Its also very risky. Especially if you buy up a bunch and lots of people start dumping their bitcoins. Remeber, bitcoin exchange is pure supply and demand.

However, the more interesting concept is this: The markets are moved by greed and fear.

What does this mean? It means if you have the buying power/selling power you can push the markets up and down big time. When people see the price dropping then they get panicked and sell off, "before they lose it all." Meanwhile, when you buy up alot it will push the price up, depending on how fast the price is rising people will start buying, "before their priced out of the market." This leads to speculative booms and busts. It is more pronounced in markets that have low liquidity (ie. bitcoin).

Thats why I say we should have bots that speculate on the price. Ultimately it stops these booms and busts from happening. Depending on how the bot is programmed it will buy xyz bitcoins for xyz price, then instantly put in a sell order for 1$ more than it bought them. If the order executes then the bot places an order for the sell price -1$.

Lets take for example a bot that is set to buy ONLY btc below 14$ and ONLY sell btc when its above 15$. Depending on how much buying/selling power these bots have it can EASILY hold the btc price range between 14-15$/btc. If there is ever a massive sell order, the bots can buy up the btc before it drops below 14$. If there is ever a massive buy order the bots can sell before it goes above 15$. Once again, thats assuming the bots (as a whole) have enough buying/selling power. As a whole, these bots BENEFIT the community because it stabilizes the btc price and gets rid of huge booms and bust cycles. If we have stable prices guess what happens? People can realistically set up businesses with set prices and actually run a real business.

Of course, setting up those bots can be risky with mtgox's .635% fee. Thats why I say mtgox trades should be free and maybe charge like a 1% withdraw fee instead.