Grayscale keeps buying bitcoin.

[Teresa_FX1]

The biggest crypto fund Grayscale Bitcoin Trust bought another 15 114 BTC last week and fund's crypto AUM is almost $10B with 506 000 BTC. In my opinion such BTC stockpiling can be dangerous like a 51% attack but I didn't find any information is Satoshi Nakomoto ever mentioned that.

[n0ne]

The biggest crypto fund Grayscale Bitcoin Trust bought another 15 114 BTC last week and fund's crypto AUM is almost $10B with 506 000 BTC. In my opinion such BTC stockpiling can be dangerous like a 51% attack but I didn't find any information is Satoshi Nakomoto ever mentioned that.

The possible chances for the 51% attack is very low. As of now the holdings Grayscale own contributes 2.29% of entire marketcap of bitcoin. With this it looks like Grayscale staking the bitcoins at regular time interval. Satoshi wanted things to be used without large scale accumulation. 2.29% doesn't look like a big accumulation.

[Teresa_FX1]

I understand that Satoshi meant 51% hashrate, I just made a comparison but as in the previous reply mentioned that Grayscale accumulated on 2.29% of the entire BTC market cap it's not that large.

There's no correlation between 51% attack and have lots of Bitcoin. What you need for 51% attack is 51% hashrate, which means lots of ASIC or access to ASIC.

[Yamifoud]

They are buying more BTC for future purposes but this will not be correlated to the so-called 51% attack.

Grayscale is among the biggest purchasers of Bitcoin. Its total investments comprise 2.29% of Bitcoin’s entire market cap.

Even Grayscale will accumulate more Bitcoin but still, they can't control the market. I can't remember also that Satoshi puts a limit and everyone still free to get more as long as he/she is cap[able of buying it and use for legal purposes. I shouldn't have to hold them either but to let people doing it until the entire 21million BTC will be mined.

[davis196]

The biggest crypto fund Grayscale Bitcoin Trust bought another 15 114 BTC last week and fund's crypto AUM is almost $10B with 506 000 BTC. In my opinion such BTC stockpiling can be dangerous like a 51% attack but I didn't find any information is Satoshi Nakomoto ever mentioned that.

A potential 51% attack will crash the price of Bitcoin in no time.What's the point of buying and hoarding large amounts of BTC and then creating a price crash?This sounds like a nonsense theory.
Anyway,this is great news.We need more companies and hedge funds to keep buying Bitcoins,just for the sake of Bitcoin gaining more trust as an investment asset.I'm not a trader,so I don't mind if the Bitcoin price is going to reach a new all time high or not.The price growing too fast is not healthy for the market,so I'm expecting a price crash during the winter.

[NeuroticFish]

As they say now, keep calm and buy Bitcoin
We should all do the same instead of running around in circles and listen to all the noise.

And as others said, 51% attack is ... something else than OP thinks. Like apples and oranges...
Satoshi clearly didn't mention about crypto-fiat markets manipulation since his vision was to use crypto directly for buying ... everything.

[Anonylz]

As they say now, keep calm and buy Bitcoin
We should all do the same instead of running around in circles and listen to all the noise.

And as others said, 51% attack is ... something else than OP thinks. Like apples and oranges...
Satoshi clearly didn't mention about crypto-fiat markets manipulation since his vision was to use crypto directly for buying ... everything.

well i guess greyscale can see what we all can't see (the bigger picture) , hence the reason why they are accumulating in large quantity, i think you made a point, we should focus on buying btc at our convenient and capability rather than thinking too much,
i don't know about others, i know btc have surprise me time and again, enough to know that buying and accumulating is never a bad idea because you never know

[tomahawk9]

In my opinion such BTC stockpiling can be dangerous like a 51% attack but I didn't find any information is Satoshi Nakomoto ever mentioned that.

