Post
Topic
Board Economics
Re: Why bitcoin's exchange rate won't drop too much
by
deisik
on 19/12/2013, 00:20:46 UTC
But this in no case means that you're "supporting" the value of bitcoin. If fact, I would even call such stance hypocritical to a degree, since you're in the first place undermining its value by selling coins at $800 and then pretending to support it by buying it at $400 . This is plain old speculation, nothing beyond that really...

If you only bought bitcoins when the price went down (and spent it on goods or services), that would go for support

Since bitcoin's total supply is limited, if I do not create net sell pressure on the market, I would indirectly support its exchange rate

Of course I can't always sell high and buy low, I might even do it with a small loss, but the result is the exchange rate get supported and majority of the bitcoin's value kept high

If every bitcoiner realize this, that will be the biggest support behind bitcoin. Unfortunately most of the people are short sighted and only care about their own profit, so they are destined to be ruled by a few bankers who can see a larger picture

If what you say were true, then any speculator selling high and buying low would be "supporting" price (bitcoin or no bitcoin) which is obviously not the case, since for every deal there are two parties, one selling and the other buying. The only direct way to support currency would be to buy it when prices are falling...