Why we need price crashes and panic selloffs - page 4.

Ilegendph

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Quote from: jmlona on February 11, 2018, 01:33:38 PM

Quote from: Canis Majoris on February 11, 2018, 12:35:18 PM

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.

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.

Crash in a market is normal specially for bitcoin. People tend to sell their bitcoin specially if government and/or news like regulation, ban and fork is spreading. I saw different news like this that makes the market crash but OP is right- Bitcoin will just soar up once again.

Kakawate

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This is actually a good thing, and I agree with what you are saying, crash and panics are needed most especially for traders, this events cause us to be able to buy cryptocurrencies which prices are just so high in prices which are more affordable, this way, we will be able to make lots of profit in return.

squog

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Actually what we want is for crypto currencies to be controlled ny the masdes themselves by buying and holding crypto currencies. Panic selling just helps whales to control the market prices as it is. The price crashes happens when people sell. This is coilunter productive to what we want which is a stable and strong coin.

The_Dark_Knight

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Quote from: Canis Majoris on February 11, 2018, 12:35:18 PM

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.

It is not we need crashes it is just crashes are inevitable, even in a heavily regulated market like stocks we see crashes at least once a decade and in a market like the one we have it is natural we will see more crashes than that, so as long as we remain concentrated in our goal of making the most out of our investments we will never fall victim of the crashes and we will keep holding and only sell when we reach our target price.

syamster

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Quote from: sinta23 on June 05, 2018, 09:58:40 AM

Quote from: mung_nasib on June 05, 2018, 08:07:03 AM

But to make it happen quite difficult because each trader has a different attitude so that when bad news comes about bitcoin, the majority of traders immediately sell assets without thinking in the future and worsen the market situation.

indeed events like this often happen, because many who think that the price will not come back again or will not rise again, but this event sometimes come only briefly.

Yes it is usually happens price of bitcoin never remain the same as it gets high and low, so we need to sue the opportunity at right time and right place, it is good to buy when you find price falling and sell when you find price increasing, so we want price crash to get the chance to buy low and sell high to get profit and grow our bitcoin the best way.

iMark

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Quote from: Harrisonimo on June 05, 2018, 09:32:36 AM

The constant and regular buying and selling of bitcoin and other cryptucurrencies helps keep the market alive. We do have people who just want to sell off to have Fiat just for some emergency need; they don't care if the market is in dip or red. The panic sellers too sell off because of not doing real research on the altoins they are holding

Yeah you're right the price crashes may be necessary for the buying and selling to stay alive, imagine if the price keeps rising, maybe more people will sell than to buy, actually the falling price is a reasonable thing of a market, and it gives the other user a chance to buying bitcoins at a cheap price

sinta23

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Quote from: mung_nasib on June 05, 2018, 08:07:03 AM

But to make it happen quite difficult because each trader has a different attitude so that when bad news comes about bitcoin, the majority of traders immediately sell assets without thinking in the future and worsen the market situation.

indeed events like this often happen, because many who think that the price will not come back again or will not rise again, but this event sometimes come only briefly.

Harrisonimo

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The constant and regular buying and selling of bitcoin and other cryptucurrencies helps keep the market alive. We do have people who just want to sell off to have Fiat just for some emergency need; they don't care if the market is in dip or red. The panic sellers too sell off because of not doing real research on the altoins they are holding

trolltalk

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Many traders have different strategy and some are panic selling cause negative things comes in their mind first, we need panic sellers to decreased bitcoin price and buy, well this is the systematic rules to gain profit while others bankrupts in their investments there are few people that earned huge money.

Roukawa

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Quote from: Canis Majoris on February 11, 2018, 12:35:18 PM

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.

Constant peak is not good in economy that's why there is economic cycle. I treat bitcoin as our economy where we can stabilize the boom in a long run but we cannot prevent it to fall. If the price will always be on top, there are no more people that will try to invest in bitcoin. If that happens, the market becomes exhausted and turn it down again.
We cannot prevent the prices to dump because it depends upon how the people react in the market.

mung_nasib

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But to make it happen quite difficult because each trader has a different attitude so that when bad news comes about bitcoin, the majority of traders immediately sell assets without thinking in the future and worsen the market situation.

kidamazo

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I would say also, the less competition we have here, the less guys are participating, the more profit we have, as a strong hands, so yeah, this cases is our highly important!

Blue Bell

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Quote from: Dukjila on June 03, 2018, 10:56:31 AM

Quote from: Canis Majoris on February 11, 2018, 12:35:18 PM

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.

I do not agree, because after the collapse of Bitcoon, investors concern him with great apprehension, which is why the so-called "stability" (7K-9K) has now come.

