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I think it's because the last month convinced people that nothing can stop bitcoin from hitting the moon  I mean the main debate before the china crash was if bitcoin will reach 100k or 1m$ . It's not easy to sell after that  Great so please concentrate with me: Suppose you start off with 10 Bitcoins, market price is 1,200$ > China announcement is live > You sell your 10 Bitcoins at 1,200$ each and you pay 120$ transaction fee (1% of total), and end up with: (1200 x 10) - 120 = 11,880$ > 2 Days later price of Bitcoin seems to stabilize at 700$ > With the 11,880$ you made selling your initial Bitcoin, you buy back Bitcoins at 700$ each. So now you'll have 11,880/700 = 16.97 Bitcoins Remove 1% transaction fees and you'll get 16.8 Bitcoins WOW! Magic! Guess what, you're 68% wealthier than 2 days ago.... So now couple of years down the line, you'll have 16.8 million dollars worth of Bitcoins instead of only 10 million dollars.... Capich? What if this v common scenario plays out: Sell at $1200 as per your plan Buy back at $700 as per your plan Price drops further to $300-$400 Now you're waiting another 1 year for price to recover so you can make a profit. The above scenario happens so many times in Bitcoin to so many people it's not even funny, it's one of the main reasons ppl just buy low and hold. If the scenario you mentioned happens (which is quiet likely right? I agree) you'd then lose LESS money (or Bitcoins) than you would if you did nothing and kept your Bitcoins after the news came out. So either way you're better off. You want me to do the math for you? (I'm assuming you're smart enough to figure it out) |
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I think it's because the last month convinced people that nothing can stop bitcoin from hitting the moon I mean the main debate before the china crash was if bitcoin will reach 100k or 1m$ . It's not easy to sell after that Great so please concentrate with me: Suppose you start off with 10 Bitcoins, market price is 1,200$ > China announcement is live > You sell your 10 Bitcoins at 1,200$ each and you pay 120$ transaction fee (1% of total), and end up with: (1200 x 10) - 120 = 11,880$ > 2 Days later price of Bitcoin seems to stabilize at 700$ > With the 11,880$ you made selling your initial Bitcoin, you buy back Bitcoins at 700$ each. So now you'll have 11,880/700 = 16.97 Bitcoins Remove 1% transaction fees and you'll get 16.8 Bitcoins WOW! Magic! Guess what, you're 68% wealthier than 2 days ago.... So now couple of years down the line, you'll have 16.8 million dollars worth of Bitcoins instead of only 10 million dollars.... Capich? First of all, your tone is annoying. But that aside, you don't seem to have very much experience trading in markets. You actually are using hindsight to spell out how much money you could have made if... Then you have the audacity to act like everyone should have the ability to do that. That's not how short term trading usually works. And people who are successful at short term trading don't buy at the top and sell at the bottom over and over until they have "millions of dollars". In fact people who try to trade the way you described lose their ass every time. If your juvinille advice actually worked no one would be poor. No wait... See the simplest logic proves you are a fool. But jump on in fool. Put your money where your mouth is. You'll likely be putting a timy bit of it in my pocket in the end. Thanks. By the way. If bitcoin makes anyone rich in the end the vast majority of them will get there by buying and holding. But that is another topic. You are talking about a strategy that has been used by hedge funds and that haven't worked. I agree this strategy wouldn't work in a mature market like the stocks market because transaction fees are higher than the profit you could be making by doing it. But it has been proven that with sophisticated models this strategy could work if transaction fees don't exist (just trying to make the point that I have more experience in markets than you think). But all opportunities in a mature and efficient market cancel out with time... (I can even give you a small lesson about how arbitrage was much easier when the stock market was less mature and is now extremely hard if existent at all) But then the Bitcoin market is not mature yet, far from it. Which means that volatility is so high, it's very easy for the value of a Bitcoin to go up and down by 50% as a reaction to news, which makes the profits you make offset the transaction fees. This is not true for mature markets as I said, and this is why this strategy cannot be done there... But I wasn't actually debating on whether to use this strategy as a long term thing, I was debating about something else, but it seems you didn't get my point... Capich? |
