Can't central bankers just buy all the bitcoin and miners?

stompix

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Quote from: BVeyron on May 26, 2023, 05:28:26 PM

Unfortunately, it can happen. The benefits of decentralisation and blockchain algorithm can be adopted by fiat bankers, it will lead to development of fiat security technologies with the help of crypto algorithms now used only in cryptocurrencies. This will make existing cryptocurrencies useless, since all the money will be blockchain-backed.

So what?
How could a clone developed by a central bank or commercial bank make Bitcoin for example turn useless just like that? Why would anyone switch to a thing that it's basically the same but it hasn't proven itself, it has a dubious background and an even darker future in wait?

Besides, how could such a solution even exist, imagine an entity that surrenders all control of its currency for what possible reason? What would be for them in this?
There will never be decentralization when a coin is developed by a nation or a company or and administrative body, it makes no sense as it brings no benefits. And people abandoning bitcoin or other true decentralized crypt of for stuff like CBDC makes sense only if you have completely lost faith in human kind.

YUriy1991

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I think such a strategy would pose a serious risk to market stability and potential eventual manipulation of the Bitcoin price. Yes. It is very unlikely that one entity (Central bank) can acquire all the coins, and even if forced once the price will be exorbitant as @Mauser said. The important point here is that the total number of Bitcoins is limited to only 21 million Bitcoins in existence and Currently, about 18.7 million Bitcoins have been mined out of a maximum total of 21 million Bitcoins if I am not mistaken.

Gallar

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Quote from: hsdjkahskjdh on May 22, 2023, 08:25:31 AM

Can't central bankers just buy all the bitcoin and miners?

I don't think something like this will happen easily, even for a bank class. To buy all the bitcoins, it is certain that the bank must have a lot of money, and does the bank have that much money? If it is said that it has that much money, and immediately buys everything in bitcoin, will the bank's condition be fine with its customers. Because in that bank, not only is there money from the bank itself, but there is also money from its customers. Then if the bank wants to buy all the existing bitcoins, it is certain that everyone who holds bitcoins must sell them, and in my opinion that is impossible. Because bitcoin investors are not robots, who arbitrarily sell their bitcoin assets. So in conclusion the bank will not be able to buy bitcoins as a whole, because of the factors I mentioned above.

Mauser

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Quote from: hsdjkahskjdh on May 22, 2023, 08:25:31 AM

Can't central bankers just buy all the bitcoin and miners? so what is the point again? to prolong are $lavery?

bitcoin sucks https://www.youtube.com/watch?v=_ZQnDMQ4nlQ

kids born in 2142 are born into 100% premine kids born today are born into a 95% premine

Why exactly should central banks buy bitcoin? Their mandate is price stability in their respective fiat currency, issuing more debt to buy bitcoin is definitely part of their job. Central bankers can't do what they want, there are laws in place. The idea is a bit dumb, but let's run with it for the sake of the argument. So let's say the central bank starts buying bitcoin heavily. That would send the bitcoin price to the moon, all the HODL investors wouldn't be selling at current prices. The central bank might need to offer 1m USD per bitcoin for the long term holders to give up their coins. And even then it seems unlikely that one entity could aquire all coins. Let's say the central bank spend billions and managed to aquire all coins, then the price would drop to 0 because who wants to buy bitcoin if there are no in circulation. Seems like a bad deal for any central bank.

BVeyron

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Quote from: hsdjkahskjdh on May 22, 2023, 08:25:31 AM

Can't central bankers just buy all the bitcoin and miners? so what is the point again? to prolong are $lavery?

bitcoin sucks https://www.youtube.com/watch?v=_ZQnDMQ4nlQ

kids born in 2142 are born into 100% premine kids born today are born into a 95% premine

Unfortunately, it can happen. The benefits of decentralisation and blockchain algorithm can be adopted by fiat bankers, it will lead to development of fiat security technologies with the help of crypto algorithms now used only in cryptocurrencies. This will make existing cryptocurrencies useless, since all the money will be blockchain-backed.

BlackHatCoiner

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Quote from: Onset on May 23, 2023, 05:26:33 AM

What if a hard fork changes the algorithm and invalidates ASIC miners?

