[GeneralQuestions]So stupid question but could some one Make 100 different markets to seal most of the % btc in circulation to end online trade?

So Say some one Makes a new market every time right and Just keep stacking up the coins and they never get used or moved. Could you limit the supply of btc in circulation? Would this cause a price raise? or would it cause btc to drop? I Know a size able amount of money flows though these markets and btc has a set cap where it stops paying out right? a totally number of btc dished out? If this could be done is this what is going to happen? and do you think markets will switch coins or will they just be come a Money pit or get rich quick dream.


Comments


[1 Points] DarknetHeroesLeague:

Not possible for various reasons.

This question is better asked at the bitcointalk economics board.


[1 Points] Heycallme:

There are too many hypotheticals and contingencies for this to ever happen. If it were as simple as 1. Set up a market
2. People give me their BTC
3. Close market
It would be done much more frequently. It's technically difficult to establish a safe and secure market and to get people to use it.

Not to mention that if this were easy to do and people were doing it, and like you said they were holding the BTC indefinitely, it would make BTC worthless as it would never be traded.

But again, that doesn't make sense.


[1 Points] Stockholder:

Markets would wait till size able amount of btc In market before exit? If you start a market early enough and let it sit for about a year it seems it could become next spot as if its just a waiting game for number of markets online run out.? Why take $ and never send its fool me once shame on you fool me twice shame on me.... so no one will ever do any thing about it :p There once was a person who made Project Black Flag, He was a Successful Coder But he was short on capital This man Used the DPR name and eventually selected a person named DPK to be his forum mod. He Collected about 1,250 USD in Btc. And Exit his market less then a week after beta stage. the site was handed off to in a rar, there was a note that explained that he had stolen the wallet and left Could he have realized he had good ideal and just exited to early?


[1 Points] sobulbous:

This is like a deflationary monetary policy taken into the hands of individuals rather than a central authority like the federal reserve. Japan is aggressively doing the opposite with the Yen to encourage borrowing and spending.

I doubt you could make a dent in the supply in the short term. It is definitely not a get rich quick scheme.

And why would someone not at least try to cash out millions of dollars after an exit scam? To increase their wealth trying to cause deflation? Ridiculous and unnecessary.


[1 Points] tossmysaladthrowaway:

/u/stockholder, you greatly overestimate the percentage of bitcoins that are in the markets. Think about it, the billionaire internet entrepreneur winklevoss twins say they own just about 1% of all bitcoins. Most bitcoins go back and forth between chinese mining pools and different exchanges - many more dollars and yuan are spent on speculation than on drugs. I know this sub thinks its a big fish or whatever, but darknet black markets and drug buying are no longer the source of bitcoins value like they were in 2010 SR1 days.

also, good job, you have invented what is called an "exit scam". I am guessing english is not your first language?


[1 Points] Theeconomist1:

So I think what you are talking about is what is referred to as "cornering the market." For a parallel, check out the Hunt brothers attempt to corner the silver market in the 70's. Bascially what they did, over the decade is hoard silver, buying it up. At one point I believe they controlled a third of the entire silver supply (maybe minus government holdings). This caused prices to spike from around $10/ounce to over $50/ounce. Everybody bitched about it. The government made new rules regarding margins. Silver prices dropped and unfortunately for the Hunt brothers, they highly leveraged their silver buying spree with debt and as the silver price spiraled down, their debts were called, they were unable to meet obligations, and they declared bankruptcy and fined several million dollars for manipulation.

So in the BTC case, you have a few problems. One is market size. I don't know what the market cap is for BTC but its large. Very large. DNM purchases account for a minuscule amount of the total BTC circulating so you can forget about using a DNM market to hoard. So you'd need to be insanely wealthy and insane to do this. I'd imagine w/ BTC, unlike silver which has intrinsic value, market faith could be lost in a hoarding scenario and the currency abandoned.

Economics is just like physics. Both economics and physics are about equilibriums. You can apply force, dampeners, etc to disrupt equilibrium. So let's pretend there did exist a wealthy man who could pull something off like this. As the wealthy man purchased and hoarded his BTC, he would drive up the price of BTC as he bought up, making it more expensive to continue buying. As liquidity dries up, prices skyrocket. If this wealthy man hoarded enough of the coin, and assuming market faith isn't lost, the prices would be very high due to limited supply amidst unchanging demand. Now, like all wealthy men, he will at some point want to either spend it or cash out (b/c everybody knows that the real power of wealth isn't hoarding cash, the real power of wealth is the purchasing power. Cash is useless on its own - its the execution of cash that holds the power). So as the wealthy man started cashing out his positions, the supplies would increase, driving down price as he sold. And once he sold all his holdings, if all else is equal, he would have done exactly... nothing. Now if he was just a BTC asshole who wanted to tie up the supply of BTC, then prices would remain high as long as the demand remained. At some point though, just like a people who've lost faith in their government's currency, they will flee ship and abandon BTC for greener pastures, plummeting the price. The wealthy man would be a stupid man now. This is just assuming there existed someone with the wealth and purchasing power to do this. There isn't.