Bitcoin Forum
October 01, 2016, 08:41:48 AM *
News: Due to DDoS attacks, there may be periodic downtime.
 
   Home   Help Search Donate Login Register  
Pages: [1] 2 3 »  All
  Print  
Author Topic: Big inflation opportunity  (Read 6606 times)
eurekafag
Full Member
***
Offline Offline

Activity: 186


View Profile
September 27, 2010, 06:55:41 PM
 #1

I heard some guy has 25% of all bitcoins. What happens if he will trade it for dollars on the market? He has LOTS of coins so he may offer low price for them and everybody will buy it from him. Then it will cause inflation and lowering the exchange rate greatly for many months if not years. Will bitcoin cope with such a disease? We don't talk about motives of that dude. He may do it just for lulz or whatever. He might get all those bitcoins when the difficulty was low or he has a large cluster that generates blocks on a large scale. The same goes to all large generating clusters which may ruin the economics instantly.

Any thoughts on it?
1475311308
Hero Member
*
Offline Offline

Posts: 1475311308

View Profile Personal Message (Offline)

Ignore
1475311308
Reply with quote  #2

1475311308
Report to moderator
1475311308
Hero Member
*
Offline Offline

Posts: 1475311308

View Profile Personal Message (Offline)

Ignore
1475311308
Reply with quote  #2

1475311308
Report to moderator
1475311308
Hero Member
*
Offline Offline

Posts: 1475311308

View Profile Personal Message (Offline)

Ignore
1475311308
Reply with quote  #2

1475311308
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1475311308
Hero Member
*
Offline Offline

Posts: 1475311308

View Profile Personal Message (Offline)

Ignore
1475311308
Reply with quote  #2

1475311308
Report to moderator
1475311308
Hero Member
*
Offline Offline

Posts: 1475311308

View Profile Personal Message (Offline)

Ignore
1475311308
Reply with quote  #2

1475311308
Report to moderator
jgarzik
Legendary
*
Offline Offline

Activity: 1470


View Profile
September 27, 2010, 07:04:20 PM
 #2

I heard some guy has 25% of all bitcoins. What happens if he will trade it for dollars on the market? He has LOTS of coins so he may offer low price for them and everybody will buy it from him. Then it will cause inflation and lowering the exchange rate greatly for many months if not years. Will bitcoin cope with such a disease? We don't talk about motives of that dude. He may do it just for lulz or whatever. He might get all those bitcoins when the difficulty was low or he has a large cluster that generates blocks on a large scale. The same goes to all large generating clusters which may ruin the economics instantly.

Any thoughts on it?

Anyone with lots of coins may disrupt the bitcoin economy.

However, maintaining high level of bitcoin monetary value is an obvious incentive against dumping a huge number of coins on the market all at once.  Selling 1 million bitcoins at once will fetch much less money than selling 1 million bitcoins slowly, over time.

Bitcoin dumping is likely only to occur in (a) panic selling or (b) griefer scenarios.

Jeff Garzik, bitcoin core dev team and BitPay engineer; opinions are my own, not my employer.
Donations / tip jar: 1BrufViLKnSWtuWGkryPsKsxonV2NQ7Tcj
TTBit
Legendary
*
Offline Offline

Activity: 1136


View Profile
September 27, 2010, 07:08:06 PM
 #3

not worried. Even if he has 25% now, he won't have 25% in the future unless he's generating 25%.


good judgment comes from experience, and experience comes from bad judgment
nelisky
Legendary
*
Offline Offline

Activity: 1554


View Profile
September 27, 2010, 07:13:20 PM
 #4

not worried. Even if he has 25% now, he won't have 25% in the future unless he's generating 25%.



