Topic: Can't central bankers just buy all the bitcoin and miners? - page 2. (Read 495 times)

My question is what is the point of central bankers buying all the BTC and miners? Another question is how can they be able to achieve this considering the fact all the BTC are not in a single wallet and not controlled by anyone in particular.
I don't think it is possible to achieve this even if they try to, and I am sure they don't even have such intentions.

Do you really want to find out how many flops Oak Ridge has in their basement?
Attacking a CPU-minable coin would be a thousand times easier for someone with deep enough pockets, there is enough computational power standing instantly in datacenters no home miners will be able to offset!


So, let's assume you have 10 s19, the current brand-new value is $900 a piece, each mine $6.3 a day before electricity so that would be at around $1800 a month for all of them, and the banks come in and offer you 50k for all of them. Tell me without lying you won't be selling!


So banks are the middlemen to billions of deals, that negotiate mergers of companies worth billions, that have all the information at their disposal, that have already business relationships with every single major power supplier will somehow have trouble finding 10-20 GW of power, but companies who are not even in top 1000 in the US by revenue have no problem buying a **** nuclear powerplant!

I love this kind of flip-flop, one time we have banks controlling every single aspect of the economy, having absolutely everything in their clutches and then we have them unable to operate a damn datacenter that is 1/10 of what google has. Isn't this a bit ridiculous? A bit too much?

They won't because since its inception Bitcoin and its increasing adoption for Banks has been a threat. Even if they want to buy automatically, what they are doing is contrary to the ethics of the banking system that they adhere to. What's more, the central bank must show its strength, not submit to new waves that seem as if the fiat financial system is admitting its weakness.

However, I believe that some central banks in certain countries are trying not to go against the flow of Bitcoin adoption and are slowly opening open paths where Bitcoin has room for mutual benefit. Although in general we know that a bank is a bank that wants to control the flow of money in and out.

You are right, when people ask these kind of questions they think that banks can buy all the bitcoins with current price, they completely ignore that if demand skyrockets, so does the price and even if they manage to buy all the bitcoins, the price of bitcoin will go down to zero because it will lose the real value that makes it to worth so much today, so, finally bank loses everything but gains nothing.

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OP, banks can't just buy miners, it doesn't work like that. You are completely eliminating the value of bitcoin by doing so and what's the point?

Most Informed central banks/ government are actively purchasing Bitcoin. A good example to this is El Salvador, they have bulky holdings of Bitcoin. Meanwhile, some are ill-informed and ignorant, some are informed but all for the sake of being in so much power and control, advocating and pushing for the utilization of Bitcoin is something they'll never want to see happen.

Rather Central Banks are busy pushing for them Digital currencies which are not different from the local fiat currency, still leaving them in so much power and control. And we all must be aware how they kill the plan of Bitcoin and sound money which gives you freedom and in control of your Bitcoin.

And No sensitive ans sensible miner would want to sell he's or her mining farm to the government. I'll be damned if I see such happening.
Some countries have Bitcoin holdings and still want to sell them.

It will be impossible for central bank to buy all bitcoin because government don't even know the owners of bitcoin or I will say the number of bitcoin investors and how many bitcoin is in these investors possession, apart from those who uses centralized exchange to store their coins. Bitcoin is decentralized and it gives high level of privacy to its users and their identity is anonymous. Another reason is this,personally I wouldn't sell my bitcoin to the government because I know that there will be something crapy that they want to come up with,likewise so many investors will never sell their bitcoin portfolio to the government because we all understand the potential benefits it has. It is the same question like asking. What if the government buys all the gold in the world,very impossible because there are some quantity of gold underground that has not been discovered.

Who says they can't? I think they have already bought a lot of Bitcoin but not all the bitcoins though, because they can't. Also I think there's no point in announcing that for their reputation and government statements. They are simply buying Bitcoin and probably miners as well, and they have extensive knowledge about everything related to Bitcoin but they never share that information publicly.

In the case that they buy all the bitcoins the price will rise extremely and holders would never sell due to the high price of Bitcoin. They would be driven by greed and constantly seek more imo. Therefore, I believe it would indeed pose a a lot of problems if such a scenario like that were to occur.

Central banks are key monetary authorities of particular countries. Buying Bitcoin miners is just outside their professional competence, and so is investing in Bitcoin. What good would it bring to their respective countries and the strengths of fiat currencies? Trying to buy mining farms will suddenly raise the demand, making mining more popular and more expensive. Trying to buy out bitcoins would once again raise the demand a lot, which means the price and market cap of Bitcoin would grow, making the task harder to fulfil. There's no point to do that, it would require immense resources, and I'm not sure if it's possible (because of the growth of demand in case any entity tries to buy out all BTC).

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?

The only thing closest to centralization I see is that there are just a few with most of the supply. And more and more those same few are accumulating. But as you said, and I wouldn't say better, they will have to use it sooner or later.

Not everybody want to sell their coins even Bitcoin price back to it last ATH, everybody will not sell when Bitcoin price hit $100K etc, there's always a person who's want to hold their coins until the price is extremely ridiculous high. When the central banker started to buy Bitcoin and miners, they will need to spend a lot money and if they keep do it, they will print new money, inflation will happen and the citizens are panic.

Is there a government want to ruin their country just to buy all of Bitcoin and miners? I don't think so.