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So you agree with me? does my logic make sense to someone at least? :p |
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I think it's because the last month convinced people that nothing can stop bitcoin from hitting the moon I mean the main debate before the china crash was if bitcoin will reach 100k or 1m$ . It's not easy to sell after that Great so please concentrate with me: Suppose you start off with 10 Bitcoins, market price is 1,200$ > China announcement is live > You sell your 10 Bitcoins at 1,200$ each and you pay 120$ transaction fee (1% of total), and end up with: (1200 x 10) - 120 = 11,880$ > 2 Days later price of Bitcoin seems to stabilize at 700$ > With the 11,880$ you made selling your initial Bitcoin, you buy back Bitcoins at 700$ each. So now you'll have 11,880/700 = 16.97 Bitcoins Remove 1% transaction fees and you'll get 16.8 Bitcoins WOW! Magic! Guess what, you're 68% wealthier than 2 days ago.... So now couple of years down the line, you'll have 16.8 million dollars worth of Bitcoins instead of only 10 million dollars.... Capich? Obviously if you can time the market then that works, but it has been demonstrated all over the world that market timing is a suckers bet, and no one can do it reliably, repeatedly. Who wouldn't have anticipated Bitcoin would go down in value after the Chinese government's announcement? give me a break. I agree it's hard to catch the lowest value it would reach, that's why I said 700$ and it's when Bitcoin's price stabilized...but anyways if you sold at 1,200$ buying back at any price below 1,000$ would've made you money (or Bitcoins for this matter). I think it's because the last month convinced people that nothing can stop bitcoin from hitting the moon I mean the main debate before the china crash was if bitcoin will reach 100k or 1m$ . It's not easy to sell after that Great so please concentrate with me: Suppose you start off with 10 Bitcoins, market price is 1,200$ > China announcement is live > You sell your 10 Bitcoins at 1,200 each and you pay 120$ transaction fee, and end up with: (1200 x 10) - 120 = 11,880$ > 2 Days later price of Bitcoin seems to stabilize at 700$ > With the 11,880$ you made selling your initial Bitcoin, you buy back Bitcoins at 700$. So now you'll have 11,880/700 = 16.97 Bitcoins Remove 1% transaction fees and you'll get 16.8 Bitcoins WOW! Magic! Guess what, you're 68% wealthier than 2 days ago.... So now couple of years down the line, you'll have 16.8 million dollars worth of Bitcoins instead of only 10 million dollars.... Capich? Better yet. You sell at 700, pay the $70 transaction fee = $7000 2 days later the price is $1200. You end up with 5.833 (ignoring transaction fees because I'm lazy) 2 days later the price is $300 you sell for $1750 minus transaction fees of $17.50 = 1732.50 2 days later the price is $1000 you buy 1.732 coins Over and over and over. 2 days later your spouse leaves you because you're addicted to gambling, AKA bitcoin. Then you have half as many dollars because your spouse took half your shit. Or maybe visit a doctor to cure your nonsense |
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I think it's because the last month convinced people that nothing can stop bitcoin from hitting the moon I mean the main debate before the china crash was if bitcoin will reach 100k or 1m$ . It's not easy to sell after that Great so please concentrate with me: Suppose you start off with 10 Bitcoins, market price is 1,200$ > China announcement is live > You sell your 10 Bitcoins at 1,200$ each and you pay 120$ transaction fee (1% of total), and end up with: (1200 x 10) - 120 = 11,880$ > 2 Days later price of Bitcoin seems to stabilize at 700$ > With the 11,880$ you made selling your initial Bitcoin, you buy back Bitcoins at 700$ each. So now you'll have 11,880/700 = 16.97 Bitcoins Remove 1% transaction fees and you'll get 16.8 Bitcoins WOW! Magic! Guess what, you're 68% wealthier than 2 days ago.... So now couple of years down the line, you'll have 16.8 million dollars worth of Bitcoins instead of only 10 million dollars.... Capich? |
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Guys you do know that markets react and correct in a matter of hours right? (sometimes minutes)
So stop telling me that you didn't convert to fiat because fiat is inflated and what not. Fiat will not inflate in couple of minutes for God's sake. You could've executed the strategy I mentioned in a matter of hours (or few days at most), and ended up with the same number of Bitcoins you started with and cash money on the side........
