Keeping Bitcoin Price High - page 3.

Peter Lambert

hero member

Activity: 756

Merit: 500

It's all fun and games until somebody loses an eye

Quote from: TheBanker on June 24, 2013, 12:33:51 PM

Quote from: Peter Lambert on June 24, 2013, 11:53:17 AM

Quote from: Xyver on June 13, 2013, 11:21:51 PM

I'm trying to think of ways to have Bitcoin keep its value, instead of always fluctuating up and down. As far as I know, it rises because lots of people buy coins, and once it hits a certain point, someone decides to sell a large amount, so the price drops a little bit, causing everyone else to sell, dropping the price lots. It falls down, until it hits a low enough value that people wish to "buy back in", and then the price begins to rise again, and the cycle repeats.

My idea is that instead of waiting for the price to rise to sell coins, wait for the price to rise to buy something with coins. Go to coingig, or bitcoinstore, and find an item that you want, and tell yourself "When Bitcoin hits 120$ (or any price), I'm going to buy this item instead of selling to an exchange.".

I think that this would help keep the price stable, as well as distribute the coins more, instead of keeping them all locked up in an exchange.

EDIT:: My knowledge of economics is minimal, so I could be way off.

If you go to a store and use your bitcoins to buy something, the guy who just got them will dump them in the market, so the overall effect on the price is very small.

Just to be clear, there is a very small effect, since there is that 1 hour wait for confirmations before the other guy can dump them on the market, but like I said it is a very small effect.

Thats not 100% true. There are services/exchanges that will let you cash BTC without any confirmations

Right, so then instead of waiting 1 hour there is no waiting, so it makes even less impact on the price. Thanks for accentuating my point for me.

TheBanker

member

Activity: 125

Merit: 10

Quote from: Peter Lambert on June 24, 2013, 11:53:17 AM

Quote from: Xyver on June 13, 2013, 11:21:51 PM

I'm trying to think of ways to have Bitcoin keep its value, instead of always fluctuating up and down. As far as I know, it rises because lots of people buy coins, and once it hits a certain point, someone decides to sell a large amount, so the price drops a little bit, causing everyone else to sell, dropping the price lots. It falls down, until it hits a low enough value that people wish to "buy back in", and then the price begins to rise again, and the cycle repeats.

My idea is that instead of waiting for the price to rise to sell coins, wait for the price to rise to buy something with coins. Go to coingig, or bitcoinstore, and find an item that you want, and tell yourself "When Bitcoin hits 120$ (or any price), I'm going to buy this item instead of selling to an exchange.".

I think that this would help keep the price stable, as well as distribute the coins more, instead of keeping them all locked up in an exchange.

EDIT:: My knowledge of economics is minimal, so I could be way off.

If you go to a store and use your bitcoins to buy something, the guy who just got them will dump them in the market, so the overall effect on the price is very small.

Just to be clear, there is a very small effect, since there is that 1 hour wait for confirmations before the other guy can dump them on the market, but like I said it is a very small effect.

Thats not 100% true. There are services/exchanges that will let you cash BTC without any confirmations

Peter Lambert

hero member

Activity: 756

Merit: 500

It's all fun and games until somebody loses an eye

Quote from: Xyver on June 13, 2013, 11:21:51 PM

I'm trying to think of ways to have Bitcoin keep its value, instead of always fluctuating up and down. As far as I know, it rises because lots of people buy coins, and once it hits a certain point, someone decides to sell a large amount, so the price drops a little bit, causing everyone else to sell, dropping the price lots. It falls down, until it hits a low enough value that people wish to "buy back in", and then the price begins to rise again, and the cycle repeats.

My idea is that instead of waiting for the price to rise to sell coins, wait for the price to rise to buy something with coins. Go to coingig, or bitcoinstore, and find an item that you want, and tell yourself "When Bitcoin hits 120$ (or any price), I'm going to buy this item instead of selling to an exchange.".

I think that this would help keep the price stable, as well as distribute the coins more, instead of keeping them all locked up in an exchange.

EDIT:: My knowledge of economics is minimal, so I could be way off.

If you go to a store and use your bitcoins to buy something, the guy who just got them will dump them in the market, so the overall effect on the price is very small.

Just to be clear, there is a very small effect, since there is that 1 hour wait for confirmations before the other guy can dump them on the market, but like I said it is a very small effect.

