Eli5 bitcoin miner
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That is what Oleg Andreev, a blogger, a software designer and a bitcoin enthusiast, thinks, but more of that later. If they had to bribe a government official, they bribed. And if they had to use a little muscle on competitors, they did not hesitate.
It is said that for the robber barons, everything went as long as it was about making money at the Wall Street. One of the manipulative tactics that Jay Gould is today most remembered for is using information, or rather misinformation, to drive market prices to where he wanted them to be so that he could make huge profits. Some have described him as the first ever stock trader at the Wall Street to employ the power of the mass media to misinform, introduce and drive hysteria amongst other traders for short selling purposes.
Just like how short selling happens today, Jay Gould would borrow stocks of particular companies from brokers and sell them as he anticipated their prices to fall so that he would retrieve them at the lower price and return them to the brokers, keeping the difference in price for himself.
However, instead of waiting for the market forces to determine the stock price movement, he would take matters into his hands. He would start spreading manufactured negative news about the corporation through the newspapers he owned. As expected, shareholders of the company will panic and start selling, which of course, would drive the price down. When the price reached a point that promises him the highest yield, he would buy back borrowed the shares and return them to the brokerage and start the whole process again.
He made huge kills at the market through unwarranted hysteria. He had so well mastered the art that thanks to it he grew to become at one time the ninth richest man in the US. He probably was the first stock trader to accumulate wealth this way, but, of course, he was not the last. As a matter of fact, the global financial meltdown has partly been blamed on almost similar activities happening at the Wall Street.
And it is this particular financial meltdown that apparently motivated Satoshi Nakamoto to design, develop and release the Bitcoin code. A code that could not be manipulated by one or a few individuals at the expense of many. That is if the world came adopt his innovation on a large scale. It was, therefore, interesting for Oleg Andreev early this week to claim in a tweet and later through one of his posts that the current block size hysteria is a market manipulation by big buyers.
The only rational explanation for consistent shitstorm about block size is price suppression before supply gets halved in July. He opined that some people want to keep the price of Bitcoin down so that they can accumulate as many bitcoins as they can before the halving of the Bitcoin mining reward sometime in July Among his reasons for arriving at this conclusion include the fact that the companies whose business would otherwise lose if the Bitcoin block filled and, as a result, the entire network failed, such as Bitcoin exchanges, are not, according to him, doing much to avert the anticipated situation.
But is that really the case? Is it possible that the scaling issue is not a critical problem after all but a cover for a few Jay Gould-like individuals to cut themselves larger slices of the success that Bitcoin is bound to become in the not so far future?
First and foremost, even if the companies within the bitcoin ecosystem wanted to create a code that scales, that would not help since whatever they come up with will have to be accepted by the entire Bitcoin community for it to work. Indeed, that fact, at this moment, makes consensus building a more important undertaking than creating code.
After all, the Bitcoin project is open source. Nevertheless, we cannot ignore the fact that the scaling problem has in many cases been blown out of proportion, especially by the mainstream media. This, of course, has made a few of users who have little knowledge on how the bitcoin network works to panic and often make for the exit. Even with that, it is still hard to rationalize a conspiracy of Jason "Jay" Gould style to have the users disown bitcoin while unbeknownst to them that they are giving up the probably the best opportunity in their entire lives.
Next Post Previous Post. He scared the market towards his trap One of the manipulative tactics that Jay Gould is today most remembered for is using information, or rather misinformation, to drive market prices to where he wanted them to be so that he could make huge profits. Bitcoin is here to combat market manipulation by a few He probably was the first stock trader to accumulate wealth this way, but, of course, he was not the last.
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