3 ms·
Does bitcoin have enough volume for a millionaire to cash out without crashing the price? How much bitcoin <--> dollar conversion happens in a day? I'm curiou
by mynewwork 14y ago
Does bitcoin have enough volume for a millionaire to cash out without crashing the price? How much bitcoin <--> dollar conversion happens in a day? I'm curious if a "bitcoin millionaire" might end up with a tenth of that if they tried to sell and their selling drove down the price.
- LyndsySimon 14y agoMarket cap is just over $1b USD at the moment. A guy used MtGox to sell 5,000 BTC the other day, and caused a small dip - about 15%, if I recall. That's about 500k USD out in an afternoon. Some exchanges also have "dark pools", designed to allow big investor to get into and out of the market "quietly".
- BoyWizard 14y agoA single person cashing out can cause a 'small' drop of 15%? Imagine the chaos if the USD crashed 15%. That's recession territory.
- codemonkeymike 14y agoA Billion dollar stock is much more liquid then the BTC market, as a lot of bitcoins have been lost and many more are being horded.
- iaw 14y agoYou can determine this by looking at all of the exchanges bids for BTC. Combine them, order them by price descending, integrate until you have $1 MM. Whatever BTC price that is is where someone would move the market to if cashing out $1 MM. Realistically, if you had that much BTC to sell it would be wisest to do it in phases, or better yet, tiers. Offer volumes of BTC at various "outrageous" price levels (eg, $5 over market, $10 over market) and make sure you put a substantial amount of volume at each price level. Whenever the market surges you'll cap the exchange rates at your price levels until all your volume is depleted. In fact, you can see people already doing this on some exchanges...