Bitcoin Forum

Let's say I buy 1 Bitcoin for $2296.25 USD. I notice that the USD price value of the Bitcoin drops to $2093 USD, and let's say I want the US dollar amount, so I sell the Bitcoin at $2093 USD, whereby 1 BTC is selling for $2093 on the market.

Is that to say that the US dollar supply has deflated and that I am still, nonetheless, close to breaking even (assuming resistance along a network)?

That's the correct interpretation, right?

Because if Bitcoin works to significantly reduce the double-spending problem, then the (2296.25-2093=$103.25) $103.25 USD I "lost" was actually reallocated into society (1st law of thermodynamics). Thus, the ~$103.25 USD was used to benefit society (all of the Universe, socially) as a whole?

Or is that an incorrect interpretation because the "lost" money is allocated into society rather than my profits?

Or is it better to consider the drop in Bitcoin price was actually a reallocation of Bitcoin market cap. profits to society?
--> I guess that's like saying if the Bitcoin price drops, the market cap. was re-allocated into society, correlated with (if but causing) deflation of USD (if but all money), thus giving my $2093 the same (except a little resistance) buying power as the $2296.25 (used to buy the 1 Bitcoin) due to how Bitcoin reduces the double-spending problem: So, it's like I broke even because the amount of USD I obtained from selling the 1 Bitcoin is similar to the buying power of the amount of USD used to buy the 1 Bitcoin in the first place, right?

*sorry for edits

Your loss -$103 become an advantage for others obviously, you can consider it was used for benefit of society.
But for me, it just a loss which could be avoided if you were not in hurry to sell bitcoin. Yes, it close to breaking even but in bitcoin environment, people could make more than just break even in the right time.

If someone sells his bitcoin for the lower price that he bought then it will be automatically a loss because in your case you will get a loss of $103.25 and that is your fault because you bought and sell for a lower price and if i were i will just put it on trading to recover the loss of my investment and at the same time grow my bitcoins.

This is the simplest explanation into it and I agree. Let's face it, maybe the seller is panicking that Bitcoin can go lower so he decided to cut his potential loss. And it can go either way...either he is right or wrong if Bitcoin bounced back and in that case he should have just waited. It happened to me before and I regretted it badly...sometimes just waiting and not doing anything can be the solution to panicking. Panic is an enemy in trading.

Op has loss and his losses is not a benefit to the society if we analyzed his losses very well and have business mind to it. If $103 was a benefit to the society? Then who benefits from his losses? To me the greedy exchangers who manipulate the price to they benefits. Never think that when ever you make a loss you are making a charity dedication but thing that it fell to the hand of manipulators'.

As far as I’m aware of it wasn’t really “relocated into society” it was just “relocated to the person who bought you BTC.” He bought it at the lower price and sold or held it at a higher price, effectively gaining your losses.

And if t drops another -103$ how will that benefit the others? lols.
By your flawed logic if bitcoin goes to zero it will benefit the entire world.

Dumbest thing I've heard on this forum in the last year minute.

Also , bitcoin has nothing to do with an united society or with socialism.
Bitcoin is pure capitalism, there is no we.
It's the ones that have the money to buy btc the ones that have money to invest in mining gear there are no socialist benefits here.

Bitcoin is just a tool, it could be used for the betterment of society by helping it with good actions, or could be used for bad things. Just like a gun, you can defend your country from deluded islamic terrorists or you can use it to kill innocents.

Bitcoin is just pure free market, for the first time ever, and it's amazing to see it all unfold.

LOL. I totally agree with you. What united society are we talking about here? The general public? Who gives a damn about them. You own your bitcoin. As stompix has pointed out, there is no we. The moment you sell your bitcoin with lower price, its already loss for you ~$103.25. It will not benefit anyone. It might even go back to the trading platform as profit for all we care. So next time just think "buy low and sell high" and don't think about a "united society" its just dumb mate.  ;D

If you sold your bitcoin lower than the price when you bought it, it clearly shows that it's your loss regardless how much. And the amount you lost is never gonna benefit the society but the person/exchange to whom you sell your bitcoin alone. It is not like energy where wasted/lost energy will return to the universe. We are talking about money here and if you lose money, it will not return to the society.

Trading is a zero-sum game, meaning that if someone gets profit, other must lose the same amount. In your scenario, someone who sells at lower price is effectively giving up the difference to some other person who sold you the asset at the higher price. Society is not involved here, as trading is a deal between individuals.

