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Author Topic: The snowball effect  (Read 189 times)
YeahIGotIt (OP)
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November 02, 2017, 03:46:02 PM
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I've been investigating bitcoin back in 2012, I even bought some and then sold 10 of them. Back then you bought them on a site that connected buyers with sellers. Now that I am coming to the topic again, I see things are diffetent. I don't see any p2p exchange, you buy and sell them from big brokers. But that means they have a lot of them, and keeps buying them. The more they buy, the higher the price goes, and the more people buy from them, thus starting a snowball effect. So they are part of the reason why the price goes high, but only a part, and the other is just that bitcoin is that good and secure.

Now, where do they get them from? From miners I guess. So how do you buy bitcoins from miners? How do miners sell them?
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November 02, 2017, 04:16:36 PM
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Back then you bought them on a site that connected buyers with sellers. Now that I am coming to the topic again, I see things are diffetent. I don't see any p2p exchange, you buy and sell them from big brokers.
Really?  I was pretty sure that most sites are just connecting buyers with sellers - GDAX, Bitstamp, Kraken and the majority of others appear to handle their customers' coins in this way.

For example, on Bitstamp's FAQ, they point out that they don't actually sell coins themselves.

As for the more direct "connecting buyers with sellers", LocalBitcoins is still very popular for a variety of different payment methods.
Now, where do they get them from? From miners I guess. So how do you buy bitcoins from miners? How do miners sell them?
Miners sell them similarly to how other users do - however is most convenient for them.  That means usually on exchanges or OTC if necessary.
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