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Author Topic: What power does Traders have on the Bitcoin price ?  (Read 2281 times)
webtricks
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June 01, 2017, 06:09:37 PM
 #21

Hi here !

So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.

My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?

I'm waiting for your toughts  Grin

When we study Market Types in the books of Economics first type which comes into consideration is 'Perfect Competition Market'. Under this market situation, there are numerous buyers/sellers such that single buyer/seller is not in power to influence price and price is determined by forces of market. Bitcoin is based on this assumption.
But while we continue reading book, we came to know that 'Perfect Market Competition' not actually occurs in any real world industry. So no matters what theory says, Bitcoin prices can easily manipulated by some smart traders, big holders or maybe by some hidden cartels, who knows  Roll Eyes

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1713891423
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The Bitcoin software, network, and concept is called "Bitcoin" with a capitalized "B". Bitcoin currency units are called "bitcoins" with a lowercase "b" -- this is often abbreviated BTC.
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June 01, 2017, 06:38:15 PM
 #22

Quote
When we study Market Types in the books of Economics first type which comes into consideration is 'Perfect Competition Market'. Under this market situation, there are numerous buyers/sellers such that single buyer/seller is not in power to influence price and price is determined by forces of market. Bitcoin is based on this assumption.
But while we continue reading book, we came to know that 'Perfect Market Competition' not actually occurs in any real world industry. So no matters what theory says, Bitcoin prices can easily manipulated by some smart traders, big holders or maybe by some hidden cartels, who knows

Illuminati confirmed xD  Grin
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June 01, 2017, 07:28:31 PM
 #23

I think that small traders can rrally manipulate the market cap. They can usually gather with some other small groups most of them watches and when someone from small trader triggers the market they joined of course with one agenda
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June 01, 2017, 08:11:44 PM
 #24

Hi here !

So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.

My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?

I'm waiting for your toughts  Grin

Whether early adopters or not, who have big amount of bitcoin and money have more power over bitcoin price. But, I don't think someone could dominate the market as bitcoin has spread widely and have quite huge market cap, besides  no one will do something stupid if they hold big portion of bitcoin obviously, maybe keep it save and convert small portion from time to time.
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June 01, 2017, 08:26:54 PM
 #25

So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.
My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?

I'm waiting for your toughts  Grin

I think that (new) people are buying bitcoins and this lowers the chances of others to manipulate the price as it will be harder but not impossible. Early adopters have the ability to manipulate easier the price and the traders yes have the power to increase or decrease the price, I have seen many traders or a group of traders how bump or pump the price in altcoins exchanges with hundreds of bitcoins which worth a lot.
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June 01, 2017, 08:44:08 PM
 #26

Hi here !

So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.

My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?

I'm waiting for your toughts  Grin
I might sound pessimistic but we cannot remove the element of some people controlling bitcoin away from the direction of prices swinging in both direction. The reason is that sometimes you just wonder why there is either increase or decrease in the price of bitcoin without any explanation or any news to support that. The capitalization is still low that an individual or group of individuals holding 1/4th that amount can control things in their own direction which to me its achievable considering there is no regulation against such in the case of bitcoin.
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June 01, 2017, 08:50:59 PM
 #27

Btc price may not be controlled by traders anymore but there is no denial that some exchanges do manipulate it heavily.We in india always have to pay a higher price than international market because of manipulation of some exchange and wallets

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June 02, 2017, 06:25:00 AM
 #28

The price of bitcoin is not depending in the traders because the price can changed in the matter of seconds because of the real amount of investors and also the real demand in the market while in traders they are just taking advantage of the demands and also the fast growing price so they can easily make money faster than the investors.
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June 05, 2017, 12:42:56 PM
 #29

Traders has a small power over crypto, the big miners are the one wish has huge power to manipulate the market as well some big exchanges are able to make it happen, the thing is there is opportunities always for all that take the risk, traders power maybe around 5-10% considering whales.
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June 07, 2017, 03:08:57 AM
 #30

Hi here !

So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.

My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?

I'm waiting for your toughts  Grin
Bitcoin market is entirely different from altcoin market.Altcoins have small market cap and so it is easily manipulated by big whales.But bitcoin market has big market cap and it has investors world wide.Even the chinese could not manipulate bitcoin price as earlier.So its hard to take control over bitcoin price.

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June 07, 2017, 03:19:39 AM
 #31

Hi here !

So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.

