Topic: Can Holding Bitcoin affect the stocks - page 10. (Read 2289 times)

Yes bitcoin affect the stock. If the bitcoin is not circulating then the stocks will be few then the demand will be high and if the stocks are many then the demand will be low. We should circulate the bitcoin, se can hodl bitcoin, but not all the time if all the people will just hodl then the demand will be high so if the demand is higher no one can invest in bitcoin because the value of the bitcoin is high.

properly attach a token. but you also need to be careful of hackers because they just spread. But when you know it's safe, you know you're just waiting for it.

Holding bitcoin has a positive effect on its value. It's like hoarding, while the demand is continuously increasing and you are still keeping, its price will definitely increase. That's  why a lot of the holders were not selling their coin when the price is dropping. Coz eventually, it will increase  again.
And when it comes to volume of bitcoins, it doesn't  have any effect, coz bitcoin supply is fixed.

In terms of being a currency, it would affect the circulating supply in which people would tend to be out of stock of it but then due to its limited supply and higher demand, it would result to a higher price because people are willing to pay higher just to get hold of the coin. Of course there are bitcoins that would be released each block for mining rewards but this is not enough for some as the demand increase so the price continue to go up. With the additional fiat money injected to the market, it would be more lucrative to make it as an investment than a currency because of the opportunity that its value will increase in a short period of time compared to other investment vehicles.


Due to people who are already involved with cryptocurrency and wanted to add more bitcoin to their stash, it prevents some of the newbies to have bitcoin so it would result to just a few people holding it and as oppose to what its purpose to be which is currency, this would prevent mass adoption but this is an extreme case as there are still bitcoin that can be purchase since some holders are willing to sell to have some profit.

Holding of bitcoin is all about the trust, unexpected things happens in unexpected time period. The stock market doesn't have a big impact upon the cryptocurrency market. Cryptocurrency being an independent market used to grow even when the stock market wasn't that good.

This gets into monetary supply and other economic considerations.

REDUCING THE SUPPLY

This has a net effect of putting upward pressure on the price of the currency (the purchasing power of the currency).

However, this also has another affect on the economy...

INCREASING THE VELOCITY OF MONEY

As the supply is reduced, with other factors holding constant, the velocity of money increases.

https://www.investopedia.com/terms/v/velocity.asp


It's trivial to see there. As M decreases, V increases.


Velocity of money is a touchy subject sometimes. The article above gives some more info on it.


However, HODLing really is just a temporary removal of coins from M. Regular fiat savings function the same way, but as fiat goes down in purchasing power, it makes no sense to HODL fiat. The best strategy is to spend fiat before it's worth less (not a typo, but could be).

Assume that an arbitrary amount of fiat is saved.

We'll call that X% of M.

X should be relatively stable over time with obvious fluctuations around Christmas, Lunar New Year, etc.

In the Bitcoin world, let's say that Y% is HODLed. As BTC is deflationary, we can assume that Y > X by some factor Z (Y/X).

Z would then represent a sort of value premium (desire to save or desire for higher time preferences) that people have for BTC over fiat.

Further, as Z increases, the effective M decreases, V increases, and the purchasing power of the currency (BTC) increases.

If increases in Z tend to bolster confidence in BTC, Z should increase and create a virtuous circle of savings/HODLing.

At the same time, we know M exactly, but we can't really measure Y or Z very well without looking at Bitcoin days destroyed, which I almost never hear anyone talk about anymore.

yup holding it is a good way I guess.
the rule of supply and demand will go on the move as long as the people go hold bunch of coins the circulating supply will go low which makes the price go high as the people will substantially go seek to buy it. holding such a digital currency is the best way to earn more trust me

Nowadays most of them hold their bitcoin instead of releasing it because its help by increasing the price and value of bitcoin . It’s good for any stocks if holders increases then surely price will increase.

If many people will hold bitcoins. then bitcoin price will shoot up. On the other hand. Stocks will stay be the same but the growth will not be like before. This is because many investors has switched into crypto investment.

I don't think it will affect the stock or volume of bitcoin because many people trade while holding and it helps increase bitcoin's price.

It is better to hold bitcoins than trading it everyday because the more people holding bitcoin the more it increase in price value so it is really better to hold it. Due to its limited supply, bitcoin price will keep on increasing when its supply get depleted because it means that many people are buying and holding it than selling. So I suggest that it is best to hold bitcoin to increase the price and reach again its peaked price last year.

Its not actually bad to hold bitcoins because most of the people hold and trade the bitcoin on its way. And when we trade it on exchanges for altcoins it serves as circulation. And moreover as the new money comes in the price is bound to go up so holders wont harm price of bitcoin.

People are holding their bitcoin, because they want to wait until the price of BTC will increase before they sell it, so they can get much profit when they sell it in a high price, that's why they are holding it and it will not affect the stocks.

Well, in my opinion, long-term bitcoin is the best way to increase profits as well as maintain prices when fluctuations occur from FUDs or external factors. The process of keeping things effective requires everyone to have patience and confidence in the bitcoin. It's not simple but you need to accept to find success in the potential market but it is still very young.

Yes definitely, holding bitcoin will increase its price because supply will be limited and the demand will increase. This is one of the reasons why price increases. But what will happen is that if these people holding big/great number of bitcoins, and they decided to sell their coins, it will affect the price of bitcoin and drops down again just like the way bitcoin bitcoin rises.

Well i think when all the bitcoin holders are holding for better profits there is possible shortage of stocks and may affect the growth of bitcoin.
But we also think that bitcoin is created for investment purposes.
So we don't  need to blame an individual to hold because they right to invest for gaining more money.
All we need is to produce more bitcoin by spreading it's importance to one  another.

I believe that holding bitcoin has really a direct effect on its price, the shortening of the supply on the market is maybe the one of the factor that affect the price from low to high and I think it is all because so many people around is now trusting bitcoin for good. So then i believe that holding is the right thing to do in order for us to earn in the near future.

Stock of bitcoin only limited to the already mined. If many people hold back then the goods will be scarce and the price will rise. Apply the opposite. That's why you see the chart is always changing.

It's quite true with what you say and although many people hold bitcoin but I think new enthusiasts to buy bitcoin are still a lot that can affect the volume of bitcoin getting more.

Summary: less supply in the circulation/crypto economy, bigger demand = higher price.