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1  Other / Beginners & Help / Opensource tradebot to guard Bitcoin against speculation (and hyperdeflation) on: April 05, 2013, 04:19:46 PM
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?
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