Yeah, right. And you're going to use the fork with minimum security, in comparison with the fork all ASICs are currently in production for. I'm sure everyone will follow. Tongue

Quote from: fruktik on May 26, 2023, 09:03:21 AM

Naturally, the Central Bank will not be able to buy all the BTC. Yes, and they will not do this, because. the risks in this direction are too high.

I don't think it's even practically possible to begin with. Typically, when there's money printed, that money is announced to be used somehow. You can't just print a billion dollars, launder them with nobody watching, and have all your bitcoins yours. You have to submit a bill, and have it voted. I honestly want to see the faces of the senators when some congressman proposes to buy all the bitcoins for the common good. Tongue

fruktik

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Quote from: darewaller on May 25, 2023, 04:45:00 PM

That would be cool. It can make us experience what is like to mine bitcoin using only our mobile phones, laptop and computer. That would be an easy money for us. Unfortunately, halving does not work like that. On main topic, that seems impossible because banks and BTC are not friends. Even if they do, It will still take a long time for all the BTC to be mined and then many BTC are already lost. Lastly, it could take them lots of money to be able to buy all the remaining supply of BTC.

OP sounds very familiar to me. He seems the user who post none sense thread like this. I remember that user also create a thread with a title> "what if banks print more money in order to solve all the problem in the economy?". There are really things that are not possible so it's better to leave them as is.

Sometimes it is incredibly funny to read such topics. So, why was it created? In order to get an answer, which is already known to the TC? Is it really possible to get merites this way? Well, they put a couple and that's it. I will answer on topic. Naturally, the Central Bank will not be able to buy all the BTC. Yes, and they will not do this, because. the risks in this direction are too high.

lalabotax

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Quote from: hsdjkahskjdh on May 22, 2023, 08:25:31 AM

Can't central bankers just buy all the bitcoin and miners? so what is the point again? to prolong are $lavery?

Central banks?
well, what's the point then for them to buy all Bitcoin and the miners while some of the are still against. Central banks also have certain rule and regulation in spending money, both under the country governance and also under the World bank. Whose money will be used for ourchasing all Bitcoin?
I am nkt sure that they are able to and want to do it. It is such a risky step and wasting money for the central banks because they need cash for their flows to the customers.

darewaller

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Quote from: Onset on May 23, 2023, 05:26:33 AM

Quote from: stompix on May 22, 2023, 03:18:16 PM

It doesn't work like this, if this entity has total control over 300Exahash and your loyal miners have 10 they can fuck around with your chain like they please invalidating half a day of transactions every day, mining hundreds of blocks ahead of you, raising he difficulty 30 times, and then stop mining so you will get a block every 5 hours and so on!

What if a hard fork changes the algorithm and invalidates ASIC miners? I think it’s better for us even if we go back to CPU or GPU mining in that situation. Just like direct CPU mining isn’t possible anymore, it could be reverted and turned the other way around. What do they do next, start buying exaggerated amounts of CPUs? Cheesy

That would be cool. It can make us experience what is like to mine bitcoin using only our mobile phones, laptop and computer. That would be an easy money for us. Unfortunately, halving does not work like that. On main topic, that seems impossible because banks and BTC are not friends. Even if they do, It will still take a long time for all the BTC to be mined and then many BTC are already lost. Lastly, it could take them lots of money to be able to buy all the remaining supply of BTC.

OP sounds very familiar to me. He seems the user who post none sense thread like this. I remember that user also create a thread with a title> "what if banks print more money in order to solve all the problem in the economy?". There are really things that are not possible so it's better to leave them as is.

adzino

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Yeah, they can, but there is something that is stopping them or else they would have done it already, right? When they actually do it, bitcoin won't remain decentralized anymore. It would become another regular currency like fiat currency. People will no longer be interested in it, hence I doubt the value of bitcoin will be the same. Buying all bitcoin for no one to accept it? That won't be good for the banker, would it? People would just move on to another coins. The bankers can't buy each and every coin now, can they?

stompix

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Quote from: crunck on May 24, 2023, 08:03:07 PM

I also believe that banks are holding a large amount of bitcoin even though they are always talking bad about bitcoin in the media every day. Because a bank's business purpose is also to make a profit and holding bitcoins can be even more profitable. So there's no reason to ignore those investments. What they are saying about bitcoin is just a way to keep others away from wealth, and that's how rich people always do. They do not want to share wealth and opportunities with the poor.

