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Disclaimer:

I have to start this post off with a disclaimer. One of my cousins claims that I am copying and pasting from Wikipedia. I just want to say that I may reference other people’s material and share quotes with you from other people that are valid and relate to the topic, but I do not just copy and paste material that is not relative to the topic. I give credit where credit is due, and I strive not to plagiarize other people’s work. This being the case, my cousin is merely trying to get me out of his field of internet marketing. LOL, apparently he can’t handle the competition.

Bitcoin Has Increased In Value

This morning I woke up and looked at my Bitcoin Miner. The market value was $11,644.95. It has spiked over the past few days to $13,778+, but has dropped again to the current (as of writing this post) value of $11,226.58.

As I stated in the last post about a flat line trade, the holder sets an ask price & the purchaser sets a bid (the price that the purchaser is willing to pay). The holder can hold until he/she gets the ask price or near the ask price. Anyone holding a stock usually wants to move that stock with gains. It’s easily explained in a scenario.

Here’s the scenario:

Person A & Person B, along with Person C

Person A has a dairy farm and sells his milk and cheese to Person B regularly. They hold camaraderie for years on this venture.Annie Spratt photography

Person A gets a bid for milk and cheese from Person C. However, Person C wants lower quality and mass production. Person A knows their cows can produce enough to meet Person C’s high demands for lower quality. Plus the dairy farm only needs a few more things to mass produce.

Person A talks to his friend Person B. Person B only buys a small quantity and doesn’t want to hold back his friend. Person B sees an opportunity to profit in more than one way. He tells Person A, “I have what you need to get the job done”. Person A asks what Person B has planned.

Person A listens as Person B explains his profit sharing idea. Person B loans Person A the money to get the equipment. Person B also states that the only stipulation is that he gets his milk and cheese at a discount until the loan is paid back. Plus he gets Person C’s information to carry Person C’s brand. They agree on the terms and seal the deal.

Now Person A’s milk and cheese have an established reputation. Since Person B has the inside information on Person C’s quality of goods, he decides to incrementally mark up his prices on Person A’s goods. He establishes Person A’s goods as a quality product line by showing their value compared to Person C’s goods.
Myriams_Fotos

Since the products are virtually from the same cows, he places Person C’s products at a competitive value to Person A’s goods. People see the prices on Person C’s products in the market and start buying Person C’s products from Person B.

Person A’s product is still managing to make a flat line sales pattern in Person B’s retail accounting. However, do to the money loaned and the discount, Person B manages to still make a profit on Person A’s milk and cheese.


How is Person B making a profit on a flat lining retail product?

  • Discount or Wholesale price on product
  • Additional discount on product
  • Incremental, but competitive pricing on product

Here’s a mathematical look at it.

50% Wholesale cost, 25% discount due to loan

Person B is now purchasing at 75% off the ask for the milk and cheese. That’s pretty cheap pricing on Person A’s part, but he can’t really ask for a 25% increase on his milk until Person B increases his ask price in the retail end.

Person B also has the competitive mark up from the sale of both Person A’s and Person C’s goods. Person A could wait to up his prices, because he still has the cows and both Person B and C want his milk and cheese. Technically they are both receiving the products from the same quality cow’s milk, and the difference is merely the technique of processing the quantity.

Application:

You may be wondering how this applies to the stock market. Well, Person B is the holder of Person A’s and C’s stocks. And, Person A is the holder of Person B’s and C’s stock. Person B holds his stock and jacks the prices on the flat line stock. He sells both for a profit and only holds a portion of the stock remaining. But, Person A holds a stock that produces Person B’s and C’s stock. Thusly, Person A holds a valuable commodity.David McBee

This is relating to the flat line, the holder jacked the stock value to $13,778+ on Bitcoin. He only sold a portion of his stock. He continues to hold on to that stock which increases its value as the value of the stock incrementally rises.

Now, he’s earning a +185% (or whatever the value increases to) on his holding and he sells another portion of his holdings in the stock. The new owner of that stock either gets the bull or bear in the market when he sells.

This is where the holder can sell a portion of his stock at a lower rate and still has a profit from the value that he’s gained while the prices are up. The profit from holding varies as the market value changes. When the holder sells off a significant amount of his holdings, this can either drive the market up or down.

Usually, a person that has a significant amount of holdings in a stock will continue to hold onto that stock. A stock is a voting share with a company. Most people that hold a stock want to keep their voting rights. The amount of weight that each voting right holds is comparative to the amount of shares held.

Basically when a person holds 1,000 shares, his vote is 1,000 votes to 1. This means that he doesn’t have to vote 1,000 times, but his one vote holds 1,000 votes in it.M. B. M.

Will Bitcoin Continue The Trend

Yes, Bitcoin will continue trending as it is a stock and all stocks or commodities that are traded go through bullish/bearish and flat line trends. This is what buying and selling and trading stocks/commodities is all about. Will this process ever end? Probably not. Why?

If you have any questions or comments or want to lend your experience to the public, please comment and subscribe. If you’d like to become a Bitcoin Miner (it’s totally FREE), check out the links below.

Bitcoin ASIC mining go to https://get.cryptobrowser.site/6836895

Or out of the USA go to:

https://forcount.com/register?reffer=CountessofArmaghBelfastIr

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