4 ms·

I believe they are referencing wash trading[1], where trades are made of a certain security but the buyers and sellers are the same person/group. This makes it

I believe they are referencing wash trading[1], where trades are made of a certain security but the buyers and sellers are the same person/group. This makes it appear like there is more demand for the security in the market, enticing buyers who look solely at trade volume. Forbes did some investigation[2] and found that a a lot of the trades that occur on exchanges are wash trades. So while it's clear that bitcoin is a cultural phenomenon it's hard to say exactly how much of the market is real and how much is a show to get more people holding bags and willing to pick up more. 1. https://www.investopedia.com/terms/w/washtrading.asp https://www.investopedia.com/terms/w/washtrading.asp 2. https://www.forbes.com/sites/javierpaz/2022/08/26/more-than-half-of-all-bitcoin-trades-are-fake/?sh=19d81046681f https://www.forbes.com/sites/javierpaz/2022/08/26/more-than-...

MuffinFlavored 3y ago
> So while it's clear that bitcoin is a cultural phenomenon it's hard to say exactly how much of the market is real and how much is a show to get more people holding bags and willing to pick up more. And to the next layer: how effective it is at getting "people" (how many people/how many dollars) to "hold bags" (invest/purchase it/hold-on-for-dear-life)? How much of Bitcoin's ~160% runup/return this year so far can be attributed to regular Joe's investing their hard earned money into it? How can you quantify what portion/contribution of the probably... billion/trillion shift of money (from USD/EUR/whatever into BTC) it's taking to keep BTC at this $40k+ level? How is there new demand every day?