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Author Topic: Profit for one investor means loss to the other one?  (Read 305 times)
hase0278
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February 09, 2018, 10:04:14 AM
 #21

Whether it is true or not that in markets like Bitcoin (crypto) ; one person gains only when the other losses some thing.  Suppose one person bought one Bitcoin for $5000 in January 2017 and sells in June 2017 for suppose $10000 he gains $5000 by selling.  Now the purchaser in June 2017 @ $10000 sells it for $6000 in January 2018 and as a result  he losses $4000.  So it is clear from the example that the profit of seller in June which was $5000 includes the loss suffered by the person who bought it in June 2017 and sold in January 2018.
If there are some other reasons for this profit / loss factor, I request other members to please share their knowledge with the platform because my opinion may be on the basis of partial truth and there may be other factors responsible too.
You are partially right but those who bought what someone sold can still profit in the future. The full truth is that, the Bitcoin is being passed from one user to another using a process called trading, which have two categories, the buy and selling. Bitcoin is being passed from the seller to the buyer and then the buyer later on can become the seller to pass it on to another person. The buyer can profit if he/she can sell it at a higher price.
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February 09, 2018, 10:32:27 AM
 #22

Yes, the market keep it that way, imagine if everyone gains and no one will lost the capital goes down and btc value will be back where it started. There's a gamble when it comes to investment.

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February 09, 2018, 10:35:12 AM
 #23

Whether it is true or not that in markets like Bitcoin (crypto) ; one person gains only when the other losses some thing.  Suppose one person bought one Bitcoin for $5000 in January 2017 and sells in June 2017 for suppose $10000 he gains $5000 by selling.  Now the purchaser in June 2017 @ $10000 sells it for $6000 in January 2018 and as a result  he losses $4000.  So it is clear from the example that the profit of seller in June which was $5000 includes the loss suffered by the person who bought it in June 2017 and sold in January 2018.
If there are some other reasons for this profit / loss factor, I request other members to please share their knowledge with the platform because my opinion may be on the basis of partial truth and there may be other factors responsible too.
You are partially right but those who bought what someone sold can still profit in the future. The full truth is that, the Bitcoin is being passed from one user to another using a process called trading, which have two categories, the buy and selling. Bitcoin is being passed from the seller to the buyer and then the buyer later on can become the seller to pass it on to another person. The buyer can profit if he/she can sell it at a higher price.
Of course they can profit in the future, but only provided there is a an influx of fresh money into the system. At some point in the future there is no more people to sell to, you are the last holder of bitcoin and you must sell cheaper than you bought or you will not sell at all. At that point in the future bitcoin may be 20k or 100k or 1m, I do not know, the point is that you will kind-of pay for the money other guys before you have won.

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February 09, 2018, 10:35:33 AM
 #24

The market is a profit and loss platform. One losses and another gains. It all matters what you know, the move you make and the ability to push your way. So one investor gains and another looses.

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February 09, 2018, 10:53:13 AM
 #25

Yes it is true one month before how much price on bitcoin but now decrease bitcoin price and you can think and invest
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February 09, 2018, 10:58:14 AM
 #26

No, not always so. Of course, it often turns out like this, but everyone has the right to decide when to buy and when to sell. If you look at the example, then it is not obliged to sell when the price reached $ 6000 in January 2018
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February 09, 2018, 11:34:10 AM
 #27

Whether it is true or not that in markets like Bitcoin (crypto) ; one person gains only when the other losses some thing.  Suppose one person bought one Bitcoin for $5000 in January 2017 and sells in June 2017 for suppose $10000 he gains $5000 by selling.  Now the purchaser in June 2017 @ $10000 sells it for $6000 in January 2018 and as a result  he losses $4000.  So it is clear from the example that the profit of seller in June which was $5000 includes the loss suffered by the person who bought it in June 2017 and sold in January 2018.
If there are some other reasons for this profit / loss factor, I request other members to please share their knowledge with the platform because my opinion may be on the basis of partial truth and there may be other factors responsible too.
This is somewhat true but not always and here's why. What if the person who bought Bitcoin at the price of $10000 before the price goes down to $6000 did not sell his/her Bitcoin and just decided to hold it because he/she believe that the price will go up soon? he/she probably lose almost half of his capital but what if the price goes up again? finally he/she gets a profit. And you will not lose a lot if you are actively checking the price and can get out early when the price goes down. Bitcoin is not originally designed to be an investment or asset but due to its volatility is high and only supply and demand determines its price, people are taking advantage of it.
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February 09, 2018, 11:45:31 AM
 #28