Makes no sense, or as much as a guy standing in front of his favorite cake shop screaming he got disagreed from it so he can have all the cakes today for himself, but tomorrow it will be out of business.

You don't shit where you eat and you don't talk shit about your own investment, doing so would simply work against you.

Quote from: Smartprofit on May 24, 2023, 05:08:13 PM

In addition, it is impossible to buy all Bitcoins and mining farms, since both the buyer and the seller always participate in the purchase and sale transaction at the same time. Miners and holders may simply not want to sell their equipment and coins.

First, everyone has a price.
Second, unlike coins mining gear can be produced indefinitely as long as you have money, in theory you don't even need to buy the other miners gear, you just have to drive them to bankruptcy.

wxa7115

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Quote from: hsdjkahskjdh on May 22, 2023, 08:25:31 AM

Can't central bankers just buy all the bitcoin and miners? so what is the point again? to prolong are $lavery?

bitcoin sucks https://www.youtube.com/watch?v=_ZQnDMQ4nlQ

kids born in 2142 are born into 100% premine kids born today are born into a 95% premine

So? A great deal of the gold on earth has been mined already, should we return it to the ground so everyone has a fair chance to mine gold too? People are born in their particular era and they have to deal with the challenges which are unique to them, trying to institute some kind of hard reset then would be unfair for those which learned to thrive under the current system.

And central banks cannot really afford to buy all the bitcoin around the world either, because even if they tried then this will push the demand of bitcoin up, increase its price and accelerate its adoption, which is exactly what they do not want.

crunck

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Quote from: Obari on May 24, 2023, 04:31:53 PM

Well I believe the banks are already buying enough of bitcoin and since they're one of the major sectors cryptocurrency is fighting against, I think they wouldn't have to come out plain to accept defeat that easily, hence they should be cutting corners when getting involved in cryptocurrency and bitcoin.
I don't know of the possibility of buying up miners but I know they're are secretly owning larger amounts of bitcoin and some countries are already accepting bitcoin while countries like mine are already tokenizing their currency which is a prove of how influential digital currency is turning.

I also believe that banks are holding a large amount of bitcoin even though they are always talking bad about bitcoin in the media every day. Because a bank's business purpose is also to make a profit and holding bitcoins can be even more profitable. So there's no reason to ignore those investments. What they are saying about bitcoin is just a way to keep others away from wealth, and that's how rich people always do. They do not want to share wealth and opportunities with the poor.

drwhobox

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Quote from: Obari on May 24, 2023, 04:31:53 PM

Well I believe the banks are already buying enough of bitcoin and since they're one of the major sectors cryptocurrency is fighting against, I think they wouldn't have to come out plain to accept defeat that easily, hence they should be cutting corners when getting involved in cryptocurrency and bitcoin.
I don't know of the possibility of buying up miners but I know they're are secretly owning larger amounts of bitcoin and some countries are already accepting bitcoin while countries like mine are already tokenizing their currency which is a prove of how influential digital currency is turning.

Banks are doing this long time ago, even some are doing it publicly. Banks trying their best to own bitcoin as much as they can. But the point is not one bank or government can buy all the bitcoins and miners so they can not actually control bitcoin. Bitcoin is not a local currency that any bank or government can control. So it is better not to worry just don't sell your bitcoins to bank and we're all good.

panganib999

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Quote from: Doan9269 on May 22, 2023, 11:33:23 AM

Quote from: hsdjkahskjdh on May 22, 2023, 08:25:31 AM

Can't central bankers just buy all the bitcoin and miners? so what is the point again? to prolong are $lavery?

They can't do that, not only can't they do such, bitcoin is a decentralized digital currency and cannot be owned by the government, we have miners distributed across the world in all countries holding their bitcoin reward after mining and can't sell to government except individuals through p2p for privacy sake, aslo know that the entire bitcoin isn't mined completely at the same time, there's still more to solved over the years coming, so no single entity can accumulate the entire bitcoin, not even Microstrategy or anyone well known as giant whales.

