A stupid question regarding Bitcoin.

[John Topaz]

Hey.. I've a question regarding btc. Let's say hypothetically I've 10mil to invest.. will the investment make the btc prices to increase? If so right after the surge if I sell my btc.. I'll make profit right? Or is it just not possible due to the huge market that 10mil doesn't make a difference?

 

[mickyfu]

Well 10m won't make a huge difference. But yes. The reason why Bitcoin will never be stable. because the price is manipulated by pumping huge amounts in, then dumping it.

 

[Gogol]

What does your maths intuition say?
If you bought 3 apples and ate one, how many apples will remain?

 

[Jamesjohnson74]

What does your maths intuition say?
If you bought 3 apples and ate one, how many apples will remain?

My maths intuition says The value of remaining two apples will increase.

 

[Wooten]

Open up any major exchange and look how many btc are being traded at any given time. 10m equals around 1500 btc at the current price. I dont think that it would do any significant change in price that you would double your money or smth like that. You could do that with low market cap, low trading volume coins with significantly smaller part of that money and inflate the price, attract attention and bail ( a.k.a. pump and dump ).

 

[John Topaz]

Well 10m won't make a huge difference. But yes. The reason why Bitcoin will never be stable. because the price is manipulated by pumping huge amounts in, then dumping it.

Does the same thing apply in stocks too?

 

[Wooten]

Does the same thing apply in stocks too?

artificially inflating price in stock market is considered fraud.

 

[Gogol]

My maths intuition says The value of remaining two apples will increase.

In that case you can make millions by just buying apples, lol..

Edit: on topic.. If somebody buys huge amount of btc, the price will go up. People will see the increasing price and buy some btcs themselves too. That way, the price does increase (but the same theory applies when dumping) more than your investment... But it is too much of a risk if that's your life savings.

 

[J0sh]

It would have, say 5 years ago. BTC has a market cap currently of 110~ Billion. So now 10MM will not move the needle

 

[Jamesjohnson74]

Does the same thing apply in stocks too?

It will apply to everything. Since demand and supply affect the price. If you buy something you decrease its supply.
I things The country who make Bitcoin is earning huge profit by doing this but invest in a bigger amount.

 

[Jamesjohnson74]

In that case you can make millions by just buying apples, lol..

Edit: on topic.. If somebody buys huge amount of btc, the price will go up. People will see the increasing price and buy some btcs themselves too. That way, the price does increase (but they same theory applies when dumping) ... But it is too much of a risk if that's your life savings.

Yes, I can.
If I have the money to buy all the apples in the world.
I will destroy all plant of apples and the remaining 99% apples.
Then the 1 % left will make me millions.

 

[Gogol]

Yes, I can.
If I have the money to buy all the apples in the world.
I will destroy all plant of apples and the remaining 99% apples.
Then the 1 % left will make me millions.

Demand and supply.. Lol.. You win.

 

[tb303]

My maths intuition says The value of remaining two apples will increase.

Only if you cut down all the apple trees aswell

 

[Deleted member 813988]

You risk losing 10m

 

[Toz]

The reason why Bitcoin will never be stable. because the price is manipulated by pumping huge amounts in, then dumping it.

This also happens with Forex, which is a multi-trillion dollar industry. It's the nature of currency exchange markets.

 

[Nut-Nights]

Op you just found a way to double your money

 

[Deleted member 719276]

I want to eat apples.

 

[snacky3]

If you buy btc, price on the market increases. If you sell, price decreases.

 

[GraphicArts]

smart question , yes you will make a small profit i think from the prise that will increase , but wy bitcoin invest in a crypto that have only 10 million in funds and you will double his price at once

 

[SamLewis]

Most exchanges will have a transaction fee and usually there will be a divide between the buy and sell amount so even if it does increase it wont be enough to make a profit.

Also, its not as straight forward as basic economics, i.e more demand = higher price. If you buy through an exchange, there is also another person which is selling. If they are selling doesn't that mean there is less demand.