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Topic: A Theory on what pirateat40 is doing - page 16. (Read 40018 times)
yes, of course i know about occams razor. my speculation assumes the statements pirate made were actually true.
OP, ever heard of Occam's razor?
Exactly, what I wanted to say.
OP, ever heard of Occam's razor?
So here is my guess:
Pirate was approached by "big players" that they want to invest USD in Bitcoin, but without moving the market.
They are committed to buy whatever amount he offers them, as long as the price stays low.
Pirate needs Bitcoins for two reasons:
1 - he sells them for a defined rate to the big players most likely at a high premium
2 - he uses bitcoins at strategic moments when the rate goes too high to create askwalls to push the price down gently. hopefully for him he does not actually sell them.
then he uses his USD to cover his expenses to pay the interest
their hope may be to aquire a significant amount of bitcoins without overpaying. and doing it that way it may actually work.
So my guess is, as long as the bitcoin rate stays relatively low his lending scheme will go on. once the price reaches his pain point (maybe 10 USD/BTC) he will start to unwind the loans and maybe even repay the lenders (or keep all the precious bitcoins himself). in my theory it could very well end with a drastic bitcoin rate increase which could spark another mania.
is this a possibility? is there any evidence which falsifies this theory?
Pirate was approached by "big players" that they want to invest USD in Bitcoin, but without moving the market.
They are committed to buy whatever amount he offers them, as long as the price stays low.
Pirate needs Bitcoins for two reasons:
1 - he sells them for a defined rate to the big players most likely at a high premium
2 - he uses bitcoins at strategic moments when the rate goes too high to create askwalls to push the price down gently. hopefully for him he does not actually sell them.
then he uses his USD to cover his expenses to pay the interest
their hope may be to aquire a significant amount of bitcoins without overpaying. and doing it that way it may actually work.
So my guess is, as long as the bitcoin rate stays relatively low his lending scheme will go on. once the price reaches his pain point (maybe 10 USD/BTC) he will start to unwind the loans and maybe even repay the lenders (or keep all the precious bitcoins himself). in my theory it could very well end with a drastic bitcoin rate increase which could spark another mania.
is this a possibility? is there any evidence which falsifies this theory?
Ah, yes, that's why he recently announced that his interest rate will go down - he knows that the price is going to $10/BTC. High five!
So here is my guess:
Pirate was approached by "big players" that they want to invest USD in Bitcoin, but without moving the market.
They are committed to buy whatever amount he offers them, as long as the price stays low.
Pirate needs Bitcoins for two reasons:
1 - he sells them for a defined rate to the big players most likely at a high premium
2 - he uses bitcoins at strategic moments when the rate goes too high to create askwalls to push the price down gently. hopefully for him he does not actually sell them.
then he uses his USD to cover his expenses to pay the interest
their hope may be to aquire a significant amount of bitcoins without overpaying. and doing it that way it may actually work.
So my guess is, as long as the bitcoin rate stays relatively low his lending scheme will go on. once the price reaches his pain point (maybe 10 USD/BTC) he will start to unwind the loans and maybe even repay the lenders (or keep all the precious bitcoins himself). in my theory it could very well end with a drastic bitcoin rate increase which could spark another mania.
is this a possibility? is there any evidence which falsifies this theory?
Pirate was approached by "big players" that they want to invest USD in Bitcoin, but without moving the market.
They are committed to buy whatever amount he offers them, as long as the price stays low.
Pirate needs Bitcoins for two reasons:
1 - he sells them for a defined rate to the big players most likely at a high premium
2 - he uses bitcoins at strategic moments when the rate goes too high to create askwalls to push the price down gently. hopefully for him he does not actually sell them.
then he uses his USD to cover his expenses to pay the interest
their hope may be to aquire a significant amount of bitcoins without overpaying. and doing it that way it may actually work.
So my guess is, as long as the bitcoin rate stays relatively low his lending scheme will go on. once the price reaches his pain point (maybe 10 USD/BTC) he will start to unwind the loans and maybe even repay the lenders (or keep all the precious bitcoins himself). in my theory it could very well end with a drastic bitcoin rate increase which could spark another mania.
is this a possibility? is there any evidence which falsifies this theory?
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