I just don't get it. - page 5. | Bitcointalksearch.org

aznmonky

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Quote from: blackreplica on March 04, 2013, 10:28:40 AM

I am not sure we can conclusively say that every person buying now at this price are investing what they can't afford to lose

depends on the person really i think, also food for thought wouldn't any market that thrives on investors have a select group of fools who don't think several steps in every direction ahead? correct me if i am wrong but generally those who invest in bitcoin have a attitude and a set value in their mind their are willing to risk and accept the loss, ultimately it comes down to fear and how everyone reacts to losing the slightly amount or if they decide they can't handle the emotional ride

blackreplica

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I am not sure we can conclusively say that every person buying now at this price are investing what they can't afford to lose

Piper67

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Quote from: KTE on March 04, 2013, 10:08:37 AM

Quote from: piramida on March 04, 2013, 09:36:19 AM

So basically the longer the price steadily climbs up, the more there will be people who have risked and invested what they can't afford to lose, and they will panic, and I don't know, bring the price down to like $25!

However you don't take into account the fact that the people who invested when we were at $10 or $20 have a huge margin before they have any reason to worry as the price is at $35. So the danger of panicking isn't cumulative for each idiot.

Pssst... guys... the ones who are investing what they can't afford to lose aren't the ones driving this rally. We'd be wise not to base our decisions on their mindset Grin

KTE

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Quote from: piramida on March 04, 2013, 09:36:19 AM

So basically the longer the price steadily climbs up, the more there will be people who have risked and invested what they can't afford to lose, and they will panic, and I don't know, bring the price down to like $25!

However you don't take into account the fact that the people who invested when we were at $10 or $20 have a huge margin before they have any reason to worry as the price is at $35. So the danger of panicking isn't cumulative for each idiot.

molecular

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Quote from: creativex on March 04, 2013, 09:27:06 AM

The way the exchange rate has increased is different as well. The rally has been actively cooled with fake ask walls on a number of occasions.

I don't quite recall '11 exactly enough (it just went too fast) but I think you are right... there was no activity to try to cool the rally.

jwzguy

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I mean this in the nicest way possible...please don't buy back in until you get it.

Jutarul

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Quote from: massivebitman on March 04, 2013, 06:05:01 AM

What are the factors at play here.. Help me make an informed decision.

demand>supply

also bitcoin gains gold and silver status in the mainstream

oakpacific

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Quote from: piramida on March 04, 2013, 09:36:19 AM

I can see some foolish investor taking his house mortgage or whatever and go all-in on btc at some price like $40. Such an idiot would definitely panic if the price goes down to $39, so it's only a matter of time before there's enough people with mental stop-losses set within 10% of the current price, who would cash out on the first significant dip in price.

So basically the longer the price steadily climbs up, the more there will be people who have risked and invested what they can't afford to lose, and they will panic, and I don't know, bring the price down to like $25!

If that happened, I doubt if bitcoin would have totally gone mainstream already. Grin

What I intend to say is this:Bulls have already profited massively from the current rally, and a bitcoin crash would by no means be a "flash crash", it's going to take days, if not months, to fully pan out, there would be enough time for a bull to comfortably recoup his investment and make a handsome ,though not maximized profit, before reinvesting a part of his profits in bitcoin, if it's not a "spot the top or lose everything" scenario, why should they panic?

creativex

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Quote from: piramida on March 04, 2013, 09:36:19 AM

I can see some foolish investor taking his house mortgage or whatever and go all-in on btc at some price like $40. Such an idiot would definitely panic if the price goes down to $39, so it's only a matter of time before there's enough people with mental stop-losses set within 10% of the current price, who would cash out on the first significant dip in price.

So basically the longer the price steadily climbs up, the more there will be people who have risked and invested what they can't afford to lose, and they will panic, and I don't know, bring the price down to like $25!

One can only hope. The exchange rate re-visits $25/BTC and I'm dumping other investments to get more coins.

piramida

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Borsche

I can see some foolish investor taking his house mortgage or whatever and go all-in on btc at some price like $40. Such an idiot would definitely panic if the price goes down to $39, so it's only a matter of time before there's enough people with mental stop-losses set within 10% of the current price, who would cash out on the first significant dip in price.

