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<p>[QUOTE="ToughCOINS, post: 5426722, member: 20480"]Scary perspective on the risk of being wiped out by a whale's exit from BitCoin . . .</p><p><br /></p><blockquote><p><a href="https://www.kitco.com/" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.kitco.com/" rel="nofollow">(Kitco News</a>) - <a href="https://www.kitco.com/bitcoin-price-charts-usd/" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.kitco.com/bitcoin-price-charts-usd/" rel="nofollow">Bitcoin</a> 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.</p><p><br /></p><p>“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.”</p><p><br /></p><p>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.</p><p><br /></p><p>Most of these larger stakeholders, or “whales” as they are referred to as in the crypto community, are early adopters of bitcoin.</p><p><br /></p><p>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.</p><p><br /></p></blockquote><p>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?</p><p><br /></p><p>I think you get the point . . . Despite what the promoting speculators say, the support for BitCoin <b>IS NOT BROAD-BASED!!!!</b>[/QUOTE]</p><p><br /></p>
[QUOTE="ToughCOINS, post: 5426722, member: 20480"]Scary perspective on the risk of being wiped out by a whale's exit from BitCoin . . . [INDENT][URL='https://www.kitco.com/'](Kitco News[/URL]) - [URL='https://www.kitco.com/bitcoin-price-charts-usd/']Bitcoin[/URL] 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. [/INDENT] 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 [B]IS NOT BROAD-BASED!!!![/B][/QUOTE]
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