In simple terms, whales sell at a max price to retail customers, and they then panic at some point and become weak hands, which is then re-used by whales for a new accumulation. It definitely makes sense if we consider the old assumption that there are about 10% of extremely intelligent people who control 90% of the world’s wealth.

Yet the distribution view is something many disagree with (judging by the comments below the WW tweet), as many disagree that the middle-class category has 10-1000 BTC, and most others under 10 BTC make up only 14%?

The most important difference between ordinary people is that they have incomparably less purchasing power than the 10% at the top, which means that it is not a problem for them to buy all the BTCs on the market, only if they want to. I would love to see those who would refuse to sell for $100k or more per BTC.

In fact, whales are using the institutes to create instant hype in the market after hdling enough bitcoin in their reserve at the lowest price, then when the market gets hyped, rises at the top, and stabilizes there, whales gradually sell their holdings to retailers. Thus they buy at low and sell bitcoin at the highest profit. Then after making profits, they use the rest of their holdings to make dump the market, then panic selling starts and the whale starts to accumulate their holdings again.

Assume that there are ten participants in the bitcoin market, each with 10 yuan. If it is a small number of people making money, one of them earns 2 yuan from the other nine people, this person has 28 yuan, and the other nine people have 8 yuan, and the game can continue. If most people make money, nine of them earn 2 yuan from one person, and nine people have 11 yuan. One person not only loses money, but also owes 8 yuan, and the game can't be played anymore.

If a few people make money, the market will be sustainable; if most people make money, the market will collapse.

These are the rules of the game and the embodiment of human nature. Long-term holding is the kingly way, and I will continue to recharge my faith.

Smart, lucky and adaptive people are whales.

Luckiness is not enough because if they are not smart and/ or believe in Bitcoin & its economics, they would sell Bitcoin years ago when price was very cheaper than now.

Smart and adaptive people can make their fortune from zero but I know there are not so many self-made whales like that.

That’s why I believe education is the answer. We the plebs should first understand the basics of Bitcoin, how and why the incentive structure works, Bitcoin’s value propositions, and how the protocol can be a fall back in case the government loses control of the monetary system. Maybe that would stop our fellow plebs from selling their coins to the billionaires?

This definitely makes sense, although this theory often conflicts with the notion that most BTCs are still in the hands of early adopters who mined in the early years - but we can't know how many sold those coins and how many lost their private keys. So it’s possible that the intelligent ones really recognized the opportunity and grabbed it when they saw that BTC really has the potential to achieve incredible growth in the future.

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I must admit that I was not familiar in detail with the Pareto principle, but no matter how the author did his statistics, even without this principle it is no wonder that the intelligent (and rich) will again be able to outwit the less intelligent (and poorer) in the end. Whether it’s just that someone is intelligent or has more money, or maybe it’s about access to information when it comes to recognizing the right opportunity, it’s hard to say.

From my personal example, I can say that I first heard about BTC at the end of 2011, but I did not understand at all what it was about - until 2014 when I decided to study the whole thing a little better. I believe that rich people have very smart financial advisors, which is why they have a great advantage.

How can you study something that has different affects on the price? The Covid pandemic created economies to plummet and everyone thought that Bitcoin would dump because of it but it pumped after the pandemic started and then a couple of months ago when we have been in the pandemic for over a year it started to dump.

I don't believe that many people became rich with having Bitcoin in their possession. They may surely be smart, lucky and adaptive, but only a fool would believe that Bitcoin would reach to $64,000 back in 2010-2013. If you were to told them, I'm sure they'd laugh on you.

Bitcoin made rich those who had lost Bitcoins and found them later. The ones who became rich with Bitcoin, became mainly by accident and not due to their own crisis.

But the difference between truly understanding, and understanding nothing would be a big difference in my opinion. I believe it can start their path into a HODL-type mentality, which can also reduce the emotional stress of HODLing.


OK, I will do my research.