Topic: Banker bitcoin conspiracy theory (Read 2244 times)

Speaking of conspiracies, here's some funny vid I discovered yesterday:
https://www.youtube.com/watch?v=tSScnOwL8tc

A real threat is not from bankers, but exchanges

Exchanges are like banks, they have large amount of fiat money and bitcoin reserve. So they could create money and bitcoin out of thin air by using fractional reserve practice

For example, an exchange holding 100K coins could in practice manipulate 1 million coins by borrowing those coins again and again many times without being discovered (maximum 10% withdraw request from customers). And all those coins can be dumped to the market to crash the price to double digits, because no one would anticipate that amount of sell pressure from a single exchange (almost 1/10 of all coins). And after that many people will be selling their coins due to lost confidence in bitcoin (If they withdraw, then the exchange will have huge problem to deal with, but who would withdraw bitcoin in a crashing market?)

Will the international bankers launch a BanksterCoin or something like that as a competitor to bitcoin? Maybe not anytime soon, because they would have to get the government regulations changed so they would be allowed to do that. That would take several years!

The EU can launch a eurocoin, and that would be good I think, but again that would take several years to implement. Bitcoin has a head start and already today a huge momentum.

So at least in the near future bitcoin will likely be the dominating cryptocurrency.

I found the official BitLicense document:

"Section 200.3 License
...
(c) Exemption from licensing requirements. The following Persons are exempt from the licensing
requirements otherwise applicable under this Part:

 (1) Persons that are chartered under the New York Banking Law to conduct exchange services and are approved by the superintendent to engage in Virtual Currency Business Activity; and

 (2) merchants and consumers that utilize Virtual Currency solely for the purchase or sale of goods or services." -- http://www.dfs.ny.gov/about/press2014/pr1407171-vc.pdf

So the hard rules will only be for banking competitors, not for banks or ordinary merchants.

"an Act to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes." -- http://en.wikipedia.org/wiki/Dodd%E2%80%93Frank_Wall_Street_Reform_and_Consumer_Protection_Act

The Dodd–Frank act seems to be about accountability and transparency, not about stopping banks from trading with currencies. Or?

And think about it: Will the average people trust having their bitcoins in a bank or in a MtGox? Most people would not be able to securely manage their own cold store, and would have their bitcoins in ordinary bank accounts.

Are you sure? I think this is from the BitLicense proposal:

But who is "Satoshi"? Maybe Satoshi is just a name for a project launched by the banking cabal.

This is not true, however the opposite is true. The regulations will make the exchanges act more like banks. Banks will not be able to invest their own money into bitcoin as this would more or less be speculation which the banks are not able to do with their own money because of frank dodd regulations on bank capital.

In theory we could see banks start to accept bitcoin deposits and create bitcoin exchanges that compete with existing ones but I would doubt that they would attempt this and even if they did I don't see it catching on as most people who use/trade bitcoin are generally not fans of big banks.

I'd put money on this.

OK I'll jump in, here's my take - Tinfoil hat on.

Previous to dump, there was price suppression occurring. But then came DELL. Morale increases in Bitcoin community...this cannot be allowed by the power brokers.
How then do they destabilize and destroy morale?

Well, there happens to be a shitload of leveraged longs on Bitfinex which looks like a juicy match-stick house. Why don't we just take a hammer (dump)
and knock down this match-stick house and trigger stop-losses causing a downward cascade in price. Continuously flood the market with low ball offers to
reinforce the downtrend and maintain the attack for days. Sooner or later the psychological trauma induced will cause a lot of die hards and many weak hands to offload their stash.

This may not be a bitcoin grab...This may be a destabilizing and
psychological attack by malevolent actors. Many here think its natural market
forces and manipulation by interested parties but I've seen many crashes before and this does not seem like the others. I've seen bitcoin manipulated crashes and this one on a deep gut level is not like the others. This is a protracted attack unlike previous time-limited manipulated dumps.

Banks do not need to be directly involved...it is not difficult to "recruit"
"external talent" to destabilize bitcoin that cannot be directly associated with the "Bank". The monetary value of the attack is just the cost of doing business.

Judging by the majority of posts on the speculation forum, it is evident that many posters are very naive about financial markets and lack a basic and fundamental knowledge of trading.They are the perfect targets for directed psychological attack and manipulation especially by seasoned vipers.

Tinfoil hat off.

We can also argue that the market is just retesting the 430-450 price levels.
The descending triangle that formed during the weekend at the 1hr time scale was breached early Monday morning and settled at a textbook target price of ~445.18 (with some overshoot) on bitstamp today. How this setup occurred I don't f&*^ing know.

Why would they need to hold to crash the market? Many places to short with fiat.

Yeah, buy off exchange, sell into exchanges. Repeat. Weak hands get shaken out as fuck. Banksters win. Only remedy is to hold. The more they dump for the sake of manipulation the bigger the next bubble will be.

Banks are afraid Bitcoin

like first peoples were afraid of fire

---

Think yourself, nobody control all nodes, it is chaos, nobody control dev team - it is opensource.

They don't need Satoshi's coins to corner the market.  If that's a requirement, then they'd have to also buy every mined coin every day.

How would they get Satoshi's million bitcoins? Without those they would have not completely cornered the market.

As an example, two huge whales can bounce large amounts of bitcoins between each other at lower and lower prices. At the same time they can both be buying bitcoins all the time in a steady stream while the price sinks more and more.

I wonder if it's possible to buy lots of bitcoins while the price is going down! I suspect the really big whales have extreme tricks up their sleeves. Ordinarily, when lots of bitcoins are being bought by whales, the price should tend to go up. But maybe not! So, during a long steady decline over several months, some huge whales may be vacuum cleaning the whole bitcoin market and sucking up all the bitcoins they can get their hands on, while the price is DROPPING!

If factions of the financial establishment is interested in adopting Bitcoin, probably they procure their coins direct from miners. Probably, the price is based upon the Bitstamp spot price. If this is the case, probably, the vast majority of the volume of Bitcoin trade is conducted over the counter. If this were so, then it would be very easy for a whale entity with deep enough pockets, to deliberately smash the exchange price lower, and generally use their buying power to inflict a long term bear market technical scenario on the exchange determined Bitcoin market. This would force the price down that the miners could ask for their coin. Perhaps, they can drive Bitcoin down so low, that the miners would be put out of business, or be forced to sell their mining operations to the whale entity for pennies on the dollar (the whale would be the only buyer, because only the whale with inside knowledge would know that they weren't buying a dead dodo). If this were all to be the case, then the whale entity could take a massive controlling stake in existing Bitcoin shares, and in the mining of future Bitcoins. At the point that they have taken a position which is to their liking, they could use their own capital to start engineering the price of Bitcoin upwards once again, eventually allowing Joe Public and then mainstream investment funds to enter into the market via ETF products or otherwise, resulting in Bitcoin being driven into the stratosphere, whilst the whale sits backs and enjoys glittering profits for all their groundwork and perhaps even comes into a position of significant political power as a result of their massive controlling stake in the Bitcoin algorithm.

This may sound fantastical but probably wouldn't be all that hard to do, if a department of a financial institution that had access to literally unlimited supplies of cash or 'credit', that wanted to muscle into Bitcoin.

I wouldn't rule it or something else like it out. There are plenty well documented examples of much more devious financial shenanigans than what I have described, and in much more massive and politically important markets than Bitcoin.

volatility is our destiny.

large cycles of peaks and troughs.  it's still early.