Where Does The Money Go When Crypto Prices Crash?

in #steemit7 years ago (edited)


Source

I am starting to see another coincidence with fiat here, when crypto crashes a lot of money vanishes, it actually disappears, we just lost about 60 billion dollars from the market cap. Where did this money go, and most important who lost it? I think who lost it is easy, it's the guys who had invested more than they could afford and when the price dived they had to sell because their finances couldn't deal with it.

It went nowhere, it actually didn't exist, crypto just like any other currency or stock is based on speculation, sometimes you win sometimes you lose, at the moment most people are losing, of course if you've got a couple of grand that you can play with you can hold on to your crypto and most likely you will make a profit once there is a price increase.

The problem is suppose that is your only couple of grand, then you are going to lose big time because you don't have the capacity to hold on to your currency you have to sell, and that is where the whales profit, but who are the whales?

I wrote an article a couple of hours ago about this, and then I've read some comments and I found one very intriguing, a guy told me that yes it could be manipulation but that was to be expected, the only problem he saw was if there were big banks involved in this manipulation.

Well they are involved, JP Morgan's CEO made some hard remarks about BTC and all crypto's, so couldn't JP Morgan want to see the price go down and then buy it all up, of course not just JP Morgan probably all the big banks and probably also a couple of governments, China for example, some of the biggest banks in the world are Chinese maybe the government which is their owner is just helping them out so they can make some huge profits and also get to control the whole market with the new ICO and crypto exchange rules.

Anyway I am powering down my Steem and I sure wish this thing hits bottom as soon as possible and starts it's upward trend quick, I know this is wishful thinking, as it could also burn out completely, but all I can do is hope, it would be sad to see Steemit disappear.

I found this quote on the Forbes site, think what you want about it:
"Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment."

Sort:  

@gduran
The money doesnt go anywhere in reality,if u are a wise investor,u can't lose your funds as the market would stabilise after a short while,the news in crypto currency triggered by
the big guys to instill fear in infant investors so they can take advantage of the situation and buy coins at a much lower price....we have seen such in 2015 and during the fork....if there is something that is almost impossible this year....its the ban of btc...btc is the future....the real question here is can u ban the future?

I don't know, no one can really predict the future, and crypto is very volatile, I think it could go either way, as for investing I think it is a hit or miss thing, you hit a few times and then you are an expert and in reality all you have had is luck.

this things scary me...
d7a979c8f8c4c6b765291a5ad7202961.jpg

If u have 1 btc...even if the price of btc goes down to 1000$...u still have 1 btc...d only difference is the slack in price....

You would have nominally lost 4,000 that you could have made if you had sold at $5,000.

Yea yea....correct
The profit made in crypto currency is because of the risks we take

Yes, but the problem is, people make a mistake, they see the chance to make easy money put in more than they should, there is a price dump like right now and they lose, of course you can blame this on greed.

Well about that i believe if u want to make money...u have to lose money

Have you really thought through what you wrote?

What do you think of the government possibly classifying bitcoin under a pyramid scam?

Well the government can classify it in whatever way they want, I don't think governments are very much trusted anywhere in the world.

the beautiful thing about steemit is that ALL I have invested is my time.
...before I found steemit i was doing the EXACT SAME THING...for free.

Frankly, before Steemit I hadn't written much, I have never thought of myself as much of a writer so I hardly ever did it.

If you can thinkit you can steemit.
don't limit yourself.

Good point! If its whales selling off to buy more at a lower price thats just how this game rolls, but if its big banks and goverments manipulating the market to buy big chunks of btc and other cryptos they will control the market just how they do now. Sad but i wouldnt doubt it.