Topic: What is everybody's Bitcoin worth (Read 154 times)
First of all, not everybody is going to sell their Butcoins at the same time. Secondly, suppose and just suppose, if everyone decides to sell their Bitcoins, then the value of Bitcoin is going to drop. It is the basic result of supply and demand.
If the price today for bitcoin is around 9.3k then that can't mean everybody's Bitcoins is worth that amount because where would the money come from to pay everybody if they all wanted to sell.
Congratulations, you just discovered the law of supply and demand and market depth. As mentioned by others, this is true for pretty much any asset really. If there are more buyers than sellers, the price goes up. If there are more sellers than buyers, the price goes down.
This is why I am losing faith in the whole thing. And I was reading about wash trading which is people buying and selling their own Bitcoins at the same time and that is what is keeping the price up for the time being.
Wash trading in itself does not move the price, it merely increases the observable trading volume which some market participants may interpret as buy signals.
The question you are now asking yourself is whether the demand is real and Bitcoin's current valuations are justified. And it's a good question to ask yourself. Nonetheless I'm afraid you'll have to come to your own conclusions and act accordingly. If you only invested in crypto because the price went up you might want to reconsider your decision making process.
I think what you can do as an individual is keep up the work that you’ve been doing as of the moment. It can be mining, trading, investment, ICOSs or participating in bounties. The moment everyone will be active in all of the aspect the keeps bitcoin moving across the world, that’s when bitcoin will fire up again and the next thing you know, bitcoin will keep moving like how it used to be.
This is why I am losing faith in the whole thing.
Answer honestly, did you get into crypto because of FoMO and you wanted lambos and moons overnight? If yes, then sell ALL while you can and forget about the whole thing.
I would add that while the market price is about $9k some people may not sell at that price. I would not take less than $13K at the moment. That makes coming up with a price for bitcoins not in the market very hard.
Look at the situation in Argentina. The Peso has fallen a 9% in less than a week, and people are again scared of a new corralito.
No currency is totally stable, it depends on many factors, and, yet, the use of the cryptocurrencies is helping many people in countries with an unstable economy. That means: it depends on the point of view of the viewer, for there are many factors to consider.
Money laundering has many faces, also. Bitcoin is nor the perfect tool for doing so, just take a look at the contemporary art market, and you will see how to launder your money in a far more easy way.
No currency is totally stable, it depends on many factors, and, yet, the use of the cryptocurrencies is helping many people in countries with an unstable economy. That means: it depends on the point of view of the viewer, for there are many factors to consider.
Money laundering has many faces, also. Bitcoin is nor the perfect tool for doing so, just take a look at the contemporary art market, and you will see how to launder your money in a far more easy way.
Thank you for replying. I just worry about the price going up and down with no good reason.
If the price today for bitcoin is around 9.3k then that can't mean everybody's Bitcoins is worth that amount because where would the money come from to pay everybody if they all wanted to sell. This is why I am losing faith in the whole thing. And I was reading about wash trading which is people buying and selling their own Bitcoins at the same time and that is what is keeping the price up for the time being.
You might as well lose faith in humanity because that is with everything. Stocks, food, weapons, etc.
If you have a billion apples, and your neighbor also has a billion apples, lets say both of you want to sell all of them before they go bad, but the "market" only wants 1 billion apples. Too much supply and not enough demand.
You're obviously going to lower your price so that you can sell all of your apples.
This is how it would go with a bitcoin crash aswell ( although bitcoin wouldn't go bad
), https://www.investopedia.com/university/economics/economics3.asp
I guess you could also say that everything is a bubble then.. The marketcap of bitcoin might be $159,091,689,014, but that's not actually how much money has gone into BTC.
A JP Morgan analyst who specializes in capital flows estimated that around $6 billion of net inflow resulted in about $300 billion in market cap. The market cap has gone up since then, so the number is probably somewhere around $8 or $10 billion.
If the price today for bitcoin is around 9.3k then that can't mean everybody's Bitcoins is worth that amount because where would the money come from to pay everybody if they all wanted to sell. This is why I am losing faith in the whole thing. And I was reading about wash trading which is people buying and selling their own Bitcoins at the same time and that is what is keeping the price up for the time being.
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