Crypto Market in Turmoil | Buying 12 Million Bitcoin Could Shift Everything
Edited By
Tomohiro Tanaka
A hypothetical scenario on user boards proposes what would happen if someone attempted to purchase 12 million Bitcoin, potentially half of all cryptocurrency in circulation. This idea has ignited discussions filled with skepticism and speculation on how such a massive move could impact prices and liquidity.
Reality Check: Is It Possible?
Many people have raised key concerns about the logistics of such a purchase.
Availability Constraints: "It isn’t all on the market" one user pointed out that much of Bitcoin is held privately and not for sale.
Price Surge: Others suggest that minimal selling could drive prices through the roof. “Buying just a few million would instantly double the price,
Shifting Sands of Cryptocurrency
As the idea of one entity buying 12 million Bitcoin garners attention, experts predict a strong chance that increased market volatility will ensue. A purchase of such magnitude could bring about a price surge of at least 50% almost immediately due to scarcity and heightened demand. Many people believe that current holders would likely hold back from selling, anticipating even higher prices in the future. This situation could lead to concerns over liquidity as well, with estimates suggesting around 35% of current Bitcoin may not even be available for sale. Consequently, we could see a more fragmented market and changes to trading patterns, reshaping how transactions are conducted.
Lessons from a Titan of Trade
A parallel can be drawn to the California Gold Rush of the mid-1800s, where a sudden influx of prospectors searching for riches created both opportunity and chaos. Much like Bitcoin today, gold was coveted but often not easily accessible. As miners claimed land and hoarded what they found, the prices fluctuated wildly while the market was bombarded with both hopeful and desperate newcomers. When one miner struck gold, it didn't just impact immediate sales, but rippled through supply chains, creating a new economy. Similarly, if one person or entity controls a large portion of Bitcoin, it could shake the entire crypto financial system, leading to unforeseen shifts and patterns in how people invest and trade.