There has been a lot of speculation concerning the possibility of some people or groups of people to trigger bitcoin’s price. For example, Russian Kaspersky Lab co-founder Natalya Kaspersky, who recently claimed that bitcoin is a ‘project of US intelligence,’ believes that the price of this crypto coin can be regulated by exchanges' leadership, just the way the dollar’s price is established.
Some may agree with such theories, the others may argue them, but recently a group of researchers managed to prove that in 2013 the price of the ‘Big Daddy’ was prompted by a particular person.
Bitcoin’s First Inconceivable Leap And Concerns Over Fraud
Around five years ago, bitcoin’s price was balancing between $60 and $130 per unit. In October 2018, bitcoin was worth $150, but just in two months since that time it surpassed the margin of $1,000, grown in price by 6.6 fold.
It was as difficult to believe in it just as it was last year December when the coin soared to $20,000. But four researchers from the Berglas School of Economics (Tel Aviv University) as well as from the Tandy School of Computer Science (The University of Tulsa) are saying now that the leap in 2013 was provoked by an individual.
Mainly, Tyler Moore, Neil Gandal, Tali Oberman, and JT Hamrick depict in their work how dubious practices related to the Mt. Gox bitcoin exchange, which faced the bankruptcy in 2014, affected the price of BTC five years ago. The paper, concerning the issue, is named "Price Manipulation in the Bitcoin Ecosystem," and was released by the Journal of Monetary Economics. The study itself brings the jeopardy of value handling into light as well as it points out at possibilities of scam on the market of virtual money.
The Proof: One Person Behind Two Bots
One of the researchers, when conducting a study, looked through the data that had been anonymously offloaded four years ago after accusations that 650,000 of BTC units were disappeared in the Mt. Gox case. Explorers discovered that the most substantial number of crypto value manipulations took place because of two bots, in the name of the client country of which were positioned two question marks. Therefore, the researchers decided to call the first bot “Marcus,” whereas the second bot received the name “Willy.”
According to the study research, bot Marcus was functioning in 2013 between February 14 and September 27. In the space of this period, the bot was randomly purchasing bitcoins at various prices, collecting nearly 336 thousand of bitcoins in general. As it was disclosed later, Marcus was not giving the money away for the ‘purchased’ bitcoins. A few hours after the first bot ‘turned off,’ Willy came onto the stage like a bunch of 49 accounts. Each of them bought bitcoins, worth $2.5 million, and then ‘turned off’ too.
As the researchers found out, it was the time when BTC’s price soared. For instance, when there was no questionable activity, the USD-BTC exchange rate demonstrated an insignificant decrease. But when one of the bots was maneuvering on the market, the price would usually soar by $20.
"We conclude that the suspicious trading activity caused the unprecedented spike in the USD-BTC exchange rate in late 2013 when the rate jumped from around $150 to more than $1,000 in two months," the researchers stated.
Ultimately, the group of discoverers managed to confirm that only one individual was responsible for two bots, which took about 600,000 of BTC units. So now as people are aware of it they should think twice before piling into cyber money.
Chart Source: coinmarketcap.com.