Why dumps are important

[valta4065]

Not a bad idea.
I would add to that that dumps are important because they show the coin is "living".
If we had no dump what so ever how would we make the difference between a succesful coin (no dump cause no one want to let their coin on the market) and a shitty one (no dump cause no one gives a shit about buying it). Dumps regulate the price on the short term and stabilize it on the long term!

[deisik]

Not a bad idea.
I would add to that that dumps are important because they show the coin is "living".
If we had no dump what so ever how would we make the difference between a succesful coin (no dump cause no one want to let their coin on the market) and a shitty one (no dump cause no one gives a shit about buying it). Dumps regulate the price on the short term and stabilize it on the long term!

Not all dumps are born equal

With a shitty coin, no more dump can only happen when it gets sold for just 1 satoshi in whatever amounts. That essentially means that there are no buyers for that coin altogether since you can't place a bid at a zero price. All shitty coins end up there, and if it doesn't make the final dump, it means that it is not complete shit yet. Obviously, Bitcoin dumps as of late have nothing to do with such final countdowns. I never forget to repeat that the market always fools the majority of traders, and you can be pretty sure that the current consensus on the direction that the price is going to take will be proved wrong once again

[Pierre 2]

Small dumps which are followed by BUY orders are always healthy.
I believe noone really wants immobile bitcoin market right now, in this phase of development. Still too early.

[deisik]

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

What would happen if the dumbers themselves buy more bitcoins than they previously had when the price falls.In such cases,bitcoins are not widely distributed and bitcoins are even more centralized than before.

Read at least the first page of the thread

You are not the first who is asking this question (and not even the second), I've answered it twice already. Dumpsters would be able to buy more bitcoins only if the following conditions were met. First of all, they should be the only ones buying at lows but today there are no more fools around (in large quantities, at least), and whenever the price goes down a hundred (or two hundred dollars), there is strong support from ordinary traders not wanting to lose the opportunity to buy cheap coins. Further, people who sold at highs are no longer panicking when the price goes down, so whom these dumpsters will be buying from? They can only sell their coins but there is no way back, at least, not at full throttle

[dunfida]

When we are talking about dumps one thing comes to my mind which the price would go down to the bottom but considering on price decrease i could say its important specially on traders which they could really make money out of those movements on the price. Its actually hard to identify on when to sell out or to buy because we wont know if its the new bottom or not.

[Pattberry]

Small dumps which are followed by BUY orders are always healthy.
I believe noone really wants immobile bitcoin market right now, in this phase of development. Still too early.

It is good to see dumps every now and then if you are planning to enter when there is a small dump other than that i do not think it is a good thing.Traders really like to see a volatile market but the recent downfall is because of the forking debate and nothing else and at the moment the price is below $1000 and i am not sure what is the resistance at this point.

[Iranus]

Dumps are partially useful in this sense but often the reason that there is large amounts of Bitcoin to dump is because someone has bought a lot of Bitcoin at a lower point and decided that it was time to offload it.

Often there will be a lot of whales who just buy a lot of Bitcoin at a lower price themselves, which prevents dumps from going into the hands of larger groups of users, especially when newbies panic sell into the hands of them as well.

[Yutikas_11920]

The decrease of bitcoin is especially important for traders and investors . Due to the bitcoin dump more and more are investing because investors await that bitcoin become cheap rates for them to buy. That why fump of bitcoin are so important.

Yeah that's the importance of investors do dump. For if the investor does not do a dump then he obtained profits will not be as fast as when its price rises. Many investors in the bitcoin which has a very good role in the price of the bitcoin and most of them did want to seek advantage. Bitcoin is a digital currency that is good for profit, the dump is a good way for it.If the absence of a dump then all trading transactions in the bitcoin unlike now
 

[deisik]

Often there will be a lot of whales who just buy a lot of Bitcoin at a lower price themselves, which prevents dumps from going into the hands of larger groups of users, especially when newbies panic sell into the hands of them as well

