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I found it interesting that last night over the course of an hour the value of bitcoin jumped up by $10. Clearly some people with a lot of money to invest assum
by seanalltogether 13y ago
I found it interesting that last night over the course of an hour the value of bitcoin jumped up by $10. Clearly some people with a lot of money to invest assumed the meeting had a positive outcome.
- ISL 13y agoIf you look at "market depth" plots, you'll see that a small desire to buy or sell BTC has a disproportionate impact on the market relative to market capitalization. Lots of people are sitting on bitcoin, so the few who make trades on any given day have an amplified effect on price. Right now, ~1 million USD can shift the price of BTC by ~$5. That $5 shift changes the effective market capitalization by ~$57 million. You'll know things are stable when a million dollar purchase of BTC shifts the market cap by ~$1 million.
- nhaehnle 13y agoYou'll know things are stable when a million dollar purchase of BTC shifts the market cap by ~$1 million. In all fairness, this is nothing special about BTC. For every financial asset ever, an X$ amount of transactions shifts the market capitalization by more than X$. That's what makes those "X billion $ value destroyed by stock market movement" stories so ridiculous. It would be interesting though to see a comparison of BTC to a range of different stocks and other assets.