Fat Elvis |
05-15-2021 04:24 PM |
Quote:
Originally Posted by Ninerfan11
(Post 15675144)
Elon and his liberal elite Green Agenda buddies are crashing the market.
Rough times ahead.
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No, He's not. BTC is an illiquid market. It doesn't take a whole lot to create big swings in price (and subsequent valuation). I don't have a vested interest in BTC one way or another; I didn't get into it because I didn't understand it, or more precisely the market behavior behind it. I tip my hat to those of you who've made a killing at it and to those of you who may yet make a killing at it. I hate Peter Theil with the heat of a thousand suns, but I think he is right about BTC being a Chinese weapon.
Here is what I don't understand about BTC market behavior: I've seen BTC transactions for .002 of a bitcoin have a $100 impact on the price of BTC. Given that there are currently ~18.5M bitcoins in circulation. That single transaction--which at the time I calculated to be worth $99.16 given the price of BTC at the time (note, that is the total value of the transaction, not the change in bitcoin price; the change in bitcoin price was actually slightly higher than the value of the transaction)--resulted in a swing of about $1.9B in total bitcoin valuation.
So what do you think is going to happen when China starts dumping bitcoin? They are using state resources to mine bitcoin. Chances are they bought up a lot of bitcoin when it was quite a bit cheaper. It doesn't take a whole lot of BTC in terms of volume to significantly move the price either up or down.
Given that relatively small transactions can have outsized impact on price (in either direction), what happens when China decides to screw us over economically and starts selling BTC en masse? The anonymity behind BTC doesn't just protect individuals; it also protects state actors.
Best of luck to all of you.
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