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Author Topic: What is occurring when someone sells 1 BTC at a price lower than he/she bought?  (Read 1594 times)
whalingoutbox
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May 31, 2017, 11:43:58 PM
 #1

Let's say I buy 1 Bitcoin for $2296.25 USD. I notice that the USD price value of the Bitcoin drops to $2093 USD, and let's say I want the US dollar amount, so I sell the Bitcoin at $2093 USD, whereby 1 BTC is selling for $2093 on the market.

Is that to say that the US dollar supply has deflated and that I am still, nonetheless, close to breaking even (assuming resistance along a network)?

That's the correct interpretation, right?

Because if Bitcoin works to significantly reduce the double-spending problem, then the (2296.25-2093=$103.25) $103.25 USD I "lost" was actually reallocated into society (1st law of thermodynamics). Thus, the ~$103.25 USD was used to benefit society (all of the Universe, socially) as a whole?

Or is that an incorrect interpretation because the "lost" money is allocated into society rather than my profits?

Or is it better to consider the drop in Bitcoin price was actually a reallocation of Bitcoin market cap. profits to society?
--> I guess that's like saying if the Bitcoin price drops, the market cap. was re-allocated into society, correlated with (if but causing) deflation of USD (if but all money), thus giving my $2093 the same (except a little resistance) buying power as the $2296.25 (used to buy the 1 Bitcoin) due to how Bitcoin reduces the double-spending problem: So, it's like I broke even because the amount of USD I obtained from selling the 1 Bitcoin is similar to the buying power of the amount of USD used to buy the 1 Bitcoin in the first place, right?

*sorry for edits
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May 31, 2017, 11:55:51 PM
 #2

Your loss -$103 become an advantage for others obviously, you can consider it was used for benefit of society.
But for me, it just a loss which could be avoided if you were not in hurry to sell bitcoin. Yes, it close to breaking even but in bitcoin environment, people could make more than just break even in the right time.

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June 01, 2017, 03:12:42 AM
 #3

If someone sells his bitcoin for the lower price that he bought then it will be automatically a loss because in your case you will get a loss of $103.25 and that is your fault because you bought and sell for a lower price and if i were i will just put it on trading to recover the loss of my investment and at the same time grow my bitcoins.

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June 01, 2017, 05:55:11 AM
 #4

Your loss -$103 become an advantage for others obviously, you can consider it was used for benefit of society.
But for me, it just a loss which could be avoided if you were not in hurry to sell bitcoin. Yes, it close to breaking even but in bitcoin environment, people could make more than just break even in the right time.

This is the simplest explanation into it and I agree. Let's face it, maybe the seller is panicking that Bitcoin can go lower so he decided to cut his potential loss. And it can go either way...either he is right or wrong if Bitcoin bounced back and in that case he should have just waited. It happened to me before and I regretted it badly...sometimes just waiting and not doing anything can be the solution to panicking. Panic is an enemy in trading.

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June 01, 2017, 07:23:12 AM
 #5

Your loss -$103 become an advantage for others obviously, you can consider it was used for benefit of society.
But for me, it just a loss which could be avoided if you were not in hurry to sell bitcoin. Yes, it close to breaking even but in bitcoin environment, people could make more than just break even in the right time.

This is the simplest explanation into it and I agree. Let's face it, maybe the seller is panicking that Bitcoin can go lower so he decided to cut his potential loss. And it can go either way...either he is right or wrong if Bitcoin bounced back and in that case he should have just waited. It happened to me before and I regretted it badly...sometimes just waiting and not doing anything can be the solution to panicking. Panic is an enemy in trading.
Op has loss and his losses is not a benefit to the society if we analyzed his losses very well and have business mind to it. If $103 was a benefit to the society? Then who benefits from his losses? To me the greedy exchangers who manipulate the price to they benefits. Never think that when ever you make a loss you are making a charity dedication but thing that it fell to the hand of manipulators'.

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June 01, 2017, 12:58:16 PM
 #6

Because if Bitcoin works to significantly reduce the double-spending problem, then the (2296.25-2093=$103.25) $103.25 USD I "lost" was actually reallocated into society (1st law of thermodynamics). Thus, the ~$103.25 USD was used to benefit society (all of the Universe, socially) as a whole?
As far as I’m aware of it wasn’t really “relocated into society” it was just “relocated to the person who bought you BTC.” He bought it at the lower price and sold or held it at a higher price, effectively gaining your losses.
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June 01, 2017, 02:58:58 PM
 #7

Your loss -$103 become an advantage for others obviously, you can consider it was used for benefit of society.
But for me, it just a loss which could be avoided if you were not in hurry to sell bitcoin. Yes, it close to breaking even but in bitcoin environment, people could make more than just break even in the right time.