At best, it will be one group of whales selling to another group of whales

So it is all six of one and half a dozen of the other. Also, as I said before, the price itself consistently going up from cycle to cycle prevents Bitcoin from being accumulated in one hands. It could be claimed of course that the price goes up exclusively because someone is buying Bitcoin but this is essentially the same process as dumping coins, obviously in reverse order. And it would be mirrored perfectly but for the price bottom consistently going up as well (i.e. higher lows). Could the price collapse below 700 dollars per coin nowadays? If only for a very brief moment, I suspect

[mace15]

For me dumps are important for the other traders got the chance to buy more when its cheap so when the coins got pump they can sell it in a higher price. Most traders like to grab the chance that others are into panice selling so they can sell it and can earn profit. Thus, pumps are also important in trading industry.!

[danherbias07]

Could be. That was a nice idea.
I always thought the dumps are just for profits of those who hold a large amount of bitcoin then they would buy back making a big pump again. Now, I got something to think of thanks for this idea.
But the problem is, they are like risking a lot of bitcoin just for the market flow? If I have that huge amount I might get too scared that I would get it back at a higher price if demands gets bigger. (just a thought)
They could still do this for now but what if suddenly they cant buy any bitcoin and all are owned by holders.

[deisik]

Could be. That was a nice idea.
I always thought the dumps are just for profits of those who hold a large amount of bitcoin then they would buy back making a big pump again. Now, I got something to think of thanks for this idea.
But the problem is, they are like risking a lot of bitcoin just for the market flow? If I have that huge amount I might get too scared that I would get it back at a higher price if demands gets bigger. (just a thought)
They could still do this for now but what if suddenly they cant buy any bitcoin and all are owned by holders

This has been discussed before

In fact, there is even a whole theory describing such a case, it is called a Bitcoin Big Rip theory. It basically claims that if there are no more sellers (i.e. their number consistently diminishes) the price will eventually lose any meaning since Bitcoin will be ripped apart by huge volatility compared in value with the price itself. And this theory seems to hold. Now, with the prices over 1,000 dollars per coin, we see huge volatilities already (literally dozens of percentages within very short periods of time) which is what this theory specifically predicts

[Amph]

it depends, what you said it's true, but if dump are casued by big whales that manipulate for the sole purpose to buy back more coins, it would reckt the possible distribution that you are talking about

and whales are greed they always buy more when they sell, no matter how many coins they started with, after all trading is about getting more not giving them to the other

I strongly advise you to read the whole thread

It is only one page and a few posts beyond that. The issues you raise in your post have already been addressed before somewhere in the first page. Since you obviously won't read (write before read approach) and you certainly won't alone, I shortly explain it again why your issues will remain mostly theoretical. First, whales won't be the only ones buying at lows and, second, not all people buying from them at highs will be selling to them at lows. In any case, if the price goes up over time, whales will be necessarily losing coins and accumulating fiat instead. For a more detailed explanation, read the friendly thread after all

that is an assumption, you can't say that whales are not the one who would buy more, in fact they are as they are the one that are manipulating the value, you assumption is based on the fact that the price was dumped not by them, which is not my point

whales will never lose any coins if they are the direct maker of the pump and dump, we need to differentiate a market that is manipulated and causing a panic selling, and a genuine sell off

i'm sure that the other users weren't accounting this, so would be pointless to read everyone, usually i only read the OP because there is too much spam on bitocintalk

[Paid Piper]

When we are talking about dumps one thing comes to my mind which the price would go down to the bottom but considering on price decrease i could say its important specially on traders which they could really make money out of those movements on the price. Its actually hard to identify on when to sell out or to buy because we wont know if its the new bottom or not.

i think from dump we mean a little correction that the market will take and so the price will come down for a little time and then the price will again start increasing.

