he already fights for survival:
- lowering the dividends about 30%
- participating for the first time in market manipulation (on the 17th of July, according to his statement on IRC)
- increased forum activity, spreading (mis)information, trying to foster trust in his endeavour
...
Topic: A Bitcoin Savings and Trust exit plan, incentivizing the destruction of Bitcoin - page 3. (Read 5137 times)
July 21, 2012, 02:13:20 PM
July 21, 2012, 02:05:52 PM
The market price is, over the long term and once the short term effect of speculation is factored out, equal to the success or failure of Bitcoin. This is a direct result of the intrinsic design of Bitcoin.
As for pirate he is in a position where he can easily have a multi million USD short position on Bitcoin and consequently is in an ideal position to profit very well from a complete collapse of Bitcoin. No need for "insider" information from FinCen or anywhere else. The flip side is that a sudden very sharp increase in the market price of Bitcoin could also hurt him substantially. As for the market activity and comments that are attributed to him, this is to me indicative of a bear under a lot of pressure and possibly hurting in a bull market.
The one thing to keep in mind here is that a wounded bear is the most dangerous kind of bear.
As for pirate he is in a position where he can easily have a multi million USD short position on Bitcoin and consequently is in an ideal position to profit very well from a complete collapse of Bitcoin. No need for "insider" information from FinCen or anywhere else. The flip side is that a sudden very sharp increase in the market price of Bitcoin could also hurt him substantially. As for the market activity and comments that are attributed to him, this is to me indicative of a bear under a lot of pressure and possibly hurting in a bull market.
The one thing to keep in mind here is that a wounded bear is the most dangerous kind of bear.
July 21, 2012, 01:17:34 PM
destroying btc != crashing the market
all it would do is making gpu mining unprofitable again.
all it would do is making gpu mining unprofitable again.
July 21, 2012, 01:13:31 PM
besides the FinCen insider tohubohu, wha's the period of time pirate has to notice his lenders before he can seize the BS&T operation to stay in legal boundaries?
July 21, 2012, 01:00:46 PM
Lets suppose the speculation is true, and the Pirate has in fact been selling large amounts of coin. Ostensibly this is to stop bubbles, but another possibility is he's gradually converting a large amount of his bitcoin holdings into fiat. One he's done that he then has the incentive to crash the bitcoin market as his Bitcoin Savings and Trust obligations are denominated in Bitcoins. For instance, suppose he's a FinCEN insider and known's that repressive anti-bitcoin measures are about to be introduced. After the crash he simply has to buy back the coins at much-reduced rates, and he gets to keep the fiat left over as his profits.
tl;dr - The Pirate has a big incentive to destroy Bitcoin itself.
tl;dr - The Pirate has a big incentive to destroy Bitcoin itself.
Jump to: