Why the bitcoin price was under so much downward pressure - page 2.

inca

legendary

Activity: 1176

Merit: 1000

Quote from: derpinheimer on October 08, 2014, 02:45:06 PM

Quote from: inca on October 08, 2014, 02:39:06 PM

Quote from: derpinheimer on October 08, 2014, 02:37:15 PM

Quote from: buddhamangler on October 08, 2014, 02:30:33 PM

I see, please show me proof that EVERY single coin mined is sold on the market. Coins are sold OTC.

It removes buyers from the visible market, regardless.

You are very active today posting gloom over the forum. How are the shorts ~~burning~~ going?

I don't delete posts and pretty much all the info about my investment is public. I don't short. I don't sell. I don't trade. (Anymore)I have mined must of my coins 2011/2/3. I traded and about doubled them through the April bubble, and then lost about half on a single bad trade (sold at $70, bought back $120)

Since then I lost half through MtGox and altcoin crashes, and firmly hold the rest since September of last year.

Happy?

Well you have my apology. Sorry for your coin losses. I find myself becoming cynical regarding the motivations of posters in this forum the longer I spend here. Might be time for a break!

otto93

member

Activity: 216

Merit: 10

Live, Hope, Win

Right now Bitstamp's 24h volume is 27161 BTC. There are other big exchanges with similar or bigger volumes like bitfinex, OKCoin, and lakebtc. That's easily enough to absorb 3600 Coins mined each day.

derpinheimer

legendary

Activity: 896

Merit: 1000

Quote from: inca on October 08, 2014, 02:39:06 PM

Quote from: derpinheimer on October 08, 2014, 02:37:15 PM

Quote from: buddhamangler on October 08, 2014, 02:30:33 PM

I see, please show me proof that EVERY single coin mined is sold on the market. Coins are sold OTC.

It removes buyers from the visible market, regardless.

You are very active today posting gloom over the forum. How are the shorts ~~burning~~ going?

I don't delete posts and pretty much all the info about my investment is public. I don't short. I don't sell. I don't trade. (Anymore)I have mined must of my coins 2011/2/3. I traded and about doubled them through the April bubble, and then lost about half on a single bad trade (sold at $70, bought back $120)

Since then I lost half through MtGox and altcoin crashes, and firmly hold the rest since September of last year.

Happy?

inca

legendary

Activity: 1176

Merit: 1000

Quote from: labsbitforum on October 08, 2014, 02:40:26 PM

A few years back when mining was a community endeavor you may have had a some percentage who decided to keep the coins rather than sell them right away to cover costs. Not so anymore. With today's mining realities I would guess at least 80% get sold off right away to cover buying equipment and paying for electricity.

You guess.

Have a look at the daily volume across the exchanges combined. Compare that to the coins produced by mining daily. Realise that mining sell pressure is a minor part price discovery for bitcoin. Two years ago there were twice as many coins produced each day flooding into bitcoin and far fewer people in the bitcoin scene - the price fell right?

labsbitforum

member

Activity: 99

Merit: 10

Quote from: buddhamangler on October 08, 2014, 02:18:38 PM

Quote from: labsbitforum on October 08, 2014, 12:28:16 PM

Long term trends are more likely a simple function of supply and demand. I think it would be prohibitively expensive to try to push it consistently up or down for a long period of time.

3600 Coins are mined each day. @ $350 a coin that's $1,260,000 each day that needs to come in to the market just to maintain the current price.
If one wants to profit from manipulating the market it does not require long term sustained manipulation up or down. You can make plenty off short bursts up and down if you know in advance which way it will go requiring a lot less capital.

Why do people keep making this claim? This assumes every coin generated is sold on the market.

A few years back when mining was a community endeavor you may have had a some percentage who decided to keep the coins rather than sell them right away to cover costs. Not so anymore. With today's mining realities I would guess at least 80% get sold off right away to cover buying equipment and paying for electricity.

buddhamangler

member

Activity: 74

Merit: 10

Quote from: derpinheimer on October 08, 2014, 02:23:12 PM

Quote from: buddhamangler on October 08, 2014, 02:18:38 PM

Quote from: labsbitforum on October 08, 2014, 12:28:16 PM

Long term trends are more likely a simple function of supply and demand. I think it would be prohibitively expensive to try to push it consistently up or down for a long period of time.

3600 Coins are mined each day. @ $350 a coin that's $1,260,000 each day that needs to come in to the market just to maintain the current price.
If one wants to profit from manipulating the market it does not require long term sustained manipulation up or down. You can make plenty off short bursts up and down if you know in advance which way it will go requiring a lot less capital.

