There are still dinosaurs in the crypto world who hodl since Bitcoin's early days, the millionaires by now still holding a lot of assets. The generation which needs to 'die' and distribute their crypto to general public widely. I believe just then crypto will become less volatile.
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Nah..it won't help. I don't want people dead lol.
Even if some individuals hold a lot of crypto, that's the way it's always going to be. Smart people will always be early adopting things. We don't want anyone to distribute anything at all..that is called communism, because who is going to distribute it? Should someone force them to distribute? What happens when they die? Either the Bitcoins are gone for ever, or their children inherits the control of the private keys.
Point is only 0,1-0,5% of the world population owns cryptos at this point. So the problem is not some people owning a lot. The problem is that we don't have mass adoption. Redistributing (which is always a bad idea) cryptos to less smart people would only mean more volatility, because they would freak out and sell it. We need believers who hold on to a lot of cryptos at this point - who will never sell. And then we need to transact and use the blockchains. And only then will we see mass adoption.
Ok, I should have been more clear. By 'die' I just meant that they'll no longer hold massive amounts of Bitcoin as my believe is that these whales are ones responsible for big drops as they probably cash out BTC to diversify / fund lifestyles etc. There's a lot of potential supply sleeping and waiting.
By 'distribution' I didn't mean socialism ;) Just that these coins get sold and move (in line with the market rules) to wider population of buyers.
Imagine you're a regular, average citizen and an 'accidental' owner of 100,000 BTC which you purchased for crack for $100 some years ago. At some stage your BTC was worth $2 Billion US dollars! What do you do now, HODL, or sell as fast as only market demand permits? Of course you'd sell the majority of BTC even if you're a strong believer. There's nothing smart into holding into one asset with 100% of your capital. And there's still many of big whales there in the market. As long as they're in possession of very large amounts of BTC there will be supply pressure hanging over our heads.
Haha..Ok..I'm sorry :) Your nickname is Voluntary-io, and I accuse you of being a socialist..
I agree. But, there is a very small majority if any at all - of normal people - that "accidentally" purchased 100,000 Bitcoin in 2011 and hodleded all the way till 2018. I'm sure you know this, but one can never mention it too often..it's easy to think that "if I only bought in 2011 and hodled until 2017" but, it doesn't work that way. Most people that mined or purchased 1000, 10,000 or 100,000 BTC in the early days sold them at much much lower levels. Those who got in super early, and is still holding are IMO very special people. People who understood the fundamentals very early on, and also took huge risk by holding so long. These people are your Roger Ver, Falkvinge etc. And at some point they will sell some of their coins (if they havent all ready...ver traded most of his into bch :) )
But is there really supply pressure? Yes, there is limited supply, or in fact finite supply - but as you of course know, every BTC can be divided to infinity. So in the future, even 0,1BTC could potentially hold huge value.
I agree that it's a little bit scary with huge whales still posessing a lot of BTC..as they can potentially dump it..Like the Mt Gox sell off. Some say it didnt have much of an impact..but I'm not so sure..All we know is that the entire crypto market crashed after they started selling in December.