1 BTC being an small fraction of overall trading volume, it doesn't have much of an impact.

Its when these types of events occur in a larger scale that trends start to form.

Selling something at a lower price than it was bought for, tends to have a devaluing effect. It reduces the value.

This doesn't mean that the price can't increase later from exterior circumstances. It mainly factors into its own temporal frame.

Losses happen all the time during trading. But with Bitcoin, the number of users who have suffered losses will be much smaller than the number who got profits. Look at the exchange rates. During the past 2 months, they have increased by almost 150%. A lot of traders might have benefited from it.

This will hold true only as long as the price continues to grow

If it starts going down, the proportion will certainly change, and most users will start losing heavily. Moreover, even if Bitcoin begins stagnating with price trading sideways, the result will be essentially the same. The majority of traders will be slowly but steadily losing to those who can make sure profits, i.e. those milking the market. In the latter case it would be better to stay away from trading altogether

You've lost $103.25 but I think it is unavoidable because maybe the user is panicking or maybe has another big reason.But I don't think you need to sell that bitcoin with such price, $103.25 is also a good profit price if you've ask me. And the lost money will be a benefit into the bitcoins buyer not the society.

One thing is for sure, you dump price and you got you lose. If only one person do this things or only 1 btc to dump, it wont give us negative effect. It will give us negative effect if 20000 BTC dumped in the market

You lost $103.25.  And the decline in price is the fluctuation of Bitcoin and not the deflation of USD.  As far as I know there is no we when someone lost some USD in a trade.  It is all personal gain.  So we cannot consider society on this one.  The trade happen between you and the person who bought it.  So the one who benefit from the trade is the one who bought your bitcoin.

What is occurring? Where is the logic my friend? I would call this bad timing, you made a bad move and bought in wrong time, maybe that was time for selling, and the end of the drop you are buying.
You lost just in case you wish to exchange bitcoins in dollars, if you hold for that bitcoin for longer price will increase again and you will be in profit. Basically your profit or loss depends from your moves and actions. I`m not sure that this topic is for economic section, this is pure trading and mistakes in trading, OP should go to that section and check some threads for newbies.

Whatever technical explanation or summary you got OP, still it's a lost and especially with the current trend that bitcoin price is expected to rise more, I can't imagined why people will sold their coins for lower price they bought. To minimize the loss? No because there is no reason to believe that bitcoin will crashed even at below $1,000. Bitcoin is long term so even you bought at $3,000 and then price crashed to $500 (just an example) just patiently hold and considered that as loss and buy again at the lowest price it will reached.

BTC1 sold or pump can't move the market. Honestly even at BTC10 so it's totally a wrong move when someone sold BTC for low price when it was bought.

You'll lose the difference + fees and will regret later when the price rises above the level you sold.

Nothing more

It’s completely avoidable. All you need to do is wait until the price rises to at least your buying price before you end up selling it. At that point you can, at the very least, break even.

Actually I could not understand any significant importance of selling in losses. I just want to ask what is happening when we will be selling higher than buying prices in the system. Literally these are just profits/losses to individual traders but insignificant to the system.

Well it leaves me to conclude that the one who will do this is a panic seller and so it serves him right not t have waited for the right time. This forum has been very educative in terms of Bitcoin growth and pricin abdcso I thought panic selling should be a thing of the past but if you're still a member andvuou get persuaded by some theories and you sell for less then it's your own cup of tea.

Well i had took my risks on the last year i invested into some altcoins, i havent a big ammount to invest but nowadays, almost all mine investments had returned me with good profits, soo all you need is lucky and invest otherwise you will just regret, i could had earned xxx ammount if i had invested on that moment.

I don't know why their answers were somehow wrong to me, you were right about being close with breaking even, buy somehow you still lose a 103 USD, but the person who brought you the bitcoin has spend the same as you did, but its still not a breakeven situation you are still loses, no one wins but still you lose that's how it works, they don't get anything from you except the fee as you have said but you still lose something, more or less you might regret every decisions that you have made but there is another opportunity I suppose.

Nothing.
Cause what you're picturing here is not possible.

You can't sell to somebody at a higher price than people are buying.
When you sell somebody is buying, the price is the same for both the seller and the buyer.

If you sell something that is lower than how much you bought it, it is a lost from your side.  Any kind of reasoning is either sweet lemoning or sourgraping that make you feel better. But the matter of fact you just did a bad trades and suffer a 103 USD lost and there is no words can change that fact.

