Bitcoin Forum

1. Build an algorithmic Bitcoin trading bot (aka black-box): minimize risk, maximize profit, optimize speculative gain.
2. Opensource it.
3. Observe bankers, traders, speculators (plus, who knows, systemic powers) jump on it. (Temporarily, they’ll profit even more. Accept it.)
4. Since the tradebot performs better at optimizing profits, it has increasingly more liquidity to embay/withdraw than an irrational individual.
5. Since the bots all behave likewise (performing the same best algo), they balance each other.
6. Eventually, independent selfinterest-optimizing trading bots will outnumber human traders driven by panic/greed.
7. Resulting in a distributed “botnet” that behaves as an automated stabilizer for fluctuations in the Bitcoin exchange rate. An invisible hand.
8. Bitcoin will be more stable than any other currency and its exchange rate will reflect its true intrinsic value.
9. Rejoice: Adam Smith to the benefit of cypherpunk anarcho-libertarianism!

Just my two cents. I’m a total BTC noob, not especially good at game theory math, and, at best, a wannabe hacker. What do you think: naive idea?

Nice idea ;)
It would be cool if that happened! Why don't you try to make one, and see what turns up? :)

It's a nice thought, but if your bot's trading strategy is public, it'll be quite easy to game it or to front-run the bot to your disadvantage. Also, in a trending market, uninformed bots that try to add liquidity and damp out the noise will typically be overrun by people with knowledge of the true fundamentals.