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126 sats \ 14 replies \ @theonceler 8 Jan \ on: How to run an economic node bitcoin
the reason you dump the shitcoin fork is not necessarily to immediately dump the price of the shitcoin, but because it is a counterfeit bitcoin which does not have the same pristine monetary assurances. Which means it will trend to zero over time against real and actual bitcoin.
Sure, but the holder's decision to sell the side of the fork they don't like doesn't do anything to affect which fork ends up attracting more hashrate.
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It does if they do it in a futures market before the fork actually happens.
Also, price does affect how much hash rate is attracted (I don't get why it wouldn't).
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Deciding to sell doesn't decrease price. This is the point of about half the OP.
Futures for forks are kinda interesting though: I mean if you sell it before the fork, what happens if no one goes through with the fork and the fork coin never exists?
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Supply in this context = a holders' decision to trade one coin for another.
But there is another person who is on the other end of the trade.
If I "dump" fork coin to get btc, why isn't it just as true that the other side of the trade is dumping btc yo get fork coin?
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In the case of a trader who is willing to sell their coins for less than others are willing to pay, what stops a nonideological trader from buying such cheap coins and reselling those coins at market rate?
Obviously, the nonideological trader can continue to do this until the market refuses to buy them or the dumper stops dumping.
As long as there are buyers willing to pay more for the coins than the dumper is asking, the dumper is simply transferring value to an arbitrager. And the price will remain at the highest level people are willing to pay.
Example:
Someone has a limit order to buy 1 btc at $80k. Along comes a whale who wants to "dump" on the market and crash the price. They fill that limit order, offering the buyer some cheap sats.
The buyer could just ride off into the sunset, happy as a clam, or they could say: "Wow, look at this: I can sell this 1btc for $95k (the price that people other than the dumpers are willing to pay) and make a cool $15k!"
And further, if the whale is still dumping, the buyer can say, "Huh, if I do this again, I can buy $15k worth of bitcoin from this guy who is selling at $80k and go sell it for $18.75k! And I can keep doing this until the whale stops selling cheap sats!" ...OR until no one is willing to pay more for bitcoin than the whale is offering.
All the dumper achieves is subsidize the trader who is willing to trade at market rate. They aren't moving the price unless you assume no one would act on the arbitrage opportunity.
As long as there are people willing to trade $95k for bitcoin, the price will be at least $95k. If the price is lower, it means that no one demanded bitcoin enough to trade $85k for it.
Put differently: the only way "dumping" can lower a price is if no one is willing to pay more than the price at which the coin is being dumped. But then, that's not really dumping. That's just selling at the market rate.
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I can't really understand what you are trying to say.
The market price is the midway point between the lowest asking price and the highest bid price.
If you put in a sell order below market price, all that happens is that the bids get filled from highest to lowest until your order is fully filled.
It's not possible to sell at below market price in the market. You would have to do it as a private deal. i.e. you'd no longer be operating in the market.