Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Bitcoin Exchange Had Too Many Bitcoins

bloomberg.com

Post reply on HN
Print view View original

21–30 of 241 posts

Re: Bitcoin Exchange Had Too Many Bitcoins

#21

Post by BinaryIdiot »

thefalcon wrote: post #15
BinaryIdiot wrote: post #8

Earlier quoted context omitted.

So I'm not a bitcoin nor market expert but jandrese laid down his opinion, which sounded like it made sense to me. I was hoping for a well informed response but your comment just reads like you wanted to call names versus explain your reasoning why you think jandrese's argument doesn't make sense. Perhaps's that's not what you intended but if you had an explanation for why parent's response doesn't work I'd love to r…

My point is that there is no driver for the price to crash. There will not suddenly be a surprise supply of BCH found that will flood the market. Everyone knows that there is 1 BCH for every BTC out there, and that almost none of that is currently able to be exchanged on a market. That includes every single person who is driving up the price of BCH by purchasing it in the limited markets where it is available.

Interesting. I don't understand how all of the BCH and BTC stuff works so I guess I should read up on it but thanks for further explaining your position :)

Re: Bitcoin Exchange Had Too Many Bitcoins

#22

Post by thefalcon »

cwkoss wrote: post #20
thefalcon wrote: post #12

Earlier quoted context omitted.

You're saying that people buying BCH right now aren't aware that there's a huge glut of supply waiting to flood the market, and aren't taking this into account in their buying decisions? There is no need for anyone to have BCH in hand today, no reason for someone to value a BCH today more than a BCH in a week. If they thought that thousands of people selling BCH once they are able will lead to a drop in price, they w…

I think the average cryptocurrency trader is much lower-information than you are estimating. There are hundreds of rubes who see "Bitcoin Cash" and think that because it suddenly jumped to the 3rd largest cryptocurrency by market cap, lots of people are talking about it, and its cheaper than Bitcoin, this could be their chance to get the elusive short-term 3x+ crypto ROI. Many of these people have no concept of the l…

Fair enough, we'll all find out in due course. The constant flow of comments where people are trying to equate this particular hard fork (the end result of a very long and messy civil war) with any old Joe creating his own BTC fork is clearly just grinding my gears a little too much. There's a reason to expect BCH to end up as more than just a boondoggle (to the extent that any cryptocurrency can be said to be more than just a boondoggle): Bitcoin with larger blocks has been desired by many people for a very long time.

Re: Bitcoin Exchange Had Too Many Bitcoins

#23

Post by vinhboy »

gressquel wrote: post #11
tobyhinloopen wrote: post #7

So I had some bitcoins at time of the fork. Do I have the other new coins as well? How can I spend, sell or buy them? Is there a multibit for bitcoin cash?

did you have it on a wallet online or in a wallet you created with a software locally? if its locally created, then good news. you should download Electron Cash and import the existing wallet and you shall see your BCCs.

Should I sell my BCC so I can collect the cash in case it fails? And then assume I will still have my BTC..

Re: Bitcoin Exchange Had Too Many Bitcoins

#25

Post by alanfalcon »

cwkoss wrote: post #16

Bit tangential, but I read an interesting theory this morning: Because there is greatly reduced liquidity of BCH (most exchanges don't support, hard/slow to deposit into exchanges that do), supply of BCH is artificially limited at the moment. Proponents of BCH can trade their BTC for BCH at a rate greater than they believe it is worth to easily pump the value and 'market cap' (most market cap stats have no measure of…

In the end, we're all pawns in the game of making the super-rich even more wealthy, aren't we? insert defeated sigh of resignation here

Re: Bitcoin Exchange Had Too Many Bitcoins

#26

Post by smaili »

Here's what people tried to pull off:

1. Set up an account, borrow one bitcoin, sell it short, collect $2,700.

2. Set up another account, buy a bitcoin, spend $2,700.

3. When the fork happens, your long account ends up with +1 BTC and +0.8 BCH.

4. Your short account ends up with -1 BTC and -0 BCH (because Bitfinex doesn't require you to come up with the BCH).

5. Net, you have $0, 0 BTC and 0.8 BCH.

6. The 0.8 BCH were worth as much as $560.

7. That money was totally free.

Re: Bitcoin Exchange Had Too Many Bitcoins

#27

Post by makomk »

cwkoss wrote: post #20
thefalcon wrote: post #12

Earlier quoted context omitted.

You're saying that people buying BCH right now aren't aware that there's a huge glut of supply waiting to flood the market, and aren't taking this into account in their buying decisions? There is no need for anyone to have BCH in hand today, no reason for someone to value a BCH today more than a BCH in a week. If they thought that thousands of people selling BCH once they are able will lead to a drop in price, they w…

I think the average cryptocurrency trader is much lower-information than you are estimating. There are hundreds of rubes who see "Bitcoin Cash" and think that because it suddenly jumped to the 3rd largest cryptocurrency by market cap, lots of people are talking about it, and its cheaper than Bitcoin, this could be their chance to get the elusive short-term 3x+ crypto ROI. Many of these people have no concept of the l…

Pretty much. BCH bulls who find out about the supply issue have been assuming that it can't be that much of a big problem, that most people who wanted to sell must've done so by now anyway, and of course there's no way to tell how much supply is actually locked up. BCH bears are mostly irrelevant to the price since, unless they expected it to be worth enough to justify locking their BTC in less reputable exchanges during the fork, they can't actually sell yet. Anyone who isn't following the online discussions closely probably simply doesn't know about this - the news articles I've seen haven't mentioned that issue, and it took many hours for this information to even percolate through the discussions. Claims like "3rd largest cryptocurrency by market cap" have been a lot more prominent everywhere. (Also, if you want an idea of what BCH supporters are thinking right now, the front page r/btc is currently a good place to look.)

Re: Bitcoin Exchange Had Too Many Bitcoins

#28

Post by celticninja »

thefalcon wrote: post #12
makomk wrote: post #9

Earlier quoted context omitted.

People who want to buy BCH have relatively unrestricted access to the market since most of the exchanges have reopened BTC deposits. (Of course, whether they can withdraw that BCH is another story entirely.) Most people who want to sell do not have access since BCH deposits are either not available or require multiple days worth of confirmations. Can you see the problem here?

You're saying that people buying BCH right now aren't aware that there's a huge glut of supply waiting to flood the market, and aren't taking this into account in their buying decisions? There is no need for anyone to have BCH in hand today, no reason for someone to value a BCH today more than a BCH in a week. If they thought that thousands of people selling BCH once they are able will lead to a drop in price, they w…

The volumes purchased are very low so far, it is relatively easy and cheap for a whale to manipulate the price.

Re: Bitcoin Exchange Had Too Many Bitcoins

#29

Post by corysama »

tobyhinloopen wrote: post #7

So I had some bitcoins at time of the fork. Do I have the other new coins as well? How can I spend, sell or buy them? Is there a multibit for bitcoin cash?

Yes, but it's hard to trade them right now unless you had Bitcoins in an exchange that auto-balanced at the time of the fork.

There are some new wallets that support BitcoinCash, but being new, they are not trusted yet. Here's the official procedure to safely use the Electrum Cash (fork) wallet according to the non-fork creators: https://electrum.org/bcc2.txt

Even after you do that, most exchanges are not yet supporting importing BitcoinCash into their accounts. Once everyone is able to do so, the price is expected to tank. I guess we'll see...

Post reply on HN