So basically the longer the price steadily climbs up, the more there will be people who have risked and invested what they can't afford to lose, and they will panic, and I don't know, bring the price down to like $25!

oakpacific

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Has anybody else thought about this question--for a crash to happen, you have to get people to panic, but why should people panic?

creativex

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The way the exchange rate has increased is different as well. The rally has been actively cooled with fake ask walls on a number of occasions.

molecular

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Quote from: shkiser on March 04, 2013, 08:50:25 AM

I dont forsee the btc to slow down anytime soon. Since I have been involved (NOV 2012) Ive seen it go from about $11 to $35 where it is today.. That is 4 months, and it has tripled!

Don't get me wrong, I'm all bullish on bitcoin, but the bolded part is exactly what I thought in summer '11.

The fundamentals are much better, though and this time it's not some gamer-geeks jumping on, but "real" people. They are here to stay because bitcoin is useful and its inflation known.

Cluster2k

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Bitcoin has recently garnered increased attention from alternative media:

http://www.dailyreckoning.com.au/boycott-bitcoin/2013/03/04/

http://www.dailyreckoning.com.au/bitcoin-get-rich-or-die-mining/2013/02/27/

Why is bitcoin currently going up at a rapid rate? Because people are buying hoping to sell to someone at a higher price. Why is the price going higher? Because people are hoping to sell to someone else to make a quick profit. Once the supply of new entrants ebbs or stops the earlier adopters cash in, plunging the market. We saw this in 2011. Will we see it again in 2013? It's only obvious in hindsight.

A 90%+ drop was possible within six months. History does not repeat, but it rhymes.

shkiser

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I dont forsee the btc to slow down anytime soon. Since I have been involved (NOV 2012) Ive seen it go from about $11 to $35 where it is today.. That is 4 months, and it has tripled! Never seen anything like this, and It is absolutely exciting! I think it is still a very safe investment today, and as time goes on it will only improve. Its a no brainer. It is filling a huge void, that was never there before. If you understand who is using, why they are using, how many more will adopt it, its very easy to see there is no stopping this train.. I am still buying, and plan to keep buying. Depending how long it takes to hit $40, I will most likely continue to buy up to $50.

cbeast

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Let's talk governance, lipstick, and pigs.

Bitcoin is a fundamental new technology. It was engineered specifically to drive a global economy on the internet. Thinking that it will fail is believing that the internet will fail. It is possible, but unlikely. If you want to understand the potential (or inevitable) adoption of Bitcoin, then look at the adoption of the internet. As the internet is a force of freedom of speech, so will Bitcoin be the force of freedom of exchange.

lebing

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Enabling the maximal migration

https://bitcointalksearch.org/topic/fundamental-analysis-thread-143973

xxjs

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Quote from: massivebitman on March 04, 2013, 06:05:01 AM

Why does the price of bitcoin keep going up???

I'm pissed now that I sold all of mine.

It's gone up nearly $8 since I jumped ship.

I think about buying back in but I keep thinking it it is a high risk, and hard to make a decent profit at this price... Could it really get into the $60+ range?

I find it hard to believe.

So seriously... What is it?

What are the factors at play here.. Help me make an informed decision.

I just can't figure this thing out.

You can not compare to a company. Bitcoin is not a company, and coins multiplied by price per coin is not capital.

It is money.

There is always enough money.

Price of money is the inverse of all other prices. So if a blue barrel of oil is 2 BTC, price of bitcoin is 1 bbl/2.

Price of money is defined by demand and supply. Supply is what people want to sell for (number of coins at XX USD). Demand is what people want to buy for (number of coins at XX USD). Number of existing coins is not supply (but of course sellers and buyers take note of it). Want or need is not demand - what offer you bring to the market is demand.

Number of users and their holding preferences, expressed with X coins at Y price on the market, is demand.

We think demand can grow with new users.

People want to hold bitcoins a) because it is safe, no inevitable devaluation, and b) because it is or will be useful.

cypherdoc

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Welcome to the Bull Market!

As much as some of the bears say they are perfectly happy having made a thousand percent profit after having sold at 13, I'm here to tell you that they are kicking themselves in the pants right now.

And you know what? They will be a significant part of the continued ramp once they scramble to get back on the train.

Zangelbert Bingledack

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Quote from: hardcore-fs on March 04, 2013, 06:54:52 AM

This is called the 'monte carlo fallacy', if it's black it must be red.......soon.

Read again.

Topic: I just don't get it. - page 5. (Read 10681 times)