That is true but with constraints.
Generally it’s…
Sell % in short term so long as price is greater than X. (min-acceptable revenue)
Sell % if price greater than Y (short term target price, this is where they make money)
Sell % if price greater than Z (long term target price, long term reserve)
Bills have to be paid but any non-hobby mining operation knows that a certain level of capital is required to keep on hand to make sure low points are weathered if price drops below min-acceptable revenue level (#1).
However, these operations are dependent upon #2 happening in a timely manner, so when you have significant down periods (like the last 5 months) then the upswing at the half-year is far more important. Though that also means many of these companies are sitting on reserves that are ready to sell as soon as target prices are met. Unfortunately this is a larger suppressing force on the market the longer it goes without reaching that happy price area.
At some point these companies need to dump the #2 reserves because that’s where they actually make money (not just scraping by). The longer they wait, the more urgent that need to cash out will get and the lower the acceptable price will be. Again, this is another suppressing force on market price the longer it goes.
LOL. Funny.
Though I would argue that “traders” (those dedicated to trading and not development or mining) are far less important to the market than we think we are. I think significantly more volume changes hands from miners and developers than traders currently. We traders just kinda pick up the middle-man point between the real users.
I can see that changing in the future but I don’t see us there quite yet. Seems to me that spooking the miners makes a bigger impact to market price than spooking the traders does.
Actually, one might even argue that traders are the reason the price has been more manipulated and suppressed over the last 5 months thanks to the futures trading.
Just a thought, nothing to back it.
Without traders no market. You would be left with nothing but a fat electricity bill to pay without a marketplace/exchange/traders/speculators. Mass adoption would not take place if only miners used coins to buy goods and services. It would be like saying that only pilots should fly in airplanes.
I agree with you on this. I’ve stopped mining and have since moved into selling hashing power. I’d rather invest what’s ever left over after expenses into ZEC and play the long game.
I do think that the hot trend of crypto is over. Crypto is not going away, it’s just going to be serious investors that will buy. I’ve seen these types of trends with oil and precious metals. From the charts it looks like oil is making a come back. That’s going to take the quick buck people away from crypto. The smart people know the value and will continue to invest and in time ZCash will be up there in price with Bitcoin.
Actually there are a lot of projects without miners or less miners. From POS, to hybrid, to whatever. A given Coin/Project can find an option without miners while without traders/investors there is no option left to bring in money & volume …
Went to sleep last night with the price around $240 USD. Wake up today and it is $211 USD on Kraken. What happened between that time to make the price fall like that?
damn, BTC down to 6.750 now, 600 USD down in 1 hour …
I don’t think the coinrail hack is responsible for that, more likely the CFTC issue, but maybe the market got angain overflooded with some Mt. Gox Bitcoin mass sales?? Anybody checked?
There is a Chinese wallet with 90 000 Bitcoin in two months, there were two 8000 Bitcoin transfers to a exchange I read. Could be a dump, will look for the article
yes, this is more likely a reason for such drop in price. Can you check if it was a chinese or japanese wallet please? If it’s japanese it’s most likely the Mt. Gox Bitcoins that still get sold in masses…
Thx for posting the link. It’s not a mt. gox adress. Just in case someone is curious what’s still coming from the mt. gox hack, here all wallets monitored and waiting to put on exchanges …
Still 137,891 BTC and 137,891 to be put on exchanges from there as well…
Doesn’t look too good within this year with these 90.000 Chinese BTC and these 138,000 japanese BTC …
I made a little misstake, it was not two times 8000, but two times 4000, still a big deal. No idea where this is coming from or going to. MtG will do some more too, not over yet.