TheBanker

member

Activity: 125

Merit: 10

Quote from: bitcon on June 13, 2013, 11:39:45 PM

if people would sell their coins in smaller portions instead of dumping them all at once they would get more $ for their coins and the market wouldnt take a dive. but maybe they want to create panic selling to buy back lower.

This is one of the smartest things I've read on these boards. I know this because I practice this too. I have had very frequent situations where I'm selling 150+ BTC at one time. This is A LOT harder than it sounds. Fortunately, I have a business and finance background that has given me some trading skills and I'm comfortable doing this (I also have multiple exchanges besides Gox to use). I'm TERRIFIED at the thought of these ASIC users with zero trading experience going on Gox on trying to sell their BTC in large chunks. They can completely collapse the market without even knowing it. Its like a baby crawling in a dark room putting their fingers in things - "let me see what happens when I plug into this socket . . . "

Xyver

full member

Activity: 281

Merit: 100

Well, lets all agree now then. When the BTC price hits $120, everyone go buy something nice!

legitnick

hero member

Activity: 532

Merit: 500

If everyone on the forum agreed to buy at a certain time that would definitly boost the price up.

Hyena

legendary

Activity: 2114

Merit: 1015

The original idea is very good. In January I transfered 100 euros worth of bitcoins to a certain e-shop that only accepts bitcoin. During the next months I got to actually spend 1000 euros worth of bitcoins Cheesy

, so the a good approach would be just owning some pocket money in bitcoins and by spending it on goods you are basically taking out the returns in non-fiat way.

BitChick

legendary

Activity: 1148

Merit: 1001

Quote from: sweeppicking on June 16, 2013, 11:55:25 AM

I think the problem of price decreasing is for the new ASICs, people is trying to not lose their money by selling their Bitcoin so high as they can.
It was the obvious problem of the first ASICs aparition, then the GPU miner will go to scrypt coins like litecoins and wild drop that price too because of the big quantity of coins generated till the difficulty sets up.
I think that the solution is to hold our coins and wait to almost asics shipped and the strong up before the drop of this days.

It will be interesting to see what happens as the difficulty of mining BTC increases. I have never been a miner, just a buyer, so I cannot speak from experience. I would have thought that the mining community would see the value in just holding their BTC but then again, they have invested quite a bit of money into their systems and probably need to recoup those losses just to pay their bills. I am sure that there are some mining and holding. It would very interesting to know the percentage of BTC sold by miners is?

Technologov

full member

Activity: 203

Merit: 100

Manipulating market is just stupid. If you keep price too low, shortages develop, if too high and forbid selling, miners can't pay their bills. (for new hardware plus electricity).

Let the free market decide.

sweeppicking

member

Activity: 83

Merit: 10

I think the problem of price decreasing is for the new ASICs, people is trying to not lose their money by selling their Bitcoin so high as they can.
It was the obvious problem of the first ASICs aparition, then the GPU miner will go to scrypt coins like litecoins and wild drop that price too because of the big quantity of coins generated till the difficulty sets up.
I think that the solution is to hold our coins and wait to almost asics shipped and the strong up before the drop of this days.

halfawake

hero member

Activity: 490

Merit: 500

Quote from: LordMeowMeow on June 14, 2013, 11:41:13 AM

Chicken/egg scenario. Once more mainstream companies go with Bitcoin payments the utility of holding Bitcoins for purchases will go up as more ways of spending them will become known. Right now bitcoins are mostly used as a speculative and dynamic trading tool which is completely normal given the market's infancy.

This is exactly the problem right now. As far as currencies go, the market cap of bitcoin is still relatively low, so it doesn't take a lot of selling to get the price to go down these days. Once it becomes a more established currency, this will be much less of an issue.

Crypt_Current

hero member

Activity: 686

Merit: 500

Shame on everything; regret nothing.

Quote from: jhansen858 on June 15, 2013, 09:48:58 PM

I'm doing my part. When the price drops I buy to bring it back up. When the price rises, I start selling to bring it back down.

jhansen858

sr. member

Activity: 364

Merit: 250

I'm doing my part. When the price drops I buy to bring it back up. When the price rises, I start selling to bring it back down.