My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?

I'm waiting for your toughts  Grin
Bitcoin market is entirely different from altcoin market.Altcoins have small market cap and so it is easily manipulated by big whales.But bitcoin market has big market cap and it has investors world wide.Even the chinese could not manipulate bitcoin price as earlier.So its hard to take control over bitcoin price.

Agreed but in there own little ways traders then manipulate there investments depending on the timing to when would they sell it and when to buy. Probably there are also traders that invest in altcoins and yave at least a good profit because how trader can make a living. Finding things in low prices and sell it to the highest stockmarket.
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June 07, 2017, 03:29:40 AM
 #32

The power that trader has is the exchanging of coins which turns their coin into btc value and became their holdings. If they could generate a bigger amount of bitcoin from sold token, it will be an opportunity for them to hold for long term investments and in the future it will be sold again for another profitable income. Traders has helped a lot of holdings particular at investments of different crypto currencies and buying is always involved when every coins was exchanged to bitcoin.
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June 08, 2017, 01:39:43 AM
 #33

Traders has a small power over crypto, the big miners are the one wish has huge power to manipulate the market as well some big exchanges are able to make it happen, the thing is there is opportunities always for all that take the risk, traders power maybe around 5-10% considering whales.

The market capital is there, but it is harder to track than the stock market because once the FIAT line is crossed it falls into another system of finance, plus there are some groups that have a good amount of market leverage, but they are not public in their assets and remain mostly quiet and anonymous to a large degree.

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June 08, 2017, 02:06:49 AM
 #34

Hi here !

So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.

My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?

I'm waiting for your toughts  Grin

Traders with large amounts of Bitcoin can manipulate the price especially if several whales work together. Of course as Bitcoin becomes spread among more smaller investors and traders, this manipulation will become harder to accomplish and there will most likely be less volatility in the price.
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June 08, 2017, 02:09:46 AM
 #35

Hi here !

So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.

My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?

I'm waiting for your toughts  Grin

Well that is why volatility goes down with higher marketcap, but there is also a herd mentality which is what causes bubbles and major crashes. When everyone sees the price going up they FOMO and put more money in, and when it crashes they panic sell. I think day to day traders will have less of an impact but during big events they will all act together.
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June 08, 2017, 02:13:04 AM
 #36

Hi here !

So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.

My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?

I'm waiting for your toughts  Grin
They are both, they are masters and slaves, they are masters because they hold so many coins that it is easy for them to manipulate the market especially if they collude with other whales, but they are also slaves because unless they were rich beforehand then that means they are rich in bitcoin and if the price crashes then they lose most of their net worth.
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June 08, 2017, 02:17:46 AM
 #37

In any kind of market, the traders has a certain power to influence the movement of a currency or a commodity. I am sure of that but how the traders in general will behave when faced with many factors can sometimes be hard to predict because they are humans too and not robots.

The question is: Can they influence the price of Bitcoin considering that compared to fiat money the volume here is not yet that so big? I think the answer is really yes but this situation is getting dimmer as Bitcoin can be growing bigger when new markets would be opened soon.
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June 08, 2017, 03:08:49 AM
 #38

Pumps and dumps are caused by some whales who like to play games at the expense of the small investors. But as more and more dive in and start to invest, these whales become less powerful because of the distributed buying capacity. Moreso, if institutional investors hop on board, the market cap would be too big for several big players to really influence or dictate the price behavior. The more investors there are, the less volatility on the price is to be expected.
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June 08, 2017, 03:24:09 PM
 #39

Pumps and dumps are caused by some whales who like to play games at the expense of the small investors. But as more and more dive in and start to invest, these whales become less powerful because of the distributed buying capacity. Moreso, if institutional investors hop on board, the market cap would be too big for several big players to really influence or dictate the price behavior. The more investors there are, the less volatility on the price is to be expected.

On the public surface, the majority of the market holdings appear to be exchange controlled, putting them in the same place that banks appear in the FIAT markets, as "holder" of most of the funds, but "controlling investment" of a much lesser amount.  There are many deceiving points in the crypto market, starting with Bitcoin that are very tiny things in the FIAT currency arena.
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June 08, 2017, 03:26:42 PM
 #40

Or they are simply slave of the system like every one of us ?

I think traders are just sheep like the rest of us following the general trends and hoping to get rich quick, there are too many whales for them to be able to realistically collude enough to affect the price substantially.
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