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Title: Hypothetical question Post by: Mr. Coinman on July 31, 2012, 10:30:21 AM The other day I came up with an interesting but almost certainly implausible idea about dominating the bitcoin market - crowdfunding style. Say one was to set up a fund that's goal is to collect a very large sum of money, one large enough to purchase a substantial amount of bitcoins. People channeled in their own money, however much they like, to promote this fund and help it grow. The fund then, with this large amount of money, purchases a large amount of bitcoins at a high rate, thus making their individual value rise. Of course then, the donators' bitcoins will rise in value because of this.
i.e. a lot of people donate a little amount of money to a fund that purchases a lot of bitcoins with the collected money to increase the value of the rest of the individual donators' bitcoin supply. Ignoring the obvious trust issues and other problems that would have to be sorted out before something like this could be established, would this even work? Title: Re: Hypothetical question Post by: pieppiep on July 31, 2012, 11:47:17 AM That way you won't collect money to buy more bitcoins, you collect bitcoins.
To drive price up you first have to sell the bitcoins to have currency to buy bitcoins, but by selling you decrease the demand. Title: Re: Hypothetical question Post by: gllen on July 31, 2012, 12:07:21 PM Quote people donate a little amount of bitcoins to a fund that purchases a lot of bitcoins People invest bitcoins, and then your fund buys bitcoins with... bitcoins? Title: Re: Hypothetical question Post by: Mr. Coinman on July 31, 2012, 12:26:17 PM Quote people donate a little amount of bitcoins to a fund that purchases a lot of bitcoins People invest bitcoins, and then your fund buys bitcoins with... bitcoins? Whoops, I meant USD. Fixed. Title: Re: Hypothetical question Post by: Stephen Gornick on July 31, 2012, 06:15:20 PM The other day I came up with an interesting but almost certainly implausible idea about dominating the bitcoin market - crowdfunding style. Say one was to set up a fund that's goal is to collect a very large sum of money, one large enough to purchase a substantial amount of bitcoins. People channeled in their own money, however much they like, to promote this fund and help it grow. The fund then, with this large amount of money, purchases a large amount of bitcoins at a high rate, thus making their individual value rise. Of course then, the donators' bitcoins will rise in value because of this. So it's: a lot of people donate a little amount of money to a fund that purchases a lot of bitcoins with the collected money to increase the value of the rest of the individual donators' bitcoin supply. Ignoring the obvious trust issues and other problems that would have to be sorted out before something like this could be established, is this even possible? Or am I just crazy? Discuss. Cartels are not hypothetical. But they don't always work as expected. Read up on Prisoner's Dilemma: - http://en.wikipedia.org/wiki/Prisoner's_dilemma Plus, you are talking about donations for this? Heh, good luck with that. A more productive endeavor would be to use bitcoins for your purchases whenever possible and prudent and to sell goods and services for bitcoins. Build an economy, demand for bitcoins rises, and profit. Title: Re: Hypothetical question Post by: Rockefoten on July 31, 2012, 08:07:12 PM Maybe I missed something here, but what would happen with the Bitcoins that the fund buys? Maybe you, as Mr. Fund Manager, would keep is as "comission"? ;)
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