History tells us countries like China are buying physical gold and have it shipped just quietly stack physical gold and are de-dollerizing as we speak. 

Why buy? To be successful in doing the same thing for BTC isn't exactly difficult: secretly shut down mining farm, making confusing scam-syndicate claims against bitcoiner saying you all have something to do with money laundering whilst confiscate mining equipment and nationalize hash power to gain traction on acquiring newly mined bitcoins.

Based on those alternatives, there is no point for the money changer to buy it with either depositors fund or reinvest their revenues

Yes, the central banks can buy the all available Bitcoin that is mined and the Bitcoin miners, but they'll have to pay extra money to buy the whole bitcoins and the mining equipment. The Bitcoin marketcap will increase with more purchases and if more money is invested in Bitcoin then its value will go up, and the sellers will increase the rate when it's purchased in bulk.

The miners will also sell their equipment's if they are offered 1.5x the money they have invested in the mining equipment because they are sure that after sometime new and efficient Asics will be available to purchase. The banks have to pay so much to buy the miners, and even if they purchase the all mining rigs of the world then what? It will be a disaster for them to run all those miners.

You know the mining Asics require energy and the banks aren't the providers of energy so in order to run the miners the banks will have to either purchase renewable energy sources or they might rely on the available energy resources of the countries where they run their operations. In both cases they'll have to pay a lot more to run the miners.

Now, if we conclude the whole thing then it doesn't make sense for the banks to invest so much money and effort that is used in such process, and even with all those things they won't be able to recover their investments because of the volatility of the market.

For example: If the banks run the whole system then still at one time they'll have to sell the bitcoins to the customers and with each sell the price can go down as the buyers would wait for low prices and the banks will be forced to sell for low prices because otherwise they won't be able to recover their invested money.

Even if they have the intention they cannot, not all are willing to sell.

They will have to spend huge amounts of money, they can have a big share but its impossible to buy all Bitcoin at the current market price, and what is their purpose in spending huge money to buy all Bitcoin, is it to win the war against Bitcoin by having a majority of the shares, its more like a pyrrhic victory.

We have a very strong community that will decline this plan to protect decentralization and it's a costly plan that will eventually backfire instead of spending on Bitcoin they should first rehabilitate countries that need funding for their economic growth.

https://en.wikipedia.org/wiki/Pyrrhic_victory

If you will think logically, they can TBH. The question is, will they do it. Do they have everything that they need to buy it all?

They might have the money that is needed to buy all Bitcoin and the miners out there. The question is, will all of the Bitcoin holders, and those who are mining Bitcoin be selling it to these bankers? That alone is enough to answer your question. That's the beauty of decentralization. You hold the coins, you have the power whether you will sell it or not. You store your coins in a wallet where you're the only one who can open it, you can do whatever you want on it.

Not all Bitcoin holders, and miners will sell what they have to these bankers... or at least I don't think that they will. Ok let's say they already have it. How they will get benefitted from it? I guess let's just forget this scenario because at first place, Bitcoin holders, and Bitcoin miners have their own choice whether they would want to sell it or not.

Well, if central bankers start buying all the bitcoin and miners, I guess we can officially say goodbye to decentralization and hello to a new era of 'crypto-oligarchy.

When you say central banker, that means you are making a reference based on individual staff member of the Central Bank, right? If I am correct, then I would want to inform you that not every one of those people working under the central bank, in any nation, or even the World Bank believes in Bitcoin technology. Although most of them believe in Bitcoin and are already buying Bitcoin that they can possibly accumulate at the moment, despite the fact that they are working in a monetary system, they can't just invest people's money or the government's money into Bitcoin; otherwise, they will lose their job as well. For most of them who believe in Bitcoin, they can only partially take the risk of investing the money that is not their own. If all the central bankers key into buying Bitcoin, that's going to be a good reason for the price of Bitcoin to even become bullish because they will buy a lot of Bitcoin in circulation, but they can never buy all the Bitcoin because there are some people that have set the goal of selling their Bitcoin only when they see a certain price, so until then, they won't sell.

Also, because miners are responsible for Bitcoin transaction processing and confirmation, that doesn't mean they have the ability to buy all the bitcoin; they can only buy a certain amount, as not everyone is ready to sell their bitcoin now.

Not all coins are or would be available to buy

Not all miners are located in one jurisdiction so no single central bank would be able to
buy all miners, so it would end up theoretically with a number of central banks owning
all the miners.

Then when the dust settles and the mining people and firms have been paid their FIAT
for their mining farms there is nothing to stop them from building newer farms with newer
equipment to compete with the central banks!

That is why it would be nonsense for it to happen.

Thats the beauty of decentralisation.

And how do you imagine they would go about doing that?

At what price? Will the HODLers sell their BTC at the current price? Probably not. What if the HODLers refuse to sell at a price that is lower than 100K USD or more? Does it make sense for the central bankers to buy all Bitcoin/crypto at ridiculously high prices? Nope...
Buying all the miners won't change anything. New mining hardware is being produced and sold every year. New crypto miners will appear.
And by the way, the central bankers in any country in the world aren't allowed by the law to buy asset different than gold, treasury bonds and stable fiat currencies. Buying cryptocurrencies and mining hardware will never be added to the list.