I've followed a few posts of MagicPoopCannon and it's painful to read. This is probably going to be a lot of writing.
In early posts, he states "past success is not indicative of future success" and HODLing is for idiots. He says BTC/LTC doesn't pay dividends and shorting is for people who want to make money. He then talks about his ego and whatnot. After numerous people started following his style of things (shorting), he's now made a post about how the market is basically doomed. People also talk about intrinsic value and whatnot.
1. There is not a single Bitcoin multi-billionaire through shorting. You can argue it's because they entered the market early, but the price dropped in the past and there's been shorters in the past.
2. To short, you have to have your coin on an exchange, this is not only insecure (the exchange can be hacked & some don't offer insurance), but you potentially miss out on a fork.
3. A fork is the closest thing we have to dividends. There's no real reason to be discussing dividends anyway, as cryptocurrencies are, by their very name, a currency. However, if you want to draw parallels to stocks, I'd argue a fork is a better payout than what the GBP gave with the brexit crash.
4. Forks are why it is logically impossible for Bitcoin to go to 0. You see, if Bitcoin drops to 0, I will buy all of them. Then when someone thinks of a better currency based on Bitcoin, I'll be the worlds most wealthy person.
5. Intrinsic value doesn't really exist. We have no worth. What we make has no real worth. The world will go on without us. A phone has no worth if no one else uses it. The internet has no worth if no one else connects. A car has no worth if you have no destination to go to. Paper cash has no worth if tomorrow the government says it's banned. The only value to something is belief. If you believe something is valuable, it becomes valuable.
6. When traders trade, they look for patterns i.e. they use past success and failure, to indicate future success and failure (yes, I know, MPC said past success isn't indicative of future success, shocker, he was wrong). If people think the value is going to increase and then stop at point X, they will sell just before point X. When this creates waves, the waves get smaller over the same time scale because people stop slightly before each time, to make sure they make the sale. When the waves flattern out or at the end of the wedge, their belief changes which is why the price suddenly changes more. This creates instability.
7. Whether you chart 1min, 5min, 15min, 1hr, 4hr, 1day, 1week, 1month, 1year, doesn't matter. By believing the price will change and following the same patterns as others, you instigate the price changing. It is a self-fulfilling prophecy.
8. MPC's calls were most accurate when he had the most viewers. He had 1 million viewers in 1 month. Imagine 1 million people all betting $10k on LTC at a resistance level. That is more than enough to influence the price. In other words, it's an elaborate pump and dump group, a self-fulfilling prophecy at best. He's not the only trader to do this. There are millions of traders influencing people to buy and sell.
9. Millions of people buying and selling on cue != Whales pumping/dumping.
10. If everyone holds, the price rises. The price can ONLY rise if people don't sell. You can argue that if you hold, the price drops and you lose money, but that ONLY works if people are shorting. HODLing works, but don't criticise the strategy if it's not being followed.
11. HODLing forever is bad because you don't want exponential increase all the time. However, things are very new still. Companies like amazon, ebay, etc. haven't got aboard, but while the price is jumping around and mostly going down, they're going to be less interested. If you HODL, you help stabilise the market or at least help it look positive.
12. Lasers, microwaves, cars, the internet, books, phones, television, smartphones, etc. were all hated. Tech prevails
In early posts, he states "past success is not indicative of future success" and HODLing is for idiots. He says BTC/LTC doesn't pay dividends and shorting is for people who want to make money. He then talks about his ego and whatnot. After numerous people started following his style of things (shorting), he's now made a post about how the market is basically doomed. People also talk about intrinsic value and whatnot.
1. There is not a single Bitcoin multi-billionaire through shorting. You can argue it's because they entered the market early, but the price dropped in the past and there's been shorters in the past.
2. To short, you have to have your coin on an exchange, this is not only insecure (the exchange can be hacked & some don't offer insurance), but you potentially miss out on a fork.
3. A fork is the closest thing we have to dividends. There's no real reason to be discussing dividends anyway, as cryptocurrencies are, by their very name, a currency. However, if you want to draw parallels to stocks, I'd argue a fork is a better payout than what the GBP gave with the brexit crash.
4. Forks are why it is logically impossible for Bitcoin to go to 0. You see, if Bitcoin drops to 0, I will buy all of them. Then when someone thinks of a better currency based on Bitcoin, I'll be the worlds most wealthy person.
5. Intrinsic value doesn't really exist. We have no worth. What we make has no real worth. The world will go on without us. A phone has no worth if no one else uses it. The internet has no worth if no one else connects. A car has no worth if you have no destination to go to. Paper cash has no worth if tomorrow the government says it's banned. The only value to something is belief. If you believe something is valuable, it becomes valuable.