JohnSy

newbie

Activity: 14

Merit: 0

Quote from: Xyver on June 13, 2013, 11:21:51 PM

I'm trying to think of ways to have Bitcoin keep its value, instead of always fluctuating up and down. As far as I know, it rises because lots of people buy coins, and once it hits a certain point, someone decides to sell a large amount, so the price drops a little bit, causing everyone else to sell, dropping the price lots. It falls down, until it hits a low enough value that people wish to "buy back in", and then the price begins to rise again, and the cycle repeats.
Your method is viale
My idea is that instead of waiting for the price to rise to sell coins, wait for the price to rise to buy something with coins. Go to coingig, or bitcoinstore, and find an item that you want, and tell yourself "When Bitcoin hits 120$ (or any price), I'm going to buy this item instead of selling to an exchange.".

I think that this would help keep the price stable, as well as distribute the coins more, instead of keeping them all locked up in an exchange.

EDIT:: My knowledge of economics is minimal, so I could be way off.

pac1

newbie

Activity: 18

Merit: 0

Quote from: Xyver on June 13, 2013, 11:21:51 PM

I'm trying to think of ways to have Bitcoin keep its value, instead of always fluctuating up and down. As far as I know, it rises because lots of people buy coins, and once it hits a certain point, someone decides to sell a large amount, so the price drops a little bit, causing everyone else to sell, dropping the price lots. It falls down, until it hits a low enough value that people wish to "buy back in", and then the price begins to rise again, and the cycle repeats.

My idea is that instead of waiting for the price to rise to sell coins, wait for the price to rise to buy something with coins. Go to coingig, or bitcoinstore, and find an item that you want, and tell yourself "When Bitcoin hits 120$ (or any price), I'm going to buy this item instead of selling to an exchange.".

I think that this would help keep the price stable, as well as distribute the coins more, instead of keeping them all locked up in an exchange.

EDIT:: My knowledge of economics is minimal, so I could be way off.

i think your right, otherwise how will bitcoin ever stabilise.

Mytche

newbie

Activity: 56

Merit: 0

The price of bitcoin is actually depressed right now because of the the funds leaving the bitcoin economy due to the mining arms race that is going on. If you want to keep the price of bitcoin high I would suggest promoting companies that try to keep profits in bitcoin and encourage their own suppliers to use them.

Note that even though is arms race is depressing the price of bitcoin it is greatly increasing its value and should be reflected in the price sooner or later.

ISAWHIM

hero member

Activity: 504

Merit: 500

The only way to RAISE it, is to BUY IT for MORE than IT IS WORTH... (Loss)...

Problem is, all the ASICs are cashing-out for LESS than the market value, because they don't have LOSSES yet, and will keep cashing out, until they do have losses. They ARE waiting, as long as they can, but a few are not, and those who know this, are also cashing-out at a LOSS (under value), so they don't loose even more to ASICs. They are taking your VALUE, your cash, leaving you with a devalued BTC.

You want to make it live...

Cash out now, at any expense... wait for the ASIC's to drive it up again (Eg, once they have loss), and then buy them again at the lower price.

An ASIC can sell as low as $10 and make a profit from BTC/YOU. They will, because they don't have loss yet.

You are not helping BTC by keeping the price high, you are helping ASIC owners get rich, doing nothing... by keeping it high. Making yourself have more loss, while they have little loss.

LordMeowMeow

sr. member

Activity: 617

Merit: 250

Chicken/egg scenario. Once more mainstream companies go with Bitcoin payments the utility of holding Bitcoins for purchases will go up as more ways of spending them will become known. Right now bitcoins are mostly used as a speculative and dynamic trading tool which is completely normal given the market's infancy.

No 1

full member

Activity: 140

Merit: 100

Ad Infinitum Et Ultra

buy buy buy <--- this is the only way friend

AliceWonder

full member

Activity: 168

Merit: 100

Quote from: bitcon on June 13, 2013, 11:39:45 PM

if people would sell their coins in smaller portions instead of dumping them all at once they would get more $ for their coins and the market wouldnt take a dive. but maybe they want to create panic selling to buy back lower.

My guess is a lot of them are cashing out in large quantities because they want to invest those assets in something else that they think is going to rise faster than bitcoin or into something with less risk. In those cases big dumps are the way to do it because you need the capital fluid for the investment.

I doubt that money is just going into their bank account to sit around doing nothing.

Topic: Keeping Bitcoin Price High - page 3. (Read 5704 times)