Is the Value of Bitcoin Being Manipulated?

May 29, 2018 by Adrian Thorpe

Bitcoin Price ManipulationThere is a lot of speculation that the value of Bitcoin is being manipulated, however one does have to ask what are the possibilities of it being so, and who is likely to be the main beneficiaries of its price being manipulated.

The one main way that the price of Bitcoin could be manipulated is when large amounts of that cryptocurrency are being held by a small number of individuals, and that is exact the situation we do see ourselves in, for there are some investors, mainly those who invested early who do have some huge holdings of Bicton.

Once you do hold large units of any currency, whether cryptocurrencies or even fiat currencies then you are in he best position possible to use them to help move the prices of them one way or another.

There are also Bitcoin miners, and they are always going to want to see the price of Bitcoin rising, to keep their earning power as high as possible.

If there is any price manipulation on the cryptocurrency markets then the main beneficiaries are always going to be those investors that have the largest units of them.

But keep in mind there are ways that they are going to be able to cash in when the value of Bitcoin does rise or fall, other than allowing them to sell some of their holdings or buy more units of any cryptocurrency, and that is something I will now look at and show you how it is possible.

Trading on Just the Value of Bitcoin

It is now possible to trade on just the value of Bitcoin, and as such instead of buying, holding onto and then selling Bitcoin at just the right time, one can simply place for all intents and purposes a bet on which way the value of Bitcoin will swing.

Therefore, if any huge holders of Bitcoin want to, they could flood the exchanges with Bitcoin and start buying or selling it back to themselves, and cause the value to dip, and if they have placed a bet on the value dropping then they will be in the money.

They could also do the complete opposite and choose to remove their holdings from the exchanges and that in turn will have the effect of driving up the price of Bitcoin and will not only increase the value of their large holdings but will allow them to know in advance the price will rise and allow them to have placed bet on the value rising, and therefore once again be assured of placing a winning bet.

There is some serious money to be made on manipulating the price of Bitcoin and to a lesser degree any other cryptocurrencies too, and I think I would be surprised in the price wasn’t at some point being manipulated, for wherever there is money to be made there will be plenty of people trying to make money.

Non-price manipulating investors are likely to be the ones that lose out when prices are being manipulated, however there is always the chance they will also cash in too if they have placed the right type of trade at just the right moment!