Why we need price crashes and panic selloffs

[Beau Mathieson]

You are absolutely right, and as many have pointed out these corrections are healthy for the growing market. If we look to examples from traditional and mature markets for example the corrections that occurred as result of the housing bubble 'burst' of 08. The markets than were boated with repackaged, triple A rated mortgaged backed securities which many knew were full of subprime mortgages (we could relate this to coins such as S**tCoin or Coinye West). Since these toxic assets were racking in billions of dollars a year for the banks and investors much like seen in our own ecosystem, it was only till a few negative events occurred like the bankruptcy of New Century (a mortage lender) where the downward spiral of the markets began, for us that was our Tether or Mt Gox moments. These crashes recreate a healthy ecosystem, and make worthless coins, worthless. We talk about store of value, however the only thing we could use to place as a value of the coin, is the work need to produce that coin. So in that, coins that rely on PoW should in theory have more value than PoS coins as they are more energy intensive. That is my two cents.

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[JesusCryptos]

This is an interesting point of view
In fact, the ups and downs are BOTH necessary for the market to discover how much it CAN go up and down. If it would go only up, nobody would know how much it would possibly go down, should it ever go down. If it would only go up, at some point it would possibly crash down to nothingness.

[nasipadang]

When crashes and no news or things that can make up demand, for example now bitcoin prices are not as high as before dumps even when it could reach $20k, I do not think we need a crash or panic sell to make the bitcoin price much higher because it only depends on the demand to raise the price, I mean if there is a crash or panic sell but the demand is not high.

[mx667]

When crashes and no news or things that can make up demand, for example now bitcoin prices are not as high as before dumps even when it could reach $20k, I do not think we need a crash or panic sell to make the bitcoin price much higher because it only depends on the demand to raise the price, I mean if there is a crash or panic sell but the demand is not high.

Yes I think this kind of thing is needed even though it make some people panic sometime. But I think the up and down of the price of Bitcoin and other crypto are very normal and usual. Actually, with the decreasing of the Bitcoin and crypto prices, this will be a chance for us to buy and collect some crypto that we want as much as we can. This kind of situation can be an opportunity for those people who want to start investing in Bitcoin and other crypto. Actually, if we learn and thought about that, this thing is not entirely wrong and evil. That is why I just do long-term investment so that I do not have to worry.

[Pinoyfan]

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 is the best way to pump more the crypto and bitcoin because when the value goes down we will see the that all whales will buy a lot of bitcoin or cryptocurrrency so it id time to buy when the value id so small to get more money soon.

[goku1525]

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 is the best way to pump more the crypto and bitcoin because when the value goes down we will see the that all whales will buy a lot of bitcoin or cryptocurrrency so it id time to buy when the value id so small to get more money soon.

In my opinion it is much better to hold because we all know that the price goes up and down. We dont need to panic selling our bitcoin it is not necessary a good idea because you can take loss and regrets. Have courage in holding your bitcoin to get much profit because it will rise soon which we called as a promising coin in all over the world. Instead of selling those bitcoin , a good idea is to buy bitcoin because the price is down.

[filtyfrank251]

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 is the best way to pump more the crypto and bitcoin because when the value goes down we will see the that all whales will buy a lot of bitcoin or cryptocurrrency so it id time to buy when the value id so small to get more money soon.

To attract more investors to the cryptocurrency market, it is necessary to have such strong fluctuations that many investors can buy into the crypto that they like. Bitcoin if continuous value over $ 10k then many investors will be very anxious and do not want to invest in it but if bitcoin is priced 4k - $ 5k then there will be more money than buying bitcoin, then new market can grow stronger.

[Apened]

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.

Eventually, price crash can be controlled or consider for being manipulated while the sell off are the emotional being of the traders to sell when they saw a big loss on their capital. Significantly, the crash in the price is a cycle and its not a need as bitcoins needs to establish a good and healthy supporting range before it goes up and not that days to spike more upward.

[BeGoods]

This is an interesting point of view
In fact, the ups and downs are BOTH necessary for the market to discover how much it CAN go up and down. If it would go only up, nobody would know how much it would possibly go down, should it ever go down. If it would only go up, at some point it would possibly crash down to nothingness.

Yeah strengthening and weakening prices is a natural thing happening in cryptocurrency market. sometimes a weakening price is needed so that others users can buy and collect more bitcoin for the next pump. maybe the price weakening occurs because of the natural (demand and supply) or occurs due to manipulation. but the point is the declining price is a reasonable thing and may be needed by some users.

[nyerok]

we desperately need them to panic to sell the assets at cheap prices and we buy the coins they sell. better avoid the game of hyp and cloud mining that will make you lose.

[Canis Majoris]

You are absolutely right, and as many have pointed out these corrections are healthy for the growing market. If we look to examples from traditional and mature markets for example the corrections that occurred as result of the housing bubble 'burst' of 08. The markets than were boated with repackaged, triple A rated mortgaged backed securities which many knew were full of subprime mortgages (we could relate this to coins such as S**tCoin or Coinye West). Since these toxic assets were racking in billions of dollars a year for the banks and investors much like seen in our own ecosystem, it was only till a few negative events occurred like the bankruptcy of New Century (a mortage lender) where the downward spiral of the markets began, for us that was our Tether or Mt Gox moments. These crashes recreate a healthy ecosystem, and make worthless coins, worthless. We talk about store of value, however the only thing we could use to place as a value of the coin, is the work need to produce that coin. So in that, coins that rely on PoW should in theory have more value than PoS coins as they are more energy intensive. That is my two cents.

