Topic: What happens when the bitcoin-bigplayers sell theire coins? (Read 2605 times)

We will get a wider distribution of coins, which is a good thing.

http://www.forbes.com/sites/jonmatonis/2012/06/22/the-bitcoin-richest-accumulating-large-balances/

Its a bit old and i haven't found the source i got it from, but it is a good beginning


Wtf is wrong with you ? I noticed the explanations and i thought about it.And I also wrote it down to sum it up.....and its still justified to be skeptical about the fact that a few people own a lot.


You mean why "should" they selling?

Maybe for the same reason people are selling right now....when you see that you lose millions everyone would get nervous..

You are asking the wrong question.

WHY are they selling?

Now you're just being willfully recalcitrant, ignoring or distorting the explanations given to you. You won't change your mind because you're in love with your original conclusion.

Proof?
Source?
Reference?

we will buy them cheaply

People said that a year ago too

Probably the best one

last but not least BELIEVE everything you read on the internet

Okay, thank you guys for the answers...

To sum it up:

1. It's not good for a economy when someone owns more than 1% of its wealth

2. It's unlikley that the 3 biggest bitcoinwallet owners will sell their coins in larger amounts, because they "love" bitcoin.

3. Even if it happens, it would be good, because of the lower price more people jump on the "bitcointrain"

Did i forgot anything?

Nearly half of existing today bitcoins (5 mlns) was released before end of 2011, before bitcoin became known to publicity (as first news was publicly released during first "bubble"). I think 6% in hands of biggest bitcoin players is huge understatement. Imho biggest players are virtualy unable to sell it all, even if they wanted to.

It's a nonsense scenario.  The so-called "big players" have so many bitcoin BECAUSE the have horded and bought up bitcoin since the early days.  The kind of people who foolishly sell all their coin at once for no special reason don't have large piles of bitcoin because once you make an irrational sale as such you don't have any coin left.

Hoarders hoard, miners who are in it for USD profit only sell immediately, some people try to play the market both ways.  But irrationals who would be willing to sell all their coin at once and lose a tremendous amount of value for no real gain have already done so, and lost their bitcoin.  Anyone who has held bitcoin through watching it increase in value 100X to $1, 100X more to $100, and even surge as high as $266 without selling off is clearly disciplined enough to sell in a rational manner.

It's about as likely as every single miner and merchant suddenly deciding to hold all bitcoin and stop selling and cause the price to skyrocket.

I've read that it's not healthy in any economy for someone to hold more than 1% of the market cap. It made sense to me... With more than 1% the ability to control the market is too great.

Flash crash into the sub $1 range. The moron loses a lot of money and everyone who put an order at below $1 smiles. One hour later, price bounces back as fast as the MtGox trading engine permits. Some time of extreme swings with two weeks to dampen out, during which Bitcoin is completely useless as a medium of exchange.

The only reason someone would do that is to damage Bitcoin, not caring about losing $50 Million.  We can then all make more or less educated guesses about who would be behind it. It can only be commercial payment networks or 3-letter services imho.

The thing is, with other wealth on this planet it's the same.
I don't think it's preventing Bitcoin from getting popular, Bitcoin is the solution to the problems in the banking systems that are getting out of hands.

Thank you

My Post packed into one sentence.

The fact is: 3 personen have the capabilities to make bitcoin absolutely worthless. I don't think this is a good requirement  to make bitcoin common to anyone.

Yes, he/she might get into some trouble, I'm not saying it was a great move to do.
On the other hand paying a lawyer shouldn't be a problem xD

there are two different scenarios, one you are talking about, when someone quit his job and lives just by using bitcoins, which is good. and the second one i was reffering to is when someone just dumps all (or most) of his bitcoins at once while destabilising price. if such a person is moving large amounts of fiat to bank account and is not going to spend everything at once (which is not that easy when you own billions), then he will meet taxman, bankster fees and inflation. i dont think its good as long as you are not a bankster by yourself.

While it's probably impossible to achieve something that is "fair", it's good to avoid the 1% of the people own 90% of the stuff.

The wealth distribution in Bitcoin is NOTHING LIKE the wealth distribution in fiat money, simply because the fiat-rich have all sorts of other kinds of power besides money: political connections, power over the media, controlling stakes in major corporations, power over the clergy, etc. Without that kind of power, the Bitcoin-rich will have no way to hold on to their position nearly as strongly; when they spend, their money gets distributed to everyone else. When the fiat-rich spend, they just get more back because they have some control over the money flows.

The reason wealth is centralized in the fiat world is because power is also centralized in that world. There is some power centralization in the Bitcoin world, but it is dramatically less. And what power concentrations do exist are vastly less about to control where the money goes. None of the Bitcoin millionaires have influence over the central bank or government or media or church or major corporations.

With Bitcoin there will still be some concentration of wealth - that is unavoidable simply because some people are better at making money than others and care more about it - but it will be way less concentrated than in the fiat world.

As for what happens when the big players cash out, well, many of them have most definitely been cashing out all this time, and you can see what's happened so far.