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Maybe. We are getting into something which is a bit complex here. And I'm assuming neither one of us are experts. People who are interested in holding Bitcoin

by gexla 12y ago

Maybe. We are getting into something which is a bit complex here. And I'm assuming neither one of us are experts. People who are interested in holding Bitcoin probably aren't people I'm going to be interacting with. If you are holding, you aren't selling. My use case will help Bitcoin by creating demand, and helping liquidity. I'm buying and then turning around and selling. I using up available liquidity and then selling to create more liquidity. That liquidity also helps other people looking to do the same as me. You then have a pool of Bitcoin which is basically just zipping between people who aren't affected by price. People who are speculating on the very short term don't necessarily care about price either. They may only care about up and down movements. Just as day traders of stocks don't necessarily care about the name of the stock or even the history. All they see is movement. In this case, volatility may actually be good for these people (I don't know, I'm not a day trader.)

dragonwriter 12y ago
> People who are interested in holding Bitcoin probably aren't people I'm going to be interacting with. Sure they are. > If you are holding, you aren't selling. But if you are interested in holding, you are likely buying. And remittance use case requires you to interact with both a seller and a buyer. > I using up available liquidity and then selling to create more liquidity. Which is basically a net zero impact, but sure. > That liquidity also helps other people looking to do the same as me. You then have a pool of Bitcoin which is basically just zipping between people who aren't affected by price. Except that if you want those transactions to get processed, you need miners, who are interested in price, since they get paid in bitcoins (mining new blocks and/or transaction fees; over time moving from the former as the main reward to the latter.)

by gexla 12y ago

dragonwriter 12y ago

> People who are interested in holding Bitcoin probably aren't people I'm going to be interacting with. Sure they are. > If you are holding, you aren't selling. But if you are interested in holding, you are likely buying. And remittance use case requires you to interact with both a seller and a buyer. > I using up available liquidity and then selling to create more liquidity. Which is basically a net zero impact, but sure. > That liquidity also helps other people looking to do the same as me. You then have a pool of Bitcoin which is basically just zipping between people who aren't affected by price. Except that if you want those transactions to get processed, you need miners, who are interested in price, since they get paid in bitcoins (mining new blocks and/or transaction fees; over time moving from the former as the main reward to the latter.)