Stable bitcoin price

[Anders]

Could it be that the bitcoin price becomes stabilized by intense trading to and from ordinary fiat currencies? Big traders, so-called whales, can buy lots of bitcoins and then the small traders will follow which causes an upward price momentum, and then at a certain level the whales sell and the bitcoin price drops. But if there are many whales competing, then the pump and dump schemes will be difficult to pull off.

When the whales are competing, then the whales who sell first after a pump initiation will win, and that will keep the price upswings low. Bitcoin is deflationary, in theory. In practice the massive influence from fiat currencies will perhaps neutralize the deflation.

[Ayers]

whales did not accumulate for reaching only the current price, i think is just a transitory phase, remember that is august, people usual have a RL.....

[InwardContour]

The adoption is still increasing at an exponential rate so the price can't be stable in this period,
maybe in 5-6 years it could reach some stability but there's no prediction that can tell us the truth nowadays.

[Anders]

whales did not accumulate for reaching only the current price, i think is just a transitory phase, remember that is august, people usual have a RL.....

Ok, good point, but if a stream of new whales is flowing into bitcoin these days, then those whales start from zero bitcoins and have more incentive for short-term pump and dump than for long-term investments.

[Anders]

The adoption is still increasing at an exponential rate so the price can't be stable in this period,
maybe in 5-6 years it could reach some stability but there's no prediction that can tell us the truth nowadays.

New investors in bitcoin will only make the price go up if they stay investors in bitcoin. I can imagine new whales coming in buying bitcoins and then selling them again, and then buying again and then selling, in cyclic patterns.

[Nagle]

The adoption is still increasing at an exponential rate ...

No, it's not. Block chain transaction rate was about 55,000/day a year ago, and it's about 65,000 now. This looks like product maturity, not high growth.

[Ayers]

whales did not accumulate for reaching only the current price, i think is just a transitory phase, remember that is august, people usual have a RL.....

Ok, good point, but if a stream of new whales is flowing into bitcoin these days, then those whales start from zero bitcoins and have more incentive for short-term pump and dump than for long-term investments.

never thought about that, it could be yes, i always thought that whales are the early adopters, but it make sense in this view also, but for this the price shouldn't go too low though

[Anders]

whales did not accumulate for reaching only the current price, i think is just a transitory phase, remember that is august, people usual have a RL.....

Ok, good point, but if a stream of new whales is flowing into bitcoin these days, then those whales start from zero bitcoins and have more incentive for short-term pump and dump than for long-term investments.

never thought about that, it could be yes, i always thought that whales are the early adopters, but it make sense in this view also, but for this the price shouldn't go too low though

Yes, remember that bitcoin is still tiny compared to the mass of whales in the ordinary currency markets. And most of those whales have zero bitcoins today. I think the bitcoin price may go up to $5,000 if there will be a big demand. But I don't think the price will go up much further than that because bitcoin will probably not become truly mainstream because of volatility, too slow transaction times, and too bloated block chain if millions of transactions would be done every 10 minutes.