For every coming in, there is as much going out.

One of our Partners had been in Bitcoin since late 2012. He died unexpectedly early 2013, and we suggested the widow certain measures of Bitcoin recovery. She refused, saying, that despite she had heard him constantly talking about it, it is unlikely that he had any or that it would matter.

I think the exponential decay model explains this rather well. The mean half-life is approximately 3.5 months, which means that the current rate of decay is a little bit ahead of itself.

No. The coins are flowing from China to west right now. Check the prices. Coins flow from cheap places to the expensive ones.

Today's been quiet. The tide of bitcoins has changed so that they are now flowing from BTC China to Mt.Gox and Bitstamp, to be sold (this is evidenced by the negative spread). The western appetite for bitcoins can thus be satisfied at these higher prices.

Whereas China wanted to buy bitcoins from us in the early stages of the rally (+ the pop and the crash after that), now as prices seem permanently higher, they sell them back. Good for them! 

I have been thinking what to do with the newfound wealth. Currently it seems prudent to buy a castle/manor house to be a second apartment, and keep the rest of the gains as a fiat position, which can be used in all kinds of trading activities, doing arbitrage etc. Then perhaps buy a new car if there are nice models available (last summer it was white Audi A7 that I was interested in). I already have a large stash of precious metals, several safes and a vault. (The castle would add another vault.)

Taking care of my own affairs is quite time-consuming; I just felt that the time was right to solidify the old world position while keeping the supermajority of the bitcoins. Some have said that they do not want any non-portable wealth no matter how expensive bitcoin gets. That is fine. I am more concerned about those that want to be rich, but do not understand what it takes. Currently, the positions to become rich are still available for everyone, as long as they do not sell their bitcoins prematurely.

To corner your share of the world's bitcoins, I suggest a simple top-down approach: Decide, Buy, Wait, Profit -model.
(A more complicated bottom-up approach is the topic of this thread.)

- Decide, which of the levels above suits your preferred lifestyle.
- Buy 10 times the number of bitcoins necessary (to allow for divestment, spend, gifts, loss, theft, tax etc.)
- Wait.
- Profit.

For example if you are currently "upper middle class", and want to gain a level, you need minimum 50mBTC. By buying half a bitcoin for about $500, you are neither in any danger of losing out on Bitcoin's appreciation, nor suffer disproportionately if Bitcoin fails.

That was the buying plan, lol.

When have I denied that I work for several different companies, managing their (and even their customers') accounts?

Congrats for getting out of ignore

Perhaps he just needs to sell. Stamps liquidity is so friggin anemic that I just quit today's selling plan without selling any coins. I am not the only one willing to sell at these prices.

Hmm... how many % are actually short fiat (mortgages, credit cards)?

It may be that 100% of fiat is concentrated to 0.1% of people, if we really dig deeper into numbers.

This should be known to you already. Possibilities are:

1. I get to buy back the same amount cheaper.
2. I get to cash out the money enough for retirement+ride the freebies.

It has not even visited the #1 territory so I guess it is #2 then. 

Shows absolutely no understanding of large holders.

I, for one, am boycotting altcoins, despite the gains that might be achievable. Central banks and their cronies are boycotting all cryptos.

People in the position of power do not need to diversify for reasons of security or gain, they only diversify to retain their power.

...which may be Bitcoin's(crypto's) greatest strength that possibly the CB:s were in boycott mode for too long.

What is the smallest conceivable investment, $50?

That means, 35% of it is now $35,000.

I don't like "exit" because we are entering Bitcoin and exiting the fiat world. We are just raking the pot to live more comfortably.  

I have developed the concept of "rake", which in this context means the (average) percent of your holdings that you sell, every time the price doubles. This is applicable in the situation where you are unloading the coins. If you are still accumulating, it naturally does not hold.

According to the virgin-money-flow-model, the average rake is 17%, which means that each 1000x increase (consisting of 10 succeeding doublings) dilutes your holdings by 84%, formula: 1-(1-17%)^10.

If you want to play tigher, choose 10% rake for 65% dilution.
If you are OK to play looser, 30% rake dilutes 97% of your coins away, but the remaining 3% are still worth 30x more than all the coins in the beginning.

More about it.

They are the lower bounds. Eg. "0.5mBTC or more" means the same as "0.5mBTC - 4.99999mBTC".

In totality, this model assumes 15 million coins. Some of the top 29,000 have vast fortunes such as 50,000mBTC, the early block reward/VIP tag.

We are so far from mass adoption that it is not even funny.

Let us assume that Bitcoin has completely taken over as a currency, and is now used worldwide. Because the emergence of Bitcoin has made commerce boom, the world GDP has grown such that bitcoins alone account for as much value as the physical and financial world did in 2012.

The world uses other methods for everyday payments. Bitcoins themselves are used for large transactions only and a measured in units of mBTC. The wealth is distributed in a similar way as in the article, but to quite different people.


In this order,
* the top 29,000 people would have 5,000mBTC or more, a huge fortune comparable to 100 million of today's dollars.
* the top 1 million people would have 500mBTC or more, corresponding to 10 million or more dollars
* 29 million people have at least 50mBTC, which puts them among the most affluent 0.6%, previously called 'millionaires'
* the upper middle class of 350 million people worldwide, owns 5mBTC or more
* lower middle class consists of 1 billion people is characterized by ownership of 0.5mBTC or more
* the lower class of (3+ billion) owns less than 0.5mBTC including people who don't have any or have negative worth.


Even if you find it hard to believe the dollar part, the number of bitcoins existing is still constant, and will likely be distributed quite exactly according to the table above, when the initial distribution period is completed and bitcoins are used everywhere.

I will try to derive a calculation concerning the "eventual distribution" of bitcoins, which is the dynamic equilibrium. Soon...

Everybody has power to his own coins, exactly as it should be.

It is not easy to see yourself, but your ignore button has reached its maximum color