/biz/ - Business & Finance

[Anonymous No.19967798]

Stocks/Crypto makes NO SENSE AT ALL.
Explain me why someone selling a lot at once causes the price to plummet?
Let's say I have 500000 Linkies, I sell them for $5 each giving me 2.5 million dollars in return. But whatever exchange bought them has them now, so what gives? They're still in circulation but prices go down?? Why?

If it works like this, if I were rich I could just crash all the markets on purpose if I wanted to? Without losing anything? I mean I could just buy all crypto, sell it and let the price magically drop as I keep my fiat.

I don't understadn! fucking economy is a clown field of study

[Anonymous No.19967829]

>>19967798
cringe. LOKI can save you from being totally brain-dead and maybe you can learn new skills once you have money.

[Anonymous No.19967839]

>>19967829
thanks pajeet, are you afraid because I found out your scam market makes no sense?

[Anonymous No.19967842]

>>19967798
the exchange doesnt buy them, it simply facilitates the trades with other people who are buying them. if you are selling a lot, it increases the supply on the market in comparison to the demand so the price does down.

[Anonymous No.19967873]

>>19967842
so scarcity is that important to virtual currency? isn't that kind of gay? shouldn't the value be based on utility?

[Anonymous No.19968005]

>>19967798
nice bait

[Anonymous No.19968739]

>>19967798
>ywn have prime angie wear your blood in a vial around her neck
I cant take it anymore frens

[Anonymous No.19969083]

You’re asking uncomfortable questions OP
Too complex for the local brainlets.

[Anonymous No.19969153]

I have 20 gold coins, you buy 10 of them for $5 each. Your mate wants to buy five of those coins from you but you don't want to sell so you tell him they will cost him $7 each. Now you have five coins and he has the two. I notice that you sold your coins for $7 instead of $5, the new price ATH is now $7.

I have 20 gold coins, you buy 10 of them for $5 each. You then realise that the coins you bought are not actually that good compared to other coins on the market. You want to sell those coins but you cant find a buyer. You contact your mate and tell him you will sell him all 10 coins for $2 each. Your mate thinks this is a deal so he decides to buy those coins, the new price is $2 per coin.

Suddenly my coins are talked about on New York Times as the coolest most valuable coins on the planet. You realise you fucked up, you contact your mate and ask him to buy those coins back, he says sure, they will cost you $20 each. You buy 3 coins from him for $20 because that's all you can now afford. New ATH is $20.

[Anonymous No.19969163]

There is a typo, in first paragraph, you both have 5 coins. Anyways not the point.

[Anonymous No.19969213]

>>19967798

People provide liquidity one exchanges.

Meaning, they don't just sell/buy items. They can also put in orders to sell/buy things at certain prices.

If you want to buy 1000 coins of 'x', and you want to buy them instantly, you will buy 1000 coins at whatever the lowest prices are currently in the order book. So some people might sell 1 dollar, and you will be able to buy for example 200 coins for 1 dollar. But ones you have bought 200 coins, no one is willing to sell for 1 dollar, so you buy some coins for 1 dollar and 1 cent. Etc.

[Anonymous No.19969227]

>>19969213

on exchanges*

some people might sell at 1 dollar*

Too hungover to type..

[Anonymous No.19969239]

>>19967873
>shouldn't the value be based on utility?
Why do you think there are thousands of coins that have no discernible use from one another but still get traded?

[Anonymous No.19969242]

>>19967798
fucking retard