Post
Topic
Board Bitcoin Discussion
Re: Will it help bitcoin if we shift funds to it ?
by
d.kevin29
on 19/10/2019, 20:58:37 UTC
Edit: Just read the thread once again and found out I actually misunderstood. Re-writing now and adding a follow-up edit later..

Edit 2, with proper reply: The market would be, indeed, influenced by these moves. Moving from alts to Bitcoin means selling alts and buying BTC instead. Therefore, it means negatively influencing the price of the alts you're holding and positively influencing BTC's. This happens a lot when those insane 2017-like price changes take place, so it's something usual and the same thing applies for a vice-versa movement: moving from Bitcoin to alts means selling Bitcoin and buying alts, so the opposite effect takes place on its price.

I think no one has this idea how the market will react.

I think the history of Bitcoin & alts sharp price movements are enough proof to show how markets would react. But it needs enough volume to influence the entire market and not just one exchange, so good luck with that unless you're holding millions of $.

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No. All moving funds helps with is creating fake volume, and unless you have millions nobody would care about your transactions. Otherwise, you'd have those whale-watchers who do care about the big sums and would play the markets based on the moves. If the inputs/outputs are unknown though, again, it doesn't help at all.

Artificially changing an asset's price does not make it stronger at all. In fact, it's quite the opposite. It's short-lived and even if you were able to easily influence it, you would only be able to profit in the short term.*

Whales are moving huge sums around almost every day (if not daily, I don't really check these transactions often at all), and whenever a huge amount is sent to an exchange wallet address, the speculators will guess the whale is about to sell. In case the opposite happens (the money is coming from an exchange wallet to a private one), the opposite thing is being speculated (they are either about to hold or spend their huge amounts).

Therefore, shifting funds all day long would only result in a lot of small transaction fees summed up for no visible (or even if visible, they're short term) results.

*You can profit off the influence on the short term only if you know how to handle the markets well enough. And still, it isn't worth it in my opinion.