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Title: Huge bitcoin dump on MtGox Post by: cheat_2_win on December 23, 2011, 03:26:13 AM Large Bitcoin dump of last couple of months has greatly reduced the price of Bitcoin. Which led many miners to quit mining. But in my opinion, one positive effect of such dumps is the increase in depth of the Bitcoin currency market as a whole. Look at yesterday 20 kBTC dump and it only reduced the price to $3.5 and now the price is back to $3.9 as it was before the dump. Previously, such a large dump would have had huge impact on the price. Also, as speculators and currency traders become used to such large dumps, there has been less and less of panic selling. I cannot guess the motive of the person to dump such a large amount. If it was to trigger panic selling, then it clearly failed to achieve that objective this time. Which in my opinion shows the trust people now have on the resiliency of the bitcoin.
Title: Re: Huge bitcoin dump on MtGox Post by: warlordluke on December 23, 2011, 09:02:21 AM Large Bitcoin dump of last couple of months has greatly reduced the price of Bitcoin. Which led many miners to quit mining. But in my opinion, one positive effect of such dumps is the increase in depth of the Bitcoin currency market as a whole. Look at yesterday 20 kBTC dump and it only reduced the price to $3.5 and now the price is back to $3.9 as it was before the dump. Previously, such a large dump would have had huge impact on the price. Also, as speculators and currency traders become used to such large dumps, there has been less and less of panic selling. I cannot guess the motive of the person to dump such a large amount. If it was to trigger panic selling, then it clearly failed to achieve that objective this time. Which in my opinion shows the trust people now have on the resiliency of the bitcoin. Probably this monthly "dump" is the owner of some large exchange or mining pool converting their bitcoin profit into USD so they can spend it. Most likely Title: Re: Huge bitcoin dump on MtGox Post by: cheat_2_win on December 23, 2011, 12:47:34 PM Large Bitcoin dump of last couple of months has greatly reduced the price of Bitcoin. Which led many miners to quit mining. But in my opinion, one positive effect of such dumps is the increase in depth of the Bitcoin currency market as a whole. Look at yesterday 20 kBTC dump and it only reduced the price to $3.5 and now the price is back to $3.9 as it was before the dump. Previously, such a large dump would have had huge impact on the price. Also, as speculators and currency traders become used to such large dumps, there has been less and less of panic selling. I cannot guess the motive of the person to dump such a large amount. If it was to trigger panic selling, then it clearly failed to achieve that objective this time. Which in my opinion shows the trust people now have on the resiliency of the bitcoin. Probably this monthly "dump" is the owner of some large exchange or mining pool converting their bitcoin profit into USD so they can spend it. Most likely May be. But does not have to be. When the price was hovering around $2.00, many people bought large sums of bitcoin. They might be the ones cashing out. Title: Re: Huge bitcoin dump on MtGox Post by: cheat_2_win on December 23, 2011, 06:14:39 PM Large Bitcoin dump of last couple of months has greatly reduced the price of Bitcoin. Which led many miners to quit mining. But in my opinion, one positive effect of such dumps is the increase in depth of the Bitcoin currency market as a whole. Look at yesterday 20 kBTC dump and it only reduced the price to $3.5 and now the price is back to $3.9 as it was before the dump. Previously, such a large dump would have had huge impact on the price. Also, as speculators and currency traders become used to such large dumps, there has been less and less of panic selling. I cannot guess the motive of the person to dump such a large amount. If it was to trigger panic selling, then it clearly failed to achieve that objective this time. Which in my opinion shows the trust people now have on the resiliency of the bitcoin. Probably this monthly "dump" is the owner of some large exchange or mining pool converting their bitcoin profit into USD so they can spend it. Most likely May be. But does not have to be. When the price was hovering around $2.00, many people bought large sums of bitcoin. They might be the ones cashing out. But there has been a monthly dump of several 10s of thousands consistently every month for a few months now. My guess is it is one of the big mining pool owners, I just don't think anything else would be that regular. It may be so and we can only guess as to for their motives. Whatever that may be, the end result of creating deeper Bitcoin currency market is good for every one and good for bitcoin. It will finally help establish bitcoin economy. It will also be harder and harder to manipulate the market by dumping even 10s of thousands of bitcoins as more bitcoins are distributed to more and more people. Title: Re: Huge bitcoin dump on MtGox Post by: Raoul Duke on December 23, 2011, 06:39:39 PM Those dumps are from the top seller at silk road ;D
Title: Re: Huge bitcoin dump on MtGox Post by: cheat_2_win on December 23, 2011, 11:18:28 PM Those dumps are from the top seller at silk road ;D It is nice to know silk road is alive and doing well. Title: Re: Huge bitcoin dump on MtGox Post by: altuin on December 24, 2011, 06:08:42 AM That definietely makes sense
Title: Re: Huge bitcoin dump on MtGox Post by: jddebug on December 25, 2011, 02:24:44 AM Large Bitcoin dump of last couple of months has greatly reduced the price of Bitcoin. Which led many miners to quit mining. But in my opinion, one positive effect of such dumps is the increase in depth of the Bitcoin currency market as a whole. Look at yesterday 20 kBTC dump and it only reduced the price to $3.5 and now the price is back to $3.9 as it was before the dump. Previously, such a large dump would have had huge impact on the price. Also, as speculators and currency traders become used to such large dumps, there has been less and less of panic selling. I cannot guess the motive of the person to dump such a large amount. If it was to trigger panic selling, then it clearly failed to achieve that objective this time. Which in my opinion shows the trust people now have on the resiliency of the bitcoin. Probably this monthly "dump" is the owner of some large exchange or mining pool converting their bitcoin profit into USD so they can spend it. Could it be early adopters needing some cash who were able to mine with ease using just their cpu? Title: Re: Huge bitcoin dump on MtGox Post by: Shashi Yakuza on December 25, 2011, 03:43:16 AM Those dumps are from the top seller at silk road ;D Nothing like giving people what they ask for ;)Title: Re: Huge bitcoin dump on MtGox Post by: Raoul Duke on December 25, 2011, 12:47:06 PM Those dumps are from the top seller at silk road ;D Nothing like giving people what they ask for ;)Selling dreams is the best business model, no doubt about that ;) Title: Re: Huge bitcoin dump on MtGox Post by: P4man on December 25, 2011, 01:10:52 PM Probably this monthly "dump" is the owner of some large exchange or mining pool converting their bitcoin profit into USD so they can spend it. Mining pool? Reality check; 216K BTC are mined per month. Even deepbit has "only" 30% of the bitcoin hashing power, with their preposterous 3% fees, that works out to 2K BTC per month, not 20K. |