Game Theory Behind BlackRock’s Bitcoin Takeovers: ‘It’s Unstoppable,’ Influencer Says – BlackRock (NYSE:BLK)

Pseudonymous macro-influencer Peruvian bull outlined the game theory on which it is based Black Rock BLACK potentially having 1 million Bitcoin BTC/USD and implications for the Apex cryptocurrency.

What happened: The influencer posits that if BlockRock holds around 5% of the total supply, it would raise concerns about potential market manipulation. However, despite this accumulation, BlackRock’s ability to “monopolise the market” would be limited due to Bitcoin’s inherent characteristics.

Let’s solve this using game theory.

Let’s say Blackrock ends up owning 1M Bitcoin. About 5% of the total supply. That means they “have a monopoly on the market” (according to zerohedge and other people responding on Twitter).

They cannot produce more new Bitcoins using only their own resources, and they cannot…

— Peruvian Bull (@peruvian_bull) August 12, 2024

BlackRock could potentially drive price swings by strategically buying or selling large amounts of Bitcoin. Yet the ecosystem is dominated by “price-insensitive buyers,” or HODLers, who accumulate and hold their assets regardless of market volatility.

As such, any Bitcoin sold by BlackRock would likely end up in the hands of these strong holders, further reducing supply and driving prices higher. The Peruvian Bull emphasized that Blackrock’s strategy to “corner” the market would involve buying large amounts of Bitcoin and triggering stop-loss orders on both short and long positions.

Benzinga Future of Digital Assets Conference

Also Read: What Does Technical Analysis Say About Bitcoin? ‘Not Much Near-Term Clarity,’ Analyst Says

Rather than posing a threat, BlackRock’s involvement could ultimately strengthen Bitcoin’s position, the influencer argued. Bitcoin is “unstoppable,” “anti-fragile,” and “censorship-resistant.” A potential takeover of Bitcoin by Blackrock would not change those properties.

He concluded that if one institution’s stake in an ETF is seen as an existential threat, the real concerns may lie elsewhere — not in “dominating” the market, but in underestimating Bitcoin’s fundamental advantages.

What’s next?:The impact of Bitcoin as an institutional asset class is expected to be explored in depth at Benzinga’s upcoming Future of Digital Assets event on November 19.

Read more:

This content was prepared in part using AI tools and was reviewed and published by Benzinga editors.

Image created using AI from Midjourney.

Market news and data provided by Benzinga APIs