Why 99% of current Bitcoin owners will never be able to sell Bitcoins for anything close to its imagined current value
Mike Adams | Natural News
May 24, 2017
http://www.naturalnews.com/2017-05-24-do-the-math-heres-the-rational-analysis-why-99-of-current-bitcoin-owners-will-never-be-able-to-sell-bitcoins-for-anything-close-to-the-imagined-current-value.html
Disclaimer: Mike Adams is pro-Bitcoin and pro crypto-currency. For 15 years, he has publicly and repeatedly criticized the central banks, fiat currency systems and the systematic theft of purchasing power from the People by corrupt banking cartels. This is not a hit piece on Bitcoin but rather a rational analysis of why the current Bitcoin BUBBLE is dangerous for novice investors as well as the long-term reputation of the Bitcoin crypto currency. He has mined a few Bitcoins over the last two years. He now holds just 0.25 Bitcoins in total, having just traded almost my entire Bitcoin wallet for physical gold. (Yes, somebody gave him GOLD in exchange for a virtual wallet. Seriously.) Why did he do that? Because he can do the math. Here’s what he discovered:
Number of Bitcoins currently in circulation: Roughly 16,350,000
Current Bitcoin price vs. the USD: Roughly $2500
1,000 bitcoins represents roughly 0.006% of the total number of Bitcoins that exist
Average drop in Bitcoin price from selloff of just 1,000 bitcoins: $30 (see raw data of price moves at Bitcoincharts.com)
Estimated drop in Bitcoin price that would occur from the sale of 10,000 bitcoins (just 0.06% of the Bitcoin supply): $300
Estimated drop in Bitcoin price from sale of 100,000 bitcoins (just 0.6% of the Bitcoin supply): $3000 (but wait, Bitcoin is only worth $2,500, so wouldn’t a selloff of 100,000 Bitcoins plunge the price toward zero? YES, it would.)
Value of Bitcoin if just 1% of current Bitcoin owners try to sell all their Bitcoins: Approaching $ZERO
What percentage of current Bitcoin owners think ALL their Bitcoins are worth the current high price: 100%
Actual percentage of current Bitcoin owners who can unload Bitcoins without crashing Bitcoin values toward zero: Perhaps 1% – 2% (and that’s generous)
Percentage of current Bitcoin owners who are going to learn a very expensive lesson in “tulip bulb mania”: Perhaps 98% – 99%
This is what happens when someone lets their ideas get the better of them. Sure, a lot of what he is saying is not wrong - just none of what he is saying is exclusive to Bitcoin.
When I divide 1000 bitcoins by 16,350,000 in circulation, I get .0000611 not .006
I'm sooo looking forward to Mike eating his words and a little Crow to go along with it. From a Converse perspective, what makes The Monkeys think holds the Value of a Dollar up? Math has NEVER been a rational, logical, predictor of markets... If MATH were True in the case of Monkey Economics, how in the HELL is there a Quadrillion Dollar Derivatives Bubble and ZERO impact on people still using the Dollar. If Adams was right, the US Dollar system would not be used.
Let the Crypto Madness sort itself out, but in the end, Bitcoin is a MUCH better Open Source Ledger for Valuation than the manipulated, Monkey Markets of chicanery that have existed for the previous centuries. It doesn't MATTER how much a Bitcoin is worth ultimately, it matters more that its a BETTER alternative for other PEOPLE. People who don't like Blood Money... [Mic Drop]
It looks like if his other math is right, it would take a sale of 100,000 bitcoin to move the price $30. 16,350,000 X .00611 = approx 100,000.
TVR [#355] 05/25/2017 END OF DAY REPORT - BITCOIN FACE RIP TO THE WHITE MEAT
ALGO CAPITALIST | May 25, 2017