Velkro
Legendary
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Activity: 2296
Merit: 1014
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June 20, 2015, 12:18:27 PM |
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Logically, the price would have to go up
If people would know about such coin loss, then yes. But person/organisation that would loose so many coins wouldn't probably like to share that information. |
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bitnanigans
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June 20, 2015, 12:45:33 PM |
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Price is still based on supply and demand, not lost coins. Right now, there are more bitcoins created everyday than there are people willing to buy for fiat. Once the demand increases, the price will surely go up.
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RealBitcoin (OP)
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June 20, 2015, 01:00:14 PM |
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If the velocity of money (bitcoin) increases a lot, then bitcoin black holes may not have any effect.
It is the equivalent of one person hoarding coins - shouldn't affect the price when the velocity is very high.
Yea but even if the velocity of bitcoin increases 10x in the next 2 years, if we lost half of the bitcoins in a black hole, then otherwise it could have increased by 20x. And usually high velocity of money = less inflation, but in this case its inversed because if half of the supply is locked than it is only the other half that can affect the price IF PRICE = DEMAND / SUPPLY
THEN PRICE = DEMAND / (SUPPLY/2) after the locked coins
THEN PRICE = DEMAND *2 /SUPPLY
THEN price goes up as demand doublesThis is how logically can be deducted. |
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RealBitcoin (OP)
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June 22, 2015, 06:09:06 PM |
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Ok consider the next scenario, what if Bob creates the BOBCOIN
He will list BOBCOINS on Bitrex or some other exchange. Investors invest 1000 BTC in the BOBCOIN , and miners start mining BOBCOIN.
Then for some reason it will get delisted from Bitrex before any investor could withdraw their coins, but BOB's account from which he sold BOBCOIN is a blackhole, to prove that he is a trusted developer, and he won't run away with the investment.
So we got 1000 BTC sitting in a blackhole address, where he withdrawed the amount from the exchange.
So all 1000 BTC are burned, and locked away at his address, but also BOBCOIN fails, miners abandon the project, investors lose all their money.
How would this affect the BTC/$ or BTC/€ price?
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etzeppy
Newbie
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Activity: 9
Merit: 0
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June 22, 2015, 07:15:00 PM |
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Market price is based upon supply and demand, period. Supply could also be considered "lack of supply". We have no way of knowing if the "lack of supply" at any given moment is caused by lost coins, investors who are holding for a higher price, or hoarders that will never sell. Frankly it doesn't matter. We live in the now. The now price is based upon the current supply and demand, regardless of why. It will always be that way.
Even if someone advertised that they lost a bunch of bitcoins, I would not expect the market to react strongly. How could it be proven that the coins are permanently lost? Talk about a pump in dump scheme. Just pretend to lose coins, then find them again when the price goes up. Financial markets don't work that way.
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cellard
Legendary
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Activity: 1372
Merit: 1252
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June 22, 2015, 11:44:15 PM |
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Here's my simple take on it:
1.000.000 Bitcoin's dissapear, but the demand for Bitcoin is exactly the same after
Result: The price of Bitcoin stays the same.
1.000.000 Bitcoin's dissapear, but the demand for Bitcoin increases even if it's for a small %
Result: The price goes way higher than it would have been if those coins were available.
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RealBitcoin (OP)
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August 07, 2015, 10:20:20 AM |
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Here's my simple take on it:
1.000.000 Bitcoin's dissapear, but the demand for Bitcoin is exactly the same after
Result: The price of Bitcoin stays the same.
1.000.000 Bitcoin's dissapear, but the demand for Bitcoin increases even if it's for a small %
Result: The price goes way higher than it would have been if those coins were available.
In the end it all depends on how the public reacts, the price technically should rise, but due to panic or uncertainty it can stay the same or even fall. Especially if a big chunk of money gets locked out, because it can bring down a bitcoin business (imagine a big exchange locking out their money what chaos would create). |
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RealBitcoin (OP)
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September 10, 2015, 11:49:33 PM |
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After more thinking I figured out that scenario 3 is really very unlikely.
People are not very empathetic, they would not give a shit if somebody were to lose 1 million btc, in fact they would profit from his loss, and become greedy by bidding the price up.
So the emotional shock / faith loss in bitcoin (due to this event happening) is very very unlikely. It's far more likely that traders would go crazy and buy up bitcoin.
(not to mention that if 1 million btc were lost, it cant be sold, so a lot of sell pressure would lift from BTC)
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g-unit
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September 11, 2015, 12:09:06 PM |
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How do people lose private keys? All I've had to remember is my email and password to access my keys and account.
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Q7
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September 11, 2015, 02:57:16 PM |
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Since it is deflationary it meant for the price to up provided the interest in the coin and security of the network is still there. The only question is when and how long the whole pricess will take. I doubt I'll be able to see it one day
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RealBitcoin (OP)
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September 11, 2015, 04:11:41 PM |
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How do people lose private keys? All I've had to remember is my email and password to access my keys and account.
You hold coins in an online wallet. Some people store it on their PC, and all they have is a password, and a wallet. If they lose any of them, they are fucked. |
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g-unit
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September 11, 2015, 04:53:55 PM |
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How do people lose private keys? All I've had to remember is my email and password to access my keys and account.
You hold coins in an online wallet. Some people store it on their PC, and all they have is a password, and a wallet. If they lose any of them, they are fucked. Gotcha. I store mine offline in a "vault" (cold storage) but not on my PC. |
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RealBitcoin (OP)
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September 11, 2015, 04:55:16 PM |
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How do people lose private keys? All I've had to remember is my email and password to access my keys and account.
You hold coins in an online wallet. Some people store it on their PC, and all they have is a password, and a wallet. If they lose any of them, they are fucked. Gotcha. I store mine offline in a "vault" (cold storage) but not on my PC. Then what do you mean by e-mail and password? Why do you need an e-mail for offline vault? |
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Hugroll
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September 11, 2015, 05:04:10 PM |
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there's no doubt the price will go up,but i dont think alot of people lose their bitcoin. personally I've never lost any bitcoin. its extremely important to have multiple backups. if you're the type of guy that doesnt back up your files. i suggest using online wallets like blockchain or something.
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g-unit
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September 11, 2015, 06:05:02 PM |
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How do people lose private keys? All I've had to remember is my email and password to access my keys and account.
You hold coins in an online wallet. Some people store it on their PC, and all they have is a password, and a wallet. If they lose any of them, they are fucked. Gotcha. I store mine offline in a "vault" (cold storage) but not on my PC. Then what do you mean by e-mail and password? Why do you need an e-mail for offline vault? That's just how it is on coinbase. |
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