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Why do you seem to think that selling them all at once is the only way to sell them?

by mortehu 13y ago

crazydoggers 13y ago
Exactly this! What the heck would you do with $150 million in cash... stick it in a $250,000 FDIC insured bank? Most people with this level of wealth diversify their holdings, which makes the total amount less liquid, but much more secure, as well as providing protection from inflation or returns on investments. Real wealth often does not have perfect liquidity, and I would argue in these amounts, almost never does. Selling 100s of thousands of dollars worth of bitcoins a year for USD would hardly put a dent in the markets, and is probably the most anyone would want to do. The purchase of an asset would instead be made directly with bitcoins in a transaction such as this.
- skorgu 13y ago
  A redundant array of insured deposits of course. I'm actually serious, there's a service called CDARS [0] that balances a large number of individual CD accounts of varying expiration times and maintains the 250k per individual per institution invariant. It acts like as single (albeit illiquid) bank account. [0] http://www.cdars.com/ http://www.cdars.com/
nly 13y ago
Even in 10,000 BTC chunks you're looking at dents in the market price of ~30% at most exchanges. How long would you plan on selling off these coins if you chose to do so?
nandemo 13y ago
I don't think grandparent comment is arguing that. The post is about a transfer of 195k bitcoins (not dollars) from one wallet to another, all at once. However, as grandparent comment points out, the title is inaccurate: even if this transaction indeed involved an exchange of dollars, it's incorrect to assume that the dollar amount was 195k × (current BTC/USD rate). You could probably make such an assumption for, say, JPY/USD, because the daily volume of yen trading is measured in hundreds of billions U$. Not so with bitcoin.
- nly 13y ago
  Thanks, that's a very concise and precise way of conveying what I was trying to get across.

Why do you seem to think that selling them all at once is the only way to sell them?

by mortehu 13y ago

Why do you seem to think that selling them all at once is the only way to sell them?

Exactly this! What the heck would you do with $150 million in cash... stick it in a $250,000 FDIC insured bank? Most people with this level of wealth diversify their holdings, which makes the total amount less liquid, but much more secure, as well as providing protection from inflation or returns on investments. Real wealth often does not have perfect liquidity, and I would argue in these amounts, almost never does. Selling 100s of thousands of dollars worth of bitcoins a year for USD would hardly put a dent in the markets, and is probably the most anyone would want to do. The purchase of an asset would instead be made directly with bitcoins in a transaction such as this.

skorgu 13y ago
A redundant array of insured deposits of course. I'm actually serious, there's a service called CDARS [0] that balances a large number of individual CD accounts of varying expiration times and maintains the 250k per individual per institution invariant. It acts like as single (albeit illiquid) bank account. [0] http://www.cdars.com/ http://www.cdars.com/

nly 13y ago

Even in 10,000 BTC chunks you're looking at dents in the market price of ~30% at most exchanges. How long would you plan on selling off these coins if you chose to do so?

nandemo 13y ago

I don't think grandparent comment is arguing that. The post is about a transfer of 195k bitcoins (not dollars) from one wallet to another, all at once. However, as grandparent comment points out, the title is inaccurate: even if this transaction indeed involved an exchange of dollars, it's incorrect to assume that the dollar amount was 195k × (current BTC/USD rate). You could probably make such an assumption for, say, JPY/USD, because the daily volume of yen trading is measured in hundreds of billions U$. Not so with bitcoin.

nly 13y ago
Thanks, that's a very concise and precise way of conveying what I was trying to get across.