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A good look into trader psych is Taleb's "Fooled by Randomness". All of this predates Bitcoin, though I'd argue the open nature of cryptocurrency allows for people with "extraordinarily active imaginations" (let's say) to participate.
> When he bought his stash, the price of a single litecoin was $67 > He sold his holdings on Dec. 12 when litecoin was worth $387, a 570 percent gain $387 is a 470% gain from $67 not 570%.
His math can be explained but a common misconception when buying coins: Whales move the market. It's impossible to place a six-figure order and get them all for the same price. Simply placing an order that larger disrupts supply and demand enough that multiple sellers are required to cover, sometimes hundreds if your order is filled my small fish.
What's most likely is he placed numerous 'smaller' orders over a period of a few days and only gave the price of $67 as the highest he/she paid. Probably loads of coins at much smaller levels and averaged out the returns to 570%.
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I'm very curios: whoever downloaded this comment above, could you please tell us, why do you think it's not true?
I didn’t downvote it, but it’s so obvious as to be unhelpful. Who needs to be reminded that an asset isn’t worth its price until it’s liquidated? It’s self-evident, and yet you have it following every time someone mentions returns on BTC. You have it at least twice here on this thread, in fact.
Mom & pop class investors who characteristically are the ones left holding the bag when a bubble pops.
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For most assets, you can generally assume it will be close to what it currently is priced at. btc is different in that regard because holding onto it for a week or even a day can easily cause it's value to double or half. That's why its different because while you think you have that much money, by the time you actually get around to selling it, the price can be radically different
Some assets are more volitile than others. I feel that we are moving backwards here in terms of restating obvious and extremely basic principles. Anyway, I’m not at all convinced that BTC is different in kind relative to, say, normal FX trading. The spreads do tend to be higher, though. What’s far more interesting to me is BTC’s resilience as an asset in spite of massive, demonstrable (and frankly, predictable and pr…
Earlier quoted context omitted.
I'm very curios: whoever downloaded this comment above, could you please tell us, why do you think it's not true?
I didn’t downvote it, but it’s so obvious as to be unhelpful. Who needs to be reminded that an asset isn’t worth its price until it’s liquidated? It’s self-evident, and yet you have it following every time someone mentions returns on BTC. You have it at least twice here on this thread, in fact.
So does nearly every habitual gambler. > “Those are legitimate needs that people have, to figure out if there’s a way to gamble their way to another lifestyle.” I'm not sure who decides what "needs" are "legitimate" -- but can't they just go to casinos, which have been legalized just about everywhere now? Also I can't believe that quote, sounds like a parody.
Yes gamblers or speculators or whatever they may be called could go to casinos in person. Or gamble via online poker. Or go bet on a horse race. Or on sports via a bookie. Or trade bitcoins from their phone. Just different games for different tastes and currently legal.
Another method is to get lucky in a bull market and pat themselves on the back for being so talented.
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People don't realize how long it would take to liquidate a large sum of $$.
I've sold and transferred over $800k of cryptocurrencies to a US bank over the course of 3 days. I could probably have done it faster if I tried. This was through Gemini.
Earlier quoted context omitted.
I didn’t downvote it, but it’s so obvious as to be unhelpful. Who needs to be reminded that an asset isn’t worth its price until it’s liquidated? It’s self-evident, and yet you have it following every time someone mentions returns on BTC. You have it at least twice here on this thread, in fact.
>Who needs to be reminded that an asset isn’t worth its price until it’s liquidated? Mom & pop class investors who characteristically are the ones left holding the bag when a bubble pops.
A good look into trader psych is Taleb's "Fooled by Randomness". All of this predates Bitcoin, though I'd argue the open nature of cryptocurrency allows for people with "extraordinarily active imaginations" (let's say) to participate.
He put a lot of effort and research into his analysis of the market and was sure he understood it well enough to bet big. He failed but luck saved him and made a killing. His boss told him not to tell anyone, ever, and then promoted him. His boss was also promoted for his 'talent' in managing a successful team.
The student was self-aware enough to realize he failed spectacularly and left the fund, but many aren't. Cognitive dissonance is rampant in the financial sector and with bitcoin everyone feels like a stock-broker, it's a dangerous game if you let your ego dictate your strategy.