I fear a collapse

[Steveia]

I suspect the following will happen soon.

I suspect the price of Bitcoin is rising because of speculators. I suspect speculators are driving the price very high, very fast, making it much more difficult for the traditional Bitcoin user to purchase.

Once the price reaches a certain amount, these speculators, who don't care at all about cryptocurrency, will sell their coins. These coins will flood the market. People will panic, fearing a collapse. Everyone sells, except die hard bitcoiners. The price plummets to under a $100.00. These speculators, who just made a lot of money, will rebuy the coins for cheap.

And the cycle repeats itself over and over and over again.

This is the inherent flaw in bitcoin.

Who here agrees or disagrees and why?

[Piper67]

wow, such insight! This has never been covered before... especially not in the speculation subforum 

[dominicwin]

hahaha yes wrong forum.

[neilol]

Not an inherent flaw in Bitcoin, but an inherent flaw in small markets. Easy to manipulate. Once (if) Bitcoin reaches a higher market cap, say $100billion, it will be much harder for one or a small group of actors to effect the price.

[wxg10]

Well, everything has been said already, but not yet by everybody.

[oser41eric]

I suspect the following will happen soon.

I suspect the price of Bitcoin is rising because of speculators. I suspect speculators are driving the price very high, very fast, making it much more difficult for the traditional Bitcoin user to purchase.

Once the price reaches a certain amount, these speculators, who don't care at all about cryptocurrency, will sell their coins. These coins will flood the market. People will panic, fearing a collapse. Everyone sells, except die hard bitcoiners. The price plummets to under a $100.00. These speculators, who just made a lot of money, will rebuy the coins for cheap.

And the cycle repeats itself over and over and over again.

This is the inherent flaw in bitcoin.

Who here agrees or disagrees and why?

Your right, without fear, these whales would not profit from their selloffs

[indianplayers]

If you can't beat them.... join them!

[BadAss.Sx]

i Hope you are right....i buy more of them then

[Alty]

This cycle is repeating itself in an overlapping way more and more frequently, this will become less apparent as more people get into Bitcoin and it very very slowly stabilizes.

Remember, not everybody wants to sell at the same time because not everybody is thinking the same thing neither does everybody have the same objectives that come into alignment at the same time.

There will always be people wanting to cash in and there will always be people wanting to pick up cheap(er) coins. All at different times. This will slow down the volatility.

[Tirapon]

Hello Steveia.

Welcome to the speculation sub forum.

If you can't beat them.... join them!

 

[Odalv]

I suspect the following will happen soon.

I suspect the price of Bitcoin is rising because of speculators. I suspect speculators are driving the price very high, very fast, making it much more difficult for the traditional Bitcoin user to purchase.

Once the price reaches a certain amount, these speculators, who don't care at all about cryptocurrency, will sell their coins. These coins will flood the market. People will panic, fearing a collapse. Everyone sells, except die hard bitcoiners. The price plummets to under a $100.00. These speculators, who just made a lot of money, will rebuy the coins for cheap.

And the cycle repeats itself over and over and over again.

This is the inherent flaw in bitcoin.

Who here agrees or disagrees and why?

It is called "Shaking of weak hands ." :-) or "Cheap coins".

[Wilhelm]

Looking at mtgoxlive you can see that a Marketorder of 15000 BTC will lower the price approx $100.
Since accounts up to 150000 BTC exist yes a panic could still be achieved. But bitcoin would still rebound.
I believe that bitcoin is getting stronger by the day and don't fear collapse.

[kireinaha]

Steveia, you've violated the first rule of the speculators sub-forum. Thou shall not ever question the strength of the bitcoin market. Bitcoin is going to $40,000 a coin because the Winklevoss twins told us so.

Bitcoin is new and... this time it's different.  

[lucaspm98]

Sure it may temporarily fall, but as more people discover Bitcoin it will recover and get even higher.

[DeathAndTaxes]

collapse in price =/= collapse of Bitcoin.

If you feel the price is excessively high ... don't buy or sell off a portion (sell into rally)
If you feel the price is excessively low ... don't sell or buy to increase your stake (buy on the dips).

[Bullion333]

Exactly, btc is a massively growing market of buyers. More buyers = high price. Although these people are new to the market and so are like sheep in the headlights and get easily scared and sell at the slightest sign of the price going down. But the price will always recover and go even higher. Like I said before, the market of buyers is growing exponentially.

[BitchicksHusband]

We just saw that in the "Will you sell at $1000?" that 88% would not.  So presumably, if the price even went to $200, LOTS of "Buy and Hold" people would buy like crazy.  (I know I would.)

[phlogistonq]

A big selloff doesn't change the fundamentals of bitcoin.
It'll go back up, and probably quite rapidly as people seize the opportunity to get cheap coins.

[Wilhelm]

We just saw that in the "Will you sell at $1000?" that 88% would not.  So presumably, if the price even went to $200, LOTS of "Buy and Hold" people would buy like crazy.  (I know I would.)

I'll be in at $250

[freethink2013]

why not just sell, it's a sellers market atm