Topic: Its shocking and depressing to read BOTS made bitcoin boom! (Read 4597 times)

I may be cold in my thinking but I have never had much sympathy for those that don't do their research when it comes to money. Laziness and greed are what cause most people to lose financially. Was there any reason to suspect that Mt. Gox would implode? Some, but not really. Was it easy to know that you shouldn't leave tons of liquidity in any online exchange. Hell yes. A tiny bit of research into the nature of bitcoin (and computers) and one knew to keep the bulk of your bitcoins offline in multiple 'accounts', backed up and with the keys solely in your possession.

The world is cold and in the end only you can protect yourself, by doing the work and taking personal responsibility.

I was thinking about this explanation for sometimes,it really makes sense, but do you also realize that for such an exposure to happen  for bitcoins among the mainstream consiousness, a lot of people had to lose a lot of money and cry(i am talking about the Mt.Gox depositors)..

depressing? i'd say yeah.. but shocking? nah, i am desensitized to that shit, but the madness happens every day.

It doesn't but that's possibly also related to natural increase in the price due to adoption and investments. It's hard to tell what the actual effect of the bot situation was, but history that is ignored is bound to repeat itself.

Is it important though ? The market doesn't seem to think so.

Whether information can damage the market price or not, it may still be worth knowing. this is why this is true.

This explanation really makes sense...
+1

One thing you are failing to factor into your equation is that Gox, China, IRS, Bots etc all added exposure for an idea that was not that well known. It spread news of bitcoin more into the mainstream consciousness. And while all of these news events were bad this was counter balanced by the fervor of the bitcoin community responding with its knowledge.
Add so in the past year more places are accepting bitcoin, there are more forums, there are more books, there are more start up companies and venture capitalists, ATMs, exchanges, apps, software maturity, etc. The infrastructure technological, societal and even Governmental has developed as a result of the exposure. And all of that adds value to bitcoin. It'll never see $100 again.   

This. Apparently people don't read anything anymore; they see titles and make statements based on that.

The issue isn't bots; it's with fake trades created from an *internal* bot (whether Mt. Gox ran it or some third party isn't relevant for this discussion).

The whole point of this thread is not about bots being used but the way they are programme to buy with fake or no money

It's neither shocking or depressing.

The faster we inflate the value, the sooner I can retire. There's no shame in this game.

Precisely, if there wasn't enough fiat or people willing to pay whatever price then arb just wouldn't be possible at any real volume.

Nonsense.
Arbitrage by definition involves more than 1 exchange/place to buy and sell.

What's really shocking is the amount of morons that will believe anything written on the internet if it's referred to as "NEWS"

The true value of Bitcoin is whatever price it is. 'willy', if its true, has been off since Feb so how do you suppose that the price people are paying now is fake ?

There have been numerous articles/discussions regarding the "true" or intrinsic value of bitcoin. The intrinsic value of a few virtual numbers is zero. No-one was buying bitcoins in 2009,were they? The value of bitcoin is what people are willing to pay for it. It doesn't matter how that price is reached,bots or not.

Some suggest previous bitcoin booms were also because of this fake activity,in which case it is shocking to estimate what is the true value if bitcoin without all these manipulations.

comparing the entire event to a fictional story for easy understanding...


Dogecoins are available cheap around 70 satoshi, but if there is an exchange like cryptsy programmed with bots to buy dogecoins daily at an increasing price but with no underlying bitcoins paid to exchange..This would drive the price of dogecoins very high..As long as the people cashing out are less than people buying in, this would not put the exchange in problem to withdraw funds, but this is exactly what will happen in a buyers market which is happening.

Even arbitrage and free market wont drive price lower because there is constant ballooning of price at one exchange which is fundamentally a fake activity..

This could even continue until the price of each dogecoin is one million, people around the world believe that each doge is worth a milion and buy and sell for that price, but when this fake activity is exposed then the price will collapse because fundementally the supply demand of dogecoin does not fix the price at one million a coin..this will cause a panic sale at first and then slowly declining price until it is finally back to 70 satoshi or slightly above than that because free market utlimately corrects all manipulations...

Applying this to bitcoin, the price of bitcoin then should be around the price before this fake bot activity started, which is around 100-200$..

but all these is only when these reports are proved to be true..

sure.  my point is , there's nothing to worry about. 

All we have to watch out for today, is any exchange
where withdrawals are delayed (especially for long periods).
Obviously, such an exchange can become insolvent,
as gox did in fact, but also they can be manipulating
prices because there is no arbitrage opportunity.

Well, my understanding (and I'm not a conspiracy theorist so I won't say I agree or disagree) is that the bots were supposedly run by Mt. Gox to create the fake trades. They weren't normal ones, but were made to do the fake activity you were talking about. This is why people are so upset about them.