Re Bitcoin price manipulation

["Dave Farber" <dave () farber net>]

---------- Forwarded message ---------
From: David S. H. Rosenthal <dshr () abitare org>
Date: Thu, Jan 25, 2018 at 1:36 PM
Subject: Re: Bitcoin price manipulation
To: <dave () farber net>


> From: Charley Kline <csk () mail com>
> Date: Thu, Jan 25, 2018 at 12:46 PM
> Subject: Bitcoin price manipulation
> To: Dave Farber <dave () farber net>
>
>
> Researchers find that one person likely drove Bitcoin from $150 to $1,000.
https://techcrunch.com/2018/01/15/researchers-finds-that-one-person-likely-drove-bitcoin-from-150-to-1000/
> Researchers Neil Gandal, JT Hamrick, Tyler Moore, and Tali Oberman have
written a fascinating paper on Bitcoin price manipulation. Entitled “Price
Manipulation in the Bitcoin Ecosystem” and appearing in the recent issue of
the Journal of Monetary Economics the paper describes to what degree the
Bitcoin ecosystem is controlled by bad actors.

See also:

http://www.tetherreport.com/

* Author’s opinion - it is highly unlikely that Tether is growing
through any organic business process, rather that they are printing in
response to market conditions.
* Tether printing moves the market appreciably; 48.8% of BTC’s price
rise in the period studied occurred in the two-hour periods following
the arrival of 91 different Tether grants to the Bitfinex wallet.
* Bitfinex withdrawal/deposit statistics are unusual and would give rise
to further scrutiny in a typical accounting environment.
* If there is questionable activity, the author believes a 30-80%
reduction in BTC price could be forecast.

PS - Tether printed another $100M yesterday, adding to this record:

https://twitter.com/Silver_Watchdog/status/955327588284612608

"Tether Net Annual Issuance

2014 $100
2015 $951,550
2016 $9,000,000
2017 $1,405,047,515
2018 $750,000,000"

PPS - Nicholas Weaver tweets:
https://twitter.com/ncweaver/status/954033664601473026

"At current prices, net new Bitcoin requires $18M of net new $ flowing
in to maintain the price. Yet there is a net $100M/day of fake $s in the
form of Tethers... If that Tether printing press ever breaks, there will
be a true bloodbath on the cryptocurrency prices. Good."

Nouriel Roubini responds:
https://twitter.com/Nouriel/status/956482056254455809

"Indeed Tether/USDT used to manipulate Bitcoin prices. Without this scam
Bitcoin price would collapse by 80%. Regulators asleep at the wheel
while $2 billion of fake $ created via this scam, half of it since
December. Not even North Korea created so many fake $ backed by nothing"

        David.



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