Post
Topic
Board Speculation
Re: Estimate how many took noticeable losses
by
hgmichna
on 12/04/2013, 18:31:17 UTC
If this poll manages to aggregate a decent guesstimate for the number of hurt individuals we might get an idea about how long it will take to replace all of them with new people.

Your question is aiming at an irrelevancy. Bitcoin is a success at any price, as long as people use it to pay for goods and services. Bitcoins were not made for speculation. When bitcoin stabilizes, we no longer need many speculators. Speculators are mainly needed as long as there are idiots in the market, because they collect the money from them and put it to better use.

Looking only at the number of idiots misses the point.

No matter how many, the good speculators, those who buy low and sell high and thereby stabilize the price, always win and stay. Bubbles like the current one are like rainstorms, cleaning the sky.

We will have such speculative price bubbles as long as enough idiots come into this market. This is generally not entirely bad for a juvenile, emerging market. It raises the market capitalization, because it brings in fresh money. This enables the efficient speculators to stabilize the market better.