Not at all.

that attack doesn't work in this case as explained above. And even them stockpiling almost 3% (506000) of the current supply (18.5M) is kind of a nonissue considering we're talking about an investment company rather than a single or several anonymous whales hodling the coins, now that would be worrisome cuz you'll never know if they're try to crash the market or whatever.

As long as Coinbase Custory ^[1] are keeping the coins safe, it's all good.

1. https://www.globenewswire.com/news-release/2019/08/02/1896358/0/en/Grayscale-Selects-Coinbase-Custody-as-Custodian.html

[pawanjain]

The biggest crypto fund Grayscale Bitcoin Trust bought another 15 114 BTC last week and fund's crypto AUM is almost $10B with 506 000 BTC. In my opinion such BTC stockpiling can be dangerous like a 51% attack but I didn't find any information is Satoshi Nakomoto ever mentioned that.

There's two things I would like to mention

1. Holding a big amount of bitcoins doesn't mean the owner of those coins is able to do a 51% attack
    But yeah, holding a big amount of bitcoins does give it's owner the ability to manipulate the price of bitcoin by doing a pump/dump.

2. In order to perform a 51% attack the individual/company must own 51% of hashing power used to mine bitcoins
    In other words it means that the individual/company must have loads of ASICS so that their hashrate increases and crosses 51% of the total hashrate.
   
Also, even if anybody has the ability to perform a 51% attack, doing do won't do him any good because the cost of doing such an attack is a lot.
Basically, Satoshi had designed the bitcoin network in such a way that it will become very hard for anybody to compromise it in any way.

[Husires]

Nobody knows about the thousands or perhaps millions of bitcoins that were produced in the early days and no one knew anything about them. This monetary mass makes it impossible for one company to control all the currencies in existence.
The 51% attack is done differently from what you saied, as it is an attempt to double-spend coins by giving the user fake confirmations and not by purchasing all the coins.
Grayscale can buy 51% of total supply but that will not change things

[sunsilk]

No, it is not like that. No one is also forbidden to collect as much bitcoin as they can. Grayscale is doing it rightfully and there is nothing to see wrong with their purchases.

While the other companies are still in doubt of bitcoin, look at them, they are treating it as a habit or they have a plan to do this continuously before the bull run comes. They are just like us who believe in bitcoin but with the threat of 51% attack, the purchase is very far from that scene.

[Twinkledoe]

No, it is not like that. No one is also forbidden to collect as much bitcoin as they can. Grayscale is doing it rightfully and there is nothing to see wrong with their purchases.

While the other companies are still in doubt of bitcoin, look at them, they are treating it as a habit or they have a plan to do this continuously before the bull run comes. They are just like us who believe in bitcoin but with the threat of 51% attack, the purchase is very far from that scene.

As others have mentioned earlier, 51% attack is not possible as they are just merely holding 2.x% of the entire marketcap of btc. Their move is actually very inspiring to other companies because this will give interest or confident to similar companies to invest also in btc. It also manifests that Grayscale has strong stand towards btc investments, which is good for crypto community.

[target]

51% is hard to do even when a pool plans to do it. The result will always be another fork.

Grayscale owning a lot of BTC is not a problem but it will even encourage institutional investors to join the crypto space. The bitcointreasury will definitely be populated by big firms that are just known in the old financial system. Maybe we can soon also see known banks also stashing BTC.

[redsun114]

No, this one doesn’t have anything to do with 51% attack. From what I have learnt, 51% attack is something that has to do with miners, when there is a particular group of miners having more control in mining of Bitcoin, they will be able to carry out an attack on the network.

But, that is not to say that too much of HODL like Grayscale is doing right now does not have any effect on the network, it does too. Bitcoin is limited and should be used mainly for transactions, there should be many of them circulating and not just put into savings and locked away. So it can also affect the Bitcoin network in a way, although I can’t explain it.

