Spending VERY Large Amounts of Bitcoin?

e1ghtSpace

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Quote from: Gleb Gamow on October 14, 2015, 02:57:22 PM

Go ahead and put a million dollars worth of bitcoins or fiat on an exchange and see how quickly a pseudo hack takes place.

Exchange: From the desk of Acme Exchange, we regret to inform you blah, blah, blah, but we'll do everything in our powers to make sure that nobody loses any moneys.
Client: Can we see the police report?
Exchange: Crickets.

Yep, I definitely wouldn't trust an exchange with such a huge amount of bitcoins. They'll probably close down your account for "suspicious activities" and you'll never see your coins again!

jt byte

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Well since there are not much available i think that it affects the price.
And maybe a large dump because there arent much buy orders for $1M
Going to many exchanges would be a good idea but maybe not enough.

gentlemand

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Quote from: ~Bitcoin~ on November 01, 2015, 07:32:58 AM

I think converting btc into USD balance in larger exchanger will not create any trouble. I doubt when you cashout that amount into real cash, as bitcoin source is anonymous your country law may ask you a lot of questions.

There was an interesting post in the wall observer thread regarding the bearwhale who did a 30,000 coin dump last year. It looks like Bitstamp are compelled by the EU to publish the details of significant withdrawals. The EU then helpfully makes that public information.

~Bitcoin~

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I think converting btc into USD balance in larger exchanger will not create any trouble. I doubt when you cashout that amount into real cash, as bitcoin source is anonymous your country law may ask you a lot of questions.

And also putting such a large sell wall will definately create a large roadblock in exchanger causing decrease in price drastically. That will also make your coin stuck on sell order for longer time to get sold. This may not be the issue in future when the demand of bitcoin will be much more higher than present.

Pierre 2

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I think it affects bitcoin economy deeply. It can make prices go down quite easily.
So if someone really likes bitcoin he should not leave it immediately. If he has btc behind, it will lose so much value.

Blue_Tiger73

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Seems legit. I'm would have never thought that people would actually buy things like houses and other things, for that large amount of bitcoin. For me bitcoin is an investment, but I also use it in day to day life. I would never sell that much bitcoin at one time as I would lose quite a lot from the sale fees. It looks like bitcoin is expanding well if people are now accepting bitcoin as payment for their houses.

BitMaxz

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Quote from: Arcteryx on October 16, 2015, 09:00:05 PM

Quote from: BitMaxz on October 16, 2015, 12:23:29 PM

In my country its hard to withdraw that very high cost because theres a wallet cashout limit in my country maybe i can withdraw only 5 btc per day directly to my bank account but above 5 btc we need to verify our address verification but the limit is only 20btc perday...

This is not good for bitcoin. It should limitless to compete with the banks hold on our money.
I do still believe bitcoin should be a "free" way to pay for things.

We do not have a right to change the minimum limit im just a user of the wallet.. Maybe if we are to many user we will strike for the changes of our wallet and to limit less....

erre

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Quote from: forevernoob on October 26, 2015, 03:36:40 PM

Quote from: erre on October 26, 2015, 12:50:14 PM

Money are controlled, u can't withdraw millions without the government messing up the thing A LOT. Exchangers all togheter have a big volume, but if you add another layer of selling on the existing volume, both in the course of hours or days or months, price would crash for sure (if there is no increased demand).

But you can use your btc as money, and try to increase adoption. In an ideal future world you won't even need to change your btc, because everything could be made more easy to buy with btc than today with cash or money transfer.

Money is controlled?
I call BS, there are lot of criminal enterprises that withdraw millions every day.

Yep, but they are criminal enterprises . You need a complex money laundry system to do so, it's not like you plain withdraw 1 million (but even some k) usd and the bank don't signal you. Also cash is treaceable, and easy to counterfeit, so are diamonds.

Messing up with big sums of money is an hard work, bitcoins are by far the best medium-of-value in these cases.

forevernoob

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Quote from: erre on October 26, 2015, 12:50:14 PM

Money are controlled, u can't withdraw millions without the government messing up the thing A LOT. Exchangers all togheter have a big volume, but if you add another layer of selling on the existing volume, both in the course of hours or days or months, price would crash for sure (if there is no increased demand).

But you can use your btc as money, and try to increase adoption. In an ideal future world you won't even need to change your btc, because everything could be made more easy to buy with btc than today with cash or money transfer.