And if t drops another -103$ how will that benefit the others? lols.
By your flawed logic if bitcoin goes to zero it will benefit the entire world.

Dumbest thing I've heard on this forum in the last year minute.

Also , bitcoin has nothing to do with an united society or with socialism.
Bitcoin is pure capitalism, there is no we.
It's the ones that have the money to buy btc the ones that have money to invest in mining gear there are no socialist benefits here.

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June 01, 2017, 04:20:35 PM
 #8

Your loss -$103 become an advantage for others obviously, you can consider it was used for benefit of society.
But for me, it just a loss which could be avoided if you were not in hurry to sell bitcoin. Yes, it close to breaking even but in bitcoin environment, people could make more than just break even in the right time.

And if t drops another -103$ how will that benefit the others? lols.
By your flawed logic if bitcoin goes to zero it will benefit the entire world.

Dumbest thing I've heard on this forum in the last year minute.

Also , bitcoin has nothing to do with an united society or with socialism.
Bitcoin is pure capitalism, there is no we.
It's the ones that have the money to buy btc the ones that have money to invest in mining gear there are no socialist benefits here.

Bitcoin is just a tool, it could be used for the betterment of society by helping it with good actions, or could be used for bad things. Just like a gun, you can defend your country from deluded islamic terrorists or you can use it to kill innocents.

Bitcoin is just pure free market, for the first time ever, and it's amazing to see it all unfold.

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June 01, 2017, 04:25:27 PM
 #9

Your loss -$103 become an advantage for others obviously, you can consider it was used for benefit of society.
But for me, it just a loss which could be avoided if you were not in hurry to sell bitcoin. Yes, it close to breaking even but in bitcoin environment, people could make more than just break even in the right time.

And if t drops another -103$ how will that benefit the others? lols.
By your flawed logic if bitcoin goes to zero it will benefit the entire world.

Dumbest thing I've heard on this forum in the last year minute.

Also , bitcoin has nothing to do with an united society or with socialism.
Bitcoin is pure capitalism, there is no we.
It's the ones that have the money to buy btc the ones that have money to invest in mining gear there are no socialist benefits here.

LOL. I totally agree with you. What united society are we talking about here? The general public? Who gives a damn about them. You own your bitcoin. As stompix has pointed out, there is no we. The moment you sell your bitcoin with lower price, its already loss for you ~$103.25. It will not benefit anyone. It might even go back to the trading platform as profit for all we care. So next time just think "buy low and sell high" and don't think about a "united society" its just dumb mate.  Grin

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June 01, 2017, 05:34:26 PM
 #10

If you sold your bitcoin lower than the price when you bought it, it clearly shows that it's your loss regardless how much. And the amount you lost is never gonna benefit the society but the person/exchange to whom you sell your bitcoin alone. It is not like energy where wasted/lost energy will return to the universe. We are talking about money here and if you lose money, it will not return to the society.

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June 01, 2017, 06:44:23 PM
 #11

Let's say I buy 1 Bitcoin for $2296.25 USD. I notice that the USD price value of the Bitcoin drops to $2093 USD, and let's say I want the US dollar amount, so I sell the Bitcoin at $2093 USD, whereby 1 BTC is selling for $2093 on the market.

Is that to say that the US dollar supply has deflated and that I am still, nonetheless, close to breaking even (assuming resistance along a network)?

That's the correct interpretation, right?

Because if Bitcoin works to significantly reduce the double-spending problem, then the (2296.25-2093=$103.25) $103.25 USD I "lost" was actually reallocated into society (1st law of thermodynamics). Thus, the ~$103.25 USD was used to benefit society (all of the Universe, socially) as a whole?

Or is that an incorrect interpretation because the "lost" money is allocated into society rather than my profits?

Or is it better to consider the drop in Bitcoin price was actually a reallocation of Bitcoin market cap. profits to society?
--> I guess that's like saying if the Bitcoin price drops, the market cap. was re-allocated into society, correlated with (if but causing) deflation of USD (if but all money), thus giving my $2093 the same (except a little resistance) buying power as the $2296.25 (used to buy the 1 Bitcoin) due to how Bitcoin reduces the double-spending problem: So, it's like I broke even because the amount of USD I obtained from selling the 1 Bitcoin is similar to the buying power of the amount of USD used to buy the 1 Bitcoin in the first place, right?

*sorry for edits

Trading is a zero-sum game, meaning that if someone gets profit, other must lose the same amount. In your scenario, someone who sells at lower price is effectively giving up the difference to some other person who sold you the asset at the higher price. Society is not involved here, as trading is a deal between individuals.

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June 01, 2017, 11:18:12 PM
 #12

1 BTC being an small fraction of overall trading volume, it doesn't have much of an impact.

Its when these types of events occur in a larger scale that trends start to form.

