Price Manipulation in the Bitcoin Ecosystem

FrgMstr

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Researchers from Tel Aviv University and the University of Tulsa think they have proven beyond a doubt that Bitcoin prices have been fraudulently manipulated back in 2013 in order to push the value of from $150 to more than $1000 in two months. What is truly astounding about this is the researchers believe it is the work of a single person. Can you hear that? It's regulation coming to squash the decentralization.


This paper identifies and analyzes the impact of suspicious trading activity on the Mt. Gox Bitcoin currency exchange, in which approximately 600,000 bitcoins (BTC) valued at $188 million were fraudulently acquired. During both periods, the USD-BTC exchange rate rose by an average of four percent on days when suspicious trades took place, compared to a slight decline on days without suspicious activity.

As mainstream finance invests in cryptocurrency assets and as countries take steps toward legalizing bitcoin as a payment system (as Japan did in April 2017), it is important to understand how susceptible cryptocurrency markets are to manipulation. Our study provides a first examination.
 

griff30

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Miners be like:

Nothing-to-See-15a34a2fc727c8.jpg
 

HockeyJon

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You mean there's manipulation happening in a completely unregulated market? Say it ain't so!

In other news, am I the only one who finds it hilarious that cryptocurrency enthusiasts still parrot the "Wall Street investors are threatened by this because they don't understand/can't control it" line when Wall Street is currently creating and selling investment products related to cryptocurrencies?
 

TrailRunner

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Yeah, Willy Bot was covered at length in 2014, and you didn't have to pay $$$ to a couple of academics to read about it back then. Not new news.
 

nutzo

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You mean there's manipulation happening in a completely unregulated market? Say it ain't so!

The Government and Wall Street are just mad that someone else is manipulating a commodity/currency.

Doesn't everyone under stand only Government or Wall Street are allowed to do this :mad:
 

Retronym

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Meet the alternative

Fractional-reserve banking
Because banks hold reserves in amounts that are less than the amounts of their deposit liabilities, and because the deposit liabilities are considered money in their own right, fractional-reserve banking permits the money supply to grow beyond the amount of the underlying base money originally created by the central bank.[1][3]


So basically either way there's some dudes punching some buttons to make it happen. It is what it is.
 

Spaceninja

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I still find it amusing when all of the Crypto people yell about how Wallstreet can't control this stuff. Sorry guys, these finance people have been manipulating things well before you were born. It might have taken them a little while, but they did it, and if they want to sink it they will. When Wallstreet has enough of your money they will pop the bubble and hand you your ass. Plain and simple.
 

BitMaster

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The Black Market, where people by drugs, weapons and other dirty deeds doesnt need no WallStreet, it gives a shit about wallstreet, what they need is some kind of medium to pay and get payed. It has come to stay, in one or the other form, be it bitcoin, ethereum, zcash, dash, whatever.

Wallstreet...cmon, it's around for how long ? Well, lemme tell you, the black market is the only market you can trust and it wil stay with you, it has always been there, for milleniums, unregulated, only led by the laws of the street of that era. It has always been there, it always delivers when nothing else

moves. That reason alone will help the digital crypto currencies to survive and maybe blossom. If that is good, I dunno, I just think this is what is at the heart of it, unregulated black market mainly.
 

NeoNemesis

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This is critical because if it wasn't the case we wouldn't be able to get loans for anything. Not for houses nor for businesses. The banks ability to lend out money is why we receive interest.

Essentially, we receive a small percentage of extra money in exchange for a small chance that we won't be able to pull our money out during a crisis.
 

BitMaster

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This is critical because if it wasn't the case we wouldn't be able to get loans for anything. Not for houses nor for businesses. The banks ability to lend out money is why we receive interest.

Essentially, we receive a small percentage of extra money in exchange for a small chance that we won't be able to pull our money out during a crisis.


Make the math, it's simple ;) You will never make enough to pay back, never ever, that is the vicious part of the WallStreet deal. The money to pay it all back just aint there yet, to pay it back, you have to lend again, but then. OH GOD, there is again this gap mwe cant pay, OK OK, no problem my son, take this money, and pay the money fpor the money for the money you couldnt pay 1st place, again, that last loan, you still cant pay it back.

The math is SO DEAD SIMPLE and still most dont get it, even after years of getting fucked with it ! Stand up and rebel, crypto is your weapon
 

NeoNemesis

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Make the math, it's simple ;) You will never make enough to pay back, never ever, that is the vicious part of the WallStreet deal. The money to pay it all back just aint there yet, to pay it back, you have to lend again, but then. OH GOD, there is again this gap mwe cant pay, OK OK, no problem my son, take this money, and pay the money fpor the money for the money you couldnt pay 1st place, again, that last loan, you still cant pay it back.

The math is SO DEAD SIMPLE and still most dont get it, even after years of getting fucked with it ! Stand up and rebel, crypto is your weapon

The money is somewhere, usually it's been loaned out to someone. In some cases, people go bust and the loan disappears. Banks work because they make more money off the interest from good investments than they lose due to bad investments.

