Bitcoin. Any experts/owners?

Status
Not open for further replies.
MichaelWinicki

MichaelWinicki

"You want some?"
Staff member
Messages
47,999
Reaction score
27,920
CowboysZone ULTIMATE Fan
YosemiteSam said:
Are you sure? The hype machine was / is RAGING. Especially from people who already own bitcoins. It could easily be a pump and dump scheme. That could be what the massive selloff is. People now dumping after a bunch of the general public thinking they have access to a get rich quick scheme when it truth, they are being played the fool.
Click to expand...

Agreed. It has nothing to do with supply & demand.

It's all about hype.

It's Dutch Tulip Mania all over again.
 
Reality

Reality

Staff member
Messages
31,295
Reaction score
73,182
CowboysZone ULTIMATE Fan
DoctorChicken said:
Aaannnddd it’s back up again.
Click to expand...
The volume is back down to normal today (less than half of the previous days) which means that the large bitcoin investors were the ones buying the sell-off the last few days while the volume was high. Those actions artificially drove up the price again, but it's not a good sign as that likely means a lot of average people cashed out during the sell-off period.

The easiest way to detect this is to look at the volume. It was averaging $2.4 billion per day at $15,000/bitcoin and when the price dropped to $11,000/bitcoin the volume was at $5.6 billion. Now that the price has recovered some up to $14,000/bitcoin, the volume is sitting at $2.1 billion over the last 24 hours.

At least to me, that makes it seem like the bulk of the sell-off was done by non-large investors, and the large investors swooped in and bought the sell-off to either counteract the free-fall and/or to buy-low/sell-high by driving the price back up by artificially creating a perception of demand.
 
Reality

Reality

Staff member
Messages
31,295
Reaction score
73,182
CowboysZone ULTIMATE Fan
I wish I had a few million dollars to play with as it would be so easy to manipulate bitcoin prices and make a lot of money every day.

The strategy is simple ..

Let's say bitcoin is selling at $15,000 .. and let's say you bought 1,000 bitcoins at $5,000/each ($5m) a couple of months ago, which means you have $15m in bitcoins now and $10m profit to play with.

So, what you do is sell 500 bitcoins at $14,800. Since other large investors are doing the same thing, this will drive the price down to $14,000. Now, you go back and buy 600 bitcoins at $14,000. At this point, you temporarily have lost $500k in value on your original 1,000 bitcoins due to the lower bitcoin price and also spent an extra $1.4m to buy another 100 bitcoins, but because you and other large investors are buying now, it drives the price back up to $16,000.

That means you now have 1,100 bitcoins at $16,000 each, or $17.6m total that cost you $6.4m ($5m initial + $1.4m for recent 100 bitcoin purchase), giving you a net profit of $11.2m. So, in one day, you just made $1.2m and increased your bitcoin ownership by 100 bitcoins.
 
waldoputty

waldoputty

Well-Known Member
Messages
23,375
Reaction score
21,163
i have some friends looking into mining crypto currencies (not bitcoin). anyone with experience please pm me. not looking for investment but looking for experience.
 
DoctorChicken

DoctorChicken

Well-Known Member
Messages
8,362
Reaction score
18,544
waldoputty said:
i have some friends looking into mining crypto currencies (not bitcoin). anyone with experience please pm me. not looking for investment but looking for experience.
Click to expand...

What is up my dude.

Mining bitcoin can be very profitable if you have the ability to spend money on the equipment. But that is quite a bit of money; in the thousands of dollars.

The more mining power you have, the bigger chance you have to find a “block”, which rewards you with bitcoin. Mining power is measured in "hashes", so you'll see measurements such as "500MH" or "3.7 TH" advertised next to a miner. The more hashes, the better chance you have at receiving a bigger portion of the reward.

DDKSV.png


People are now using ASIC miners, which stands for Application-Specific Intergrated Circuit, aka, a computer that does nothing but mine bitcoin. And they will never do anything but mine bitcoin. And they are very good at it, but also expensive. Some people are filling warehouses with ASIC miners. These people that can afford the ridiculous amount of computing power are making the most money. The days of mining bitcoin with a GPU or CPU is dead. If you want to make a legitimate profit, you have to get an ASIC miner. One of the more profitable miners available now is the Antminer S9.

Bitcoin is also designed in a way that the better miners get, the harder it gets to mine. So if you spend, say, $3,000 on a bitcoin miner, it could be profitable for a while, but it could also lose its value, in which case you'd have to purchase a more advanced miner. You need to be on the absolute cutting edge of ASIC technology, and it's an continuous process. Also, however, the rise of the price of bitcoin needs to be taken into consideration.

There are other, ASIC resistant coins that can be mined with any good gaming computer, which can be had for less money. They are ASIC resistant because their developers do not want a monopoly on who gets all the mining power. Ethereum and Vertcoin come to mind.

If you have any more questions, let me know.
 
65fastback2plus2

65fastback2plus2

Well-Known Member
Messages
6,788
Reaction score
6,652
Reality said:
I wish I had a few million dollars to play with as it would be so easy to manipulate bitcoin prices and make a lot of money every day.

The strategy is simple ..

Let's say bitcoin is selling at $15,000 .. and let's say you bought 1,000 bitcoins at $5,000/each ($5m) a couple of months ago, which means you have $15m in bitcoins now and $10m profit to play with.

So, what you do is sell 500 bitcoins at $14,800. Since other large investors are doing the same thing, this will drive the price down to $14,000. Now, you go back and buy 600 bitcoins at $14,000. At this point, you temporarily have lost $500k in value on your original 1,000 bitcoins due to the lower bitcoin price and also spent an extra $1.4m to buy another 100 bitcoins, but because you and other large investors are buying now, it drives the price back up to $16,000.

That means you now have 1,100 bitcoins at $16,000 each, or $17.6m total that cost you $6.4m ($5m initial + $1.4m for recent 100 bitcoin purchase), giving you a net profit of $11.2m. So, in one day, you just made $1.2m and increased your bitcoin ownership by 100 bitcoins.
Click to expand...

thats how the stock market works.
 
Reality

Reality

Staff member
Messages
31,295
Reaction score
73,182
CowboysZone ULTIMATE Fan
Bitcoin went from $13,800 to $14,800 in 60 minutes after days of steady volume. Why? Because volume increased dramatically all at once during that same period.

That's not average people buying and selling bitcoins in one large batch. That's a large investor buying up bitcoins. Once that happened, the investor stopped and the smaller investors started buying again because they saw it increasing so they jumped on board thinking they could catch the wave before it crests.

It's so easy to manipulate the price of bitcoin because most small investors have no clue they are being toyed with.

It's really easy for people with money to use the schemes and tactics that are illegal around the world in regulated stock markets to make money every single day.
 
65fastback2plus2

65fastback2plus2

Well-Known Member
Messages
6,788
Reaction score
6,652
Reality said:
Bitcoin went from $13,800 to $14,800 in 60 minutes after days of steady volume. Why? Because volume increased dramatically all at once during that same period.

That's not average people buying and selling bitcoins in one large batch. That's a large investor buying up bitcoins. Once that happened, the investor stopped and the smaller investors started buying again because they saw it increasing so they jumped on board thinking they could catch the wave before it crests.

It's so easy to manipulate the price of bitcoin because most small investors have no clue they are being toyed with.

It's really easy for people with money to use the schemes and tactics that are illegal around the world in regulated stock markets to make money every single day.
Click to expand...

using cash to drop a huge buy and drive the price up to sell happens in stock markets all the time.
 
65fastback2plus2

65fastback2plus2

Well-Known Member
Messages
6,788
Reaction score
6,652
another thing to consider is this is a 24/7/365 market.

My XRP always takes off when its South Korean's just before lunch time...tonight being no different.
 
Status
Not open for further replies.
Top