Canis Majoris (OP)
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This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
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jmlona
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February 11, 2018, 06:33:38 PM Merited by richardsNY (1) |
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This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
I think what you're trying to say is that crashes are needed to redistribute bitcoin to the strong hands from the weak hands. In order for the price to increase we will need people with a lower willingness to sell but that doesn't mean that we need a crash for such a thing to happen. Crashes are useful in ways, take for example the last one, if we say 6k is the bottom, we now have many who bought in for large amounts at 6k, they will then be holding strong for a while more for a considerably higher price, whereas we maybe lost a lot of people who had initially bought in the 1-3k range and were willing to take their profit. While I agree with the premise, the simplicity of it is that it all comes down to demand and supply at a certain price. |
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paxmao
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February 11, 2018, 07:48:00 PM |
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This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
These crashes occurs because the market is immature and there is plenty of money coming into crypto from the regular joe on the street that would not even consider investing, for example, in high tech publicly traded companies. So, yes there are necessary and they are welcome. I don´t particularly like to see my portfolio loose so much value in a week, but if that´s what´s needed... so be it. |
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anonbit992
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A Trader & An Investor
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February 11, 2018, 07:51:25 PM |
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We will see such crashes in bitcoin because bitcoin appreciated so much in so little time so it would be healthy to see some correction. Also, there will be traders would be love to lock in some profits. It's totally normal in crypto universe.
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TurboRyzen
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February 11, 2018, 08:08:01 PM |
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So you basically want people to sell at a loss and lose money, so that things could be better for you. I rather them sell at that little profit that you mentioned and then get out, and for the price to steadily rise.
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mrcash02
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February 11, 2018, 08:13:32 PM |
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This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
I think what you're trying to say is that crashes are needed to redistribute bitcoin to the strong hands from the weak hands. In order for the price to increase we will need people with a lower willingness to sell but that doesn't mean that we need a crash for such a thing to happen. Crashes are useful in ways, take for example the last one, if we say 6k is the bottom, we now have many who bought in for large amounts at 6k, they will then be holding strong for a while more for a considerably higher price, whereas we maybe lost a lot of people who had initially bought in the 1-3k range and were willing to take their profit. While I agree with the premise, the simplicity of it is that it all comes down to demand and supply at a certain price. I believe the most benefited by crashes in price are the big investors and not the little ones. The strong hands become stronger, the weak hands become weaker and in some cases, the weak hands lose all their coins... Surely some new enthusiasts benefit themselves from crashes too, as it's a good opportunity to buy cheap and hold, but for each $1 profit a new enthusiast/little fish makes, a whale is making $100 or even more... All depends demand and supply, we could skyrocket without any crash if the demand were always high. |
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podrick17
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February 11, 2018, 08:20:20 PM |
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Actually even if we don't need it, it will always come around and that is only natural because cryptocurrency works like stocks that there are certain period or time that market crashes because demand will not always be high and besides change is inevitable whether the price will go pump or dump.
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avikz
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February 11, 2018, 08:29:00 PM |
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This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
Your statement didn't make any sense to me. Bitcoin's price depends on many factors and not just on what traders want to do. The situation in your statement represents a very small fraction of the entire bitcoin market. First of all, you need to understand that we don't have a regulator in bitcoin market who will step in when the bitcoin price is falling. So the entire bitcoin market reflects the raw emotion of the public. Definitely speculators playes a big in it, but that's not all. We have a lot of investors who still believes in bitcoin and don't sell off their holdings just because the price is low. Instead the lower price gives them an opportunity to score more bitcoins at a lower price and average out their buying price. We are too small to judge a reason for bitcoin's price decrease as it is based on many factors. |
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joaco
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February 11, 2018, 08:32:27 PM |
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Of course we need the price to go down. But not to clean the market from panic sellers. We need to reach a stable price, because this last uptrend was manipulated and that made lots of people to buy Bitcoin. This correction is very healthy.
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arpon11
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February 11, 2018, 08:49:25 PM |
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This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
You really understand how the game is being played out and of a truth we need both the bears and the Bulls to keep this market growing and progressing. If bitcoin don't get dump we would not buy bitcoin at the right price and and sell high in other to make profits and vice Vasa. |
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Tharel
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February 11, 2018, 08:56:33 PM |
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bitcoin price crashes is considered healthy and unhealthy for investors. It's not beneficial for everyone to have these panic sellofs. mostly the one who can benefit from these are the whales who can still have high profits as they're selling in bulk as compared to investors who have too little to sell. with these buying and selling in bulk, they'll soon control the market and can manipulate btc price.
