Topic: Virtual Manipulation of BTC’s price on one large exchange (Read 1340 times)

Well there is no doubt that the government will do anything they can to get their hands on money one way or another.

I like exchanges, but currently i do not trust any. Also none offer good service: They are slow at everything, fund block 'cause they felt like that and so on.

maybe for some people exchanges are not useful, but for others it's daily necessity so some regulations would be to the point

I don't know much about gold market shenanigans.  In general, big players that can move a market sometimes use their strength to try to gain an advantage.  For example,  If an institution wants to buy, they may first aggressively sell to drive the price down.  This can create further downward momentum as traders get short.  The institution then closes the short trade and goes long , getting better buy price and now traders are on the wrong side of the market.  When those traders realize they are wrong or have margin calls,
they must close their positions, adding to the now bullish momentum.  This is the classic "bear trap". 

It's just a part of trading...

Unless one party truly controls "too many" coins, bitcoin will be fine.

An exchange doesn't really own the coins unless it's goxxing.
Hopefully people will be more discerning and stop using
exchanges with suspicious withdrawal delays.

Yes, that makes sense. But once again look at the gold market. They sell naked shorts to push the physical price down. You can't just buy the physical at a certain price.
The digital markets can crash the physical markets and then the manipulators come in and buy.

There are limited bitcoins though, so I do think arbitrage would catch up, depending on their timing of the digital dumps. And also, my big worry was one BIG exchange. If that doesn't
happen we probably have much less to worry about, not to mention increasing transactions taking the price up alone.

Luckily the low float of btc and wide adoption will probably win out over the powers that be, not to mention their crumbling inflated fiat.

IAS

MtGox flooded with fake buy orders as nobody would get btc or money anyway, and people still belive the current price or the past thousand. Denialists will die denialists.

Price manipulation would generally create arbitrage opportunities that would be exploited to the detriment of the manipulator, so I'm not sure it's an issue.

Specifically, if they artificially lowered prices, I would buy cheap from them and resell elsewhere , taking profit out of their pocket.  If they artificially raised prices, I would buy elsewhere and sell to them, again taking their money. 

Short selling was not the issue at gox.

When guys like secondmarket get into the game, you know its going to be 10x more secure and legit than gox could ever be.

True, but we can't put the cart before the horse.
We are not quite there yet. In the meantime we need to maintain some control.

bitcoin can work with NO EXCHANGE at all.
open forum, work with email ... exchange BTC.

it's all.

I’m not sure how many of you are familiar with the gold and silver markets and how they have been manipulated primarily through naked short selling of puts. They are also “managed” via sales from central banks. If you are curious here, just do a search on GATA. The last thing a government wants is a rush to a new (or old – gold) currency.

Bitcoin is something different, but don’t put it past governments, central banks, large institutions, intelligence agencies, etc. to work together to “control” cryptocurrencies from interrupting their monopolistic control of monies.

One of my concerns is that a large US Exchange (e.g. SecondMarket) will become the next GOX (too much control) and other exchanges will follow or be heavily influenced by its price. We need to have some form of transparency as the GOX debacle has shown us. If a new and big exchange comes out, what is to stop infiltration due to “National Security”? - Price manipulation would ensue and we would not be allowed to have real price discovery. Not to pick on SecondMarket, but if it is on Wall Street, big money is going to go there (maybe making it a leader of sorts) and it will be ripe for manipulation.

One thing that might have happened at GOX was naked sales (virtual) to drop the
price down. What is to stop this in a new and large exchange with the intent of “controlling” the bitcoin price? SecondMarket even talked about adding an orderly bitcoin price by having buys go through at pre-determined times in groups or the like (to orderly match buyers with sellers, so as to cut down on volatility). It seems to me we need adoption and not management here.

There must be accountability of private keys. We must be able to ascertain that buys and sells are real and not virtual. In gold terms, we must in a sense,
“take delivery” of our “assets”.  The technology is there for this. Do not be overly confident that the market will adjust. Bitcoin is the only free market left, that I am aware of. (Harder to control a decentralized market that is, in a sense, outside regulation.)

Clearly, decentralization of the exchanges would stop one exchange from leading others.

They can’t outright defeat bitcoin but be sure they will want to “manage” it.


Its about sharing