OK I bought 1,000,000 Bitcoins... now what?

[adamstgBit]

say the millionaires buy up all the bitcoins they wanted.

and then stop buying and simply hold!

would this sudden lack of demand crash the price?

or

would the lack of supply cause the price to rise?

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[Akka]

Only one way to find out.

As soon as MT.Gox accepts my monopoly money we will konw.

[Aseras]

Economies crash when the currency stops moving.. That's why we are in a recession now. Money stopped moving freely as more people and companies tightened up.

[RyNinDaCleM]

Economies crash when the currency stops moving.. That's why we are in a recession now. Money stopped moving freely as more people and companies tightened up.

Kind of a catch 22 isn't it?

[silverbox]

OK I bought 1,000,000 Bitcoins... now what?

Invest in Pirate!!

[nedbert9]

Economies crash when the currency stops moving.. That's why we are in a recession now. Money stopped moving freely as more people and companies tightened up.

Kind of off topic.  Sorry.


While being a layman opinion I see money velocity as being a technical attribute.

When I think about trying to find a root cause or fundamental cause for this recession I have a few facts in mind.  

These facts are present for both the Great Depression and this recession.

-  Huge increase of debt-based spending  (think of the 'roaring '20's')
-  Stagnant middle class wages for decades.
-  And the final straw, fundamentally unsound asset appreciation supported by debt-based spending (housing).

Of course, the recovery measures implemented for GD and this recession are vastly different.

[adamstgBit]

OK I bought 1,000,000 Bitcoins... now what?

Invest in Pirate!!

holy shit your right, 7% a week!

that's like 70,000BTC a week

I could lower my standard of living just a tad and live off that 

[silverbox]

OK I bought 1,000,000 Bitcoins... now what?

Invest in Pirate!!

holy shit your right, 7% a week!

that's like 70,000BTC a week

I could lower my standard of living just a tad and live off that 

no,no,no

Let it ride baby.. Imagine after a year of compund 7% interest..

You'd have!!  30+ Million Bitcoins, amazing!!!  

At 100k USD each..  Your looking at 3 Trillion bucks!  You could pay back 20% of the National Debt! 

[CJGoodings]

Jesus fuck, more of you people with your damn recession. Admit it already, its called a depression.

[Stephen Gornick]

say the millionaires buy up all the bitcoins they wanted.

Maybe that cost $50 million to do, depending on how quickly these one million BTC were bought.  Which puts the BTC/USD exchange rate near $75, let's say.

and then stop buying and simply hold!

So in the next 24 hours, 7,200 BTC of new supply arrives.  That is worth $540,000.   Presumably, miners absolutely thrilled with their newfound wealth will take out every bid that they can find.   And the price will start to drop.  Which will cause others to realize it isn't going up any more, and they sell.  And with no buyers ... the snowball back down turns into an avalanche.

would this sudden lack of demand crash the price?

Yup.

would the lack of supply cause the price to rise?

When the millionaires were buying.  Yup.




So then what do these millionaires do?   Well, what was the reason for buying the BTCs ... just to have them as a reserve in case bitcoins future goes well?  They sit on them then.       If instead they bought them as an investment, then they do what Intel does for its chips (invests in startups that do lots of computing requiring lots of CPUs), or does what Google does for its ads (invests in startups that generate new search and ad revenues), or what the financial industry does (pays K Street lobbyists to make it accepted as a parallel currency).  [They'ld probably have a lot more than $50M on the line though to even consider doing that.]

[adamstgBit]

say the millionaires buy up all the bitcoins they wanted.

Maybe that cost $50 million to do, depending on how quickly these one million BTC were bought.  Which puts the BTC/USD exchange rate near $75, let's say.

and then stop buying and simply hold!

So in the next 24 hours, 7,200 BTC of new supply arrives.  That is worth $540,000.   Presumably, miners absolutely thrilled with their newfound wealth will take out every bid that they can find.   And the price will start to drop.  Which will cause others to realize it isn't going up any more, and they sell.  And with no buyers ... the snowball back down turns into an avalanche.

would this sudden lack of demand crash the price?

Yup.

would the lack of supply cause the price to rise?

When the millionaires were buying.  Yup.


So then what do these millionaires do?   Well, what was the reason for buying the BTCs ... just to have them as a reserve in case bitcoins future goes well?  They sit on them then.       If instead they bought them as an investment, then they do what Intel does for its chips (invests in startups that do lots of computing requiring lots of CPUs), or does what Google does for its ads (invests in startups that generate new search and ad revenues), or what the financial industry does (pays K Street lobbyists to make it accepted as a parallel currency).  [They'ld probably have a lot more than $50M on the line though to even consider doing that.]

Agreed 100%

hopefully these millionaires investing now realize that its in their best interest to invest in the right start-ups and maybe spend some of their bitcoins to simulate the economy

somehow i feel that just a little can go a long way in the bitcoin world.

[mysteriousawake]

OK I bought 1,000,000 Bitcoins... now what?

Invest in Pirate!!

holy shit your right, 7% a week!

that's like 70,000BTC a week

I could lower my standard of living just a tad and live off that 

Invest in Smoothie , God of Speculation, fuck it im paying for his presidential campain, lets make a bitcoin address for him, and he can become less sour and hateful as a person

Donations for Smoothie  16ncwH81ecMyMMod2fT4evyrk3QvWHCZbh

We need to raise enough to make up for his loss to Pirate , what do pirates do?  too obvious.
Hes so dumb , you should take his opinions like a grain of salt , just like we do the President... HEs perfect.

[Vandroiy]

Given how huge the volatility is already, it might not change all that much.

Answering the "now what?" is more intersting.

If I had a million BTC, I'd do something about the liquidity problem. It's not that bad to sell some at a profit to help make Bitcoin look less ridiculous, is it? And if there's a crash afterward, it's pure profit. In the same vein, I'd spend a small fraction to support development of projects like Armory and BitcoinSpinner to improve security, stability and usability. To someone who holds 10% of the market, that investment should pay off.

[Ivica]

If I had million btc I'd probably try open another bitcoin exchange (putting client's money into cold wallet and trading with my own funds, so with hacker attack I'd lose my money, but not trust, in worst case...) and try to print some bitcoins on paper and try to sell them to people in my local city for fun.

Am I doing it wrong? Wouldn't I earn way more this or another way (in long term)?

[Yuhfhrh]

Spend another 75 million on employees to work on improving the bitcoin code, making things more user friendly, along with international advertisments about bitcoin. Then in due time your 1 million bitcoins will be at least worth 1 billion USD

[Otoh]

say the millionaires buy up all the bitcoins they wanted.

and then stop buying and simply hold!

would this sudden lack of demand crash the price?

or

would the lack of supply cause the price to rise?

Someone wishing to acquire 1M btc would be better off investing in ASIC mining equipment as being a much more cost effective way to get them imo.

[Yuhfhrh]

say the millionaires buy up all the bitcoins they wanted.

and then stop buying and simply hold!

would this sudden lack of demand crash the price?

or

would the lack of supply cause the price to rise?

Someone wishing to acquire 1M btc would be better off investing in ASIC mining equipment as being a much more cost effective way to get them imo.

True story.

[World]

Spend to support development,developers of projects & services and

employees to work on improving the bitcoin code

[legolouman]

You bought 1 million BTC?

Send them my way 

[Comodore]

OK I bought 1,000,000 Bitcoins... now what?

I do recommend investing this way

Invest in Pirate!!