Topic: Will early miners have to slowly release there coins into the market? (Read 1078 times)
November 24, 2013, 02:27:02 AM
That's already been happening though thy have not been selling so much as injecting it into the economy by buying services, starting businesses for the community etc...
November 23, 2013, 07:30:47 PM
I guess I was looking at it from the wrong perspective. So even if overnight bitcoin was accepted everywhere, the fair price is the price met between buyers and sellers. So as demand increases the price increases. But if demand suddenly became 1billion buyers and there were only 100,000 sellers surely that would mean the price would go to the moon.
November 23, 2013, 07:22:29 PM
What you are describing is already happening, though we cannot see it transparently. Every early adopter has a fair price which makes him release certain amount of his holdings. There are early adopters who even sold everything, and those are called weak hands.
However I don't see the reason why should they sell their wealth at prices lower than the current demand sets. There is always a clear price between demand and supply.
However I don't see the reason why should they sell their wealth at prices lower than the current demand sets. There is always a clear price between demand and supply.
November 23, 2013, 07:04:28 PM
I'd like to postulate a theory of how early miners or large holders of bit coins will have to release their coins at a lower price into the market to ensure gradual growth of the price. Here's why:
If it happened quickly that a great many websites and services on the street accepted bitcoin worldwide, then the value of bitcoin would not be what people are willing to pay for a coin, but what the net purchasing power is of the coin (i.e. what services you can and cannot buy with it). So if you were unable to buy Oil in btc but you could buy pretty much anything else, then the purchasing power is global GDP less the Production of Oil.
Thus a coin would suddenly be worth a lot more than it is today. But the btc market would freeze if nobody could purchase any coin except from a few holders of coin. So bitcoin holders would have to release coins in return for the net purchasing power of other currencies i.e. the Dollar which will likely be worth less and less and perhaps one day only used to buy Oil - it's last holdout.
So there are two points here:
1) Large holders of btc will have to keep releasing coins to ensure liquidity in the marketplace. If your holding would be Billions of dollars, you might not be bothered to let any of it go.
2) Large holders will have to release btc at a lower price than the buying power demands since if BTC was suddenly so expensive, most people wouldn't buy into it's ability to give them a money safe haven and they'll feel that there's not the incentive to move from fiat to crypto. They can buy everything with their fiat so why bother with the crypto currency. After all, 'I Trust my government and banks' they'll say.
Perhaps Satoshi is holding that 1m btc to gradually release them cheap into the marketplace over time.
I don't see how the distribution of wealth can happen just yet as there are too many large holders. In that essence, even though it's not a pyramid scheme, it is effectively working like one. Early holders getting huge growth before everyone realises that there will only be 1000 rich people in the world and everyone else will be effectively poor. The world just can't run with only a 1000 people buying all the yachts!
Please help me kill my theory. I want btc to liberate us from the banking cartel.
If it happened quickly that a great many websites and services on the street accepted bitcoin worldwide, then the value of bitcoin would not be what people are willing to pay for a coin, but what the net purchasing power is of the coin (i.e. what services you can and cannot buy with it). So if you were unable to buy Oil in btc but you could buy pretty much anything else, then the purchasing power is global GDP less the Production of Oil.
Thus a coin would suddenly be worth a lot more than it is today. But the btc market would freeze if nobody could purchase any coin except from a few holders of coin. So bitcoin holders would have to release coins in return for the net purchasing power of other currencies i.e. the Dollar which will likely be worth less and less and perhaps one day only used to buy Oil - it's last holdout.
So there are two points here:
1) Large holders of btc will have to keep releasing coins to ensure liquidity in the marketplace. If your holding would be Billions of dollars, you might not be bothered to let any of it go.
2) Large holders will have to release btc at a lower price than the buying power demands since if BTC was suddenly so expensive, most people wouldn't buy into it's ability to give them a money safe haven and they'll feel that there's not the incentive to move from fiat to crypto. They can buy everything with their fiat so why bother with the crypto currency. After all, 'I Trust my government and banks' they'll say.
Perhaps Satoshi is holding that 1m btc to gradually release them cheap into the marketplace over time.
I don't see how the distribution of wealth can happen just yet as there are too many large holders. In that essence, even though it's not a pyramid scheme, it is effectively working like one. Early holders getting huge growth before everyone realises that there will only be 1000 rich people in the world and everyone else will be effectively poor. The world just can't run with only a 1000 people buying all the yachts!
Please help me kill my theory. I want btc to liberate us from the banking cartel.
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