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The fraud continues today in China. Those exchanges were caught several times faking volume and placing phantom orders. I think the game now is: fake price hike

by kolev 12y ago

The fraud continues today in China. Those exchanges were caught several times faking volume and placing phantom orders. I think the game now is: fake price hike in China, sell coins for real money on Bitstamp, buy cheaper, repeat. Just look at the recent hike - no news, no reason for 30% jump from $440 to $580 in a week.

kylebrown 12y ago
> Just look at the recent hike - no news There was a Federal Election Commission (FEC) decision to allow BTC donations to Political Action Committees (PAC's). Also circle.com showed started taking e-mails and showed a demo video.
- kolev 12y ago
  Circle.com didn't release much more than we knew already. Regarding donations - you really think the Chinese "investors" care about this?
- battani 12y ago
  This does not qualify as a bullish catalyst.
panarky 12y ago
Right now the exchange rate on Bitstamp is USD 576 and the rate on Huobi is RMB 3578. Converted, those prices are within one-half of one percent of each other. If there are fake price hikes in China, wouldn't Huobi prices be higher? And how would buying coins for real money on Bitstamp allow you to buy for cheaper anywhere else?
- kolev 12y ago
  Maybe I wasn't clear, but I wasn't talking about arbitraging. I'm talking about faking demand to hike prices and extend profit margin 10-fold. You can do this two ways - you can sell and buy cheaper, but then there's a risk that the price will stay low, so, you have more bitcoins, but less fiat. With this trick, you don't risk anything, and you make both more coins and more fiat. Having Bitstamp and BTC-e copy the direction that Huobi takes without questioning makes them puppets in the hands of those who control Huobi and the likes. I think it's clear that Bitcoin market is predominantly amateur investors from the trigger-happy kind and the smart crooks can do with the market whatever they want with just a few hundred coins. As recently the crypto wasn't profitable (the stock market performed way better) and people started to lose patience, some of those crooks had to do something to revive the market and keep doing what they've been doing so far. It's much easier to manipulate Bitcoin than the stock market, Forex, Gold, etc., so, those crooks didn't want to use their unique opportunity. When you see "to the moon" everywhere, you know the game is back on, and many are gonna get taken advantage of pretty soon.
- aqme28 12y ago
  There are enough arbitrage bots out there now that major differences between the exchanges flatten out rather quickly.
eliteraspberrie 12y ago
My theory is that Bitcoin is used by the elite in China as just another way of transferring money out of the country. Buying Bitcoin from a Chinese exchange, and selling it on an American exchange, allows you to transfer money between countries, avoiding foreign exchange regulations.
- kolev 12y ago
  I've heard this so many times! The elite has billions and although you can buy and sell many times working around the market cap of Bitcoin, I don't think it's practical to transfer tens and hundreds of millions as the low liquidity will drive prices up and down crazily. Plus, I have friends in China with money, there are no practical limitations of moving money around as the Bitcoin propaganda portrays it, only because it serves it well.

by kolev 12y ago

kylebrown 12y ago

> Just look at the recent hike - no news There was a Federal Election Commission (FEC) decision to allow BTC donations to Political Action Committees (PAC's). Also circle.com showed started taking e-mails and showed a demo video.

kolev 12y ago
Circle.com didn't release much more than we knew already. Regarding donations - you really think the Chinese "investors" care about this?
battani 12y ago
This does not qualify as a bullish catalyst.

panarky 12y ago

Right now the exchange rate on Bitstamp is USD 576 and the rate on Huobi is RMB 3578. Converted, those prices are within one-half of one percent of each other. If there are fake price hikes in China, wouldn't Huobi prices be higher? And how would buying coins for real money on Bitstamp allow you to buy for cheaper anywhere else?

kolev 12y ago
Maybe I wasn't clear, but I wasn't talking about arbitraging. I'm talking about faking demand to hike prices and extend profit margin 10-fold. You can do this two ways - you can sell and buy cheaper, but then there's a risk that the price will stay low, so, you have more bitcoins, but less fiat. With this trick, you don't risk anything, and you make both more coins and more fiat. Having Bitstamp and BTC-e copy the direction that Huobi takes without questioning makes them puppets in the hands of those who control Huobi and the likes. I think it's clear that Bitcoin market is predominantly amateur investors from the trigger-happy kind and the smart crooks can do with the market whatever they want with just a few hundred coins. As recently the crypto wasn't profitable (the stock market performed way better) and people started to lose patience, some of those crooks had to do something to revive the market and keep doing what they've been doing so far. It's much easier to manipulate Bitcoin than the stock market, Forex, Gold, etc., so, those crooks didn't want to use their unique opportunity. When you see "to the moon" everywhere, you know the game is back on, and many are gonna get taken advantage of pretty soon.
aqme28 12y ago
There are enough arbitrage bots out there now that major differences between the exchanges flatten out rather quickly.

eliteraspberrie 12y ago

My theory is that Bitcoin is used by the elite in China as just another way of transferring money out of the country. Buying Bitcoin from a Chinese exchange, and selling it on an American exchange, allows you to transfer money between countries, avoiding foreign exchange regulations.

kolev 12y ago
I've heard this so many times! The elite has billions and although you can buy and sell many times working around the market cap of Bitcoin, I don't think it's practical to transfer tens and hundreds of millions as the low liquidity will drive prices up and down crazily. Plus, I have friends in China with money, there are no practical limitations of moving money around as the Bitcoin propaganda portrays it, only because it serves it well.