Help me understand why this strategy would fail.
Let's assume I got 100M$ with me.
Step 1: Purchase 70M$ worth of bitcoins.
Step 2: Spend 30M$ marketing bitcoins as the next big thing
Given that bitcoin is a pretty good product, the additional marketing would help convince people to invest in it.
Step 3: Convince 1000 other 100M$+ net-worth individuals to do this.
Step 4: Let it surge. Wait till the combined worth of 1000 investments above is <30% of the market. Pull out.
At this point there is about 30B$ of marketing budget. 3 times of what Samsung spent on marketing in 2016.
Fake news, facebook & twitter ads that influenced US elections proved that it's possible to do something like this. At this point, it's worth mentioning that 'Bitcoin is a great product' unlike the former case.
Doing above is possible with any public stock but it's probably illegal. With Bitcoin I am assuming there is no such check.
So what's stopping people from doing this?
Anyone else thinks this is how it's happening already?
Related article:
[1000 people own 40% of the market]
https://www.bloomberg.com/news/articles/2017-12-08/the-bitcoin-whales-1-000-people-who-own-40-percent-of-the-market
Let's assume I got 100M$ with me.
Step 1: Purchase 70M$ worth of bitcoins.
Step 2: Spend 30M$ marketing bitcoins as the next big thing
Given that bitcoin is a pretty good product, the additional marketing would help convince people to invest in it.
Step 3: Convince 1000 other 100M$+ net-worth individuals to do this.
Step 4: Let it surge. Wait till the combined worth of 1000 investments above is <30% of the market. Pull out.
At this point there is about 30B$ of marketing budget. 3 times of what Samsung spent on marketing in 2016.
Fake news, facebook & twitter ads that influenced US elections proved that it's possible to do something like this. At this point, it's worth mentioning that 'Bitcoin is a great product' unlike the former case.
Doing above is possible with any public stock but it's probably illegal. With Bitcoin I am assuming there is no such check.
So what's stopping people from doing this?
Anyone else thinks this is how it's happening already?
Related article:
[1000 people own 40% of the market]
https://www.bloomberg.com/news/articles/2017-12-08/the-bitcoin-whales-1-000-people-who-own-40-percent-of-the-market