Profit for one investor means loss to the other one? - page 3.

BrianBrianBrian

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Are you familiar with pyramid scamming? They are quite the same, though I think bitcoin is more appealing for the people.
Because they both have the chance to earn, it just differs on how much.
So, the main deciding factor in this kind of business is how willing are you?
How willing are you to wait, how willing are you to invest and take risk, and etc.
Besides, our system is build in that kind of system. Laborers works hard for a low wage while their bosses earns a lot for their work.
Make sense right? Huh

Kakmakr

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Leading Crypto Sports Betting & Casino Platform

Is this not the basic building blocks of any commodity that are bought and sold on open markets? We are dealing with a market that are based on supply and demand. It is the traders choice to sell at a profit or a loss.

Some people buy bitcoins on credit and if the price does not increase or double it's value, then they are forced to sell those coins at a loss, because they have to pay back that credit.

HabBear

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Quote from: mk4 on February 08, 2018, 11:46:51 PM

The other person not necessarily ends up with a loss. What if the purchaser in June 2017 doesn't sell it for $6000, and instead waits for the future increase instead like $12,000 for instance, so he still wins $2000 in the end. There's more to that in the markets, and it's much much more complicated (I think). But yea, whether we like it or not they're gonna be losers in the markets. There's always going to be those people who FOMOs in and panic sells out.

P.S. Correct me if I'm wrong

This is spot on. And particularly so because at the time of the trade no one can know what the future holds. No one knows if they have just committed to being on the winning or losing end of the price performance and what makes one a loser of a weeks time (meaning the price goes down in the first week after the trade) doesn't mean that this person is a loser in a months time (because the stock price could go up after initially be down in the first week.)

amishmanish

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Quote from: virendarnagpal on February 08, 2018, 11:40:13 PM

Whether it is true or not that in markets like Bitcoin (crypto) ; one person gains only when the other losses some thing. Suppose one person bought one Bitcoin for $5000 in January 2017 and sells in June 2017 for suppose $10000 he gains $5000 by selling. Now the purchaser in June 2017 @ $10000 sells it for $6000 in January 2018 and as a result he losses $4000. So it is clear from the example that the profit of seller in June which was $5000 includes the loss suffered by the person who bought it in June 2017 and sold in January 2018.
If there are some other reasons for this profit / loss factor, I request other members to please share their knowledge with the platform because my opinion may be on the basis of partial truth and there may be other factors responsible too.

That is the greater fool theory. That is the case when people are trading without knowing the intrinsic value of something.

If the ability to own an innovation that allows you to make financial transactions free from third-party control and disturbances is not worthwhile to you, you should probably not invest in bitcoin.
If you think that bitcoin has the ability to make our society more open, our banks more compliant and wealth distribution better, then you are welcome to inform yourself about it and invest what you can afford to lose.

Bitcoin is the only crytpocurrency with this level of underlying infrastructure, tested under extreme conditions already and a huge community of adopters and developers. None of the others have even approached the scale of usage. Bitcoin has been there, done that.
As crytpo gains momentum, bitcoin will lead the charge. That is its intrinsic value and you should try to increase your holdings without risking your economic well-being.
We are at the cusp of great changes and its your responsibility to inform yourself and make an educated decision. In the greater fool theory, its the foolish who lose.

cizatext

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Bitcoin trading come with it own risk and if you are not smart enough to calculate the market you may end up losing but when you are smart to know when to sell or hold then you will attain some level of profit, it also true that the lose of one means profit to another because if one does notblose the other will not gain.

joanshu

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Activity: 130

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Your concept is wrong profit for one does not mean it is a loss for the other investor.As you said in your statement if a person make investment for 5K USD in 2017 sell for 10K it is true that he will gain profit and if someone buy for 10K need not wait till January to sell off at loss in fact if that person did not have patience to wait for the market to grow he should have already sold his investments when it was at 20K USD instead of selling them off at loss

pooya87

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no, not necessarily true.
things are a lot more complicated than just one buying at $5000 selling at $10000 and the other doing the reverse. maybe the first investor buy at $5000 and sells at $6000 and the second one buys at $6000 and sells at $7000 and both make profit.
it is not a game to have only 1 side winning and the other losing. of course there are always some who make mistakes and lose money but that doesn't still mean they have to lose in long term.

Wheelige

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A buyer is only losing if, when they become a seller, they are found to be bag holding and are selling at a loss. The OPs example only takes into account a declining market. If instead there is an increasing market then the 2nd buyer will make a profit selling as well. That may seem like its just passing the buck down the line until there is a decline in the market. What if bitcoin finds stability in the end, and is used as an everyday currency. This means that the buyers may have slight fluctuations, like in every currency, but not swings. I have found a number of people that believe Bitcoin is a pyramid scheme because you need to have people buy your bags in order to make your money, but this doesn't take into account the use case of Bitcoin and the end goal, which doesn't necessarily need stability but which would be greatly assisted by it.

A.Delaney

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Anytime you sell for more than you paid. Your taking someone else’s money.

mk4

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Paldo.io 🤖

The other person not necessarily ends up with a loss. What if the purchaser in June 2017 doesn't sell it for $6000, and instead waits for the future increase instead like $12,000 for instance, so he still wins $2000 in the end. There's more to that in the markets, and it's much much more complicated (I think). But yea, whether we like it or not they're gonna be losers in the markets. There's always going to be those people who FOMOs in and panic sells out.

P.S. Correct me if I'm wrong

virendarnagpal

member

Activity: 672

Merit: 12

Whether it is true or not that in markets like Bitcoin (crypto) ; one person gains only when the other losses some thing. Suppose one person bought one Bitcoin for $5000 in January 2017 and sells in June 2017 for suppose $10000 he gains $5000 by selling. Now the purchaser in June 2017 @ $10000 sells it for $6000 in January 2018 and as a result he losses $4000. So it is clear from the example that the profit of seller in June which was $5000 includes the loss suffered by the person who bought it in June 2017 and sold in January 2018.
If there are some other reasons for this profit / loss factor, I request other members to please share their knowledge with the platform because my opinion may be on the basis of partial truth and there may be other factors responsible too.

Topic: Profit for one investor means loss to the other one? - page 3. (Read 308 times)