takes puff
so the article i just read about goldman sachs predicting an impending BTC crash basically gave me the impression that goldman sachs plans on crashing the market and buying up all the cheap coins. surely other banks will follow. correct me if im wrong, a bank or investment firm buying bitcoins essentially takes the coins out of circulation, so my question is: how would this affect my ability to buy bangbros accounts? in all seriousness what happens when the block difficulty is so high, or god forbid the final block gets mined, and 99% of the btc thats supposed to be in circulation is sitting in cold storage in fort knox/the chinese equivalent?
will one day a satoshi be equal to a dollar? what happens when a satoshi is worth more than a dollar? when its worth 1000 dollars? when its so high that the lowest amount you can acquire of coin is more expensive than a normal working class person could afford? when a satoshi is 1000 dollars how will transactions get processed if nobody can afford the mining fee? im honestly amazed ive never seen these hypotheticals asked or answered before......
I would respond in more depth, however the casual worried mention of bang Bros + blocking the bang bros screams meth induced paranoid intellect. Yeah.
Anyways, the way this works is very simple. Goldman sacks (and other investment firms) never make money by HOLDING a stock/ currency. Say Goldman owns 1000 bitcoins at current price of $4k+... Say it goes all the way up to $5k... They haven't made any money YET. They only make money by SELLING.
Derp de derp, thanks captain obvious... Right, hang with me.
Firms make money by SELLING, namely by buying low(ish) and selling high(ish, not with Tina obviously). Let's say Goldman bought a shit ton now (possible); they have no interest in simply holding onto it forever. What they would want is to buy it, hold it till it goes higher, dump it, then buy again on the rebound as it goes down (ideally when it hits a low). In other words, your not going to have difficulty GETTING Bitcoin irregardless of Goldman involvement.
Derp de derp. Right. Bear with me once again. This is stock trading 101.
Let's move to investment.
If Goldman truly is going to invest a shit ton in Bitcoin or already has, we will likely see the following:
Goldman will stoke hype that Bitcoin will go up further (they've done this like yesterday)
investors will buy in, price will go up further (that's happening)
when Bitcoin reaches sufficient price Goldman will sell a large chunk of not all all their positions in Bitcoin
price will crash.
Goldman will buy massive amount of Bitcoin again, rinse and repeat.
Second to the last point is where INVESTMENT comes in. It's foolish to buy more bitcoins than you role players need at this point, actually if you're holding for investment now is good time to sell.
At second to last point; at the crash, before big players come back in after crash, is where investment is good idea.