can states buy all bitcoin? - page 4.

pekingcoepo

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Quote from: vroom on September 20, 2017, 02:21:28 PM

what would happen if most of the bitcoin were owned by a single organization? for states that print their own fiat money, financing to buy "all" bitcoin would be possible.

the state would presumably risk hyperinflation due to the enormous increase of money and bring the bitcoin rate to astronomical values.

but then, when the state is in possession of "all" bitcoin, it can make the circulation of bitcoin quasi succumb. bitcoin dead, population impoverished, mission accomplished.

it seems that it will not happen, because the bitcoin price is so high it will require huge capital to buy all the Bitcoin in the world, and if it could be an organization controlling Bitcoin completely then there will be no Bitcoin so no exchange between bitcoin users and the organization will experience inflation in the country.

MissionPhailed

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Aside from this scenario being impossible, it is interesting to note that a whole bunch of countries are simply too poor to buy all of BTC, let alone all of crypto. I'm not an economical expert and don't know if a market cap of a country is some sort of 'thermometer' of wealth. I took some numbers from indexmundi and coinmarketcap:

Market cap Russia (2015): $393.238.000.000
Current market cap crypto: $136.300.000.000
Current market cap Bitcoin: $65.100.000.000
Market cap Argentina (2015): $56.134.630.000
Market cap Serbia (2011): $4.055.580.000
Market cap Namibia (2011): $1,152,430

Beerwizzard

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Quote from: vroom on September 20, 2017, 02:21:28 PM

what would happen if most of the bitcoin were owned by a single organization? for states that print their own fiat money, financing to buy "all" bitcoin would be possible.

the state would presumably risk hyperinflation due to the enormous increase of money and bring the bitcoin rate to astronomical values.

but then, when the state is in possession of "all" bitcoin, it can make the circulation of bitcoin quasi succumb. bitcoin dead, population impoverished, mission accomplished.

Such a huge emission will probably hurt even the US dollar. Also they won't be able to buy it at one time so it will cause a huge BTC pump (which will alsso increase the amount of fiat needed to buy it). Some people simply won't trade their bitcoins and some bitcoin are already out of use because they are lost.
It is hard to get most of th bitcoin simply because not all of them are on tradable atm.

IT_AEX

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Of course they can, everyone can buy bitcoin.
However keep in mind that if they attempt to buy *all* bitcoin, the price will arise and eventually it will become unaffordable.
On top of that, if government buys all bitcoin and owns it, it would be pointless because no one else would have.

Instead, a better idea would be to launch their own cryptocurrency and compete with bitcoin.

emuLOAD

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It would push the price of bitcoin to the point where they would fail to buy them all. As long as there is even one bit out there, it can be subdivided. It would just change the unit price of a bitcoin, and people would transact fractions of bits.

salihno71

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Why would they do that when it's much cheaper to issue own coin which they can control and make it official mean of payment? In the world of big money there is no sentimental mood, only pragmatic planning.

BitcoinSupremo

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Bitcoin is not yet in the eye of governments. A few of them have put ban to using Bitcoin to their citizens, no matter this , such thing can be easily bypassed by anyone using bitcoin. Many of bitcoin holders will not sell their bitcoins that they are holding so what you are asking is practically impossible for any agency or government to do, luckily for us.

The Sceptical Chymist

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Not gonna happen. You think any politician or state agency is going to be willing or able to justify buying crypto for no reason? Hell no they're not. Especially something as volatile and potentially money-losing as bitcoin. And they would have no reason for trying to corner the market--or buy any at all.

As to what would happen, bitcoin would quickly lose its popularity and would become a centralized, government shitcoin. And then we'd move on to the next best coin. Probably eth or litecoin or some such.

Pleione527

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It's possible but it will be quitr difficult for them to yrace where are the owners of most number of bitcoin because we all know that bitcoin was spread in different people and different country the ownership of it is unknown to any people in this world. That's the best thing and a sort of control for bitcoin states cannot just buy all and take away from market

pucunghul

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Quote from: vroom on September 20, 2017, 02:21:28 PM

what would happen if most of the bitcoin were owned by a single organization? for states that print their own fiat money, financing to buy "all" bitcoin would be possible.

the state would presumably risk hyperinflation due to the enormous increase of money and bring the bitcoin rate to astronomical values.

but then, when the state is in possession of "all" bitcoin, it can make the circulation of bitcoin quasi succumb. bitcoin dead, population impoverished, mission accomplished.

it's crazy, and it's impossible. how one organization or one country buys all the existing bitcoins. you are too naive to think. That will never happen.

Don Pedro Dinero

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Quote from: natsu_koo on September 25, 2017, 01:25:22 PM

Well i dont think that states could afford all of bitcoins in the world and i dont think they could have them all because mostly of the people having bitcoins saves it for future purposes.

What the OP is asking about is like a takeover bid.

Market cap is now 65 billion (American, 65.000.000.000), it is not that difficult for different important states to buy. However, it is an important amount and the problem is that if they tried to start buying, price would go up. It is not like the takeover bid where you agree on a price beforehand. They would need to ask the market for bitcoins for the current price at the time they are buying. So, if they started buying now, they could buy some for 3.900$ but then they would have to buy more expensive bitcoins because the price would be fueled by that high demand.

Anyway, I think it is very unlikely and many people wouldn’t sell.

natsu_koo

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Well i dont think that states could afford all of bitcoins in the world and i dont think they could have them all because mostly of the people having bitcoins saves it for future purposes.

cr1776

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Quote from: vroom on September 20, 2017, 02:21:28 PM

what would happen if most of the bitcoin were owned by a single organization? for states that print their own fiat money, financing to buy "all" bitcoin would be possible.

the state would presumably risk hyperinflation due to the enormous increase of money and bring the bitcoin rate to astronomical values.

but then, when the state is in possession of "all" bitcoin, it can make the circulation of bitcoin quasi succumb. bitcoin dead, population impoverished, mission accomplished.

What if people won't sell it to them? Who is going to be dumb enough to take a hyper-inflating currency in exchange?

vroom

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what would happen if most of the bitcoin were owned by a single organization? for states that print their own fiat money, financing to buy "all" bitcoin would be possible.

the state would presumably risk hyperinflation due to the enormous increase of money and bring the bitcoin rate to astronomical values.

but then, when the state is in possession of "all" bitcoin, it can make the circulation of bitcoin quasi succumb. bitcoin dead, population impoverished, mission accomplished.

Topic: can states buy all bitcoin? - page 4. (Read 1304 times)