Post
Topic
Board Speculation
Re: Game theory - Any reason for Huobi/OKcoin to not manipulate the price high?
by
quake313
on 01/01/2017, 11:12:28 UTC
This is not a "beartroll FUD, OMG U NEeD CHEAP MY CHEAP COINS" post, its a simple argument:

A) Imagine that you are running an exchange that is so big, that every other exchange is simply following what you do. The price is pretty much attached to your action.

 I think this is a reasonable claim. If you monitor the current price action, the western exchanges never lead, it was not like this in the past, there were actually serious actors, and were leading the price with china following them, and vice versa. But not anymore, now the scene is dominated by OKcoin/Huobi.

B) If A) is true, what should happen naturally is this :

A big miner, or most likely a group of miners will approach you with the deal.

What is the end game for the miners? As any investor, they want max ROI % on the investment. What is the best way to do it? To make the BTC price high and sustained.

If someone has the potential ability to control the price (OKcoin/Huobi), miners absolutely MUST try to bribe them into the manipulation(if they are know what they are doing as the investors). Its a very simple game theory move.


Now, any reason to OKcoin/Huobi to deny the deal?



Doesn't Huobi have its own mining farm?