[deisik]

it depends, what you said it's true, but if dump are casued by big whales that manipulate for the sole purpose to buy back more coins, it would reckt the possible distribution that you are talking about

and whales are greed they always buy more when they sell, no matter how many coins they started with, after all trading is about getting more not giving them to the other

I strongly advise you to read the whole thread

It is only one page and a few posts beyond that. The issues you raise in your post have already been addressed before somewhere in the first page. Since you obviously won't read (write before read approach) and you certainly won't alone, I shortly explain it again why your issues will remain mostly theoretical. First, whales won't be the only ones buying at lows and, second, not all people buying from them at highs will be selling to them at lows. In any case, if the price goes up over time, whales will be necessarily losing coins and accumulating fiat instead. For a more detailed explanation, read the friendly thread after all

that is an assumption, you can't say that whales are not the one who would buy more, in fact they are as they are the one that are manipulating the value, you assumption is based on the fact that the price was dumped not by them, which is not my point

whales will never lose any coins if they are the direct maker of the pump and dump, we need to differentiate a market that is manipulated and causing a panic selling, and a genuine sell off

i'm sure that the other users weren't accounting this, so would be pointless to read everyone, usually i only read the OP because there is too much spam on bitocintalk

You don't need to read every poster, my posts will suffice

Other posters are still mostly posting bullshit, so you can safely skip their writings altogether. Regarding whales and whether they will be the only ones (this is what I said specifically) buying all in, this is 100% false assumption. I'm buying too, though I'm not a whale by any metric. I was selling up to the very top and started buying at the price around 1,100 dollars per coin (and stronger at below the 1,000 dollar mark), and I suspect that I'm not the only one doing that among those who don't really consider themselves as whales. In fact, quite a few people have been waiting patiently for a deep correction

[jeraldskie11]

Dumps are important because in trading that is the right time to buy an altcoin then wait for a time to pump the bitcoin price because in that way you can benefit the dumpness of bitcoin where you can earn more money  but make sure that you only buy those high in volume because there are some altcoin has the slow swinging movement.

[pseexh]

Dumps are important because in trading that is the right time to buy an altcoin then wait for a time to pump the bitcoin price because in that way you can benefit the dumpness of bitcoin where you can earn more money  but make sure that you only buy those high in volume because there are some altcoin has the slow swinging movement.

I agree with you - every dump has positive moments in itself. It's a good time to check the coin for strength. And also this is a good time to make purchases of coins for the future

[topesis]

I think is can be the other way, just look at the Judas candle after the ETF decision announcement, whales may be playing with the market and looking to cause panic sell buy triggering this act of dumping on the market for them to buy at cheaper

[megynacuna]

I think is can be the other way, just look at the Judas candle after the ETF decision announcement, whales may be playing with the market and looking to cause panic sell buy triggering this act of dumping on the market for them to buy at cheaper

Of course that's why you need to take responsibility for your decisions. What if you sold and it further went down, wouldn't you have bought more bitcoins back at the lower rate? Since we will all do the same why criticize the whales? I think dumps are healthy like the OP puts it to test the strength of the coin and I think Bitcoin has stood the test of time.

[lionheart78]

Not a bad idea.
I would add to that that dumps are important because they show the coin is "living".
If we had no dump what so ever how would we make the difference between a succesful coin (no dump cause no one want to let their coin on the market) and a shitty one (no dump cause no one gives a shit about buying it). Dumps regulate the price on the short term and stabilize it on the long term!

Not all dumps are born equal

With a shitty coin, no more dump can only happen when it gets sold for just 1 satoshi in whatever amounts. That essentially means that there are no buyers for that coin altogether since you can't place a bid at a zero price. All shitty coins end up there, and if it doesn't make the final dump, it means that it is not complete shit yet. Obviously, Bitcoin dumps as of late have nothing to do with such final countdowns. I never forget to repeat that the market always fools the majority of traders, and you can be pretty sure that the current consensus on the direction that the price is going to take will be proved wrong once again

It seems you have not visited several exchanges today . After 1 satoshi there is always another market for shitcoin that can be dump to less than 1 satoshi and that would be in Litecoin market Or Dogecoin market or other altcoin market.  Though it is not in Bitcoin but still it can be dump lower than 1 satoshi.  Just look at Mooncoin for example.  It is lower than 1 satoshi in price but still trading at Litecoin Market.