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Question: Are dumps good and useful for Bitcoin in the long term?
Yes, they are - 38 (80.9%)
No, they aren't - 9 (19.1%)
Total Voters: 47

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Author Topic: Why dumps are important  (Read 4725 times)
lionheart78
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May 24, 2017, 04:02:21 PM
 #121


It is almost certain as well that the coins dumped are bought by a lot of independent traders, and therefore the wealth distribution is set to level out eventually.

This point is something which made me think twice.
How can you say it is only via dumping that bitcoin will be spread to new people in smaller proportion and will make everyone price taker? It is already 8 years of bitcoin and I think there are barely (<1%) investors who have significant reserves of bitcoin.
Now suppose, price of bitcoin keeps roaring. New independent traders want to enter market to make profits with flow. They tried buying bitcoin at present price and raise demand. Demand increases, price increases. Dump philosophy hasn't come anywhere, we are already much equal.

It is because when dump occur those who are hesitant to get in or buy bitcoin will see that it is a chance to buy bitcoin at lower price.  They will definitely scoop some bitcoin and these people will then join the Bitcoin community.  Not all investors will buy at a rising price.  Most of them are waiting for either correction or dump to get in so they can rake more profit.

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Babyrica0226
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May 24, 2017, 04:24:32 PM
 #122

This is just a theory, so bear with me (constructive criticism is welcome)

And this theory asserts that Bitcoin dumps like what we've seen recently (i.e. today and right after the rejection of the Winklevoss ETF by the SEC) contribute to more even Bitcoin distribution over time and will help stabilize prices in the future (read make Bitcoin growth more consistent). What real world facts is this theory based on? We know that initially there were only a few users (so-called early adopters) who held the majority of coins, so they could easily move the price by dumping their stashes (at least, some part thereof). In the case of the lack of major news (either positive or negative), the price is pretty stable right now. So the only viable explanation for all of a sudden price crashes is most likely someone dumping huge amounts of coins (maybe, the bros themselves). This causes the price to plunge (even if momentarily). It is almost certain as well that the coins dumped are bought by a lot of independent traders, and therefore the wealth distribution is set to level out eventually. That's basically why dumps are important since they are caused via massive sell-offs by a relatively small number of large Bitcoin holders and get absorbed by the market

In my assessment about this things, dumps is very significant in trading world. Because, it the gateway for the small capitalist who'd like to invest in the altcoin who become drop the price value. That's why many of the traders get their profit of bitcoin because of dump and pump.  Cheesy
abel1337
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May 24, 2017, 04:37:24 PM
 #123

This is just a theory, so bear with me (constructive criticism is welcome)

And this theory asserts that Bitcoin dumps like what we've seen recently (i.e. today and right after the rejection of the Winklevoss ETF by the SEC) contribute to more even Bitcoin distribution over time and will help stabilize prices in the future (read make Bitcoin growth more consistent). What real world facts is this theory based on? We know that initially there were only a few users (so-called early adopters) who held the majority of coins, so they could easily move the price by dumping their stashes (at least, some part thereof). In the case of the lack of major news (either positive or negative), the price is pretty stable right now. So the only viable explanation for all of a sudden price crashes is most likely someone dumping huge amounts of coins (maybe, the bros themselves). This causes the price to plunge (even if momentarily). It is almost certain as well that the coins dumped are bought by a lot of independent traders, and therefore the wealth distribution is set to level out eventually. That's basically why dumps are important since they are caused via massive sell-offs by a relatively small number of large Bitcoin holders and get absorbed by the market

In my assessment about this things, dumps is very significant in trading world. Because, it the gateway for the small capitalist who'd like to invest in the altcoin who become drop the price value. That's why many of the traders get their profit of bitcoin because of dump and pump.  Cheesy
ofcourse it is very significant in trading world. Trading wouldnt be profitable to others if there is no dump to the altcoins ,even in btc. Dumps are very important to traders because if a dump happen that is the time they will buy some coins and sell it when it pumps
bouren
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May 24, 2017, 04:44:46 PM
 #124


It is almost certain as well that the coins dumped are bought by a lot of independent traders, and therefore the wealth distribution is set to level out eventually.

This point is something which made me think twice.
How can you say it is only via dumping that bitcoin will be spread to new people in smaller proportion and will make everyone price taker? It is already 8 years of bitcoin and I think there are barely (<1%) investors who have significant reserves of bitcoin.
Now suppose, price of bitcoin keeps roaring. New independent traders want to enter market to make profits with flow. They tried buying bitcoin at present price and raise demand. Demand increases, price increases. Dump philosophy hasn't come anywhere, we are already much equal.

