple stock). Bitcoin could potentially fit here as well as a payment system, but it is simply not the case so far, therefore such an option should be discarded. Second, and most important in this discussion, trading is essentially about passing a hot potato, i.e. the one who is left holding it is the one who loses. The Wall Street types ("the wolves of Wall Street", lol) play this game all their life, and they are pretty much aware who is to lose here. The one who is left standing with most bitcoins when Bitcoin fails in the end...
In short, they won't play since the reward is too small but the risk is too high