It is just a dream for now bitcoin is not going to be stable in price ever, bitcoin will remain high and at the top forever as the most volatile currency, as price crash is the time when all people get opportunity to buy bitcoin and hold for long time, when more people sell at panic price automatically get down so they buy and hold for long time,. I am sure if price will keep on changing then within one year bitcoin will gain high value as an investment.

reda

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Nowadays most of the people panic for the bitcoin price down. So don't panic. it any time to up and down. So bitcoin price up and down it help to people invest in the bitcoin. if price will be down. This right time to buy and hold the long time. then wait for the price increase. Then sell it. Bitcoin is change the future life. So don't panic. check the price day by day. then get ideas and time to sell and buy the coin. Market place is help to gather more information of the all coin price list.

Tylev

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This will necessarily happen in the future. In general, people look only at their own profit and therefore bitcoin will first decently rise in its price, and since it will have a high cost, a significant part of the bitcoins will be nervous and constantly monitor news information and the bitcoin rate. If the bad news coincides with the decrease in the price of bitcoin in the event of its volatility, some of it will be regarded as a manifestation of negative information and will sell their bitcoins. This will lead to a further fall of bitcoin and then a real panic will begin. In a short time, bitcoin can almost completely depreciate. This can happen several times until bitcoin rises high enough.

Dukjila

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Quote from: Canis Majoris on February 11, 2018, 12:35:18 PM

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.

I do not agree, because after the collapse of Bitcoon, investors concern him with great apprehension, which is why the so-called "stability" (7K-9K) has now come.

wireless1889

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Quote from: Canis Majoris on February 11, 2018, 12:35:18 PM

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 rate is pretty much normal with its volatility on the line. Some factors in the market and the partnership with bitcoin affects the rate. This is normal though because I think this sets as an opportunity for new investors so that they can invest in a lower price since bitcoin doesn't really fall down into a very critical state which everyone just turn their backs on bitcoin or something.

Canis Majoris

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Quote from: STT on March 14, 2018, 07:51:38 PM

Quote from: Canis Majoris on March 14, 2018, 12:24:16 PM

Commodities are backed up by, well, commodities, currencies are supported by their governments, but the only support that crypto enjoys is faith in its future growth and expansion.

Governments dont support their currencies very well, most western governments are running a budget deficit and filling the void by printing more money. So they are debasing the countrys exchangeable currency by gifting themselves new money.

I dont really call that support, its more like undermining and the value currency has comes from the people who trade, earn, produce and create value in society with the utility they provide via work, etc.

Why then cant those people be using crypto currency which is at least a known quantity with a clear equation behind its value. There is no maximum to the amount of paper money produced, ask the people of Venezuela how this ends

Not that I disagree at large with your point, I just want to clarify that governments are not supporting their currencies directly as in setting some arbitrary exchange rates and then trying to keep them at any price. Rather, most sane and experienced governments are targeting price inflation rates because this is the real support that fiat money needs. On the other hand, for export-oriented countries it makes sense to keep exchange rates artificially low - as long as they manage to keep inflation bridled, of course.

pixie85

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Quote from: Samk on March 17, 2018, 02:44:10 AM

CRASH AND MAJOR SALE OFF IS REQUIRED TO MAKE ANOTHER HIGH CONSOLIDATION AND FOR MORE INFLOW OF THE MONEY SO FUD IS CREATED AND ALLOW MORE TO COME IN.

Don't write in all capital if you want to be read. It's much harder to read. Make it easy for us, not hard.
Crashes do make it easier to buy the coin, but they also discourage people who got scared and lost money. So out of the pool of people involved in crypto you're losing a group and gaining a new one. If there were no crashes new people would eventually come anyway and it would be a much healthier process.

Canis Majoris

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Quote from: TheUltraElite on March 14, 2018, 12:17:13 PM

Quote from: GreatBug on March 13, 2018, 12:57:40 PM

For me those both situations only make market better for investors to just catch some coins at good prices for trade or just hodl next months.

True but also consider the fact that bitcoin is main source of money for buying an altcoin. If bitcoin price drops then the value of the altcoin drops too. Those who want to buy that altcoin need to be careful at what price they are buying otherwise they will not be able catch when they drop.

Perhaps, this mostly refers to little-known and unpopular altcoins at such exchanges as Yobit and their likes. Major altcoins like ETC, LTC, etc are all traded against fiat as well, and it actually remains to be seen where's more volume. Apart from that, the majority of people who trade these coins are well aware of their dollar price and their cross-rates.

Topic: Why we need price crashes and panic selloffs - page 4. (Read 1374 times)