are the prices in a permanent loop?

[superduh]

now that every single day trader in the world has heard of bitcoins
all their investors and hnw individuals have called their brokers
are the prices going to be in a permanent cycle of going up and down?

think about this way.. these traders don't care if this succeeds or fails . they care about returns.
drive the price up to double. sell.
causes the prices to go down. when it goes down to half buy back up to make confidence go up.
goes up and sell to make confidence go down.
doing this over and over and they don't have to wait for the actual value of a bitcoin to go up they can just make 100000% percent by pushing the prices around daily

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[pretendo]

If they were, savvy participants would see it and profit by correcting it, thus eliminating the loop

so no

[minerva]

http://en.wikipedia.org/wiki/Hog_cycle

[superduh]

If they were, savvy participants would see it and profit by correcting it, thus eliminating the loop

so no

wouldn't savy participants just exploit it like anyone else?

[yogi]

Blue-sky catastrophe.

[Twerka]

1) Speculators makes profit by buying low, and sell high. They need the graph as rollecoaster, because THERE is when they can make profit.
If value go up and up, the speculator Can't make money; but INVESTORS CAN.

2) Investor buy now because BTC is cheap and wait a better value to buy things later. Today with 1 BTC you buy a sandwich, tomorrow a car.

3) Miners, like investors, wants the BTC as high as possible making mining profitable. So, the best move for miners is NOT SELL, but KEEP coins. Or, to be more precise, selling high in a place where buyers can't get; like running behind a rabbit you can't catch.
Example, market says 2 dollars, you put orders on 2.5. When markets get on 2.4, you go up to 3. In this way you are entices people to go behind the value.


Miner and investors work together. Speculators like the coin crash to bottom, to buy, and later make it high to sell. They are hurting us all.