Selling something at a lower price than it was bought for, tends to have a devaluing effect. It reduces the value.

This doesn't mean that the price can't increase later from exterior circumstances. It mainly factors into its own temporal frame.

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June 02, 2017, 06:35:40 AM
 #13

Losses happen all the time during trading. But with Bitcoin, the number of users who have suffered losses will be much smaller than the number who got profits. Look at the exchange rates. During the past 2 months, they have increased by almost 150%. A lot of traders might have benefited from it.


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June 02, 2017, 09:33:23 AM
 #14

Losses happen all the time during trading. But with Bitcoin, the number of users who have suffered losses will be much smaller than the number who got profits. Look at the exchange rates. During the past 2 months, they have increased by almost 150%. A lot of traders might have benefited from it

This will hold true only as long as the price continues to grow

If it starts going down, the proportion will certainly change, and most users will start losing heavily. Moreover, even if Bitcoin begins stagnating with price trading sideways, the result will be essentially the same. The majority of traders will be slowly but steadily losing to those who can make sure profits, i.e. those milking the market. In the latter case it would be better to stay away from trading altogether

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June 02, 2017, 10:42:42 AM
 #15

Let's say I buy 1 Bitcoin for $2296.25 USD. I notice that the USD price value of the Bitcoin drops to $2093 USD, and let's say I want the US dollar amount, so I sell the Bitcoin at $2093 USD, whereby 1 BTC is selling for $2093 on the market.

Is that to say that the US dollar supply has deflated and that I am still, nonetheless, close to breaking even (assuming resistance along a network)?

That's the correct interpretation, right?

Because if Bitcoin works to significantly reduce the double-spending problem, then the (2296.25-2093=$103.25) $103.25 USD I "lost" was actually reallocated into society (1st law of thermodynamics). Thus, the ~$103.25 USD was used to benefit society (all of the Universe, socially) as a whole?

Or is that an incorrect interpretation because the "lost" money is allocated into society rather than my profits?

Or is it better to consider the drop in Bitcoin price was actually a reallocation of Bitcoin market cap. profits to society?
--> I guess that's like saying if the Bitcoin price drops, the market cap. was re-allocated into society, correlated with (if but causing) deflation of USD (if but all money), thus giving my $2093 the same (except a little resistance) buying power as the $2296.25 (used to buy the 1 Bitcoin) due to how Bitcoin reduces the double-spending problem: So, it's like I broke even because the amount of USD I obtained from selling the 1 Bitcoin is similar to the buying power of the amount of USD used to buy the 1 Bitcoin in the first place, right?

*sorry for edits

You've lost $103.25 but I think it is unavoidable because maybe the user is panicking or maybe has another big reason.But I don't think you need to sell that bitcoin with such price, $103.25 is also a good profit price if you've ask me. And the lost money will be a benefit into the bitcoins buyer not the society.
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June 02, 2017, 05:53:31 PM
 #16

One thing is for sure, you dump price and you got you lose. If only one person do this things or only 1 btc to dump, it wont give us negative effect. It will give us negative effect if 20000 BTC dumped in the market

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June 02, 2017, 08:18:49 PM
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You lost $103.25.  And the decline in price is the fluctuation of Bitcoin and not the deflation of USD.  As far as I know there is no we when someone lost some USD in a trade.  It is all personal gain.  So we cannot consider society on this one.  The trade happen between you and the person who bought it.  So the one who benefit from the trade is the one who bought your bitcoin.
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June 02, 2017, 08:27:18 PM
 #18

What is occurring? Where is the logic my friend? I would call this bad timing, you made a bad move and bought in wrong time, maybe that was time for selling, and the end of the drop you are buying.
You lost just in case you wish to exchange bitcoins in dollars, if you hold for that bitcoin for longer price will increase again and you will be in profit. Basically your profit or loss depends from your moves and actions. I`m not sure that this topic is for economic section, this is pure trading and mistakes in trading, OP should go to that section and check some threads for newbies.

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June 02, 2017, 08:35:04 PM
 #19

Whatever technical explanation or summary you got OP, still it's a lost and especially with the current trend that bitcoin price is expected to rise more, I can't imagined why people will sold their coins for lower price they bought. To minimize the loss? No because there is no reason to believe that bitcoin will crashed even at below $1,000. Bitcoin is long term so even you bought at $3,000 and then price crashed to $500 (just an example) just patiently hold and considered that as loss and buy again at the lowest price it will reached.

BTC1 sold or pump can't move the market. Honestly even at BTC10 so it's totally a wrong move when someone sold BTC for low price when it was bought.
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June 02, 2017, 08:51:52 PM
 #20

You'll lose the difference + fees and will regret later when the price rises above the level you sold.

Nothing more

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