So here I am reading my Economics books... and its hits me...
How to double my lifesavings.....
1. Buy 10,000 BTC at $10-12 prices 6 months ago
2. Create many many many many Wallets
3. Sell BTC and ever higher rates using the exchanges to inflate BTC value
4. Wait for something major to happen that causes a finical panic
5. Once inflated to where ever I SELL.... (since in theory I am controlling the market)
@$100 USD I just Made my savings go from 100k to 10mil... all in the span of 3 months BTC trading(better then a Ponzi scheme)?
6. Rinse and repeat
Can anyone tell me how this might be stopped? If this theory might be correct? Better ways to pull it off?
You should read that economics 101 book again a few times, there are a lot of flaws in your reasoning.
Step 2 seems unneccesary, you could have all coins in 1 account on mtgox and achieve the same.
The big flaw is of course step 3. Selling would depress the price, price only rises when people want to buy more coins than the sellers want to sell at that price, the sellers sell out at say $131 and the price goes up to $132 where there are more sellers.
Step 4, why would you need that ? You'd be more profitable selling it all on the uptrend, when it went from $200 to $250 than waiting for a crash.
Step 5, if you want the price to go up while you sell, you want to avoid controlling the market, not control it. And how do 10K coins turn into 10 million without the price reaching $1000 ?
Your whole plan is based on the price booming into the sky caused by the actions of others, something which you cannot predict. In fact this is what almost all stock investers are trying, buy low, sell higher, and since nobody knows the future, a lot fail.