Since most of you are too lazy to do something about it, I'm thinking of maybe opening a Bitcoin wealth management fund and make myself a couple of bucks...
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50% correction, you should have been here for the 80-90% ones, this price move isn't any big deal. The parabolic rises are great, exhilarating the drops are character building and make the next move all the sweeter. Bitcoin is high risk highly volatile putting more fiat in than your willing to lose is a mistake, a comfortable amount invested long term is the best method. After all it's your mentality and the many others like you that's causing the price drop  You, along with a couple other users don't seem to understand my arguments. Please make an effort to grasp the idea behind the post and then hit me with your wisdom, Gosh... |
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So some of you mentioned that its hard to buy Bitcoins from trading platforms? Is this really the case?
Doesn't seem logical as prices are set by the demand & supply dynamics. So if price is now 600 and you offer to pay 605$ you'd probably be able to get it at such a price. This would off-course also depend on volumes traded, but it seems there isn't a lack of it. Correct me if I'm wrong here or if there's anything I'm missing.
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How about
"Cause I didn't wanna"
Why didn't you sell your gold, silver, or your car?
Because I don't have any. But for someone who has, it's either because there were no buyers, or the price drop (or difference) was perceived to be lower than transaction costs. |
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For those who had Bitcoins right before the Chinese Government's announcement this week and didn't sell them right after the announcement, why didn't you? I'm just curious.
Now I can think of 4 possibilities:
1- You thought the price will go back up and so got hold of your Bitcoins --> Very bad decision
2- You couldn't sell them due to the lack of buyers --> Plausible but unlikely
3- You are emotionally attached to your Bitcoins so you don't want to lose them no matter what --> You need a psychologist
4- When you found out about it, it was already too late --> I forgive you
(More reasons are welcome)
Now here's the explanation for the comments I included right after each possibility.
For reason # 1:
This would be a bad decision if you believe the money you could have made by selling high and buying back at a lower price is greater than the transaction costs associated with these two transactions. Let's say for example that transaction costs for trading Bitcoins is at 1% the value of your total transaction; in this case if you sold at 1,200$ which is nearly the value of each Bitcoin at the time of the news and bought back towards 700$, the value at which a Bitcoin became more stable, you would have made = [(500$ - transaction costs) x (the number of Bitcoins traded)], out of thin air.
The only counter-argument to this analysis would be to convince me that it wasn't normal (according to market dynamics) for a Bitcoin to fall for more than 2- 3% after the news (the break-even point at which you would have been indifferent to sell or hold your Bitcoins).
For reason # 2:
This is a plausible reason, and one which I wouldn't argue to much, except for the fact that I believe we have liquid markets for Bitcoins nowadays, and it's always possible to find a sucker who's willing to pay a higher price than market perception for a Bitcoin. Please correct me if I'm wrong.
For reason # 3 & 4:
No comment
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I have nothing to lose so I'll try it Youre doing this for 0.0001 btc -_- Well I have 0 Bitcoins as of now so that's an infinity% increase in my Bitcoin wealth :p I'm also taking a bullet for you guys which is the greater good I'll tip you after more proof of it being clean  (Also when I get out of the faucet) Appreciated. Apparently it's crap...don't download it guys |
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I have nothing to lose so I'll try it Youre doing this for 0.0001 btc -_- Well I have 0 Bitcoins as of now so that's an infinity% increase in my Bitcoin wealth :p I'm also taking a bullet for you guys which is the greater good |
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I have nothing to lose so I'll try it |
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Is this still on? |
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You can do that but that won't change the price of a Bitcoin whatsoever.
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Please add me
1Be3NEZzXppHDUYZTDvCVE6XXrRDmP6oG1
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super cool idea IMO....also good marketing for places using Bitcoin. I see potential if executed correctly....
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I am currently based in Lebanon and I'm interested in such a project.
I have previously held managerial positions in 2 of the region's most successful start-ups and have a good idea of how to tackle issues and plan strategically. Let me know if you're still interested and if there's anything we can do together.
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MPVSnxLyDz1eLhNCtr2RSHZqnfqD9g2nQU
If you send 30 I'll shout "I love Megacoin" from the roof of my building (I promise)
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ftzXhyK1jG152QgvZMLNiLbaFBbaAWrTRf
thanks!
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