Banks FAIL when they engage in high risk behavior and take on too many bad loans.

Theoretically, if a well managed bank called in all its debts it could pay back all of it's customers (and then some).

What you're arguing is that all banks are ponzi schemes. That is not the case. That said, if you're terrified of losing your money you can always keep it in a mattress, or exchange it for precious metals, or bitcoins, or whatever comes out in a few months, but all you're really doing is trading one risk for another.
 

RealBeast

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Manipulation in markets hardly ever happens, say like silver in late 1979 up to January 1980 when it rose over 700% thanks to the Hunt brothers.

BTC is just easier since it is totally unregulated and completely opaque.
 

HockeyJon

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The Government and Wall Street are just mad that someone else is manipulating a commodity/currency.

Doesn't everyone under stand only Government or Wall Street are allowed to do this :mad:

You clearly don't understand the difference between a central bank making decisions to control things like inflation and economic growth vs an individual screwing over a bunch of random folks for individual profit.
 

nutzo

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You clearly don't understand the difference between a central bank making decisions to control things like inflation and economic growth vs an individual screwing over a bunch of random folks for individual profit.


You clearly don't understand how much politics influences decisions made by the Fed.
 

BitMaster

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You clearly don't understand how much politics influences decisions made by the Fed.

and since we all know politics are made by a few elected for a few selected,...I dont think I need to go further, do I ?


Crypto is in contrast to Fiat not based on interest to work and fuel itself. Any of those Fiat systems is bound to fail, read the facts about Fiat and more over Interest driven currencies, none existed longer than 60-90 years before they went into a spiral on inflation.

The money your FED, or our Deutsche Bundesbank, hands out as a loan, into the system, CAN NOT be paid back in full, period, THEY NEVER PRINTED THE MONEY TO PAY THE 5% INTEREST. To actually obtain that money, you have to wait for the FED to issue another tranche, again coupled with interest, that again cannot be paid back, as that money never enters the system with the loan. YOu can do this many many many times, over decades, you can recalculate this and that, shift and move, BUT, eventually, you will hit a wall, they all did, it's pure math.

Screw WallStreet, they dont do any good but serve a few selected, grey entities.


I gave my credit card back years ago, quit my bank, use my wifes account if I cant avoid it, avoid banks, loans, I dont buy with downpayments or poayment plan. I pay cash or I dont buy at all. When I carry it out of the shop, IT IS MINE, no contract attached from any bankl, any credit card.

Dont fuel the dragon, there are many many things you can do to get their water and put them dry. DONT play their game, throw sand in their gear whenever you can, refuse to participate as much as you can.


Ever since, I feel a lot better. The only money business I do is crypto without any bank contract anywhere. I will eventually decide how I cash my btx and eth, till then, it is MINE. No taxes, no forms to fill out, FUCK YOU IRS or whatever it is called in your nation.


Look at poor Venezuela, that's what happens when you dont apply to the unspoken law of the Pedro Dollar Deal. They slaughter you and your country, for the sake of the US$ supremacy. As a warning for others... how sad.
 

griff30

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The way miners keep fapping about how much return they get and how much they think the "banks hate them" always reminds me of this meme:

vFCu3ke.jpg
 

tetris42

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Manipulation in markets hardly ever happens, say like silver in late 1979 up to January 1980 when it rose over 700% thanks to the Hunt brothers.
Or you know, 2007, when subprime mortgages across the industry were given AAA ratings across the board and it got so out of control it almost crashed the economy.
 

jfreund

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Or you know, 2007, when subprime mortgages across the industry were given AAA ratings across the board and it got so out of control it almost crashed the economy.

No "almost". The economy (and the citizens) got completely fucked, and even a trillion dollars of government/federal reserve fiat and 10 years of war couldn't unfuck it.
 

SomeoneElse

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To be honest it just sounds like someone is pissed off they didn't buy into the cryptocurrency thing when it was at $150 per coin......and now that the value is just absurdly high they can't get in for cheap anymore. I never jumped on bored but i'm not knocking it either. Its almost like fighting corruption with corruption in this case....when it comes to money and greed anything goes.
 

BloodyIron

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Why wouldn't they? There's stock manipulation happening every day, why should Bitcoin be any different?
 

nutzo

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I gave my credit card back years ago, quit my bank, use my wifes account if I cant avoid it, avoid banks, loans, I dont buy with downpayments or poayment plan. I pay cash or I dont buy at all. When I carry it out of the shop, IT IS MINE, no contract attached from any bankl, any credit card.

Dont fuel the dragon, there are many many things you can do to get their water and put them dry. DONT play their game, throw sand in their gear whenever you can, refuse to participate as much as you can.

If you are going to play the game, you need to play it to your own advantage.

I only use cash for small payments (like a hamburger). We use credit cards for everything else.
Cards are always paid in full each month, and I get cash back (1% to 5% depending on where and what we buy) . Amounts to several hundred $ a year.
Cash back and a 30 day float on my spending is using the system :)

In rare cases we've used 0% financing deals when it made sense.
Could have paid cash for my last car, buy why should I when they will lend me the money for 5 years at 0%?