6. When traders trade, they look for patterns i.e. they use past success and failure, to indicate future success and failure (yes, I know, MPC said past success isn't indicative of future success, shocker, he was wrong). If people think the value is going to increase and then stop at point X, they will sell just before point X. When this creates waves, the waves get smaller over the same time scale because people stop slightly before each time, to make sure they make the sale. When the waves flattern out or at the end of the wedge, their belief changes which is why the price suddenly changes more. This creates instability.
7. Whether you chart 1min, 5min, 15min, 1hr, 4hr, 1day, 1week, 1month, 1year, doesn't matter. By believing the price will change and following the same patterns as others, you instigate the price changing. It is a self-fulfilling prophecy.
8. MPC's calls were most accurate when he had the most viewers. He had 1 million viewers in 1 month. Imagine 1 million people all betting $10k on LTC at a resistance level. That is more than enough to influence the price. In other words, it's an elaborate pump and dump group, a self-fulfilling prophecy at best. He's not the only trader to do this. There are millions of traders influencing people to buy and sell.
9. Millions of people buying and selling on cue != Whales pumping/dumping.
10. If everyone holds, the price rises. The price can ONLY rise if people don't sell. You can argue that if you hold, the price drops and you lose money, but that ONLY works if people are shorting. HODLing works, but don't criticise the strategy if it's not being followed.
11. HODLing forever is bad because you don't want exponential increase all the time. However, things are very new still. Companies like amazon, ebay, etc. haven't got aboard, but while the price is jumping around and mostly going down, they're going to be less interested. If you HODL, you help stabilise the market or at least help it look positive.
12. Lasers, microwaves, cars, the internet, books, phones, television, smartphones, etc. were all hated. Tech prevails
Comment:
Here is my step by step plan which I think would benefit everyone.
A) HODL to increase the price, bring back a bit of faith and have positive news spreading the world.
B) Companies like LitePal, LitePay to help buy things, but without the fail aspect.
C) Regulation. Not bad regulation, just enough to calm the FUDsters. Remember guys, crypto's aren't criminals only source of money. They've used cash for years and they'll happily trade artwork in drug exchanges. That's why even to this day, certain artistically poor paintings are overpriced.
D) Amazon, ebay, etc. get involved. They should start off small e.g. one country, and then grow.
E) Then you consider selling for fiat, but by that point you probably won't have to. A better method would be to buy things with it, this would help the money float around evenly.
A) HODL to increase the price, bring back a bit of faith and have positive news spreading the world.
B) Companies like LitePal, LitePay to help buy things, but without the fail aspect.
C) Regulation. Not bad regulation, just enough to calm the FUDsters. Remember guys, crypto's aren't criminals only source of money. They've used cash for years and they'll happily trade artwork in drug exchanges. That's why even to this day, certain artistically poor paintings are overpriced.
D) Amazon, ebay, etc. get involved. They should start off small e.g. one country, and then grow.
E) Then you consider selling for fiat, but by that point you probably won't have to. A better method would be to buy things with it, this would help the money float around evenly.
Comment:
17. Sorry another point to add is that if everyone shorted, and we all bought and sold based on stupid patterns, this would create such volatility that the market would die within a week.
Comment:
@choppp, For some reason a few typos slipped in. There's no way to edit what's said? "bed" should be "beg" and "hear" should be "here".
Comment:
18. I advise against taking Charlie Lee's comments out of context too. He stated Litecoin could drop in value, not that it would drop in value. I believe he should never have made that tweet (anything can drop in value) as it just put doubt into people's minds, but he wasn't claiming it would definitely drop or something.
19. Telling people to buy at $105, and a million people buying at $105 to cause the price to rise doesn't make you clairvoyant. If you made a post saying the price would increase rapidly, your followers would buy and then the price would increase. Self fulfilling prophecies are just that.
20. I think this covers most things, and I've invested too much of my time writing this but I genuinely want to help people. I don't know how you stare at charts all day and write about it all the time.
P.S Lambos aren't what they are hyped up to be, so clearly you don't own one.
19. Telling people to buy at $105, and a million people buying at $105 to cause the price to rise doesn't make you clairvoyant. If you made a post saying the price would increase rapidly, your followers would buy and then the price would increase. Self fulfilling prophecies are just that.
20. I think this covers most things, and I've invested too much of my time writing this but I genuinely want to help people. I don't know how you stare at charts all day and write about it all the time.
P.S Lambos aren't what they are hyped up to be, so clearly you don't own one.
13. BTC/LTC is finite. People argue they're like tulips, but tulips didn't decrease in value because people stopped wanting them. There are grown more than ever. They decreased in value because they could be planted anywhere, so people lost faith in their value and supply increased relative to demand.
14. Long term, I predict this shorting won't work. The majority of traders lose, so they will exit the market. New buyers become too frightened to get involved, and this creates a huge impact overall.
15. I do not believe the price will drop long term, just that shorting won't work in the way it currently works. News, technological advancements and whatnot will shake people loose.
16. Like I said, there's no bitcoin billionaires through shorting. They usually have their feet out of the water at the important moment.