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13 sats \ 3 replies \ @_stacktoshi 8 Jan \ parent \ on: How to run an economic node bitcoin
Because there's quite a bit of psychology involved in these trades. It's not just about the decision to sell fork coin, but also what I'm selling it for. I'm expressing some degree of demand for the original over the fork, or in the case the buyer has run out of the original, I'm expressing that I prefer some quantity of their fiat. I might sell 5 fork coins for $100 today, and tomorrow, because I'm desperate to get rid of that shit, I might sell 10 at that price. Other people see that drop and want to dump theirs as well.
Won't the other people also see that someone was willing to pay $100 or whatever you sell for and think they ought to hang on to their fork coin...you know just in case it catches on? It seems to me that this analogy only takes into account the psychology of the seller, but not the buyer.
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I guess it comes down to demand vs. supply. I'm going to lower my price the longer it takes to sell them/the more people I see selling fork coin. Otherwise I'll raise my price if I see there's very few offers on the market. Buyers look at what's available on the market as well, so they also set their bids accordingly.
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Yes, but for selling to crash the price there has to be a lack of demand.
It is the level of demand that determines the price in this situation, not how many coins people are willing to sell.
For you to sell the coin, there must be a buyer. The buyer is expressing at least as much demand for the coin as is equal to the price you are asking.
Should very many people be willing to buy the coin at a higher price, the coins will be resold until they are trading at a price that is near the highest buyers are willing to pay.
For selling to crash the price, we have to imagine that there is very little willingness to pay more for the coins. Demand is what sets the price.
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