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Author Topic: Stock bitcoins and stop selling. Let price go above 200$  (Read 3366 times)
spiral_mind
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June 13, 2013, 07:34:05 PM
 #41

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The problem with the OP's approach is that is not a what a free market is.

Exactly. Even if this were to occur and cause the price to spike eventually the price would get so high that everyone who was previously colluding in the hoarding would begin selling.
Everyone tries to maximize their own utility. You can't make anyone hold onto their coins rather than sell them. Everyone jumps off the ship as it starts sinking and we're back at market price.
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Eastwind
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June 13, 2013, 08:13:21 PM
 #42

If you plan to sell at these dream numbers then I doubt the dream is sustainable.

thats true but we are not talking here about selling bitcoins at all but using them when more merchants will start to accept them. The more merchants will be accepting bitcoins then also they wont have to sell them but use with their purchases. And the higher bitcoin price the more people are talking about it and the faster adoption. And the faster adoption the better because for governments it could suddenly be too big to kill Smiley
Agree!
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June 14, 2013, 12:32:51 AM
 #43

There's no need to risk anything if you are worried the price might go down.  If you are prepared to buy bitcoins to then use them to buy goods, you can basically take one of two options depending on how risk-averse you are.

Option 1: To do this, you just need a small float of bitcoins.  Don't buy the coins first, but rather hold the money (temporarily) as cash at the exchange until you are ready to purchase something.  Then, once you make the purchase (with your float), you can immediately re-buy the coins at the current price.  The net effect is the same (fiat -> BTC -> goods), but you have risked nothing.

But it's more complicated than fiat -> goods because I have to then transfer fiat back into the exchange.

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Option 2: If you are confident prices may rise or at least stay the same (and can handle it if you are wrong), buy the coins first and then buy what you want with them.  You may wind up getting a deal in the end vs if you had bought with fiat in the first place.  There is risk this way, but as I say - if you can't handle that, go with Option  1.

Right, and that's my strategy (I'll leave the speculating and day trading to others), but with that strategy, I'm not going to buy coins first if I feel there is market manipulation driving the price up to $200 when it doesn't belong there, because then I'm buying high, not low.

I'm not in the country club that knows when the manipulation will end and get out before the correction. I leave that to the day traders. Not my thing.

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June 14, 2013, 02:26:37 PM
 #44

There's no need to risk anything if you are worried the price might go down.  If you are prepared to buy bitcoins to then use them to buy goods, you can basically take one of two options depending on how risk-averse you are.

Option 1: To do this, you just need a small float of bitcoins.  Don't buy the coins first, but rather hold the money (temporarily) as cash at the exchange until you are ready to purchase something.  Then, once you make the purchase (with your float), you can immediately re-buy the coins at the current price.  The net effect is the same (fiat -> BTC -> goods), but you have risked nothing.

But it's more complicated than fiat -> goods because I have to then transfer fiat back into the exchange.

True.  I am assuming these methods for someone already committed to keep up in the inflow of fiat to the exchange as necessary, or already has the fiat waiting at the exchange to buy the coins with.  The strategy was merely to avoid the risk associated with price fluctuations.

Quote
Quote
Option 2: If you are confident prices may rise or at least stay the same (and can handle it if you are wrong), buy the coins first and then buy what you want with them.  You may wind up getting a deal in the end vs if you had bought with fiat in the first place.  There is risk this way, but as I say - if you can't handle that, go with Option  1.

Right, and that's my strategy (I'll leave the speculating and day trading to others), but with that strategy, I'm not going to buy coins first if I feel there is market manipulation driving the price up to $200 when it doesn't belong there, because then I'm buying high, not low.

I'm not in the country club that knows when the manipulation will end and get out before the correction. I leave that to the day traders. Not my thing.

I agree with you - given the current climate there is a good chance now that one would end up buying high and losing by the time a purchase is made.  Option 1 still is viable in the current climate, however.

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June 14, 2013, 03:46:50 PM
 #45

https://en.wikipedia.org/wiki/Market_manipulation

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Market manipulation is a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security, commodity or currency. Market manipulation is prohibited in the United States under Section 9(a)(2)[1] of the Securities Exchange Act of 1934, and in Australia under Section s 1041A of the Corporations Act 2001. The Act defines market manipulation as transactions which create an artificial price or maintain an artificial price for a tradeable security.

Just because bitcoin isn't a centralized currency doesn't alleviate you from following the laws in the country you reside in.

Interesting, by this definition the central bank always violated Section 9(a)(2)[1] of the Securities Exchange Act of 1934, they have been artificially maintaining the price of MBS and (indirectly) support those MBS related securites for years

Maybe it was central bank who invented those acts and itself is not regulated under the same act

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June 17, 2013, 01:09:58 AM
 #46

There are enough players in bitcoin now that I don't think you could manipulate the price that easily with a forum post.  Want the price to jump?  Your best bet isn't to tell people to stop selling, but to go and persuade merchants to accept bitcoin.  The holy grail would be if Amazon.com started accepting bitcoin, but that would probably take a lot of persuasion.

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