I hate to say this out loud - but I had this scary thought...

This would actually be a cheap investment for the banking system if they collectively thought that doing this was enough to kill bitcoin forever as a competitor.

Given current market volatility and liquidity depth, I imagine a large tranche of coins like this is more likely to sell at below market price than the 30K SR coins being auctioned in next few hours. A 50% discount to market would not be out of the question for 140K coin block.

But let's assume for arguments sake (and to keep my maths easy), that they fetch $500 each. So 140K coins would be $70M. Even at market ($600) it's only $84M worth of coins. A lot to you and I maybe, but a drop in the ocean to banks... after all they can simply create the money!

I can imagine a cartel of 10 or 20 large banks chipping in say $10M each, buying the 140K coins and then dumping them onto the market over a short few days or weeks to hammer the Bitcoin price down to $xx level or lower. Protect their monopoly on the banking system and write off any loss to minimise taxes - it's a win-win for the banks, isn't it?

I'm bullish on bitcoin and usually stay away from tinfoil-hat conspiracy theories - but this scares me...

There must be a hole or two in this thought bubble - anyone??
Posted from Bitcointa.lk - #joL4QKTu8VqQATxq