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I don't like these "paper rich" comments. Why? Because the vast majority of people who hold BTC can market sell their coins now without affecting the market. Y

I don't like these "paper rich" comments. Why? Because the vast majority of people who hold BTC can market sell their coins now without affecting the market. Your statement, from my understanding, is saying "if people cash out, everything will crash". That's simply not true. More so, it's not true because that's fundamentally not how markets work. Whenever someone buys 400 BTC, that means someone else sold or "cashed out" 400 BTC. This is a highly liquid market system with many participants, not a lottery system.

pmoleri 9y ago
However it's crazy how volatile it is. When you Cash out, you would put your money in a less volatile currency or asset.
pizza234 9y ago
> Your statement, from my understanding, is saying "if people cash out, everything will crash" I never wrote that. I've been quite specific: > BTC may be toilet paper tomorrow, or maybe not; and this is how lotteries work. The difference between wealth and "paper wealth", in this interpretation, is simply in the volatility of the assets. BTC is extremely volatile both in the short and long terms, therefore being rich can't be disassociated from the cash out. Association is the concept I'm stressing. With lowly volatile assets, one can be reasonably confident the value of the assets, so cashing out can be reasonably ignored, but with highly volatile ones, one can't, so it's all about the moment of the conversion. Lottery has probably been a wrong term - probably gambling is better, but the concept still stands.