Re: How much money and bitcoins do you need to influence the price?
So, the latest buzzword in Bitcoin is manipulation. Has anyone worked out how much money and bitcoins is needed to trigger
a change in the buy and sell behaviour of traders on exchanges? I know the Silkroad Auction did not make a significant impact
on the price and the same goes for the odd coins that were sold from the MtGox hoard. How many coins can individuals dump
on exchanges to push the price down like this? How long can they sustain such an action to sabotage the price? These are
questions that are very relative at the moment.
If the SEC says that the high price increase of last year was manipulation, then they must bring the proof. Let's do our own
informal assessment of the situation and determine what would be needed to cause that kind of a spike in the price.
a change in the buy and sell behaviour of traders on exchanges? I know the Silkroad Auction did not make a significant impact
on the price and the same goes for the odd coins that were sold from the MtGox hoard. How many coins can individuals dump
on exchanges to push the price down like this? How long can they sustain such an action to sabotage the price? These are
questions that are very relative at the moment.
If the SEC says that the high price increase of last year was manipulation, then they must bring the proof. Let's do our own
informal assessment of the situation and determine what would be needed to cause that kind of a spike in the price.
Its not to totally ignore the conclusion made by SEC because the facts that surrounds it even suggested such not in totality though because at that time, a lot of people were also skeptical on the forum too with discussions surrounding the sustainability of such increase and how it would be better for the increase to be systematic rather than sporadic that was witnessed at the time. I personally preferred the former than the latter.
On the amount of money that would be needed, I think its not only the amount of bitcoin but rather the surrounding and timing effects. For example, if SEC made a pronouncement on the negative, a dumping of 100bitcoins is enough to cause damage as other people will have to fall in line not relying on the 100 bitcoin, but the pronouncement by SEC which does not even have any effect in the first place.