Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
AlexGR
on 26/01/2016, 21:38:33 UTC
With this temporary general altcoin pump, I am wondering how it is funded.

I have a theory but it's just that: a theory.

I've been thinking about post-fork situations. Let's say a classic fork succeeds and there are large btc holders who do NOT want to dump BTCClassics for fiat, in order to buy more BTCs (core). In that case the only "avenue" to avoid fiat regulations is through altcoins: BTCC => altcoin => BTC.

Altcoins can serve as an effective dumping mechanism. Even a guy like satoshi could dump his 1mn coin stash in BTCC by buying 5-10 alts, and then buying BTCs. With fiat he would have to pass through some type of verification though.

This kind of demand, in such a scenario, would lead to explosive alt prices - even for a while, so being positioned in alts might pay off. On the other hand it could be some major whales feeling the need to diversify a bit. But that wouldn't drive prices up like that. This is pump'ish.