Why do people keep making this claim? This assumes every coin generated is sold on the market.

Because it's true. Inflation is very high. Demand is not. Do you think these people won't sell if they fear lower prices are coming? Do you think they don't sell when the price goes up?

It's perfectly reasonable to have 3600 coins sold on the market and the price goes up. Every coin sold is bought. It all depends if there is good news that day, and who is motivated more (seller or buyer, market/limit).

inca

legendary

Activity: 1176

Merit: 1000

Quote from: derpinheimer on October 08, 2014, 02:37:15 PM

Quote from: buddhamangler on October 08, 2014, 02:30:33 PM

I see, please show me proof that EVERY single coin mined is sold on the market. Coins are sold OTC.

It removes buyers from the visible market, regardless.

You are very active today posting gloom over the forum. How are the shorts ~~burning~~ going?

derpinheimer

legendary

Activity: 896

Merit: 1000

Quote from: buddhamangler on October 08, 2014, 02:30:33 PM

I see, please show me proof that EVERY single coin mined is sold on the market. Coins are sold OTC.

It removes buyers from the visible market, regardless.

buddhamangler

member

Activity: 74

Merit: 10

I see, please show me proof that EVERY single coin mined is sold on the market. Coins are sold OTC.

otto93

member

Activity: 216

Merit: 10

Live, Hope, Win

If miners think the price is going up they will hold as long as they can afford to in order to maximize their return on their bitcoins.

derpinheimer

legendary

Activity: 896

Merit: 1000

Quote from: buddhamangler on October 08, 2014, 02:18:38 PM

Quote from: labsbitforum on October 08, 2014, 12:28:16 PM

Long term trends are more likely a simple function of supply and demand. I think it would be prohibitively expensive to try to push it consistently up or down for a long period of time.

3600 Coins are mined each day. @ $350 a coin that's $1,260,000 each day that needs to come in to the market just to maintain the current price.
If one wants to profit from manipulating the market it does not require long term sustained manipulation up or down. You can make plenty off short bursts up and down if you know in advance which way it will go requiring a lot less capital.

Why do people keep making this claim? This assumes every coin generated is sold on the market.

Because it's true. Inflation is very high. Demand is not. Do you think these people won't sell if they fear lower prices are coming? Do you think they don't sell when the price goes up?

buddhamangler

member

Activity: 74

Merit: 10

Quote from: labsbitforum on October 08, 2014, 12:28:16 PM

Long term trends are more likely a simple function of supply and demand. I think it would be prohibitively expensive to try to push it consistently up or down for a long period of time.

3600 Coins are mined each day. @ $350 a coin that's $1,260,000 each day that needs to come in to the market just to maintain the current price.
If one wants to profit from manipulating the market it does not require long term sustained manipulation up or down. You can make plenty off short bursts up and down if you know in advance which way it will go requiring a lot less capital.

Why do people keep making this claim? This assumes every coin generated is sold on the market.

Justine

full member

Activity: 169

Merit: 100

Ethereum wallet:

https://blockchain.info/address/36PrZ1KHYMpqSyAQXSG8VwbUiq2EogxLo2

Expect bigger correction next time they move another 1000-2000 btc again.

labsbitforum

member

Activity: 99

Merit: 10

Long term trends are more likely a simple function of supply and demand. I think it would be prohibitively expensive to try to push it consistently up or down for a long period of time.

3600 Coins are mined each day. @ $350 a coin that's $1,260,000 each day that needs to come in to the market just to maintain the current price.
If one wants to profit from manipulating the market it does not require long term sustained manipulation up or down. You can make plenty off short bursts up and down if you know in advance which way it will go requiring a lot less capital.

PenAndPaper

sr. member

Activity: 252

Merit: 250

Quote from: Blazin604 on October 08, 2014, 10:46:03 AM

Do you guys think its possible someone or a group of people intentionally drove the price downwards in order to get more people to agree to hop on board at a more reasonable price?

There isn't such a thing as a reasonable price. If the community decides to use bits as the base unit then you would buy 3000 bits with just 1 dollar.
Pretty cheap right Tongue

Obviously there is a psychological effect on how much 1 bitcoin worth but that can change easily.

Blazin604

full member

Activity: 224

Merit: 100

Do you guys think its possible someone or a group of people intentionally drove the price downwards in order to get more people to agree to hop on board at a more reasonable price?...and create some sort of buying frenzy...Is something like that even possible?

Topic: Why the bitcoin price was under so much downward pressure - page 2. (Read 4254 times)