Bitcoin Forum

Given the dramatically deteriorating Eurocrisis (Cyprus), the huge backlog of verified exchange accounts to be processed, and the constant attention in the MSM lately, I just don't get it. It's almost guaranteed that the price will rise this week and for the foreseeable future.  

To pay the upstream supplier for drugs. And again - sell drugs on Silk Road, sell bitcoins for cash, repeat cycle.

Ahhh yes - perhaps.

To help the coins move from the weaker hands to the stronger hands.  Somebody's gotta do it.

That is speculation. Bitcoins also have to act as a medium of value transfer, to act as a currency to have the value. Otherwise the speculation market will be just a speculation upon thing without real value.

Of course, all the payment processors, for example, must hedge their cashflow to maintain whatever risk profile they have without giving much regard to speculative expectations. Life goes on.

Of course.  But the weaker hand is the speculator, and this drives him out of the market.

Although I hold bitcoins, I continue to spend bitcoins when it suits my interests, whether that be convenience, or availability, or whatever.  I also accept them for payment.

But half the reason I hold bitcoins isn't because I'm speculating: it's because I don't need to spend the money right now, and to the extent I hold them, I'd rather hold bitcoins than hold dollars.  I have enough faith that my bitcoins won't lose their value and therefore keep them as bitcoins - the fact that they have a reasonable upside that exceeds their downside (in my view) is just a bonus.  I would still keep them even if my expectation was that their value would be flat.

+1

Because Proudhon.

True, but using Bitcoins as a medium of value transfer has no direct bearing on the question of "Why would anyone sell Bitcoin today?"  I can use Bitcoin as a medium of value transfer by making purchases directly with bitcoin.

As far as I can tell, there are three reasons for selling bitcoin:

• Someone holds bitcoins, and they have a need to spend non-bitcoin currency.  They don't have enough of that currency on hand to make the necessary payment.  They exchange bitcoin for the needed currency to fund the payment.
• Someone holds bitcoins, but they cannot tolerate the volitility of the exchange rate between bitcoin and the local currency that they need for most daily expenses.  They prefer the stability of a currency that slowly, but consistently loses value over time. They exchange bitcoin for their preferred currency.
• Someone sees the volatility of the bitcoin exchange rate as an opportunity to gamble on the short term changes.  They buy and sell bitcoin as a way to place bets on the direction the exchange rate will move next.

Because that was my plan from day one. Mine btc and sell for usd. It has worked out well. By the time i am done it will have been 500-1000% return on investment. I have not done the math in a long while. Past 500% by far.. Closing on 1000%. Free elect has certain benefits. I would rather not speculate and take a more predictable path. Some people have diff goals.

And your posts subject... Just the way it is phrased, screams speculation. Everyone seems to be doing it. How can that be healthy for btc?

I agree, the price is almost guaranteed to go up next week but there are some Bitcoins companies like SatoshiDice who have to trade in their Bitcoins as soon as they get them. It would be bad business practice to hold on to BTC for speculation (gambling companies don't gamble with their revenue).  

Fear and greed

I often sell part of my BTC to take profit.
Not doing so you are risking to take huge losses after "bubble bursts".
Unless you are Nostradamus, you never know where bullish trend ends and crash starts.

QFT?

I've been following the MtGox price religiously and selling at a 5-25$ dollar profit (selling at the top of what I consider the current ceiling and buying back when it drops). The volatility of bitcoin makes it amazing for shortselling and I really wish I had like 10 grand to throw in as the profit from price swings with that kind of investment would be substantial. Anyway to answer your question I sell bitcoins today because it is profitable to do so due to the wildly swinging price.

If you own a substantial amount of Bitcoins, it's perfectly rational to spend a small percentage periodically in order to maintain growth.  This ensures that the Bitcoins you keep will continue to be worth more and more.  Those who receive the spent Bitcoins will likely have costs, and so some of them will get sold.

It's called: an economy.  It includes: buyers, sellers, speculators, producers, merchants and, for a small economy like Bitcoin, growth.

To buy them for 2x the value tomorrow.