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Cashing out 100 000 BTC would crash the market down to 0 - right now the MtGox has exactly 105 708 BTC in the order book. Cashing out 100 000 USD however is a
by midnightsine 13y ago
Cashing out 100 000 BTC would crash the market down to 0 - right now the MtGox has exactly 105 708 BTC in the order book.
Cashing out 100 000 USD however is a different story. It actually happened a few hours ago, you can see the impact for yourself[1].
[1] http://i.imgur.com/cjI9ZaT.png http://i.imgur.com/cjI9ZaT.png
- aneth4 13y ago> Cashing out 100 000 BTC would crash the market down to 0 - right now the MtGox has exactly 105 708 BTC in the order book. All demand is not reflected in the order book. In fact, most demand is not. The more sophisticated a trader is, the more likely he is to use limit orders to manipulate the market instead of the rather stupid move of telegraphing demand. If the market went down 10%, a flood of buy orders is not unlikely to appear.
- dragontamer 13y agoIf the market went down by 50% however, and then stayed low for an extended period (maybe two days), then a flood of sell orders will definitely appear. It works in both directions, people who are speculating on Bitcoin will be easily spooked by a medium-term crash.
- aneth4 13y agoOf course. Not my point though. midnightsine is pulling his numbers from limit orders posted on MTGox. I'm saying that's not an accurate measure of what it would take to send Bitcoin to 0.
- GaryRowe 13y agoA more sensible approach would be to take advantage of TradeHill's "dark pools" which enable very large BTC transactions to take place outside of the public order book.