Effect of Fake Bitcoins demand for the real One

[Husires]

If you follow what is happening in cryptocurrency market, you will notice that many platforms are now buying bitcoins from users and selling them altcoins or FAKE bitcoins that have no value, they lending this money, squandering it in advertising campaigns or for personal purposes, but what is the effect of such dispositions?

I began to believe that the recent extinction of Bitcoin ATH was due to these Fake coins that were printing non-existent coins and selling them, so I hope that this topic covers all of these points or one of them:

• People's laziness in withdrawing their money from platforms makes real Bitcoin less valuable?
• What would happen if everyone decided to withdraw their coins? And how will it affect real bitcoins.
• If these actions continue, can these platforms influence the price of bitcoin and reduce it by arbitrage or shorting between them?

[jossiel]

Bitcoin's ATH and increase has something to do with demand and supply but one thing that can't be removed is about the printing of Tether. Whether we like it or not, that really contributes big to the price of bitcoin.

People's laziness in withdrawing their money from platforms makes real Bitcoin less valuable?

I don't think there's direct impact on it. Whether people are lazy to withdraw, it's still the same as what the market is showing. I'm thinking about those news about whales moving funds in and out of exchanges. That don't give that much impact these days until the exchange happens.

What would happen if everyone decided to withdraw their coins? And how will it affect real bitcoins.

Probably the impact of it isn't on bitcoin but more with the exchanges where people are pulling out their funds. Demand will be less on them and they'll do something to take back those pulled out funds on them again.

If these actions continue, can these platforms influence the price of bitcoin and reduce it by arbitrage or shorting between them?

Most likely, yes.

Like with what these owner of exchanges done, we didn't even know that they're doing something behind with people's fund. It's like when they're using people's money and everyone gets to know about it.

Then, the chain reaction is there, it's a domino impact.

[franky1]

firstly bitcoins ATH. was not a price point of sustained "value" of long term standing. where the crash was a unprecedented activity caused by some negative thing

bitcoins value is not derived from the tops. but the bottoms. the periodic bottoms underneath the market speculation. where the bottoms raise up slowly over time

market speculations above this is the random whimsy of user sentiment of how much premium they are prepared to pay to get bitcoin above value.

many factors can and do affect this sentimental whimsy of speculation. but when the ATH hit last year.. that ATH was not a value point. but a speculations that some felt was worth buying upto until yep. no one else wanted to buy upto. and so the price CORRECTED backk down to value

right now that value is being tested.. seeing how low it can get before seller refuse to sell for lower or for all those that can sell to break even/profit. do until there is no one left willing to sell for less. which then creates the sustainable value  to then price discover above that for the next market cycle.


as for fake bitcoins
(listing only a few prominent examples.. of many that exist)
binance sidechain wbtc is not bitcoin
liquids  sidechain Lbtc is not bitcoin
LN msats is not bitcoin
renBTC is not bitcoin
custodial balance database is not bitcoin

these other network coins are not bitcoin because bitcoin never leaves the bitcoin blockchain. if you are playing around with value on other networks pegged at the btc price rate. be warned that the peg/conversion mechanism can back fire and leave you holding less/nothing when you decide to swap/convert/withdraw


that said if people are "trading" using the other network coin for fiat. that can create its own market sentiment. where price movements and wiggles can have a separate chart scribble than the true bitcoin/usd market

obviously people can arbitrage across to profit from the differences which then end up trace/shadow the other market to come into line with the other networks. where they all end up looking the same pattern/price

however if other network pegged representations become more popular then the real bitcoin/USD market this can then become more manipulated by airdroping fake minted coin on the other network to then mess with the markets. because these other networks of bitcoin representation dont have the same protocols, decentralisation and security features to protect from supply manipulations.

[Ucy]

If you follow what is happening in cryptocurrency market, you will notice that many platforms are now buying bitcoins from users and selling them altcoins or FAKE bitcoins that have no value, they lending this money, squandering it in advertising campaigns or for personal purposes, but what is the effect of such dispositions?

