Why we need price crashes and panic selloffs - page 9.

Pinoyfan

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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.

This is the best way to pump more the crypto and bitcoin because when the value goes down we will see the that all whales will buy a lot of bitcoin or cryptocurrrency so it id time to buy when the value id so small to get more money soon.

mx667

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Quote from: nasipadang on March 08, 2018, 07:19:25 PM

When crashes and no news or things that can make up demand, for example now bitcoin prices are not as high as before dumps even when it could reach $20k, I do not think we need a crash or panic sell to make the bitcoin price much higher because it only depends on the demand to raise the price, I mean if there is a crash or panic sell but the demand is not high.

Yes I think this kind of thing is needed even though it make some people panic sometime. But I think the up and down of the price of Bitcoin and other crypto are very normal and usual. Actually, with the decreasing of the Bitcoin and crypto prices, this will be a chance for us to buy and collect some crypto that we want as much as we can. This kind of situation can be an opportunity for those people who want to start investing in Bitcoin and other crypto. Actually, if we learn and thought about that, this thing is not entirely wrong and evil. That is why I just do long-term investment so that I do not have to worry.

nasipadang

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When crashes and no news or things that can make up demand, for example now bitcoin prices are not as high as before dumps even when it could reach $20k, I do not think we need a crash or panic sell to make the bitcoin price much higher because it only depends on the demand to raise the price, I mean if there is a crash or panic sell but the demand is not high.

JesusCryptos

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This is an interesting point of view

In fact, the ups and downs are BOTH necessary for the market to discover how much it CAN go up and down. If it would go only up, nobody would know how much it would possibly go down, should it ever go down. If it would only go up, at some point it would possibly crash down to nothingness.

Beau Mathieson

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You are absolutely right, and as many have pointed out these corrections are healthy for the growing market. If we look to examples from traditional and mature markets for example the corrections that occurred as result of the housing bubble 'burst' of 08. The markets than were boated with repackaged, triple A rated mortgaged backed securities which many knew were full of subprime mortgages (we could relate this to coins such as S**tCoin or Coinye West). Since these toxic assets were racking in billions of dollars a year for the banks and investors much like seen in our own ecosystem, it was only till a few negative events occurred like the bankruptcy of New Century (a mortage lender) where the downward spiral of the markets began, for us that was our Tether or Mt Gox moments. These crashes recreate a healthy ecosystem, and make worthless coins, worthless. We talk about store of value, however the only thing we could use to place as a value of the coin, is the work need to produce that coin. So in that, coins that rely on PoW should in theory have more value than PoS coins as they are more energy intensive. That is my two cents.

BartS

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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 know if we need crashes but I do know crashes are inevitable its simple economics, an asset goes from being overvalued to undervalued and vice versa, when it is overvalued there is no way for it to go even higher in price and this eventually creates a sell off and this creates panic in those that invested late regardless of their knowledge and skill and this at the end creates a crash, in the process some earn money and many lose it and in return those that earned money can now make push for other technological advancements.

DesmondHayes

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Quote from: anonbit992 on February 11, 2018, 02:51:25 PM

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.

There will always be new investors which have only come into the market and don't have the time to hold the falling coins. Big whales are recognizing the new opportunities and selling other coins they think have reached the high price and they have set the goal for. Everyone has their own standards and limits for selling and this demand for the sold coins is with each month getting ridiculously high.

All the coins that are currently on the market will change their prices in the future. Most recognized ones will change in value to higher limits. Panic is what makes the market stronger because the new opportunities after the panic has started can provide specific coins to get up.

I also forgot to say that the outside factors can also influence the market and because of that some of the whales are trying to control the market and they are actually causing the periodically market crashes over time.

merrillolive

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Last time the price of BTC fluctuates frequently, small investors also have more experience in the market. At present, although BTC prices have fallen, they will not sell their losses, they still hold BTC and hopefully they will increase again in the future.

Vannie12

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We don't actually need it. Market can grow anytime with faithful holders only. But surely, panic selling is not avoidable. If you can actually force someone to hold their coins with selling anything I think prices today are extremely higher.
Though instances and senarios like crashes and panic selling would benefit the more investors that would want to hold too by buying cheaper coins. Crashes would let more stronger holders in. Less users are attracted to invest like for an exaomles, people bought when it's almost twenty thousand dollars. Yet it falls to half.

