A stupid question regarding Bitcoin.

[Ni Pi]

I would stay far away from speculative investments to be honest.

 

[jazzc]

Diamond is not solving any problem too, but it's costly because it's demand is way higher than supply. Prices of the product are not dependent on its problem-solving capability, but on the feeling, the buyer gets when he/she buy it.

If I get the last apple in the world I will be really happy.

And if you think what would I get by buying it. The answer is "the same feeling you get When you buy a Diamond - And I can eat that apple but what will do with that piece of stone??

You forgot about substitute goods. Apples are delicious but consumption volume depends on the price. If apples tomorrow cost $100/piece, people will simply prefer to buy a different fruit to satisfy their wants. So, the tactic of "I will control all the apple production, constrain it and then profit from my high price sales" is - to say the least - a money losing proposition.

 

[lacifitra]

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.

He bought?

 

[Jamesjohnson74]

You forgot about substitute goods. Apples are delicious but consumption volume depends on the price. If apples tomorrow cost $100/piece, people will simply prefer to buy a different fruit to satisfy their wants. So, the tactic of "I will control all the apple production, constrain it and then profit from my high price sales" is - to say the least - a money losing proposition.

So, Why don't people start buying "silver" when prices of gold or diamond go higher.
As all 3 product are used for the same purpose and people can easily replace one with another.

 

[evag3]

I think you can try this with other altcoin with small marketcup

 

[jazzc]

So, Why don't people start buying "silver" when prices of gold or diamond go higher.
As all 3 product are used for the same purpose and people can easily replace one with another.

For 2 reasons:

a) Because your premise is wrong. Gold/silver/diamonds aren't used for the same purpose with the same intensity. For example, few buy diamonds as an investment.

b) Because when something is used as an investment and not as a consumption good, the price itself does not matter. Only what the investors think the price in the future will be matters. For example, it does not matter if the current price of stock X is $100 or $100k if people expect it to rise 20% in a year. They'll buy regardless.

 

[Jack@]

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.

The reason its not stable is because there is no mass adoption. Once that happens, millions if not tens of millions of people will use BTC on a daily basis which will definitely make the price stable ( at a high price ofc. )

At a low volume market price manipulation is easy. Crypto is not the only place where it happens though, manipulation happens everywhere including the stock market.

 

[waitingforday]

10 mills will affect the price if you buy it on exchange, you need to buy them personally from other people, but where do you buy such a huge number of BTC?