It just doesn't make sense unless maybe he was afraid the prices will decrease further and then rushed into selling it and that's what you call panic selling.

He/Shr will only gain losses in profit ,It is not buy high sell low its like trading so it should be buy low and sell high in that scene when a bitcoin holder sees a big dump in price and worried about if bitcoin will continue to drop he will be a panic seller .

I think it is a mistake that does not need to be done. I have not wondered if anyone did that. Of course if anyone did that, of course he would get a loss. I think a mature calculation should be done in making any decision. By buying a higher price then selling at a lower price, it is a panic. I think we'd better hold the bitcoin we have, while waiting for higher prices. Joining in bitcoin means we have a goal for us to make a profit. Try doing the transaction with great care.

I don't know where you learnt maths since (2296.25-2093=$203.25) and not $103.25.
Coming to the point,the loss of $203 due to difference between the cost prrice and selling price has to be bared by you since you are deliberately selling at that price.If the price rises to $2296 from $2093 once again,then $203 is earned as benefit by him.So,it would be better for you to remain patient and then sell when BTC price goes much higher than your purchased price so that you get huge profits.

What this means is someone is losing money.  ;D

It's an interesting point to compare bitcoin with thermodinamics.
Unfortunatelly bitcoin is economy and I do not think that in those two fields rule the same principals.
And how the double spending problem should infect all of this is not really clear to me.
I would say lets keep it simple:
If you sell something at a lower price than you bought it, the difference between thos two is your loss.

Still too early to think that Bitcoin could cause deflation to the USD mate, I think you have confused BTC/altcoin pairs trading, while Bitcoin is on the rise

Altcoins value based on dollar doesn't change unless there are pumps occurring, there are some markets unable to adjust themselves or better put it this

Way, there are traders lacking the ability and skillsets to update their prices, mainly the ones doing trades without the help of any bot. when you buy high

And sell low, you are being manipulated by others, that's called stupidity. having weak hands is the main reason, people panic since it's the matter of their

Wealth, everyone is the same, only those with patience and experienced with how crypto works win eventually.

Are you serious? sell 1 BTC with low price .. while time buy it with high price ??

haha i Don't think you've got it, that was just a hypothetical question in the moment. Not any sort of a strategy or anything like that. He just asked what will happen is someone sold the bitcoin for lower than he bought it for due to price going down.

If you are selling at a loss you are the only one losing your money and someone gets the opportunity to grab the coin at that particular price,if you think that you are serving the society by selling at a loss then it is your call  :P . Do not get complicated with simple things,just think in simple terms and never sell at a loss even if you want to serve society. :P

Haha, you have a straightforward answer there. But honestly, money loss or profit loss or income loss and etc. when you sell at the price lower than the price you have bought it will certainly leads to the mentioned things. As far as I know, it is a golden rule here in trading to always buy coins or bitcoin at a low price and sell at a high price, this will ensure profit from trading and is of course, the wisest mindset in making money here.

The answer is simple, if you sell for less money than you have bought you suffer the loss of your money. But when you ask such question maybe you are not familiar with first and basic rule for trading, so to buy low and sell high. In that case Bitcoin maybe isn't for you and it's better that you do something else.

If you sell at a lower price, you can only lose money. It is better to wait for the price to rise and then sell to make a profit which will result from a high price increase.

There is nothing special in it. I have myself incurred quite heavy losses while trading in altcoins. A few months back, I purchased Litecoin for BTC0.0092 and sold them for BTC0.0078. Lost BTC worth around $900 during this process.

There is no chemistry in the trading and investment world mate! You just lost ~$103 USD that is what it means. It was not used by anyone it just went to bitcoin market capitalism from where it was coming as people are investing continuously on the blockchain. The enthalpy remains constant if you know it very well. You neither helped anyone as you bought at higher price but someone might have bought it at even more higher rates and list their money into circulation. So you are not sure how much you contributed back, you may or may not. But in simple words you lost your money.

Of course no one wants it, when they have to sell it for a lower price than they bought it. And that would mean that the bitcoin would have gone down seriously if we had not sold it. Or maybe they need some money for something important. Or they feel unstable bitcoin want to give up. Right!

If the price of bitcoin goes down then don't feel anything, don't panic, don't feel sad because everything is fine and it is a part of the game of bitcoin and if we are going to be positive minded person about bitcoin then we will just buy more bitcoin to get some cheaper bitcoin and add it to our current holdings to lower the average that we bought it and if the price spikes up again then it is completely a profit.

In this industry, it is a different thing in thermodynamics, because the 1st law of thermodnynamics occurs in a natural phenomenon while when buying and selling bitcoin in a lower price is not, because the decision of selling it in a lower price is in yours. Thats why your loss is not going to the society to benifit them it might be goes to the people who also bought btc and sell in a higher price.
So if you are going to buy you should wait the right time and you should control your emotions to avoid panicking.

Why you sold your litecoins? We all know that prices are unstable and they do rise after dumps. It is really stupidity to sell off bitcoins or any other coin when the price is less than the one you bought them. We just need to stay calm with these coins in order to rule the crypto world.

 i think selling your bitcoin with a low prise than you have bought is not a good idea . Even you want to exchange bitcoin into a USD .cause we all knows that bitcoin has a chance to rise even its crashing sometimes.  . If i was you i didn't waste my money for nothing and wait for the time to sell.  So not repent after that.  Who knows? What if after you sell your BTC to USD and you didn't notice that bitcoin suddenly rise in higher value.? Haha so wait for the right time to sell . Best Regards

You are right. No one will ever want to have a loss by selling his Bitcoin at a low price that he had bought. I think there are very much less chances of this thing to happen. You can expect it to happen in a case when someone is really in a need of money and he has no other option than to sell them.

Then there is a loss that will occur of course, it is just simply a trading exchange that if you buy a certain price of bitcoin then it suddenly goes down the price then you decide to sell then it is obviously that you will loss the percentage of that down in price.

In trading currencies even in the real world and in virtual there are losers and winners it is just a matter who really understand the volatility and uses it to their advantage, there is no sure thing though.

What will occur immediately after that kind of loss is normally regret and frustration. If you're dealing with bitcoin, it seldom happens that you'll end up with loss of capital because btc price isn't as unpredictable as other altcoins. When you see the price go down, just wait and eventually it will bounce back

Ever thought that bitcoin gives good results, keep the spirit because it has become the consequence ....

I would call this as  a loss from your side that might have given a long time benefit to the buyer.  But this kind of things happen quite a lot in this market, because there are those who panics when they see BTC decrease, there are those who hold and just hold, and those who trade. All of these incur some loss in the long run. The 1st one because they might have bargained because of the panic. The holder, because he might have lost a opportunity  of investment. And the trader, because he might just have a bad day in trading an incur loss.

It's just simply unprofitable because in the long run you lose bitcoin which grows in price and lose that difference between buying and selling

You have made a loss whether you see it or not, the reason why bitcoins is also show in the US$ value is so that people will know exactly the value when they are buying or selling otherwise we wouldn't even know if we are making profits of losses when we are trading the currency.

Definitely. I think there will hardly be anyone who will wish to lose his very own money which he invested to earn a good profit. But there can be certain reasons due to which one can sell his BTC in a less rate. Similarly there are chances of occurrence of such scenario but of course the chances are that much.

Indeed! We all are making investments into bitcoins and other currencies to make profits; no one ever wants to go for loss happily or deliberately. Whoever is selling bitcoins at low prices, he or she is doing because they are need of money on urgent basis. There could be many other situations in which this thing can happen.

Now all cryptocurrencies are food for speculators. The money from one pocket to another move. Everyone who earns money should know that the money someone lost. This is the main danger to cryptocurrencies. They don't work on production and therefore does not create surplus value. This is a typical the signs of a pyramid.

I consider that as a loss. because if you're doing trading in bitcoins you must kept your bitcoin and wait till the bubble. we're like buying at low price and selling at high price that's the right doing in that case. I never sell my BTC at a low price because I'm thinking about the loss. I like the thing that I can double up the amount of my bitcoin which i invested than see it losing.

if we sell bitcoin at a low price it certainly feels lost and disappointed. because we do not sell bitcoin when the bitcoin price is going up, and we can make a profit from that result. but if we sell bitcoin when pressed it is different.

Correct I agree on you that it is a big loss if you buy bitcoin then selling it in a lower price it means their is trial and errorr happenings. If you joined bitcoin just to like that. It means useless the effort because you lost your trust in bitcoin and then you loss your money. In bitcoin you must be wise enough in making decisions because it is an investment and very risky it means a challenge to us on how are we going to handle it well.