Help! Can Bots Kill The Crypto World?steemCreated with Sketch.

in #bitcoin7 years ago

Here is my theory, Please comment and let me know what you all think.

One thing that worries me is the proliferation of bots and AI trading. With a simple drawing of a diagram it would be easy to see how a group of bots could stifle and even kill crypto currencies.

Lets say you have people in different countries and city states operating their own network of bots. There would be so many bot out there they they would not be all taking profit at the same time. On a small scale lets say you have a group of bots taking profit during the day, another group at noon, and then another during the night. These bots are not managed by the same people and in fact the people don't even know each as they are all in different parts of the world all using bot independently.

Let say you have group A bots, group B bots, group C. In theory there can be a infinite number of group bots. An groups just means that these bots are coincidentally taking profits on the same schedule. All new investor money will be taken by group A bots for profit during the day and this will trigger a downward trend in the coin price which results in "weak hand" investors selling of their coins to minimize loss. At the same time group B bots are now triggered to buy the dip, when group B bots buy the dip this creates the illusion of the upward trend to which new investors began to buy again continuing the illusion of an upward the which then triggers group A bots to sell on the high. Group A bots sell of triggers a downward trend again in which investors began to sell of as well which creates the 'dip' illusion. Now Group C bots buy the low to which it causes and upward trend illusion and investors buy again continuing the upward trend illusion. At this point group B bots sells at the high. Now group A bots buy again, group C bots gets it's profit selling at the high and then the whole process starts over again.

At the end of the day, new money invested is getting shaved off the top buy bots. This is why the market is on a consistent up and down trend. this will lead to new investors losing faith in the system and an ultimate crash. Understanding that groups of bots are just any number of bots in any location taking profit from the crypto market at any given time. The bots are not managed by any one but the people who set them up. I would like for someone to tell me I don't know how the market works and that this is not possible but this appears to be the trend that I am seeing.

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Lol
Very nice Post!

I follow you...follow me

https://steemit.com/bitcoin/@rudirock/dino-park-game

True, I don't see a way to stop them from working. This happened on 3 Feb and will happen again.

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