Topic: Why we need price crashes and panic selloffs - page 13. (Read 1345 times)
So you basically want people to sell at a loss and lose money, so that things could be better for you. I rather them sell at that little profit that you mentioned and then get out, and for the price to steadily rise.
We will see such crashes in bitcoin because bitcoin appreciated so much in so little time so it would be healthy to see some correction. Also, there will be traders would be love to lock in some profits. It's totally normal in crypto universe.
To be candid with you I long expected this crash when bitcoin started behaving in an unprecedented manner and disobeying every induces of the market with its continuous uptrend. This btc fall provides a bounce back to a renewed bull movement in weeks to come and at the same time it has given an opportunity to those who believe in bitcoin an opportunity to buy in from the crash. This is awesome and a welcome development.
This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
These crashes occurs because the market is immature and there is plenty of money coming into crypto from the regular joe on the street that would not even consider investing, for example, in high tech publicly traded companies.
So, yes there are necessary and they are welcome. I don´t particularly like to see my portfolio loose so much value in a week, but if that´s what´s needed... so be it.
This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
I think what you're trying to say is that crashes are needed to redistribute bitcoin to the strong hands from the weak hands. In order for the price to increase we will need people with a lower willingness to sell but that doesn't mean that we need a crash for such a thing to happen.
Crashes are useful in ways, take for example the last one, if we say 6k is the bottom, we now have many who bought in for large amounts at 6k, they will then be holding strong for a while more for a considerably higher price, whereas we maybe lost a lot of people who had initially bought in the 1-3k range and were willing to take their profit.
While I agree with the premise, the simplicity of it is that it all comes down to demand and supply at a certain price.
This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
Jump to: