Bitcoin Forum

Hey Guys,

i don't know if this topic was already discussed, but i'am thinking about this for a few days and i think this is a big problem for the bitcoin-economy:

Currently, only 3 people own almost 6% of all bitcoins( if not, please correct me). For comparison with the eurozone, this would mean that 3 persons own 6 % from  9 148 000 000 000 Euro(Date: 2008), which means: 548.880.000.000 ....Thats ridiculous. When they sell all their bitcoins, the price would fall like crazy and the rest of the confidence in bitcoin is lost. Look at the price at this moment: Theire is now fundametal reason for the bitcoin price to fall, only a few bigger wallets getting sold and that starts a domino effect.
Imagine what happens when 600.000 coins get sold with market execution?!?

I think theire need to be something done to solve this problem and i think theire are only two ways:

1. The hard way: the bigplayers are selling the most of their coins on a rush and the bitcoin price will fall, but in the end their is a much fairer spread of bitcoins among the people. But this will cause a loose of confidence...."another bubble" would the media say.

2. the easy way: everyday the bigplayers sell a small amount of bitcoin...maybe around 100, when the trading volume gets higher maybe more...and so recuce their wallets and the possbile influence

But this hast the requirement, that the bigwallet owners agree with this plan, but some of them are millionairs anyway :D

But what makes me the most angry: Bitcoin was found, to get rid of banks or fed or the EZB and theire inflationary money politic. But I read enough in this forum and elsewhere to say: some people are acting the same way like banks on the so called "free markets": They manipulte the bitcoincharts with theie huge amounts of money they have...."sell high", "buy low"....the exact same thing bigplayers(the banks) are doing with gold right now. Okay, but enough about that...

What do you think about this?

Greets Komodorpudel

PS: Sorry for my average english :)

to be honest i would be mega happy if i would be online and price for a while would drop to $1 or even better to $0.01. I would buy everything available.
btw while we are talking about this, can someone sell me 10000 bitcoins for $1? ;)

Same for me, I can scoop up some, at the moment everything is so high.

There is no call for 'big players' to sell out fast anymore than there for big players in dollars or euros or gold to sell out fast. Why would they?
And I really hate this 'fair' distribution nonsense. What the heck is 'fair'?

good point, besides, they would sell bitcoins for what, for fiat? so the banksters will rob them? that wouldn't be wise.

11.2M divided by 7 billion = 0.0016 BTC for everyone :P

Yeah, probably "fair" is the wrong word. The people with the big wallets have earned all their coins because they were early adopters and so have a right to keep all their coins.

But a economy or currency can not rely on a the mood of 3 people!

We won't ever see these 'big players' all selling in one go. That's fairly unrealistic.

The again, due to the nature of Bitcoin, we will be able to know if they're 'slowly' selling. This could have near the same affect.

those 3 people cant drop they bitcoins, those are people who believed in this, who supported bitcoin. Why they would want to kill they own child? And when they would sell to drop the price, rest of their bitcoins would loose value too, so its not practical.

those who have a lot and sell in one rush already did it. and most likely, they also regret it :-p

i wish them good luck and i hope they enjoy they soon-to-be-worthless cash ;)

Yeah , yeah , would you still keep all your bitcoins when you could cash out a few or more millions and buy everything you wanted in your childhood ad not wait till bitcoin succes?

You know , tommorow you could get hit by a car and that's it or maybe worse, survive in a wheelchair.

Honestly , would you keep your bitcoins or sell them , make your dreams get true and forget about all the s***.

Why do you assume they keep it in that?
Maybe they buy stuff with it? It's not like fiat will be worthless tomorrow, it will just slowly lose worth while more is printed out.

The wealth distribution in Bitcoin is NOTHING LIKE the wealth distribution in fiat money, simply because the fiat-rich have all sorts of other kinds of power besides money: political connections, power over the media, controlling stakes in major corporations, power over the clergy, etc. Without that kind of power, the Bitcoin-rich will have no way to hold on to their position nearly as strongly; when they spend, their money gets distributed to everyone else. When the fiat-rich spend, they just get more back because they have some control over the money flows.

The reason wealth is centralized in the fiat world is because power is also centralized in that world. There is some power centralization in the Bitcoin world, but it is dramatically less. And what power concentrations do exist are vastly less about to control where the money goes. None of the Bitcoin millionaires have influence over the central bank or government or media or church or major corporations.

With Bitcoin there will still be some concentration of wealth - that is unavoidable simply because some people are better at making money than others and care more about it - but it will be way less concentrated than in the fiat world.

As for what happens when the big players cash out, well, many of them have most definitely been cashing out all this time, and you can see what's happened so far.

While it's probably impossible to achieve something that is "fair", it's good to avoid the 1% of the people own 90% of the stuff.

there are two different scenarios, one you are talking about, when someone quit his job and lives just by using bitcoins, which is good. and the second one i was reffering to is when someone just dumps all (or most) of his bitcoins at once while destabilising price. if such a person is moving large amounts of fiat to bank account and is not going to spend everything at once (which is not that easy when you own billions), then he will meet taxman, bankster fees and inflation. i dont think its good as long as you are not a bankster by yourself.

Yes, he/she might get into some trouble, I'm not saying it was a great move to do.
On the other hand paying a lawyer shouldn't be a problem xD

Thank you :)

My Post packed into one sentence.

The fact is: 3 personen have the capabilities to make bitcoin absolutely worthless. I don't think this is a good requirement  to make bitcoin common to anyone.

The thing is, with other wealth on this planet it's the same.
I don't think it's preventing Bitcoin from getting popular, Bitcoin is the solution to the problems in the banking systems that are getting out of hands.

Flash crash into the sub $1 range. The moron loses a lot of money and everyone who put an order at below $1 smiles. One hour later, price bounces back as fast as the MtGox trading engine permits. Some time of extreme swings with two weeks to dampen out, during which Bitcoin is completely useless as a medium of exchange.

The only reason someone would do that is to damage Bitcoin, not caring about losing $50 Million.  We can then all make more or less educated guesses about who would be behind it. It can only be commercial payment networks or 3-letter services imho.

I've read that it's not healthy in any economy for someone to hold more than 1% of the market cap. It made sense to me... With more than 1% the ability to control the market is too great.

It's a nonsense scenario.  The so-called "big players" have so many bitcoin BECAUSE the have horded and bought up bitcoin since the early days.  The kind of people who foolishly sell all their coin at once for no special reason don't have large piles of bitcoin because once you make an irrational sale as such you don't have any coin left.

Hoarders hoard, miners who are in it for USD profit only sell immediately, some people try to play the market both ways.  But irrationals who would be willing to sell all their coin at once and lose a tremendous amount of value for no real gain have already done so, and lost their bitcoin.  Anyone who has held bitcoin through watching it increase in value 100X to $1, 100X more to $100, and even surge as high as $266 without selling off is clearly disciplined enough to sell in a rational manner.

It's about as likely as every single miner and merchant suddenly deciding to hold all bitcoin and stop selling and cause the price to skyrocket.

Nearly half of existing today bitcoins (5 mlns) was released before end of 2011, before bitcoin became known to publicity (as first news was publicly released during first "bubble"). I think 6% in hands of biggest bitcoin players is huge understatement. Imho biggest players are virtualy unable to sell it all, even if they wanted to.

Okay, thank you guys for the answers...

To sum it up:

1. It's not good for a economy when someone owns more than 1% of its wealth

2. It's unlikley that the 3 biggest bitcoinwallet owners will sell their coins in larger amounts, because they "love" bitcoin.

3. Even if it happens, it would be good, because of the lower price more people jump on the "bitcointrain"

Did i forgot anything?

last but not least BELIEVE everything you read on the internet

Probably the best one :D :D

People said that a year ago too :D

we will buy them cheaply

Proof?
Source?
Reference?

???

Now you're just being willfully recalcitrant, ignoring or distorting the explanations given to you. You won't change your mind because you're in love with your original conclusion.

You are asking the wrong question.

WHY are they selling?

http://www.forbes.com/sites/jonmatonis/2012/06/22/the-bitcoin-richest-accumulating-large-balances/

Its a bit old and i haven't found the source i got it from, but it is a good beginning :)


Wtf is wrong with you ? I noticed the explanations and i thought about it.And I also wrote it down to sum it up.....and its still justified to be skeptical about the fact that a few people own a lot.


You mean why "should" they selling?

Maybe for the same reason people are selling right now....when you see that you lose millions everyone would get nervous..

We will get a wider distribution of coins, which is a good thing.