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How does the Bitcoin auction work? Can't they also participate as a separate bidder and push the price to whatever they want?
by throwhackerred 6y ago
How does the Bitcoin auction work? Can't they also participate as a separate bidder and push the price to whatever they want?
- jackric 6y agoTrue of nearly any auction. Actual buyers stop bidding when they think the price has exceeded the value to them. If the music stops with a fake bidder holding the bag, the auction will have to be re-held, now with increased scepticism by real bidders, likely securing a lower final price.
- rambojazz 6y ago"Auctioning again because the previous buyer didn't pay after winning" - ebay, somebody justifying why they've reopened the auction.
- roncohen 6y agotaking this a bit further, the original authors could probably employ this as a strategy: Since it's an anonymous auction, the original author could win the auction and then refuse to pay repeatedly until all the real potential buyers have given up.
- 4cao 6y agoApparently, you have to deposit BTC 0.1 (~= $4,700) to be allowed to bid. Presumably, you'd be losing this deposit upon each iteration if you refused to pay.