I don't know how they come to the conclusion they do at the end This was posted 15 hours ago, has the latest price movement been an attempted distraction? A few million dollars to move to price up is a cheap price to pay if you holding hundreds of thousands of coins
Well THAT certainly explains why MtGox dragged the price up by the hair, leading it by $100 time and time again.
This is starting to make more sense aswell Source: http://bitcoin.stamen.com/ http://bitcoin.stamen.com/
I think it was always ~$100 higher than other exchanges because it's easier to deposit fiat in, but it's hard as hell to get them out. In the US, it was impossible. Fiat was stuck in the exchange, so if you wanted to withdraw bitcoins, you'd have to buy them at the inflated price.
The theory in the article implies that you couldn't get funds out because the rogue bot was resulting in USD credits being made to your account that weren't backed by a bank balance anywhere - which is why it was impossible to get withdrawals processed. Ponzi from the core. The bots were designed to pump the price up, the inability to withdraw fiat would also have contributed to higher prices as the only way to withdraw value was to convert to BTC at any price and withdraw those. So a bit of both I think.
Step one artificially pump up the price Step two conduct big off market sales Step three profit Wash, rinse and repeat
[youtube]http://www.youtube.com/watch?v=ag14Ao_xO4c[/youtube] Be first, be smarter or cheat. All three, nailed it.
Yes, I was quite skeptical about these cryptos. No wonder. Behold: there is manipulation there as well. It's totally private, it's easier to scam people this way. And what happened to Mt.Gox... What would your Bitcoins be worth by themselves without the market buy-sell games? It's totally different with hard assets.
thank god that gold and silver or stocks arent manipulated and this is just a crypto problem....spoken like a true economist
Everything is more or less manipulated. Just that hard assets have intrinsic value and never go to zero, even though they can lose price. Bitcoin and fiat can go to zero. Think about the above and consider hard asset investments.
i thought about it and still think both bitcoin and fiat cannot go to zero, even a zimbabwean dollar still has value. in this case i think the bot went rouge, although its difficult to interpret the intention.
Seeing though the bot was doing it's thing for at least a year, I cant see how it could have gone rogue and unnoticed for that long.
The original word press blog was taken down, but it's now available here http://bitleaks.net/willyreport.html
This is even more relevant now that there are wall st funds looking to accumilate btc off market for their ETFs
More allegations.. https://medium.com/@TomOnBTC/pissed...e-falls-on-the-bitcoin-foundation-bae91f981d1
Have we gone full circle? In the early days bitcoin was ridiculed by those who didnt understand it I remeber hearing continously bitcoin is a scam and a poniz scheme, now it has started to be undertood and embraced by the mainstream it could potentially be a ponzi..... Thoughts?
I just googled "bitcoin ponzi" and found this recent article http://www.huffingtonpost.com/jim-gibson/is-bitcoin-a-ponzi-scheme_b_5177769.html Before we say mtgox != bitcoin How much of the market share did Mtgox have at the start of 2013? Is it reasonable to say the price action may have been fraudulent thanks to willybot? How many coins were stollen from Mtgox again? What could the thieves be doing with them?
