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If you, a single person, owns all bitcoin, noone would buy a single satoshi from you.
by code-is-code 9y ago
If you, a single person, owns all bitcoin, noone would buy a single satoshi from you.
- RasputinsBro 9y agoOk, I would own 1/4 of all bitcoin and make only $250m profit tomorrow. Happy? Do you miss the forest for the trees a lot, or only when you're on HN?
- sp527 9y agoYou seem to be someone who’s not aware of how thin the liquidity is in crypto markets.
- michaelbuckbee 9y agoThank you. Is there an economics term or ratio or something that encapsulates this? In my mind, it's conceptually similar to elastic/inelastic demand curves.
- coryl 9y ago24 hour volume was $1.25 billion USD. Is that thin for a $250m dump?
- jawilson2 9y agoThat isn't how supply and demand and market liquidity works. This is why institutional traders have to break up buys or sells over many transactions. If you put up a huge block saying "I want to buy/sell $X million / Y million units of instrument Z" it is going to strongly drive the market away from your bid/ask. In a market like BTC, it might drive the price down 50% within minutes. In other words, who is going to be on the other side of your market? If you are selling 1000 BTC, and if the top bid price has a quantity of 0.1 BTC, you will blow through the first level, then the second, thrid, etc, through dozens of decreasing price levels, if you are doing market orders. You will take out the ENTIRE BUY SIDE OF THE MARKET, and the price of your last transaction will be thousands of dollars lower than the first price. If you are doing a limit order, then you provide the lowest price you are willing to go, so you might only be able to sell a few coins.
- Cakez0r 9y agoYou would probably have more success selling off 25% of goldman sachs than 25% of all bitcoin.