Bitcoin Forum
April 20, 2018, 11:16:34 PM *
News: Latest stable version of Bitcoin Core: 0.16.0  [Torrent]. (New!)
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Hypothetical question  (Read 662 times)
Mr. Coinman
Sr. Member
****
Offline Offline

Activity: 278
Merit: 250



View Profile
July 31, 2012, 10:30:21 AM
 #1

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?

1524266194
Hero Member
*
Offline Offline

Posts: 1524266194

View Profile Personal Message (Offline)

Ignore
1524266194
Reply with quote  #2

1524266194
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1524266194
Hero Member
*
Offline Offline

Posts: 1524266194

View Profile Personal Message (Offline)

Ignore
1524266194
Reply with quote  #2

1524266194
Report to moderator
1524266194
Hero Member
*
Offline Offline

Posts: 1524266194

View Profile Personal Message (Offline)

Ignore
1524266194
Reply with quote  #2

1524266194
Report to moderator
pieppiep
Hero Member
*****
Offline Offline

Activity: 711
Merit: 500



View Profile
July 31, 2012, 11:47:17 AM
 #2

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.

              ▄▄▄█████████████▄▄▄
           ▄████████▀▀▀▀▀▀▀████████▄
        ▄██████▀▀             ▀▀██████▄
      ▄█████▀▀                    ▀▀█████▄
     █████▀                          ▀█████
    ████▀          ▄▄███████▄▄         ▀████
   ████▌        ▄██▀▀▀    ▀▀▀██▄        ▐████
  ████▌       ▄██▀            ▀██▄       ▐████
 ▐████       ██▀   ▄▄█▀▀▀█▄▄    ▀██       ████▌
 ████▌      ▐█▌   █▀  ▄▄   ▀▀             ▐████
▐████       ██  █▌  █▌ █████████████      ████▌
▐████       ██  ▐█  ▐█                     ████▌
▐████       ██  █▌  █▌ █████████████      ████▌
 ████▌      ▐█▌   █▄  ▀▀   ▄▄    ██▀      ▐████
 ▐████       ██▄   ▀▀█▄▄▄█▀▀    ██▌       ████▌
  █████       ▀██▄            ▄██▀       █████
   █████        ▀██▄▄▄    ▄▄▄██▀        █████
    █████          ▀▀███████▀▀         █████
     █████▄                          ▄█████
      ▀█████▄▄                    ▄▄█████▀
        ▀██████▄▄             ▄▄██████▀
           ▀████████▄▄▄▄▄▄▄████████▀
              ▀▀▀█████████████▀▀▀
Global Cryptocurrency
          ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

  DECENTRALISING PRODUCTION, LOGISTICS AND PAYMENT 
                ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬   3D SERVICE      32 BAY     GCC WEBWALLET
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

gllen
Donator
Newbie
*
Offline Offline

Activity: 21
Merit: 0


View Profile
July 31, 2012, 12:07:21 PM
 #3

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?
Mr. Coinman
Sr. Member
****
Offline Offline

Activity: 278
Merit: 250



View Profile
July 31, 2012, 12:26:17 PM
 #4

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.

Stephen Gornick
Legendary
*
Offline Offline

Activity: 2478
Merit: 1000


View Profile
July 31, 2012, 06:15:20 PM
 #5

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.
Rockefoten
Full Member
***
Offline Offline

Activity: 134
Merit: 100


View Profile
July 31, 2012, 08:07:12 PM
 #6

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"?   Wink
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!