Which it is rumored he is... that is, until someone gets GPU mining mainstream. I have volunteered  myself to do it, but I lack the hardware and don't want to put both work and money into this. There has been a couple of members of the forum that have agreed to send me coins for GPUs or the actual GPUs, but in the end, it never happens, so either some coder with time and hardware does it, or artfonz and a few others will hold most of the processing power for some time still.
eurekafag
Full Member
***
Offline Offline

Activity: 186


View Profile
September 27, 2010, 07:14:58 PM
 #5

He may start selling right now. Also, even if he sells slowly he'll lower the exchange rate as he wants and it'll be very hard to recover because nobody else has such money volume.
TTBit
Legendary
*
Offline Offline

Activity: 1136


View Profile
September 27, 2010, 07:17:45 PM
 #6

If he owns 25% now, he's giving me more value for my coins right now. His hoarding is letting me buy things with less coins now.

Thank you, whoever you are. I invite everyone to go out and try and buy 1% of all the coins out there!

good judgment comes from experience, and experience comes from bad judgment
Bimmerhead
Legendary
*
Offline Offline

Activity: 952



View Profile WWW
September 27, 2010, 07:19:22 PM
 #7

I say hopefully he does it, and the sooner the better.  That way we can all pick up lots of bitcoins very, very cheap.

With a maximum of only 21 million in circulation no one will ever be able to do a 'helicopter Ben'.  Either bitcoins are going to catch on and their value is going to skyrocket to the moon, or they will wither on the vine.  Somebody artificially holding, buying or selling bitcoins won't be able to manipulate their value in the long term.

Everyone holding bitcoins has an incentive to spread the word far and wide, or build websites that use bitcoins, or build opensource products like CMS store plugins or social media plugins that use bitcoins because the greater the use of bitcoins, the more your holdings of bitcoins increase in value.

Auroracoin forum: http://auroraspjall.is/   Auroracoin-enabled Q&A: https://spurt.is/
AuroracoinLocal: https://www.skiptum.is/   Auroracoin twitter tipping: http://auroratip.auroracoin.io/#/
eurekafag
Full Member
***
Offline Offline

Activity: 186


View Profile
September 27, 2010, 07:21:52 PM
 #8

If he'll sell it for bucks (for example, 100 coins per buck) then all your wealth will become nothing. No one will sell you goods for tens of coins but for hundreds or thousands of them because it will be easy to get them. Which you don't possess.
dwdollar
Full Member
***
Offline Offline

Activity: 166


View Profile WWW
September 27, 2010, 07:31:51 PM
 #9

Maybe.  But keep this in mind...

We'll probably hear "so and so is about to dump X number of Bitcoins onto the market" over and over and over again.  It's a "short and distort" technique for market manipulation.  The opposite of this is a "pump and dump" which will also circulate, but probably not as often.

Since Bitcoin is a thinly traded commodity with no documentation of who owns what, it will be especially vulnerable to this sort of thing.
TTBit
Legendary
*
Offline Offline

Activity: 1136


View Profile
September 27, 2010, 07:32:04 PM
 #10

If he'll sell it for bucks (for example, 100 coins per buck) then all your wealth will become nothing. No one will sell you goods for tens of coins but for hundreds or thousands of them because it will be easy to get them. Which you don't possess.

I don't understand. I bid 1 cent for 25% of all bitcoins and he sells them to me. Are we not in the same boat? Why would you now need 100,000 coins to buy a cheeseburger?

good judgment comes from experience, and experience comes from bad judgment
FreeMoney
Legendary
*
Offline Offline

Activity: 1246


Strength in numbers


View Profile WWW
September 27, 2010, 07:36:00 PM
 #11

If he'll sell it for bucks (for example, 100 coins per buck) then all your wealth will become nothing. No one will sell you goods for tens of coins but for hundreds or thousands of them because it will be easy to get them. Which you don't possess.

The cheaper he sells them the quicker he'll run out. What if he sells them for .000001USD/BTC! I'll just snap buy them all, resell some when it gets back near equilibrium.

But flooding would be pretty dumb of him, he'd sacrifice a lot of value. Did you see the MtGox "flash crash"? That guy could sold coins as low as ~.035 when waiting 15 minutes would have got him .06. It was just a gift.

The guy I'm thinking of only had about 10% of coins, who are you talking about?