Money is controlled?
I call BS, there are lot of criminal enterprises that withdraw millions every day.

erre

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Money are controlled, u can't withdraw millions without the government messing up the thing A LOT. Exchangers all togheter have a big volume, but if you add another layer of selling on the existing volume, both in the course of hours or days or months, price would crash for sure (if there is no increased demand).

But you can use your btc as money, and try to increase adoption. In an ideal future world you won't even need to change your btc, because everything could be made more easy to buy with btc than today with cash or money transfer.

LiteCoinGuy

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use OTC, not an exchange.

prodigy8

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Quote from: designerusa on October 26, 2015, 01:38:57 AM

I guess this kind of heavy converting to fiat money would definitely damage bitcoin.
Bitcoin was not created to be converted to fiat money, it was created to replace fiat money.

But if you want to have some bitcoins how do you want to obtain.
I know that you can earn by doing services but what if you want to have now 10BTC
You of course should buy through cash/fiat money, I think OP has got enough answers which i think the best that it fits is buy buying/selling to different exchanges.

designerusa

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I guess this kind of heavy converting to fiat money would definitely damage bitcoin.
Bitcoin was not created to be converted to fiat money, it was created to replace fiat money.

crairezx20

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Wow very huge of bitcoin for me i dont sell it i will exchange it to any exchanger site but every 2% of that bitcoin because maybe the site exchanger will be bankrupt..

visual111

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I imagine in the future, financial institutions will be able to handle this type of transaction. For now, maybe spread it across exchanges and sell slowly? Wouldn't be wise to dump all at once....talk about price crash

Amph

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Quote from: BitMaxz on October 16, 2015, 12:23:29 PM

In my country its hard to withdraw that very high cost because theres a wallet cashout limit in my country maybe i can withdraw only 5 btc per day directly to my bank account but above 5 btc we need to verify our address verification but the limit is only 20btc perday...

it's not about country it's about exchange, then you need to transfer to your bank, here the limit to my bank account is 50k but i can open a deposit account to add other 50k

if you verify in someexchange there are no limit anymor,e and you are free to cash out your 100k or more

maokoto

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The way to handle it would be to use several exchanges and send little by little. I do not think that high amount could be managed once at a time.

Arcteryx

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Quote from: BitMaxz on October 16, 2015, 12:23:29 PM

In my country its hard to withdraw that very high cost because theres a wallet cashout limit in my country maybe i can withdraw only 5 btc per day directly to my bank account but above 5 btc we need to verify our address verification but the limit is only 20btc perday...

This is not good for bitcoin. It should limitless to compete with the banks hold on our money.
I do still believe bitcoin should be a "free" way to pay for things.

BitMaxz

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In my country its hard to withdraw that very high cost because theres a wallet cashout limit in my country maybe i can withdraw only 5 btc per day directly to my bank account but above 5 btc we need to verify our address verification but the limit is only 20btc perday...

adamstgBit

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Quote from: shorena on October 14, 2015, 03:05:46 PM

Quote from: OROBTC on October 14, 2015, 02:58:35 PM

Quote from: adamstgBit on October 14, 2015, 02:35:07 PM

today bitstamps did >6million dollars in trades
bitfinex did >2million
btc-e >1.5million

~10million dollars in trades today so far.
-snip-

-snip-
So, a realistic maximum amount would be on the order of $5 million worth of BTC in a day or two and still get a decent price.
-snip-
Glen Gamow, thank you for the risk advice.

I dont know where these numbers come from, but they make no sense. Trading volume includes more than just what you need to sell. The largest orderbook I could find was bitstamp. You can use this site[1]'s "Estimate Trading" tool to play around with it yourself. If you sell 5000 BTC you would receive 1,190,290 USD @ 239/BTC average and drop the price down to 221. You might get new orders afterwards, but you might also cause a crash.

[1] https://bitcoinwisdom.com/markets/bitstamp/btcusd

the thing is the amount of trades that happen on the front lines daily is nearly 1 order of magnitude higher than the bid sum on any given day. of course if you market sell 5K coins in 5 seconds you'll drop the price, but if you sell 100coins every half hour for 24 hours you might not drop price at all.

so if you setup some OTC trades and quickly(24hours) sell of some coins on exchanges AND buy something expensive
(https://www.bitpremier.com/) i guess you could get away with 1-10million of value without dropping price by very much at all.

Topic: Spending VERY Large Amounts of Bitcoin? (Read 5797 times)