I began to believe that the recent extinction of Bitcoin ATH was due to these Fake coins that were printing non-existent coins and selling them, so I hope that this topic covers all of these points or one of them:

• People's laziness in withdrawing their money from platforms makes real Bitcoin less valuable?
• What would happen if everyone decided to withdraw their coins? And how will it affect real bitcoins.
• If these actions continue, can these platforms influence the price of bitcoin and reduce it by arbitrage or shorting between them?

They are actually part of a sophisticated attack on Bitcoin (but this has been taken care of). I call it an attack because it's an attempt to manipulate the price of Bitcoin with control/centralized platforms especially via price suppression/control... it's more like how they control the price of gold. But they are not clever enough as that will be in violation of Bitcoin deflationary/anti-inflation principle. Anyone who is principled enough can always use that to punish the violators. They are violating a just rule and you can always punish any violator of just rules if you are qualified.

There is also the possibility of nations/people buying loads of bitcoins that can only be used or exchanged within specific platforms. And the bitcoins could be sold way below their real market price. They could do this mainly to prevent people from buying bitcoins at their real market price to increase demand/price. I wouldn't be surprised if they tag the real market price "Black market" price, whereas the actual black market price is the suppressed price.

 

[coupable]

For Bitcoin to reach ATH or even ATL, this is mainly related to the market movement, supply and demand. The use of altcoins has an impact on supply and demand and not on the price directly. There are many other factors that can affect the price in varying and unstable degrees.
What you call Fake Bitcoin is not much different from the creation of alternative currencies, the main purpose of which is to create a trading instrument, and not for developmental purposes. As someone mentioned in his comment above, real bitcoin never leaves the bitcoin network.

[Apocollapse]

• People's laziness in withdrawing their money from platforms makes real Bitcoin less valuable?

Which money do you mean? fake Bitcoin or Bitcoin?
If people doesn't want to withdraw their coins, it will encourage the Bitcoin price to increase since it make the supply decrease. Either in exchange or wallet, both of them are same.

• What would happen if everyone decided to withdraw their coins? And how will it affect real bitcoins.

Those fake coin only pegged with Bitcoin price, the developer can manipulating the price to decrease or increase the supply until the price is same or close with the real one.

• If these actions continue, can these platforms influence the price of bitcoin and reduce it by arbitrage or shorting between them?

Fake Bitcoin price and Bitcoin price has no correlation, if Bitcoin die, the fake Bitcoin will die. If the fake Bitcoin die, the real Bitcoin will still survive.

[Darker45]

I'm not sure about the ATH, but I guess the price of Bitcoin wouldn't be this low if only people didn't buy fake Bitcoin. And when I speak of fake Bitcoin, I am generalizing. I am referring to all kinds of Bitcoin that is not in the Bitcoin network. That includes all the Bitcoin that is within centralized exchanges and all other centralized platforms. They're mere numbers, IOU. We have to remember that FTX has more than a billion of Bitcoin liabilities but don't have a single Bitcoin in its asset. This also includes Bitcoin-pegged tokens. They're all fake Bitcoin.

[DrBeer]

If you follow what is happening in the cryptocurrency advertising market, you will notice that many platforms are now buying bitcoins from users and selling them altcoins or FAKE bitcoins that have no value, they lending this money, squandering it in campaigns or for personal purposes, but what is the effect of such dispositions?

You are a colleague in the crypto market. Here, sorry, but 50%, in fact, fake virtual assets, behind which there is nothing but burned electricity and not much needed video cards
This is normal and will continue this way for a long time. But the topic with quasi-bitcoins, when, based on the balance of the past, “new” ones are credited to you and they are actively traded - pure speculation, and probably almost a criminal way of seizing real assets and funds from gullible buyers. There are no laws, no legal framework, no full-fledged control, so honesty is out of the question .. You just have to put up with it

[lionheart78]

I'm not sure about the ATH, but I guess the price of Bitcoin wouldn't be this low if only people didn't buy fake Bitcoin.

True! Imagine if all the market cap is in Bitcoin alone, we could be seeing Bitcoin at 2.6x its current value. 

Let us see how much it would be.