The other person not necessarily ends up with a loss. What if the purchaser in June 2017 doesn't sell it for $6000, and instead waits for the future increase instead like $12,000 for instance, so he still wins $2000 in the end. There's more to that in the markets, and it's much much more complicated (I think). But yea, whether we like it or not they're gonna be losers in the markets. There's always going to be those people who FOMOs in and panic sells out.

P.S. Correct me if I'm wrong
Ok, let us take it away from Bitcoin and into forex trading for instance. How would you explain what happens each time someone closes a trade in profit? Don't you realize that someone else loses? Of course, that's how it works. I once bought regalcoin at $62 not knowing it was at the overbought. Now regalcoin is shitcoin at $0.30+ or so. At the time I bought, someone sold and took profit, right? You see, that someone made profit but I lost out. That's the way it works.

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Memenya
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February 09, 2018, 11:54:15 AM
 #29

The other person not necessarily ends up with a loss. What if the purchaser in June 2017 doesn't sell it for $6000, and instead waits for the future increase instead like $12,000 for instance, so he still wins $2000 in the end. There's more to that in the markets, and it's much much more complicated (I think). But yea, whether we like it or not they're gonna be losers in the markets. There's always going to be those people who FOMOs in and panic sells out.

P.S. Correct me if I'm wrong

You are right, we will not gonna loss if we dont sell our coin for cheaper price. Holding will help us to recover.
I have other point, i know its true that the winner is getting money from losser trader but if the price downfall and they sell the coin cheaper. But if the price always remain up, nobody loss. They loss if the market down.
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February 09, 2018, 12:07:39 PM
 #30

Whether it is true or not that in markets like Bitcoin (crypto) ; one person gains only when the other losses some thing.  Suppose one person bought one Bitcoin for $5000 in January 2017 and sells in June 2017 for suppose $10000 he gains $5000 by selling.  Now the purchaser in June 2017 @ $10000 sells it for $6000 in January 2018 and as a result  he losses $4000.  So it is clear from the example that the profit of seller in June which was $5000 includes the loss suffered by the person who bought it in June 2017 and sold in January 2018.
If there are some other reasons for this profit / loss factor, I request other members to please share their knowledge with the platform because my opinion may be on the basis of partial truth and there may be other factors responsible too.
No, it's not true. Read on the Internet what is capitalization and how the market works. This naive theory can be turned against those who earn on stock exchanges too. Since if you earned from $ 100 a few thousand, at this time another person, can earn hundreds of times more. Wink

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February 09, 2018, 12:20:24 PM
 #31

sombody has to pay fot ur profit i guess

Ironically this is correct. Somebody has to pay - even if it seems pretty cruel. When a new investors enters crypto market they buy coins at some price while someone else does sell it. So there is always the transfer of funds from one person to another in trading.

Though this is not how traders make money. They rely on the market volatility and how much FUD is influencing the market.

No, not always so. Of course, it often turns out like this, but everyone has the right to decide when to buy and when to sell. If you look at the example, then it is not obliged to sell when the price reached $ 6000 in January 2018

That is true. But they "will" sell at some time or the other. Nobody forces the other to sell or buy but they are humans and they need cash at hand at often times - which is when they might sell or sometime later on.

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bitfocus
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February 09, 2018, 12:26:04 PM
 #32

every time you are making a profit, well, it's some other peoples money - that's the way you make a profit.
felicanoma
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February 09, 2018, 12:27:56 PM
 #33

Yes really a loss if the person sells it, but the reason what makes the person must sell loss.I think no one like that because to know bitcoin is an interesting investment and people who invest I think also know the way how he to play investment so not maybe he will sell a loss.
Bitcoin is always up and down but the graph rises bigger than the charts in the year, so it's unlikely anyone invests in bitcoin and sells a loss or does not make a profit.

