Post
Topic
Board Economics
Re: Bitcoin trading strategy
by
deisik
on 23/06/2015, 11:17:51 UTC
each time someone get a profit from trading there is someone that lose something in it

This is just plain wrong, sorry. That would hold true for a Ponzi style investments, that is, a zero sum game. Since Bitcoin has uses beyond sheer speculation (that of "buy low sell high"), this immediately renders such statements invalid. Someone sells a bitcoin with a profit, and someone else buys it, then the price drops. It appears that the latter is suffering losses, but if he is not going to speculate but use it beyond the exchange (say, to pay for services), the matter becomes more complicated. And it may turn out that everyone wins in the end, despite the price decrease...

My thoughts exactly, if I want to buy 5 BTC right now because I need it to purchase something, then I consider it a win, without considering if the price is 229.456 or 229.449 $/BTC. So you perhaps win on this trade and think that I have lost, but it is not true. My aim was to get the 5 BTC, regardless of the minor fluctuations on which you make some profit.

If you buy now 5 btc and spent them immediately then you dont win and dont loose at the same time.

The win/lose dichotomy cannot be considered only in financial terms, unless we are talking about speculation or pure financial investments. For example, you have 50% of the total issue of shares by the company you are desperate to take over. Will it matter for you at which price you buy one more share that gives you control over that company ("golden share"), or where the price will move right after you buy that share (in reasonable limits indeed)?