Current Cryptocurrency Total Market Cap: $902B at the current writing
Total Bitcoin: 21m
Bitcoin Price if the market is Bitcoin alone: 902B/21m = $42,952.38

The cryptocurrency saturation really affects the price of Bitcoin, and it is a Domino effect because without all these fake Bitcoin (altcoins)  we could have experienced a higher ATH.  But of course, without these fake Bitcoins, the propagation of Bitcoin will also be affected.  We cannot say something without thinking about the consequences of another thing.  After all it is always a Domino effect.  If one thing is taken out from the history of the price course of cryptocurrency, there will be a significant effect on its future like the majority of the investor is brought into Cryptocurrency Industry via fake Bitcoin participation. So if we remove them, then the population of investors will greatly reduced too.

• What would happen if everyone decided to withdraw their coins? And how will it affect real bitcoins.

If everyone decided to withdraw their coins, the centralized exchange will obviously get out of commission since there is no one trading for the exchange to get a profit.  Exchanges have monthly maintenance, without profit from trading, the exchange will eventually get bankrupt in the long run.  The effect of this action on Bitcoin is severe and makes the price of Bitcoin idle because no one is trading it.

[dezoel]

It wasn't the platform that buys btc but it was the people who sells their coin on the platform. There was a post here about that ftx hacker who allegedly trade the stolen coin into a token which name has a btc on it. Some says that it was some kind of a shit token or fake bitcoin as you name it.

The effect of it is that this shit token are going to pump and maybe there are people who will get tempted to buy it and then the hacker will dump it making those investors lose. Btc ath didn't extinct but the price only drop because of the bear market. Once this bear ends, you will see that btc will make a new ath again. Fake coins on the other hand might have some effect in btc but that was only small.

[franky1]

I'm not sure about the ATH, but I guess the price of Bitcoin wouldn't be this low if only people didn't buy fake Bitcoin.

True! Imagine if all the market cap is in Bitcoin alone, we could be seeing Bitcoin at 2.6x its current value.  

Let us see how much it would be.

Current Cryptocurrency Total Market Cap: $902B at the current writing
Total Bitcoin: 21m
Bitcoin Price if the market is Bitcoin alone: 902B/21m = $42,952.38

not realy

market cap is a meaningless measure

exchanges dont hoard all 21m coins. (actualy 19.2m right now)

exchanges only have ~200k-400k each for the major exchanges(about 14% is hauled up in exchanges combined(<3m coins))

of those 3m coins. not all of them are on order books affecting the price on the market orders. many are just sat as custodian held off he books

if those that are on market order books
if you compare that to the market order books of sidechain 'btc' to their (b)USD(t/c) stablecoins .. as a volume bases.
and shifted that volume back to volume being done on true btc/usd market . then the markets would be less diluted and see more demand on the major markets of the primary btc/fiat

EG. a quick search on daily stats

BTC/USD volume $25billion
Wbtc/usdt volume $152million (0.6%)

so not much of a change / demand differentiator if it was al solidified into one orderbook of the primary asset/fiat

[Reid]

I began to believe that the recent extinction of Bitcoin ATH was due to these Fake coins that were printing non-existent coins and selling them, so I hope that this topic covers all of these points or one of them:

Extinction of Bitcoin ATH? Or aren't most people are just in a hurry to see another ATH?
It took years for Bitcoin to reach this amount and just because we experience an ATH that was hard to believe doesn't mean it can always go back there in a blink. Sure, it's a valuable asset but it won't rise if the demands are low.
A big competition is happening in the crypto world and investors looking for rare gems where they could invest their stablecoins instead of buying Bitcoin first while looking for that gem.

• People's laziness in withdrawing their money from platforms makes real Bitcoin less valuable?
• What would happen if everyone decided to withdraw their coins? And how will it affect real bitcoins.
• If these actions continue, can these platforms influence the price of bitcoin and reduce it by arbitrage or shorting between them?

Was this about w-BTC? Even if you don't withdraw it from another platform the demands should still go up.
There would always be the "many" trying to stock up more Bitcoin than sellers.
Arbitrage is a risky method because once the market reacts after they take out those funds, it's more losses than gains.