Silk Road forums

Discussion => Silk Road discussion => Topic started by: Veetano on April 12, 2013, 07:40 pm

Title: This is the exact reason for the Bitcoin crash, and why you should not fear.
Post by: Veetano on April 12, 2013, 07:40 pm
http://dkn255hz262ypmii.onion/index.php?topic=146838.msg1007084#msg1007084

I posted this is the economic section, but for those of you too lazy to read my long post, I'll summarize it. Economic Terrorism.

A wealthy individual bought multiple millions worth of bitcoins over a weeks period causing the price to go up a lot. Then with malicious intent they sold them all at a lower price then they got them. That's right. They LOST money in doing this, but what was the result of their actions? They caused major chaos in the market.

A similar effect would happen if trillions of dollars were suddenly spread throughout the active US Market to people who would rapidly spend them. Obviously no one would lose money in that since US currency can be printed at will. But bitcoin, unlike US currency, cannot just be printed up. If somebody wants to introduce massive amounts to the market at a minimal price, then somebody WILL lose money, and it will cause a disruption in the market.

Title: Re: This is the exact reason for the Bitcoin crash, and why you should not fear.
Post by: brainfreeze on April 12, 2013, 09:43 pm
I also read something like that and i even read that this person also give 1000's of thousands of dollars worth for free. And he was under the name the bitcoinbillionaire and is believed to be working for the central bank. he gave the btc's away redscorow or somewhere like that. this could be complete bull i dont know
Title: Re: This is the exact reason for the Bitcoin crash, and why you should not fear.
Post by: ruby123 on April 12, 2013, 09:49 pm
The guy was all over reddit giving "tips" of thousands of dollars worth of Bitcoins. The actions seems extremely suspect combined with the MTGox issues. Honestly it wouldn't surprise if the government/corporate interests or a combination of the two were behind the "speculation" and crash.
Title: Re: This is the exact reason for the Bitcoin crash, and why you should not fear.
Post by: brainfreeze on April 12, 2013, 09:59 pm
The guy was all over reddit giving "tips" of thousands of dollars worth of bitcoins. The actions seems extremely suspect combined with the MTGox issues.
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Thats the place reddit he gave a way thousands of BTC so i read
Title: Re: This is the exact reason for the Bitcoin crash, and why you should not fear.
Post by: Hungry ghost on April 12, 2013, 10:34 pm
Would it not make more sense if a wealthy group or individual had orchestrated a campaign to buy up a sizeable chunk of bitcoins , or a group or individual who already held a sizeable chunk, driving up the price, then selling them all of at once to a) make a profit, and b) drive downprices by triggering a panic.? Then tthey could buy them up again when the price bottoms out.
Not claiming any insider knowledge but I think that's more likely than a malicious act.
Title: Re: This is the exact reason for the Bitcoin crash, and why you should not fear.
Post by: colorblack on April 12, 2013, 10:44 pm
It absolutely was a malicious act and I have my own theories as to who were behind it, but it's safe to say that many vested interests in the central banking systems and those who stand to be fucked by btc adoption were clearly looking for a way to hit it hard. And they tried. But hasn't worked. You realize as of right now, we're at $103 and that's over 400% up from last year?
We are going to win this thing, but the battle will not be an easy ride. They will hit the weakest point again - the infrastructure. The exchange (MT Gox) simply can not handle the volume and traffic of NORMAL btc happenings, let alone the onslaught by the anti-btc players. Something HAS to be done on that end of it. Gox needs to understand that a lot depends on it being able to tackle any attempts at manipulation
Title: Re: This is the exact reason for the Bitcoin crash, and why you should not fear.
Post by: redfunguy on April 12, 2013, 10:57 pm
It's no secret governments and their handlers hate btc.  But with all the resources they have wouldn't it be easiest to just buy up every btc they could, until there are so few left in circulation the currency becomes useless?  If some entity did this to drop the price and cost people money the effects will be short term.  The coins are back in circulation and the market can resume again and potentially fully recover (which it will).  I think this was just aggressive buying in selling by speculators just like on fuck face street, I mean wall street.
Title: Re: This is the exact reason for the Bitcoin crash, and why you should not fear.
Post by: Veetano on April 13, 2013, 01:58 am
Here is a copy and paste of mine from the other thread that I just replied to. I intended it to be the main thread, but the discussion forum gets more views.

--The only evidence that is needed is the actual occurrence of the crash. If you know the very nature of how bitcoin works and how far the price dropped, then you can come to a conclusion about what happened. Of course we do not know WHO did it exactly, we just know it was somebody capable of buying and dumping millions worth.

You would think it's market manipulation for profit, but if this was the case they would have sold for high amounts and made profit that way. They would not have dumped at stupidly low prices of $50-100 when the current price was $230+.

I had been studying the market depth of the MtGox market a few hours before the crash, and there were millions of dollars worth of Ask offers at the price of $250+. If someone dumped at $50 per coin everyone would quickly take notice, and adjust their ask offers. Many people have auto-api that automatically adjust their prices based on the buy/sell listings. So what happens is when someone dumps millions worth of BTC at $50-100, all those buyers adjust their prices. Many sellers quickly notice this and panic and then put their bidding listings at low amounts to try to get rid of them before they lose any money. This is how a crash occurs. When someone dumps a ton of BTC in at a very low price, they're losing money but also causing a giant tidal wave of destruction through the bitcoin market, causing all listings to adjust in prices accordingly.

It IS economic terrorism, who ever caused it. They lost a lot of money but at the same time fucked up the market. Now you have fucking news media outlets saying bitcoin is a failure and saying it will never work. Even people like Alex Jones and Infowars are saying this - which is unbelievable. Not everyone is smart enough to comprehend a crash like this so they jump to conclusion. The fact is very rich and powerful people are capable of many things at certain costs to themselves.