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Author Topic: Theoretical Question - Input Appreciated  (Read 545 times)
the joint
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September 03, 2011, 10:15:45 AM
 #1

So, let's suppose we wanted to kick BTC value increase into overdrive.

Hypothetical scenario - Would this do the trick?

Let's say you got 20 guys on Mt. Gox who all bought at over $15  Lets say they also bought 5,000 plus coins.  I'm sure this is a relatively plausible number (where relatively plausible = no lower than 10 but possibly way more than 20).  Let's all say they decided to coordinate the sell-off of all sell-offs. 

First, they all set up very low and outrageously huge buy orders.  They then start the sell-off...2-3 dumps of 5,000+ coins, allowing panic selling to set in.  Then, either another 2-3 dumps of 5,000+ coins to potentially encourage a historic panic sell (or, equally possible, a panic buy by this point allowing some to feel they got in at a good price), and/or then simply dump the rest, sending the BTC price absolutely spiraling.

The price falls to pennies.  Naturally, with their buy orders in place they get the largest amount of the dumped coins back.  Massive panic buying ensues as people eat up all the coins at pennies, then dollars, potentially into the 7-8 range within minutes.

The thing is, the buy pressure at this point would be enormous.  Why sell now?  Everyone got in early except a few who missed out on selling the 1,000 or 2,000 they had.  Even they would be encouraged to buy additionally at this point.

What kind of impact would it have on the market if nearly EVERYONE bought in at a psychologically low price (where psychologically low = lower or much lower than the current values)?

Would this eliminate current sell pressure?  Would this create a new media frenzy attracting new investors rapidly, recreating the June bubble but pushing it above and beyond its previous limit with the total number of new investors?

In either case, it wouldn't completely crash the market.  Too many people would buy up the low value coins.  The questions are, would the new bubble occur?  And, if it did, would the resounding sell off after it's peak be what crashes the market?

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hugolp
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September 03, 2011, 10:30:02 AM
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Problem is they can not be sure how the people is going to react, and they can end up loosing instead of making money. It all depends if they manage to control the reaction. If they do they win, if they dont they can loose big time.
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September 03, 2011, 08:27:34 PM
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Problem is they can not be sure how the people is going to react, and they can end up loosing instead of making money. It all depends if they manage to control the reaction. If they do they win, if they dont they can loose big time.

I think figuring out how the people will act is a lot more difficult once the price jumps above $3-4.  I'm fairly positive that anything below that and people will scoop them up like hotcakes.

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