Hi here !
So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.
My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?
I'm waiting for your toughts
So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.
My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?
I'm waiting for your toughts
When we study Market Types in the books of Economics first type which comes into consideration is 'Perfect Competition Market'. Under this market situation, there are numerous buyers/sellers such that single buyer/seller is not in power to influence price and price is determined by forces of market. Bitcoin is based on this assumption.
But while we continue reading book, we came to know that 'Perfect Market Competition' not actually occurs in any real world industry. So no matters what theory says, Bitcoin prices can easily manipulated by some smart traders, big holders or maybe by some hidden cartels, who knows