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orkoso
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February 11, 2018, 09:14:13 PM |
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This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
It does not really matter if we need them or not. If the market forces insist in doubling the value of the whole market in less than a month, it is not surprising that corrections kick in. |
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faceoff97
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February 11, 2018, 09:31:34 PM |
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This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
This might be really a good idea how more people will ve engage with bitcoin. But if the crashing will continue, Bitcoin would look like not attractive to people. The only way to make people invest with it is to see them that bitcoin has a bright and assured future. There were many things to make bitcoin attractive, and making it crash from time to.time would may get people but on the other made them think that bitcoin is just a pump and dump coin. Bitcoin should continuously gain an increase in price, this would be better looking. |
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googol.star
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February 11, 2018, 09:34:36 PM |
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Are you blaming the crash on newbies? The bigger issue are the people who control and are better able to manipulate Bitcoin. Assuming there are such entities, which I think there are. These are the people that dictate things.
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copypaper5
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February 11, 2018, 10:08:06 PM |
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In fact, the price of Bitcoin depends on many factors and not just on what the merchant wants to do. I think you just want to profit from moments of accident only.
in fact, the price increase after the price drop is always present at any market price, just wait, a little bit to survive ..
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automail
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February 11, 2018, 10:42:15 PM |
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It happens in every product and invest. I hate to sound like a professor but the law of supply and demand applies on everything that has a price. No wonder it will also happen on bitcoin. . Price crashes are good for investors because it is the best time for them to invest while panic selloffs are best for those who wants to convert their coins into cash. It's been like this for many years and I think it is one of the reason why bitcoin and alternate crytoc urrency are very popular.
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NeverSop
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February 11, 2018, 10:50:17 PM |
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In fact, the price of Bitcoin depends on many factors and not just on what the merchant wants to do. I think you just want to profit from moments of accident only.
in fact, the price increase after the price drop is always present at any market price, just wait, a little bit to survive ..
The time when the market is down is when the crypto can stabilize its value and investors can invest in it when its value is low. Market fluctuations are indispensable to find crypto cores that are able to grow stronger and eliminate the incompetent altcoin. |
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Sir Cross
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February 11, 2018, 11:08:40 PM
Last edit: February 12, 2018, 05:39:00 AM by Sir Cross |
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We will see such crashes in bitcoin because bitcoin appreciated so much in so little time so it would be healthy to see some correction. Also, there will be traders would be love to lock in some profits. It's totally normal in crypto universe.
It’s normal and healthy to have some correction and I think a lot have expected for there to be a correction since the price got really high last money in just a very short period of time. Unfortunately, some people don't know about this and become victims of panic selling. Some like the price to be always rising and get scared once the price drops even for just a little. Seasoned traders know that the price has to go down every once in a while otherwise this would not be healthy. |
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richardsNY
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Are you blaming the crash on newbies? The bigger issue are the people who control and are better able to manipulate Bitcoin. Assuming there are such entities, which I think there are. These are the people that dictate things.
Read the post properly, and you'll understand what OP is talking about. To cut a long story short, weak hands need to liquidate their positions (preferably below the point they got in) to allow the market to grow further afterwards, and for that to happen we need crashes and corrections every now and then. In other words, whether a crash has been initiated artificially, or due to the market being overbought, it is a very healthy occurrence helping the market forward in the long run. This way, the bottom after each next crash will always be higher than the previous bottom, and this trend is something we have experienced consistently throughout the years. Great and spot on observation by OP. |
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rockyfeller
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February 12, 2018, 01:36:39 AM |
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We will see such crashes in bitcoin because bitcoin appreciated so much in so little time so it would be healthy to see some correction. Also, there will be traders would be love to lock in some profits. It's totally normal in crypto universe.
It’s normal and healthy to have some correction and I think a lot have expected for there to be a correction since the price got really high last money in just a very short period of time. Yes it's pretty normal that we need some correction. So New comers will come and buy bitcoin at this price don't worry about the price dip but look it further it's future price. Bitcoin crashes is part of the Fuds spreading online. |
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