Published
5 years ago on
September 17, 2018
“If anybody or any group of individuals ever tried to liquidate Mt.Gox’s holdings to do payouts in fiat currencies, the market would crash. He based his prediction on the fact that there may not be enough demand for 170,000 BTC and BCH, so the selling of these digital assets would topple order books, pushing down the price of crypto assets across the board. It’s possible some people would try to instantly sell the Bitcoins as soon as they receive them, but it would probably be less than 100pc of the people doing it.â€What’s the threat? In essence, many of the Mt. Gox creditors are a little disgruntled about Bitcoin. Since Mt. Gox are now going to be making the payments in Bitcoin and Bitcoin Cash, it is indeed very likely that these creditors will sell their Bitcoin straight away in order to take a cut of FIAT, a cut that should hopefully compensate for their losses as a result of the initial Mt. Gox hack. The problem here is that huge waves of Bitcoin will be processed from Mt. Gox, and will then be sold off again, this could initiate two mass transfers that in turn will have a negative impact on the market. Big sell offs cause prices to fall, so, market-wide when other investors see a price collapse, they too are likely to try and sell off. The opposite could of course happen. Creditors could receive the Bitcoin and continue to hold, their decision to sell will of course be impacted by the price of Bitcoin at the time of the ‘refund’. Therefore, in order to have less of an impact, we need to hope that Mt. Gox are able to make their payments when the price of Bitcoin is riding low, otherwise, if Bitcoin is high, a crash could be imminent. References Ethereum World News The Telegraph