[ChrisPop]

The biggest crypto fund Grayscale Bitcoin Trust bought another 15 114 BTC last week and fund's crypto AUM is almost $10B with 506 000 BTC. In my opinion such BTC stockpiling can be dangerous like a 51% attack but I didn't find any information is Satoshi Nakomoto ever mentioned that.

506k is not a too big amount percent-wise. However as they accumulate more, the price of Bitcoin also raises so some of the assets will probably get liquidated at some point in time.

I'm glad to see that they continue aggressive buying of Bitcoin. This shows the confidence they have in the cryptocurrency.  Regarding the 51% attack, I don't think we should worry. They would have to own 51% of the mining power, not of the Bitcoin in circulation AFAIK to perform. Even in an abstract case, it would be counterproductive to invest all this money into the cryptocurrency in order to damage it.  

[Jating]

The biggest crypto fund Grayscale Bitcoin Trust bought another 15 114 BTC last week and fund's crypto AUM is almost $10B with 506 000 BTC. In my opinion such BTC stockpiling can be dangerous like a 51% attack but I didn't find any information is Satoshi Nakomoto ever mentioned that.

Nah, 51% attack is different and shouldn't be equate to GrayScale having huge amount of BTC. I advise you to read the following threads to have a clearer picture of what a 51% attack is:

(a) How exactly would a 51% attack work?

(b) 51% Attack

(c) Bitcoin 51% Attack - Protocol solutions?

[Distinctin]

We definitely not sure then what is their plan as they are very aggressive accumulating Bitcoin but even they are buying more, it doesn't give worries to us. These numbers of 2% plus versus the total amount of market supply, that is an only small amount and it don't have a huge impact on the market.

We don't mind about the 51% market attack. This is not the way it looks like.
It is something to say that Grayscale is getting prepared for future changes. And they are doing it earlier, there is nothing to worry about and probably many companies have done this silently.

[Altcoinsintel]

In my opinion such BTC stockpiling can be dangerous like a 51% attack but I didn't find any information is Satoshi Nakomoto ever mentioned that.

Grayscale is a custodian for clients that are institutions and serious investors. It acts something like an exchange outside of the crypto world offering shares of Trusts and these shares are later traded by these investors if they want to in OTC exchange where trillions are traded.
Any amount of BTC stockpilled does not make a difference to the network. The worst that can happen is Grayscale to get hacked somehow and the wallets to be compromised but I'm sure there would only be cold wallets so it will have to be an inside job. Meaning there probably won't be any chance of these Bitcoins to be lost or stolen. So a repeat of MtGox or any other danger has close to 0% chance as I see that there would be complete security.

I would be interested to know if there is another danger for this operation, except that the investors don't actually own the Bitcoins but a represantation of them in stock form.

[pixie85]

We definitely not sure then what is their plan as they are very aggressive accumulating Bitcoin

Their plan is to make money. With them it's just that they are taking the high risk - high reward road. If you look from their perspective they took a small risk but it paid out so now they're going all in because with Bitcoin it's not like rolling the dice every time. The longer it remains unbroken the stronger it becomes.

In 2015 it was full of uncertainties and promoted but now it's finally beginning to be recognized as digital gold by the media.

[Teresa_FX1]

Yeah, at least Grayscale is a public company but we never know other whales intentions and how many bitcoins they accumulate.

In my opinion such BTC stockpiling can be dangerous like a 51% attack but I didn't find any information is Satoshi Nakomoto ever mentioned that.

Not at all.

that attack doesn't work in this case as explained above. And even them stockpiling almost 3% (506000) of the current supply (18.5M) is kind of a nonissue considering we're talking about an investment company rather than a single or several anonymous whales hodling the coins, now that would be worrisome cuz you'll never know if they're try to crash the market or whatever.

As long as Coinbase Custory ^[1] are keeping the coins safe, it's all good.

1. https://www.globenewswire.com/news-release/2019/08/02/1896358/0/en/Grayscale-Selects-Coinbase-Custody-as-Custodian.html