Canis Majoris

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Quote from: serjent05 on March 08, 2018, 01:02:02 PM

The only reasong why we need crashes and panic sell offs is for the new comer to come in the scene. with all the advertisement and promotion, people gets aware that Bitcoin exist but with high price, investors are quire afraid to enter or worst they cannot afford to enter anymore. With price crashes and sell off bitcoin goes down in price and with that short span of items getting cheaper, buyer or investors flocks in with the new funds with them pushing the price to go up.

This is debatable. Personally, I'm more inclined to think that consistent price growth helps promote Bitcoin much better than constant crashes and incessant sell-offs. Why would newcomers want to buy a coin if they can't know or reliably expect the price to rise in the near future? If anything, high volatility scares the pants off most common people wgibh want to invest long term. Indeed, short-term traders and speculators are here precisely because of severe price fluctuations, but this is definitely not what most people are looking for.

shezu007

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I think the price crashes make the panic selling more . The high investors play the main role in this game when they invest high income in crypto then the value of the bitcoin raised and they hold their invest for a time when they get back the investment from the crypto then the value start fall and most of the people start the panic selling.

serjent05

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The only reasong why we need crashes and panic sell offs is for the new comer to come in the scene. with all the advertisement and promotion, people gets aware that Bitcoin exist but with high price, investors are quire afraid to enter or worst they cannot afford to enter anymore. With price crashes and sell off bitcoin goes down in price and with that short span of items getting cheaper, buyer or investors flocks in with the new funds with them pushing the price to go up.

Lieldoryn

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Quote from: arpon11 on March 08, 2018, 12:36:54 PM

For the price to be balanced it most rotate and move in both directions before finding a central area. When bitcoin is falling the reality is that this provides opportunities for people or traders to buy bitcoin and other coin at a very low price and sell them for profit. Bitcoin bearish is what give momentum for the next price movement.

We never know who buys the coins. Me seems that after each panic sold coins concentrated in the hands of whales. This makes them more influential and makes it easier for them to manipulate prices. I don't see anything good about it. So I never give the chance to buy my coins. I don't sell them during price drops.

arpon11

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For the price to be balanced it most rotate and move in both directions before finding a central area. When bitcoin is falling the reality is that this provides opportunities for people or traders to buy bitcoin and other coin at a very low price and sell them for profit. Bitcoin bearish is what give momentum for the next price movement.

The Alchemlst

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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 makes the market undergo a continuous cycle maybe, but as for me I think this ups and downs would just give us opportunity to react, improve our investments because this gives us opportunity to buy and sell at an optimal benefits for each scenario.

fiulpro

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Wow that's a very interesting point of view I have never thought about it in that way ... It's really important that we realize that every thing has 2 sides and this is what you made me realize today.
Well.. panic selling is ..kind of very negative in my point of view ..but that's really great that non serious people are getting out of the ... View and ..more serious ones are buying Bitcoins who will be able to support it for long term...

Nahl

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crashed situations before reach the higher price and sound good for me but the problem is when crash started everybody got panic and they looks don't believe bitcoin will recover the price soon and starting to sold all of their bitcoin and eventually people can't utilize downtrend and when the price high again they usually regretting their decission why don't buy at the lower price

jhache

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Price crashes are a way of whales to make loose hands dump their coins. This way only the true believers in the coin stick and are more likely to hodl their coins and not just here for get rich quick.

Canis Majoris

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Quote from: Jonsnowstark on March 07, 2018, 10:05:57 PM

Yes i believe we need the weak hands to give up their investments when the bictoin starts to plunge so that we can buy bitcoin at a lower price. If all people hold their bitcoin then there will be no fluctuations in price. We need these fluctuations for the value of bitcoin to increase. These newbie investors are the ones helping us gain more by giving up when they're at a loss.

If you mean that all people without exception withhold their bitcoins, which would lead to an empty Ask side of the orderbooks, then the price would be infinite because bids will leave the Earth. If you mean that most people stick to their stashes of coins, then it would only add to fluctuation because there will be fewer asks and prices will be moving like mad. If more liquidity contributes to more stable prices, we should expect it to work in the reverse order as well. So less liquidity should lead to higher volatility, either at higher prices with fewer asks or lower prices with fewer bids.

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Quote from: lingwistiko on March 07, 2018, 05:59:34 PM

Crashes of price in bitcoin and the rest of the cryptocurrencies are just normal but panic selling made the situation more bad. Prices goes down deep during panic selling and it's a good opportunity for use to buy cryptocurrencies at a very cheap price.

Actually ill just waiting also the bitcoin will be going to crashes and i think in that we can buy some bitcoin. In the first place bitcoin will be going crash until to run into high value jut why some of us are waiting for that moment.

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