Bitcoin Savings & Trust closing! Effect on market? - page 6.

deepDown

newbie

Activity: 25

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Quote from: adamstgBit on August 17, 2012, 01:33:36 PM

Quote from: deepDown on August 17, 2012, 01:32:55 PM

Say, one has ~250K coins, and needs to return 300K during the next week.
Say one sells 100-150K coins right now in this highly elevated price.
Will there be enough panic to get the price back to say 8, where one can buy at least 200K coins?

No.

who's going to panic sell below 10?

we all know theirs a guy out their that wants to buy ALL the bitcoins

Well actually the guy might be willing to buy them if he cares more about his reputation than few (hundreds thousands) bucks. But, than again, he might be just waiting for a new yacht at that time...

wachtwoord

legendary

Activity: 2324

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Quote from: Yuhfhrh on August 17, 2012, 01:33:39 PM

Quote from: wachtwoord on August 17, 2012, 01:30:03 PM

Quote from: Yuhfhrh on August 17, 2012, 01:26:55 PM

Quote from: finkleshnorts on August 17, 2012, 01:16:56 PM

Since BTCST is now closing, what does it mean for speculators?

https://bitcointalksearch.org/topic/bitcoin-savings-and-trust-is-closing-101339

Considering it doesn't appear he defaulted at this point... I would say little effect.

It will have a huge effect because the rates Pirate was offering had a very large impact on overall interest rates. This in kinda like a bond market collapse. In the real world that usually results in a stock market bubble .....

Really? I would think the opposite would happen (If stock market=bitcoin). More people will have btc in their wallets, so there will be more selling power now?

Stock market is mostly GBLSE. I'm not sure how the fiat:BTC exchange rate is impacted, I was referring to the internals of the Bitcoin economy.

Yuhfhrh

full member

Activity: 238

Merit: 100

Quote from: BoardGameCoin on August 17, 2012, 01:34:05 PM

It depends a lot on whether or not he defaults. If its an orderly closing and everyone gets their moolah back, there might be a correction because of some profit taking. If instead he defaults and absconds with the moolah, BTCUSD should go up a bit as some percentage of the victims try to cover the lost BTC.

That's what I was thinking

BoardGameCoin

sr. member

Activity: 283

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It depends a lot on whether or not he defaults. If its an orderly closing and everyone gets their moolah back, there might be a correction because of some profit taking. If instead he defaults and absconds with the moolah, BTCUSD should go up a bit as some percentage of the victims try to cover the lost BTC.

Yuhfhrh

full member

Activity: 238

Merit: 100

Quote from: wachtwoord on August 17, 2012, 01:30:03 PM

Quote from: Yuhfhrh on August 17, 2012, 01:26:55 PM

Quote from: finkleshnorts on August 17, 2012, 01:16:56 PM

Since BTCST is now closing, what does it mean for speculators?

https://bitcointalksearch.org/topic/bitcoin-savings-and-trust-is-closing-101339

Considering it doesn't appear he defaulted at this point... I would say little effect.

It will have a huge effect because the rates Pirate was offering had a very large impact on overall interest rates. This in kinda like a bond market collapse. In the real world that usually results in a stock market bubble .....

Really? I would think the opposite would happen (If stock market=bitcoin). More people will have btc in their wallets, so there will be more selling power now?

adamstgBit

legendary

Activity: 1904

Merit: 1037

Trusted Bitcoiner

Quote from: deepDown on August 17, 2012, 01:32:55 PM

Say, one has ~250K coins, and needs to return 300K during the next week.
Say one sells 100-150K coins right now in this highly elevated price.
Will there be enough panic to get the price back to say 8, where one can buy at least 200K coins?

No.

who's going to panic sell below 10?

we all know theirs a guy out their that wants to buy ALL the bitcoins

deepDown

newbie

Activity: 25

Merit: 0

Say, one has ~250K coins, and needs to return 300K during the next week.
Say one sells 100-150K coins right now in this highly elevated price.
Will there be enough panic to get the price back to say 8, where one can buy at least 200K coins?

wachtwoord

legendary

Activity: 2324

Merit: 1125

Quote from: Yuhfhrh on August 17, 2012, 01:26:55 PM

Quote from: finkleshnorts on August 17, 2012, 01:16:56 PM

Since BTCST is now closing, what does it mean for speculators?

https://bitcointalksearch.org/topic/bitcoin-savings-and-trust-is-closing-101339

Considering it doesn't appear he defaulted at this point... I would say little effect.

It will have a huge effect because the rates Pirate was offering had a very large impact on overall interest rates. This in kinda like a bond market collapse. In the real world that usually results in a stock market bubble .....

thezerg

legendary

Activity: 1246

Merit: 1010

Hmm... if everyone gets paid back then there will be a lot of BTC in peoples accounts. But will there be interest in converting it back to fiat?

Possibly he can't use the volume and so is taking it private again... We all said no legit business would pay these rates as opposed to getting a fiat loan. Maybe he did just that!

Yuhfhrh

full member

Activity: 238

Merit: 100

Quote from: finkleshnorts on August 17, 2012, 01:16:56 PM

Since BTCST is now closing, what does it mean for speculators?

https://bitcointalksearch.org/topic/bitcoin-savings-and-trust-is-closing-101339

Considering it doesn't appear he defaulted at this point... I would say little effect.

jimbobway

legendary

Activity: 1304

Merit: 1015

pirate did not mention at all the rising price of bitcoin which made it difficult for him to get returns. That is probably the reason why he had to close shop.

BadBear

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