Years ago the wife needed some expensive dental work. The dentist had a 0% 15 month financing deal.
The "game" the bank plays is that you will miss a payment or not be able to pay it off in 15 months. Then they charge you retroactive interest at 25%
We took advantage of the deal, and paid it off at 13 months, just to be safe.
 

IronMan_74

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If you are going to play the game, you need to play it to your own advantage.

I only use cash for small payments (like a hamburger). We use credit cards for everything else.
Cards are always paid in full each month, and I get cash back (1% to 5% depending on where and what we buy) . Amounts to several hundred $ a year.
Cash back and a 30 day float on my spending is using the system :)

In rare cases we've used 0% financing deals when it made sense.
Could have paid cash for my last car, buy why should I when they will lend me the money for 5 years at 0%?

Years ago the wife needed some expensive dental work. The dentist had a 0% 15 month financing deal.
The "game" the bank plays is that you will miss a payment or not be able to pay it off in 15 months. Then they charge you retroactive interest at 25%
We took advantage of the deal, and paid it off at 13 months, just to be safe.

this is how i do it as well. pay for everything i possibly can on the credit card and then pay it off every month. I don't think i've ever not paid off the entire balance on a credit card in the past 13ish years of having them. Then i save up all the cash back stuff for the year and redeem it in december for free christmas spending money. got $550 from my AMEX card for the year ;)
 

Kdawg

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we talking about bitcoin again?
I love this bitcoin drama.
Frontpage at bloomberg.com is amusing.
"Bitconnect closes exchange"
I remember seeing every fool on youtube spamming bitconnect as a get rich quick scheme. And now it has plunged 65% in the last 2 weeks.
I just wanna get my popcorn and watch this all crash and burn.
 

demondrops

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always stated this. like recent hyping +++ have skyrocketed price and so on. either u agree or not it is a scam, really. like most things economics today is a scam aswell. it's a ponzi scheme like really xD it's just in a form that is not viewd as such.. and it would be illegal. lol i remember in another post i said it would fall in value alot, and i was rigth. but it could go up again i dont know, but some ppl have already said it is a bubble, because it got all the traits that a bubble have, not that it formed my opinion but. and like i said bitcoin as all other currency biggest flaw is subject to manipulation. and it didnt seem like my opinion on it mattered as much as someone who knew all about it did, but there it is. just every single piece of thing ive said about this coin have been rigth. like this spiritual page DMT: The spirit molecule praised bitcoin to be a revolution and next big thing for society but failed to realise they got played and were in on the schemes of other ppls. and they get shittonnes of likes and no one hardly give 2 cents what i said. I had to unlike them coz i got tired of trying to explain my point of view even if i was rigth no one cared, dont say im rigth in all but...
 

motomonkey

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this is how i do it as well. pay for everything i possibly can on the credit card and then pay it off every month. I don't think i've ever not paid off the entire balance on a credit card in the past 13ish years of having them. Then i save up all the cash back stuff for the year and redeem it in december for free christmas spending money. got $550 from my AMEX card for the year ;)

Discover card bought my last graphics card for me.

Thanks Centralized banking!
 

Nobu

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Credit card companies are not banks (at least, not exclusively)--they're lenders. I have one bank account, for when I need cash money locally. All my other savings are put into my credit union account, which earns more dividends than any savings account interest would. I also invest a portion into a dedicated savings account, which earns even more, and once mature will (at least in part) be reinvested into an IRA.

As others, I do most transactions in credit, and pay most off each month. the only card that currently has a rolling balance is my amex, because I recently was out a job and reduced the amount I paid on it to a fixed amount, and it took a little while to get my budget to a point where I was spending less than I was paying on the card. I'm at the point now, where once I pay off my motorcycle I'll be earning a decent amount more than I'm spending (especially since I'll be able to take full coverage off the bike), so paying off that debt will be easy, and then I can start putting money back into savings.
 

aeliusg

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Make the math, it's simple ;) You will never make enough to pay back, never ever, that is the vicious part of the WallStreet deal. The money to pay it all back just aint there yet, to pay it back, you have to lend again, but then. OH GOD, there is again this gap mwe cant pay, OK OK, no problem my son, take this money, and pay the money fpor the money for the money you couldnt pay 1st place, again, that last loan, you still cant pay it back.

The math is SO DEAD SIMPLE and still most dont get it, even after years of getting fucked with it ! Stand up and rebel, crypto is your weapon
The "math" is predicated on future growth. So far it has worked with very tangible results - all the toys we take for granted here would not be producible without this kind of economic system.
 

motomonkey

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The "math" is predicated on future growth. So far it has worked with very tangible results - all the toys we take for granted here would not be producible without this kind of economic system.

Shhhh! don't agitate the Luddites. we would still be trading beads and seashells if it was up to them.
 
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