Post
Topic
Board Economics
Re: Bitcoin trading strategy
by
Dotakels
on 25/06/2015, 10:15:03 UTC
for example when he bought 5 btc the price of btc from that time is may we say that $240 per 1 btc and when he spend it the price of his coins was higher than he bought it, so its mean or he could say that he won from that way.

No it is not this case. Basically you are seeing this from the price perspective that is why you and most people are getting the wrong thoughts on it. It is not about the price but merely about what price are you gonna buy it at

i.e I bought at $240 and sell at $242. Im thinking that I am a winner while the buyer is a loser ( this is from the traders perspective, my point of view as well) however Deisik and Borisz pointed out that this isnt always the case because someone that bought at $242 do need the BTC for other stuff which means that in his own point of view he is a winner as well because he got the BTC at the price that he desired for

It doesnt actually matter on how he will spend it because what matter the most is on what price is he buying it at and someone who bought BTC at his desired price is a winner as well.

P.S : hope this clears out , basically this whole things is caused by my silly quote that is only viewing it from a trader's point of view

Exactly. Without knowing what I'll use my bitcoins for, you cannot say if I have lost. Following the 5 BTC @ 240$ analogy, I might buy it at 240 and the seller thinks I'm stupid because I bought a. above market price b. when the price is about the fall. However,
1. I might use this BTC to buy a product or service that is discounted by 20% if I purchase in BTC. Hence I still win almost 20% in price immediately. So what if I lost 2$ on the USD=>BTC trade?
2. I might be selling the 5 BTC as a trusted party on localbitcoins or simply in person to people I know for 250$ in which case I would say that the original seller is stupid to sell me at 240$ because I make 10$ on top of it.

(No insults intended anywhere)

So without knowing what I'll use my coins for, it is hard to say who has lost. If you win, good for you, but that doesn't automatically mean that the other party has made a bad deal. It all depends on the perspective.
My only point is , you can won by selling or buying things with bitcoin, for example if you bought a btc worth $240 then you bought a stuff from online shopping that accepting bitcoin,if the price of that stuff is $ $240 in fiat money but in btc its worth only $220 so that its mean that you won or earn a profit by doing that . That is my only point.