They actually could, at least in theory. And provided that the convinced every single bitcoin miner on the planet to sell their equipments to them as what Onset has said. It's not gonna solve problems or whatever, if anything it's gonna cause more of them cause there will now be a centralized form of bitcoin, and the decentralized ones we use today. This will have massive conflicts and implications which later down the line means everything's gonna be shit and we'll all lose the very thing we're trying to protect.

Plus I do not understand how Slavery was questioned here? Like what in the hell does it have to do in this topic? Care to shed light on this particular part of your post OP?

darkangel11

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Quote from: hsdjkahskjdh on May 22, 2023, 08:25:31 AM

kids born in 2142 are born into 100% premine kids born today are born into a 95% premine

You don't even know what premine is, yet you have your own opinion about bitcoin being premined.
FYI, a premined coin has some of its supply in control of the dev team and insiders at launch. In case of bitcoin, only coins that Satoshi mined himself at the very beginning could be seen as premined, but he's not going to use any of that, so it was rather a test than a real premine.

Governments could print money and buy most of bitcoin in circulation, but they won't because that would be like saying that their own currency is done and would push the country into chaos and panic.
Nobody will sacrifice a whole economy to decrease the supply of bitcoin in circulation.

Smartprofit

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Quote from: hsdjkahskjdh on May 22, 2023, 08:25:31 AM

Can't central bankers just buy all the bitcoin and miners? so what is the point again? to prolong are $lavery?

bitcoin sucks https://www.youtube.com/watch?v=_ZQnDMQ4nlQ

kids born in 2142 are born into 100% premine kids born today are born into a 95% premine

Central Banks cannot buy up all Bitcoins and all mining farms simply because they do not have such powers.

Central Banks are regulated by special regulations (the so-called Basel Committee Rules).

In addition, it is impossible to buy all Bitcoins and mining farms, since both the buyer and the seller always participate in the purchase and sale transaction at the same time. Miners and holders may simply not want to sell their equipment and coins.

At the same time, the massive buying of Bitcoins and ASICs will lead to a very rapid increase in the price of Bitcoin.

Obari

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Well I believe the banks are already buying enough of bitcoin and since they're one of the major sectors cryptocurrency is fighting against, I think they wouldn't have to come out plain to accept defeat that easily, hence they should be cutting corners when getting involved in cryptocurrency and bitcoin.
I don't know of the possibility of buying up miners but I know they're are secretly owning larger amounts of bitcoin and some countries are already accepting bitcoin while countries like mine are already tokenizing their currency which is a prove of how influential digital currency is turning.

kaseygriffin

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Bitcoin holders and miners have the freedom to decide whether to sell their bitcoins or not. So central banks or any other institution have no right to forcefully buy Bitcoin from individuals who choose to keep it. It is true that central banks can accumulate a significant amount of Bitcoin by buying it on the open market, but they will likely face practical limitations. Also, the interest of central banks in buying Bitcoin may not be straightforward. So everyone has their own motivations, and so do banks; no one knows what they will do next.

Faisal2202

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Quote from: hsdjkahskjdh on May 22, 2023, 08:25:31 AM

Can't central bankers just buy all the bitcoin and miners? so what is the point again? to prolong are $lavery?

Well, the idea feels dumb, like let's assume there are more than 10 million people are involved in Bitcoin holding and mining, and how some central bankers can buy them all? Because no wonder, many of them will be left with no choice other than to join them, some will join them for greed (for more money) but there will be a huge pile of people who can not be bought at any price. Because they understand the real meaning of BTC as they are well educated about it. Well, BTC and mining have made many people rich and have made it possible for them to achieve financial freedom, then how can those people will accept the slavery of Central Banks?

Well, all they can do is, force you to accept their slavery because they will come up with such laws and regulations. Such, as a current, ban on crypto exchanges, p2p, and other crypto-related activities in Pakistan has no doubt a sign of taking the users under their authority so they could manage them.

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