Play Bitcoin Poker at sealswithclubs.eu. We're active and open to everyone.
TTBit
Legendary
*
Offline Offline

Activity: 1136


View Profile
September 27, 2010, 07:37:28 PM
 #12

I bid $0.02 for 1,000,000 coins. PM me for details. I am serious.

good judgment comes from experience, and experience comes from bad judgment
eurekafag
Full Member
***
Offline Offline

Activity: 186


View Profile
September 27, 2010, 07:39:31 PM
 #13

He won't sell you all his coins but will sell with 10x lower rate than usual. No one then will sell their bitcoins because he will ALWAYS have the better (cheaper) rate. No one will have a chance to sell a bitcoin for MONTHS. People will start panic and sell at whatever rate and then quit bitcoin forever. That's what I'm talking about.
S3052
Legendary
*
Offline Offline

Activity: 1932


BTC Up or Down? go to www.bullbearanalytics.com


View Profile WWW
September 27, 2010, 07:40:46 PM
 #14

I think this is a serious risk, as the dollar value of all coins is still very low (250 M$). many folks who have saved something could easily buy 25% of the coins.

But then they are not stupid, they rather sell them slowly, or even smarter wait until the next rally started.

I might buy some more now...

>15years analysis experience

Always do your own due diligence & consult your financial advisor. Never invest unless you can afford to lose your entire investment.

http://twitter.com/BitcoinAnalyst

Subscribe here
mpkomara
Full Member
***
Offline Offline

Activity: 180



View Profile
September 27, 2010, 07:45:35 PM
 #15

I am .023 USD bid for 1,000,000 BTC.
S3052
Legendary
*
Offline Offline

Activity: 1932


BTC Up or Down? go to www.bullbearanalytics.com


View Profile WWW
September 27, 2010, 07:50:17 PM
 #16

and one more thing (which I said in our threads):

we need to very quickly bring the bitcoin economy to a much higher level (adding trade, games, services, spread it more to get more people to adopt it , etc.).

the longer we wait, the more risky it gets that some crazy dude will destroy it with just small funds (just think about if someone who fears that bitcoins become huge.. this individual / organization can just destroy the entire bitcoin value for 100 - 200 M$)

>15years analysis experience

Always do your own due diligence & consult your financial advisor. Never invest unless you can afford to lose your entire investment.

http://twitter.com/BitcoinAnalyst

Subscribe here
TTBit
Legendary
*
Offline Offline

Activity: 1136


View Profile
September 27, 2010, 07:51:05 PM
 #17

I am .023 USD bid for 1,000,000 BTC.


.02300001 bid

good judgment comes from experience, and experience comes from bad judgment
mpkomara
Full Member
***
Offline Offline

Activity: 180



View Profile
September 27, 2010, 07:53:47 PM
 #18

.03 bid for 1,000,000
FreeMoney
Legendary
*
Offline Offline

Activity: 1246


Strength in numbers


View Profile WWW
September 27, 2010, 07:55:52 PM
 #19

and one more thing (which I said in our threads):

we need to very quickly bring the bitcoin economy to a much higher level (adding trade, games, services, spread it more to get more people to adopt it , etc.).

the longer we wait, the more risky it gets that some crazy dude will destroy it with just small funds (just think about if someone who fears that bitcoins become huge.. this individual / organization can just destroy the entire bitcoin value for 100 - 200 M$)

It would obviously suck, but it would just verify the disruptive potential and be great publicity for a new go at it, maybe under a different name, maybe implemented somewhat differently to make whatever attack was used harder to do.

Play Bitcoin Poker at sealswithclubs.eu. We're active and open to everyone.
TTBit
Legendary
*
Offline Offline

Activity: 1136


View Profile
September 27, 2010, 07:56:21 PM
 #20

I think the real risk here is just the opposite:

Some organization or even some wealthy guy will just bid 50 cents for 2 million bitcoins, or $1.0 Million. This is a lot of money to be sure, but not so much if you consider the amount of USD in circulation right now.

good judgment comes from experience, and experience comes from bad judgment
Pages: [1] 2 3 »  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!