Discussion in 'Bullion Investing' started by Tyler, Apr 1, 2013.
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Up now - since...
* hmmm - checks again *
So, can I take it that if I want to buy one of your lovely gold $20 coins, that you are not taking bitcoin in payment?
He he ... just joking.
I do like your coins though. And I am buying gold coins with my bitcoin gains.
Very smart . . . diversifying and preserving your gains.
You've got that right.
(Kitco News) - Bitcoin is one of the most unequally distributed assets in the world, with just under half a percent of all bitcoin investors owning more than 80% of all bitcoins, and should they liquidate, the market could see a substantial sell-off, said Ryan Giannotto, director of Research at GraniteShares ETFs.
“It’s a major challenge for the asset class: it’s intended to be a financially democratizing force, yet it is so profoundly distributed in an unequal fashion. It’s really unlike anything we’ve ever seen. This is one of the perils of bitcoin investing that go unreported, undiscussed,” Giannotto said. “It is a seriously cornered asset class.”
Five hundredths of a percent of bitcoin investors control over 40% of all bitcoin, and just under half a percent of all bitcoin investors control over 5/6ths, or 83%, of bitcoin, he noted.
Most of these larger stakeholders, or “whales” as they are referred to as in the crypto community, are early adopters of bitcoin.
If these early adopters of bitcoin were to sell their holdings altogether, that would exceed the daily trading volume, effectively “wiping out” the asset, Giannotto said.
Put differently, imagine that five investors each bought up four 1894-S dimes, driving prices up along the way. All of the collectors who owned them thought they were worth something approaching $2 Million. Suddenly, the coins belonging to one of those investors hit the market - the reason doesn't matter . . . investor lost interest, needed to raise funds, family liquidates post-mortem, etc - just how well do you think that price will hold? And if just one of those other collectors gets antsy at the ensuing drop in price and decides to sell himself, what then?
I think you get the point . . . Despite what the promoting speculators say, the support for BitCoin IS NOT BROAD-BASED!!!!
its not tied to fluctuations as is the stock market or bullion, mostly speculation
but most people I know are getting in, the train leaves in 5 minutes...LOL
)....got me to thinking.
How many people do you think have suffered amnesia or dementia (Alzheimers) and forgot about SDBs, money/gold stashed in attics or the house, etc. ?
You get 10 guesses, if you aren't right on the 10th one it locks up and is basically gone forever. You would need world class hackers or maybe even a nation state to even have any chance at it
I found some hackers.....
Miners getting hit, too....this digital currency is so new that just a few big holders unloading can move the price bigtime.
You also have so many small players buying through these new no-cost apps that they might be panic in any prolonged bear market. My next door neighbor, out of work (apparently), says he has his life savings in BitCoin or some digital currency.
I'd think "Mr. Two Guesses Left", with over $200 million at stake (at least at last week's prices), would be able to attract interest from world class hackers. Maybe even a nation-state, if they stood to gain tax revenue. Certainly at that level you'd be able to find someone willing to un-pot some chips and do some serious penetration work.
Abandoned property in SDBs is a well-known thing, of course.
I sold off some coins for a friend whose late father hoarded them. They were in tobacco cans, half a dozen or so. She said she was pretty sure he'd stuffed a lot more into the walls of his house -- but he was a real piece of work, and she didn't want anything to do with him or his stuff, and she's not in economic need, so she just sold the house without doing any digging. Someone might get a big surprise when they go to do a remodel, or just some maintenance. "What's wrong with this stud finder? It says there's metal all over the place behind this wall..."
No nation is going to waste a single second on that unless you just gave them the whole thing and forfeited any claim to that same with world class hackers. It’s not worth their time and again the keywords were to have any chance. It’s not known if it’s even possible with today’s technology
What he really should do is turn the thing into a huge reality show so he at least gets some money when he gets locked out
Don't be too quick to give an 'Uggh'. How do you know he didn't buy in at $250/Bitcoin? Now that would be an enviable position
Such percentages are typical of pump and dumps.
Crazy. I've made a few bucks jumping in and out of bitcoin and etherium. Yup I bailed on the way down this time though. Possibly buy back in at a lower level.
Rumors of a flaw in the blockchain seem to have spooked some holders.
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