It is because when dump occur those who are hesitant to get in or buy bitcoin will see that it is a chance to buy bitcoin at lower price.  They will definitely scoop some bitcoin and these people will then join the Bitcoin community.  Not all investors will buy at a rising price.  Most of them are waiting for either correction or dump to get in so they can rake more profit.

And what about those believers who are eagerly waiting for price crash? If bitcoin gonna fall by $500-700 within few days, mind me it will bring some opposite results as giants will try to accumulate more btc because they know btc will rise sooner or later.
It is healthy for bitcoin economics that new buyer/sellers enter through inflatory prices.
deisik (OP)
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May 24, 2017, 05:24:16 PM
 #125


It is almost certain as well that the coins dumped are bought by a lot of independent traders, and therefore the wealth distribution is set to level out eventually.

This point is something which made me think twice.
How can you say it is only via dumping that bitcoin will be spread to new people in smaller proportion and will make everyone price taker? It is already 8 years of bitcoin and I think there are barely (<1%) investors who have significant reserves of bitcoin.
Now suppose, price of bitcoin keeps roaring. New independent traders want to enter market to make profits with flow. They tried buying bitcoin at present price and raise demand. Demand increases, price increases. Dump philosophy hasn't come anywhere, we are already much equal.

It is because when dump occur those who are hesitant to get in or buy bitcoin will see that it is a chance to buy bitcoin at lower price.  They will definitely scoop some bitcoin and these people will then join the Bitcoin community.  Not all investors will buy at a rising price.  Most of them are waiting for either correction or dump to get in so they can rake more profit.

And what about those believers who are eagerly waiting for price crash? If bitcoin gonna fall by $500-700 within few days, mind me it will bring some opposite results as giants will try to accumulate more btc because they know btc will rise sooner or later

We have already been there, many times (in relative terms)

If today's prices fall 700 dollars tomorrow, the Bitcoin price will be at over 1,600 dollars per coin, and I can assure you a lot of ordinary Bitcoin folks will be happy to pour more of their fiat savings into Bitcoin. The problem is that Bitcoin is highly unlikely to crash nowadays that much within so short a time without a true cause (i.e. due to sheer market speculation or manipulation), though this doesn't mean that it is completely impossible as such. If, nevertheless, this still happens due to some really threatening event, the giants you refer to will be the last to jump on the Bitcoin bandwagon in that case

kelseydustin
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May 24, 2017, 05:37:18 PM
 #126

I think dumps are the best chance for us to buy coins which we like with a cheap price than ever. And moreover, with a dumps, we can ensure that it is a preparation for a next pump
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May 24, 2017, 05:40:40 PM
 #127

I think dumps are the best chance for us to buy coins which we like with a cheap price than ever. And moreover, with a dumps, we can ensure that it is a preparation for a next pump

Of course this is a wonderful time to buy a lot of coins at a cheap price and wait for the rise to profit from the price increase.

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Cherylstar86
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May 24, 2017, 11:31:54 PM
 #128


It is almost certain as well that the coins dumped are bought by a lot of independent traders, and therefore the wealth distribution is set to level out eventually.

This point is something which made me think twice.
How can you say it is only via dumping that bitcoin will be spread to new people in smaller proportion and will make everyone price taker? It is already 8 years of bitcoin and I think there are barely (<1%) investors who have significant reserves of bitcoin.
Now suppose, price of bitcoin keeps roaring. New independent traders want to enter market to make profits with flow. They tried buying bitcoin at present price and raise demand. Demand increases, price increases. Dump philosophy hasn't come anywhere, we are already much equal.

It is because when dump occur those who are hesitant to get in or buy bitcoin will see that it is a chance to buy bitcoin at lower price.  They will definitely scoop some bitcoin and these people will then join the Bitcoin community.  Not all investors will buy at a rising price.  Most of them are waiting for either correction or dump to get in so they can rake more profit.

Yeah we should really need to dump bitcoins in order to harvest what we’ve invested and struggled to hold for a long period of time. This should be done in order to give also a privilege to others to buy and law of supply and demand will really take effect in time, that’s why it needs to happen with our bitcoin price and new investors will buy and hold for another months. If the price will decrease during fluctuations it will result to make quick sellers to sell immediately, and those buyers waited for cheaper price will now make their moves to but bitcoins for profitable purpose of holding it in their wallet.
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May 24, 2017, 11:38:00 PM
 #129

Dumping is not usually a good thing but its important because people need to take profits. dumping will give another opportunity for us to buy more bitcoins and accumulate even more bitcoins and gain even more profit.
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