I find your analogy between the subprime mortgage crisis of 2008 and what happens in the cryptoverse quite appropriate and fitting. With that said, though, I can't agree that PoW coins should necessarily be more valuable than any other coins in existence today. I'm not very tech literate in this matter but I know for sure that the amount of labor put into creating something has little to nothing to do with its price, even purely theoretically. The price and value of an asset is determined by its utility and usefulness, not by amount of effort required to create or acquire it.

[fulmetal08larz]

I agree, crashes and selloffs are all part of the cycle in the market. Nothing in the market will have a straight upward movement. In order for cryptosphere to grow, it is a necessary move to correct itself to prove that whatever FUDs and crashes happen, it will remain resilient and be the future financial system.

[Semaj123]

I agree, crashes and selloffs are all part of the cycle in the market. Nothing in the market will have a straight upward movement. In order for cryptosphere to grow, it is a necessary move to correct itself to prove that whatever FUDs and crashes happen, it will remain resilient and be the future financial system.

Definitely right that nothing in the market will have a straight upward movement and everything must be in balanced. Therefore, it's normal to have ups and downs that we see in price movement of the crypto. Some people find crashes  an opportunity to buy coins because this is the time that we can make some good profits in the future especially bitcoin.

[Proton2233]

I'm more interested in the causes of these failures. When the stock market falls, there are reasons for this. It is possible to analyze this phenomenon and to make some predictions. But I can't see the reason for the bitcoin price drop. It bothers me. Of course I also do not like a long period of price decline, but this is not the most important for me.

[Canis Majoris]

To attract more investors to the cryptocurrency market, it is necessary to have such strong fluctuations that many investors can buy into the crypto that they like. Bitcoin if continuous value over $ 10k then many investors will be very anxious and do not want to invest in it but if bitcoin is priced 4k - $ 5k then there will be more money than buying bitcoin, then new market can grow stronger.

It can be said that investors come (and go) in different styles and colors. There are value investors like Warren Buffett and there are speculators like George Soros. Neither is much pleased with Bitcoin. And there are people like the Winklevii twins who consider Bitcoin as the future. So it all depends on your attitude regarding your investment goals and ideals. For the Warren Buffett type of investor Bitcoin is of no use and value because there is nothing in it which would reliably produce value in a dozen years. Soros says that Bitcoin volatility is just too much for a currency. The point is you can't really expect everyone to be happy with Bitcoin price fluctuations.

[JesusCryptos]

This is an interesting point of view
In fact, the ups and downs are BOTH necessary for the market to discover how much it CAN go up and down. If it would go only up, nobody would know how much it would possibly go down, should it ever go down. If it would only go up, at some point it would possibly crash down to nothingness.

Yeah strengthening and weakening prices is a natural thing happening in cryptocurrency market. sometimes a weakening price is needed so that others users can buy and collect more bitcoin for the next pump. maybe the price weakening occurs because of the natural (demand and supply) or occurs due to manipulation. but the point is the declining price is a reasonable thing and may be needed by some users.

I didn't mention manipulation, but this is actually one of the big actors in forcing prices to go down so that whales can fill their bags again, after that they have dumped at ATH.

[ene1980]

I'm more interested in the causes of these failures. When the stock market falls, there are reasons for this. It is possible to analyze this phenomenon and to make some predictions. But I can't see the reason for the bitcoin price drop. It bothers me. Of course I also do not like a long period of price decline, but this is not the most important for me.

When it comes to bitcoin and the price movement,it all depends upon the news coming out of a country,if the news is negative the price will go down and so on,it is entirely dependent upon current events and anything can happen at any given time,there is a massive sell off from the old MTgox and i think that is holding the market down for a while and it might continue like this for a while.

[yepaiyique2]

BTC is easy to attract new investors when the price is low!

They will listen to some experienced investors and buy some BTC when the BTC is below $10,000! The market has new investor, only has the possibility of rise!

[Anewor]

Yes I do think you have a point. The rising of the value of bitcoin could somehow be because of the them who do the panic selling. Some investors who at the time when the price drops take it as an opportunity to buy the coins and when everything is bought the supply is lowered again so that the prices rices also. During such time as the price goes high, the investors then analyzes the market for the right time for them to sell their coins again not at a losing point but when the price is really high. So as a general conclusion in this BTC will always be a roller coaster ride. Up and down crashing and dumping and yet again rises up just to fall endlessly in the pattern. Which gives the reason why it is so volatile.

[glowing10]

I don´t think the situations we see are panic sell-offs. That can happen during a day or two but let´s be honest, cryptos have been going down for a month,

2018 the start has being shaky and prices have dropped mostly than the rise. this has happened over the years that in beginning of the year the price does not rise much and later as the year progresses we start seeing the price jump and suddenly btc crosses 15 and 20k is also possible in coming time.