Here I want to discuss a rather popular misconception that many still seem to have as revealed in this Reddit thread where I stumbled upon this post:
The point is, those who actively bet against Bitcoin cannot pay for people getting rich by holding because they are actually dragging the price down. Betting against Bitcoin assumes selling it, probably on margin (i.e. without first buying the cryptocurrency). Conversely, it is those buying bitcoins who drive the price up, and through this making holders richer. It is an interesting case because a plausible and convincing explanation is in fact absolutely wrong, and as such could lead to ruinous decisions if taken into consideration without much thought
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So when bitcoin goes up and people get rich by holding, who pays for that? Those who bet against bitcoin. Completely fair
The point is, those who actively bet against Bitcoin cannot pay for people getting rich by holding because they are actually dragging the price down. Betting against Bitcoin assumes selling it, probably on margin (i.e. without first buying the cryptocurrency). Conversely, it is those buying bitcoins who drive the price up, and through this making holders richer. It is an interesting case because a plausible and convincing explanation is in fact absolutely wrong, and as such could lead to ruinous decisions if taken into consideration without much thought