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ariakoli23
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February 09, 2018, 04:41:09 PM
 #34

 Actually it is not correct in a word. But it correct in another sense when the company progressless then profit for means loss for another person.
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February 09, 2018, 05:06:20 PM
 #35

sombody has to pay fot ur profit i guess
Stocks and penny stocks feature the same system, the investor will usually win until there is no one around to purchase the coins anymore and the one left holding loses money.

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February 09, 2018, 05:14:02 PM
 #36

Both buyer and seller can make profit and there is a probability that both lose money. But for sure there are many people in cryptocurrecncies making money and also many people losing money. But I don't think the ratio is 1:1. I think the number of losers are much more than the number of winners. Because most of humans cannot be patient. The patient person gets several impatient person's money.
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February 10, 2018, 04:18:26 AM
Last edit: February 10, 2018, 04:34:32 AM by amishmanish
 #37

Whether it is true or not that in markets like Bitcoin (crypto) ; one person gains only when the other losses some thing.  Suppose one person bought one Bitcoin for $5000 in January 2017 and sells in June 2017 for suppose $10000 he gains $5000 by selling.  Now the purchaser in June 2017 @ $10000 sells it for $6000 in January 2018 and as a result  he losses $4000.  So it is clear from the example that the profit of seller in June which was $5000 includes the loss suffered by the person who bought it in June 2017 and sold in January 2018.
If there are some other reasons for this profit / loss factor, I request other members to please share their knowledge with the platform because my opinion may be on the basis of partial truth and there may be other factors responsible too.
You are partially right but those who bought what someone sold can still profit in the future. The full truth is that, the Bitcoin is being passed from one user to another using a process called trading, which have two categories, the buy and selling. Bitcoin is being passed from the seller to the buyer and then the buyer later on can become the seller to pass it on to another person. The buyer can profit if he/she can sell it at a higher price.
Of course they can profit in the future, but only provided there is a an influx of fresh money into the system. At some point in the future there is no more people to sell to, you are the last holder of bitcoin and you must sell cheaper than you bought or you will not sell at all. At that point in the future bitcoin may be 20k or 100k or 1m, I do not know, the point is that you will kind-of pay for the money other guys before you have won.
You guys are discussing only about the trading of bitcoin.
You are completely ignoring the value that it derives from being used for (edit) buying other cryptos, having the most underlying infrastructure and having the most information and support out there for anyone who seriously wants to explore crypto.

The underlying value it derives from driving the crowdfunding requirements of so many startups and future companies is also being largely ignored.
Thats what gives it value and not just the people buying in for trading purposes or for getting rich quickly.
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February 10, 2018, 07:48:06 PM
 #38

This is no different than the way that the stock market operates. People buy and sell all the time, some at a profit, some at a loss. So while you are technically profiting from someone's loss, let's not forget that new bitcoins are being mined on a regular basis. While the cap maximum supply is limited, that hasn't been reached yet, so the circulating supply is growing on a daily basis.

I think this is what people want to believe as a "scam" when they hear about Bitcoin. That in order for you to profit, you have to sell for more than what you bought for. Here's the thing, and why I'm able to sleep at night playing the crypto market: I don't prey on new buyers. I don't make them pull the trigger in deciding when or what to buy. Just as in the stock market, buyers should do their due diligence and invest only what they believe is a good investment for them. Nobody is forcing these buyers to make their investments. So just as I think that it's a great thing that I bought in at $200, some new investors might think it's great that they are buying in now at $8k.

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February 10, 2018, 08:01:46 PM
 #39

That can never be correct not even in theory or as a general rule . An investor who purchased at 1 dollar and soled it for 2 dollars has gianed a profit on his investment. I

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February 10, 2018, 08:06:13 PM
 #40

There are always winners and losers in every situation.  I guess it depends on your goal.  During the crash I was buying up ETN at levels I had predetermined for myself, down to 600 sats, few days later it was backup to 840~ sats, however my goal is to hold as much as possible, so those sellers may consider themselves 'winners' with their profit now, but hopefully in a few months, i'll be the winner.
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