it's simple really. people mine alts because the difficulties are much lower than that of btc. then, when btc rises, they sell off their alts to convert to btc which causes the price of the alt to drop (because of the selloff) and in turn causes btc to rise even more because people are buying it instead of selling.
Wow, I never put the miners into consideration which is something I feel silly about overlooking honestly. The theory I had before is one I still believe but I feel the point you make is also valid then my suggestion.
miners are running a lot behind the scenes. I am pretty sure big mining heavy hitters talk and make back room deals. they are pumping and dumping. alts are really a dangerous place to play. a dev can release a coin. the dev and friends can mine and mine. and then once enough people are in, they can dump. it happens over and over.
Well put jabo38. I have just started paying some attention the the alts and I'm of the opinion that there is some manipulation taking place.
So that does not surprise me that you'd suggest such deals taking place. When you think of whales and miners and the potential of shady deals taking place it puts a lot of things in perspective, when looking for a alternative coin to invest in I'd say. Not to mention the exchanges is just another aspect to take under consideration.
I have my doubts about market manulipation by the miners.
The miners have (usually) invested a lot in their machines.
IMO they would be the last set of people who would attempt to manulipate the market as market manulipation only decreases trust in the coin.
Just to clarify a little, when I say miners I mean larger shady groups not everybody mining in general. It just seems likely to me some coordinated effort to profit from others not in the know is a likely possibility.
I think they overall trust wouldn't be lost in the coin just short term trust. When people panic sell which they tend to do the manipulators then have an advantage because they initiated the problem in the first place.
