Quote from: Arvicco on January 21, 2013, 09:03:24 AM

This is not an issue. When you've decided to allocate significant funds into BTC, the issue is not "driving the price up to 100". The issue is preventing it from shooting up to 100 before you're done with your allocation. BTC "market cap" is ridiculously low, and the free float is much lower still (one estimate is 25%, so just a bit north of USD 40 million). So, deploying even relatively insignificant amount like several million USD is very likely to disrupt the balance and push the price up by quite a bit.

Now, much more interesting question is: How do you actually deploy significant funds into BTC without pushing the price over 100?

Here is how. You move your funds to Mtgox slowly over time, in small portions not more than 50K USD each. You carefully stack your bids, keeping most of them way below the market to avoid influencing the everyday price discovery while taking advantage of petty market panics. You also keep the ask side artificially high with off-market walls to create an illusion of BTC abundance. From time to time you set up huge ask walls close to market to provoke the bears and small speculators into dumping their coins. You buy all the dumps without looking too eager. You damn the moron bulls who show off their bid walls too close to market and scare away the bears. With luck and patience, you'll be able to accumulate quite a bit of coins without too many people noticing what's going on. Your job is to prevent the market from realizing the scale of redistribution that is happening before your funds are fully deployed.

Oh yeah, and you do not even bother to drive the price up. The fundamentals of bitcoin adoption will do it for you in any case, making it a 10-bagger at the very minimum. You are quite sure about it, as you've done your fundamental analysis and due diligence beforehand. So, it does not matter much if it happens within 1 year or 10 years. Let the speculators be excited about "OMG, BTC is going to 17! no, it'll be even 17.5! and then I'll dump!".

Does the market behavior described above look familiar to people watching Mtgox for the last year or so, by any chance? Hmm, I wonder why is that...

Nice to see someone with a little experience on the forum.

That's what the kiddos don't realize. The marketcap is so low it is ridiculous. I noticed the tactics you refer to over the last two months. I actually think you could make a 20 bagger for about 5MM very easily. That's not just driving the price there, but keeping it there.

With most stocks, you are limited by the fundamentals of the underlying security. With bitcoin, your fundamentals are based on making a new store of value and currency. It's almost limitless and the primary driver is exposure and the belief that it is going to happen. If you drive the price up buying, you will create that exposure. It's a self-fulfilling prophecy!

Hey-- Nice ti