Topic: Stock bitcoins and stop selling. Let price go above 200$ (Read 3526 times)

There are enough players in bitcoin now that I don't think you could manipulate the price that easily with a forum post.  Want the price to jump?  Your best bet isn't to tell people to stop selling, but to go and persuade merchants to accept bitcoin.  The holy grail would be if Amazon.com started accepting bitcoin, but that would probably take a lot of persuasion.

Interesting, by this definition the central bank always violated Section 9(a)(2)[1] of the Securities Exchange Act of 1934, they have been artificially maintaining the price of MBS and (indirectly) support those MBS related securites for years

Maybe it was central bank who invented those acts and itself is not regulated under the same act

True.  I am assuming these methods for someone already committed to keep up in the inflow of fiat to the exchange as necessary, or already has the fiat waiting at the exchange to buy the coins with.  The strategy was merely to avoid the risk associated with price fluctuations.


I agree with you - given the current climate there is a good chance now that one would end up buying high and losing by the time a purchase is made.  Option 1 still is viable in the current climate, however.

But it's more complicated than fiat -> goods because I have to then transfer fiat back into the exchange.


Right, and that's my strategy (I'll leave the speculating and day trading to others), but with that strategy, I'm not going to buy coins first if I feel there is market manipulation driving the price up to $200 when it doesn't belong there, because then I'm buying high, not low.

I'm not in the country club that knows when the manipulation will end and get out before the correction. I leave that to the day traders. Not my thing.

Agree!

Exactly. Even if this were to occur and cause the price to spike eventually the price would get so high that everyone who was previously colluding in the hoarding would begin selling.
Everyone tries to maximize their own utility. You can't make anyone hold onto their coins rather than sell them. Everyone jumps off the ship as it starts sinking and we're back at market price.

The problem with the OP's approach is that is not a what a free market is.

At the moment when you introduce an artificial rule into a market which prevents true price discovery, even if only for a short time (say 1-3 months), that has the effect of destabilizing the market, potentially for a long time afterwards.

Artificially blown bubbles take a long time to work themselves out, resulting in imbalanced markets for quite a while afterwards.

Even if the intention is "done with the best of intentions", that does not matter, because once you've perturbed the market, it is no longer in it's original equilibrium, with balanced inputs and outputs.

It is akin to the chaos theory analogy. If a butterfly flaps its wings in China, you get a tornado in New York (on Wall St.).

This is the problem with the Federal Reserve, the Japanese Stock market, the housing market and a whole lot of other places today. If enough people or agencies try to "fix the market", all they end up doing is distorting and causing more imbalance in the market. This is what the Central Planning Committees in the Soviet Union tried to do, and they failed miserably at it.

The best way to fix an economy is to let people make their own decisions about what to buy and when, and stop trying to prop up asset bubbles blow up by ignorant idiots who do not want to suffer the consequences of their actions.

The central banks around the world are simply propping up their friends and cronies. Nothing more. By making a statement to hold on to your coins, you are, in effect, no better than any stupid bank or central office who now holds a lot of overpriced real estate on their books and refuses to sell it at almost any price that does not record a profit. Why? Because they cannot book any loss, as they have no reserves.

Artificial orders to "stop selling" have not helped the Italian stock markets any. They go on for a few days or weeks, and then true price discovery takes place. It simply does not work.

There's no need to risk anything if you are worried the price might go down.  If you are prepared to buy bitcoins to then use them to buy goods, you can basically take one of two options depending on how risk-averse you are.

Option 1: To do this, you just need a small float of bitcoins.  Don't buy the coins first, but rather hold the money (temporarily) as cash at the exchange until you are ready to purchase something.  Then, once you make the purchase (with your float), you can immediately re-buy the coins at the current price.  The net effect is the same (fiat -> BTC -> goods), but you have risked nothing.

Option 2: If you are confident prices may rise or at least stay the same (and can handle it if you are wrong), buy the coins first and then buy what you want with them.  You may wind up getting a deal in the end vs if you had bought with fiat in the first place.  There is risk this way, but as I say - if you can't handle that, go with Option  1.

I have done this (option 2) several times over the past couple of months and wound up getting a slight deal each time.  Bought from bitcoinstore and the price in the end by the time I bought the goods ended up being slightly cheaper than if I had made the purchase at newegg with cash in the first place.

Nearly nobody really needs shoes, but it's way more comfortable to use them.
Same goes for Bitcoin.

As far as I can tell there is quite a demand for shoes.

i would like to add that is 10x harder to sell in BTC than usd or eur....

You dont get it do you?

Whats proposed here is basically a sellers strike. There is absolutely no reason why there shouldnt be a buyers strike possible too.

When you have got two parties standing in front of each other and one is demanding 640$ and the other is offering 30$ it comes basically to the point who is willing in to accept the others side offer first.

And there is absolutely no reason why this side should be the buyers side!

Bitcoins cant be compared to corn, wheat or whatever where there is a basic demand for. Nobody NEEDS Bitcoins.

You said it yourself, basically its all just traders. Nobody of those traders really NEEDS Bitcoins.

I did. I never jumped on the bitcoin wagon because of a promise of income. I simply thought it was a interesting idea and fooled around with it for a while. I never held over 5 coins, even when they were worth pennies each. Think about it this way, if bitcoin had a a majority of users (excluding malicious bankers) that made at least the slightest effort to promote bitcoin as a currency rather a get rich quick scheme, you would have a much more social economy, take yourself for example. Bitcoin is not socially acceptable, the Big Mac is.

Well good for you.


Have a nice day.

https://en.wikipedia.org/wiki/Market_manipulation


Just because bitcoin isn't a centralized currency doesn't alleviate you from following the laws in the country you reside in.

I don't live in the US like most people in the world. And this funny country don't have any rights over bitcoin and they law has no meaning for bitcoin too.
The rest i wont even quote because you are just trolling.

i try not sell bitcoin as much as possible. i have been doing some things to try and support bitcoin. definately if i am going to purchase something i try to buy it with bitcoins first.  the other thing i've been doing is trying to spread the wealth. Back when btc was 8 dollars each i made up cd roms with 1 btc in a wallet.dat file and gave them away to my coworkers friends and family. when btc went up to 200+ and was all over the news quite a few of those ppl downloaded wallets.  i dunno how much that helps but i figure it can't hurt.  i try not to think of the 25ish bitcoins i gave away.

If you are in the US are are caught doing this, you probably can be prosecuted.


Sure there is.


If the cost of the item changes with the market that might be the case, but most of us are paid in fiat so if we buy at $150 and then the price drops to $75 resulting in bitcoin cost of that widget we want doubling, we are paying more of our paycheck than if we waited to buy at $75.

Thus if it looks like bitcoin is in a bubble, I'm using cash because it would suck to buy the coins and then have the price plummet before it is spent.


Of course there is such a thing as short term better.

huh? greed allowed bitcoin to grow. nobody would ever know about bitcoin if not a promise of income.

who cares about miners that cant afford electricity. hash rate is high enough for now so if they cant afford mining then maybe they should simply stop this. another group of people who cares only about they profit and forgets that if they lower price then it will hurt them in the long run too.

Greed: the one reason why bitcoin hasn't made a huge advancement socially, and why governments are eyeing it so carefully.