Why you can’t cash out part 1: Bitcoin’s “price” is largely fictional

Post by Gys » Mon, Dec 18, 2017, 11:42 AM UTC

runeks wrote: post #138

sytelus wrote: post #122

Earlier quoted context omitted.

Article author actually makes a great point and it stands regardless of your ability to cash out within 1%. Big investors on current markets can whip out huge profits for themselves by using techniques such as front running, wash trades, willybot, spoofing etc. Exchanges are not even prohibited from doing their own secret trades and using their own internal database and full knowledge of all other players. If you are…

> Exchanges are not even prohibited from doing their own secret trades and using their own internal database and full knowledge of all other players. Are we sure about this? The two largest USD-exchanges are Coinbase/GDAX and Bitstamp, which operate out of California and London, respectively. If someone were to reveal that these exchanges were trading against their customers, are we sure that the authorities would be…

Post by DennisP » Mon, Dec 18, 2017, 11:43 AM UTC

kensey wrote: post #137

DennisP wrote: post #39

Earlier quoted context omitted.

Then it sounds like your argument should just be "this is too risky for more than a tiny investment unless you're very secure," which I agree with. Where I part ways is in your claim that the price is somehow illusory and it's impossible to cash out. Until recently I worked for a company that was mostly paid in crypto, and had no trouble selling it off, moving the money into a bank, and meeting payroll. Crypto is new…

How recently is “recently”? It seems (to me as an outside observer) that it’s gotten notably harder to get national-currency money out of exchanges in the last, say, 6 months, because (I’m guessing) as the price goes on an upward run, more people who bought low are trying to sell to realize those gains, which triggers higher transaction volume, which suddenly prompts correspondent banks to look at exactly what all th…

Post by ufo » Mon, Dec 18, 2017, 12:07 PM UTC

healsjnr1 wrote: post #172

sytelus wrote: post #122

Earlier quoted context omitted.

Article author actually makes a great point and it stands regardless of your ability to cash out within 1%. Big investors on current markets can whip out huge profits for themselves by using techniques such as front running, wash trades, willybot, spoofing etc. Exchanges are not even prohibited from doing their own secret trades and using their own internal database and full knowledge of all other players. If you are…

One thing in particular I dislike about this is that the author lumps all crypto currency into the same bucket. As the prime example of this, ethereum and Bitcoin could not be more different. Work done by groups such as 0x mean that these regulations can be enforced by public contacts. Sure, there is more work to be done, but the potential is to create decentralised exchanges that are safer and easier to regulate tha…

Post by kgwgk » Mon, Dec 18, 2017, 12:30 PM UTC

mitchellberry wrote: post #168

omarforgotpwd wrote: post #152

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"They merely moved their business to other exchanges" The price crashed from like $1200 to $200 and it took years for it to recover. All those Moms and Dads and Grandmas who bought $10,000 of Bitcoin after Thanksgiving dinner hoping it would turn into $100,000 within a month will certainly get hit if the price falls to $1600 and doesn't recover for 3 years. All it takes is a change in the media narrative that scares…

> All it takes is a change in the media narrative. Every article I read in the media has huge negative sentiment already. Can you point to some positive articles about bitcoin? Seems to be very few going around, it's all bubbles, energy consumption, hackers, ransomware and terror funding. Wondering how the narrative can change for the worse from here.

Post by Cakez0r » Mon, Dec 18, 2017, 12:43 PM UTC

arcticfox wrote: post #22

twelve40 wrote: post #17

Earlier quoted context omitted.

But at the end of the day, how is it different from the current equities market? (aside from immature tools and imperfect infrastructure that is just shaping up). Stock market can tank 50% like it did in 2009 (together with the real estate market) and your average investor will be screwed just the same. Even tech and fundamental analysis gurus cannot explain the endless bull market we're on, how is getting lured into…

But the stock market - in general - has ridiculously profitable and powerful entities behind it. No matter what happens to investor confidence, ownership of Apple is going to be very valuable because they generate a ridiculous amount of profit. Cryptos, on the other hand, are entirely based on investor confidence.