You can short on various exchanges, so as the market price drops, lots of people make a lot of money.
Even without shorting, as market price moves downward, it is only a loss for those holding. Those who got out at $950, and bought back back in at $800 have increased their holdings - as price fluctuates in the future, they increase their leverage.
Finally, you are focusing on fiat which is a tunnel-visioned approach. When BTC/USD drops, for those already in fiat it gives them more buying power. This is a gain, as yesterday they only had 1 BTC worth of fiat, and now they have 1.2BTC worth of fiat.
So it all depends on perspective, and you are right in your view. However there are many ways of looking at things, and my view isn't necessarily right either. I would say they are all valid examples though, of different ways of looking at it. Much harder to say which is "right".
Guvante|12 years ago
imog|12 years ago
Even without shorting, as market price moves downward, it is only a loss for those holding. Those who got out at $950, and bought back back in at $800 have increased their holdings - as price fluctuates in the future, they increase their leverage.
Finally, you are focusing on fiat which is a tunnel-visioned approach. When BTC/USD drops, for those already in fiat it gives them more buying power. This is a gain, as yesterday they only had 1 BTC worth of fiat, and now they have 1.2BTC worth of fiat.
So it all depends on perspective, and you are right in your view. However there are many ways of looking at things, and my view isn't necessarily right either. I would say they are all valid examples though, of different ways of looking at it. Much harder to say which is "right".
negamax|12 years ago