Hello #Bitcoin #Aficionados #GM
I'm currently thinking about the hardest asset and it's bothering me deeply.
What if...?
The market is extremely influenced by so-called whales. Due to their concentrated market power in #Bitcoin, the risk of market manipulation seems very high to me.
This concerns the following possibilities (incomplete list):
1. Price manipulation:
By placing large buy or sell orders, these market participants can push the price of Bitcoin in the desired direction. This can be particularly effective in thin markets, i.e. markets with low liquidity.
2. Wash trades:
This is a form of market manipulation in which a market participant places both buy and sell orders for the same stock (or in this case, cryptocurrency), often through different accounts. This can give the appearance of trading activity and induce other market participants to make buy or sell decisions.
3. Pump and Dump:
A classic scheme in which those involved drive up the price of a cryptocurrency through targeted buying and propaganda measures (pump), and then sell their shares when the price has risen (dump), which leads to a price drop.
4. Short Squeeze:
A short squeeze occurs when there are a large number of short positions (bets against the price) in a market and an uptrend suddenly sets in. This can lead to a rapid price increase as those who are short are forced to close their positions by buying the stock, which drives the price up further.
The giants in the market such as #MSTR #BlackRock etc. could thus accumulate more and more #Bitcoin and leave the #market relatively dry.
Certainly this would possibly also mean the end of #MSTR - but not the end of #BlackRock - this rock 🪨 is absolutely diversified.
What does this look like for you? Do you also see such risks? I mean, these giants are sitting at the #Fiat #source and it is constantly bubbling for them. In my opinion, they are far superior to us in that respect.
If the #Bitcoin #market is drained, there is no need for #quantum computers - there is no need for #51 #percent #attacks and there is no need for #code changes
#Bitcoin would have #eaten itself, so to speak