Topic: Do You think banks are involved in bitcoin ? (Read 2704 times)

It is a common thought among permabulls. You can see it presented as graphs with super exponential axis' and lines. I don't necessarily agree, but at least exponential. But we do not know the exact parameters. Start from 1, adding 1% per year, is also an exponential function.

The point is if that if the bitcoin value is rising, it is per def also volatile. It does not have to both rise and fall again and again to be volatile.

Volatile means a security/commodity changes in value more than a specified value.  Ok, so Bitcoin is volatile, I think we can all agree.

Superexpontential function?  Explain how Bitcoin is stable around this?  Because it's rises at a fast rate, so far?!

It is volatile because it rises in value, but it is quite stable around a superexponential function.

Lol, how can something be both stable and volatile?

And what formula did you use to calculate this? Sounds like bullcrap to me.

Bitcoin unfortunately is not very stable.  Not sure what your definition of stable is!  Per a bank, a T-Bill is stable.  A GIC is stable.  Even most stocks aren't -that- stable.  This is an investment that may or may not be legal, that moves up or down 5-10% in a 24 hr period, and that is not traded on any major exchange (NASDAQ, Forex, NYSE, etc).

I agree that the risk to return ratio is excellent on Bitcoin.  But it is not something that banks will be buying anytime soon.

Bitcoin is a very stable and high quality investment target, the volatility is irrelevant, since banks will always use risk adjusted return to evaluate the performance. The return/risk ratio of bitcoin is much much higher than any other investment on the planet, including government bonds/Apple's stock/Gold etc...

How can you tell if HFT manipulation has been going on except after the crash? Can miners mining the blockchain tell if someone was gathering enough BTCs to control its value?  If yes, can they reject such transactions?

My statement does not mention anything about ratios.

I am basically trying to say that no one is forced to use BTC...it is not legal tender.

With this being said, if a government or bank or person attempted to gather enough BTC to control its value in a way that I don't like, I can simply cash out and use a different form of currency.

Moving to another crypto-currency would be ideal however I can just go back to fiat or precious metals (or tulips :-) if things get too stupid.

Thanks, that is very clever. But that works only when BTC/USD rates and LTC/USD rates are not tied to each other. Why is it that BTC/USD and LTC/USD fluctuation rates as shown in http://www.cryptocoincharts.info/v2/main/smallCharts seem to follow each other very closely? Are you saying that if BTC/USD rates crash due to HFT, then LTC/BTC rates will skyrocket? 

I don't think banks are allowed to trade bitcoins, at least not the big American and European banks.  There are all kinds of regulations on what they can and can't own or trade.  Most banks are not even interested in bitcoins at this point.  They are too new, volatile and risky in their eyes.


Korxax



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My small town bank is involved in bitcoin, they are glad to receive my fiat deposits that are transferred from Coinbase into my business account.  They think it is amazing what I am doing and are all in favor, especially as I am reinvesting in my small coal mining town that is struggling under the coal mining issues created by the current administration.

Mtnminer

Ya the mechanism is already in place...its called switch to Litecoin.

That's the beauty of crytocurrencies...when some idiot tries to corner the market on one...people just switch to another.

So many people on these forums seem to forget that Cryptocurrencies are not legal tender.

People already manipulate the price, so I'm sure banks can do it also.

I am wondering is there anything that can be done to prevent the banks from manipulating the bitcoin exchange rate with High Frequency Trading (HFT). My concern is that the banks can buy an excessive amount of BTCs and then sell them all at once and use HFT to buy even more at the cheaper rate. They can repeat this until they own enough BTC to control the market.   Are there mechanisms to control this type of manipulation? Can the other miners reject a blockchain that is mined that has a suspicious transaction (either too big or too often)?

The Mike guy in the video was only right about the first half, if it happens to crash like tulips, I'll be the first in line to buy Bitcoins. Unless of course there is a flaw in SHA-256. Until then, I'll keep on buying.

Alex Jones invented BTC along with his globalist buddies in the NWO.

That's like saying I'm "involved" in the forest because I walk through it. Banks are an intermediary, money passing through them to purchase Bitcoin.  I think the original poster was asking in they are involved in Bitcoin as in trading, buying and selling.

Banks are involved in BTC...

Where do you think the exchanges are keeping the money you give them... Under their mattresses?

How do you think they write you a check, or deposit into your BANK account, the currency you exchanged? They don't use magic, they use some form of money transfer. They are not mailing you cash in the mail. That "device", is placing money in their bank, to deliver it to your bank.

I am sure you are using the money you get, to buy something from someone... who is also using a bank.

Banks are into BTC, as much as we are. Even if it is indirectly involved.

ROFL  Woops!  I suck so bad at typing.  And since Bitcoin isn't in my spellchecker as a word either, every time I type it it has the little red underline.  Thanks Peat!  I probably never would have seen that.  I even suck at begging, I guess you are bound to make mistakes on your first attempt right?    I really hate even asking, but I keep getting told there are people out there that will help if they know my situation.  We'll see I guess, I'm really not holding my breath.  I really am excited about bitcoin and wish I could mine faster.  I'm afraid I missed my chance, I was just starting to look into it 3 years ago but then the headaches ramped up and when that happens I'm pretty much a basket case so I never got it set up. I even had a 5970 at the time.  I don't even want to think how many bitcoins I could have if I had been able to get started mining back then with that.  It's too depressing.

Korxax

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Bitcoin -- cash for the 21st century!

Looking for donations for a poor disabled guy to get a mining rig.  Long sad story that boils down to Cluster headaches- think a day long migraine packed into a half hour to 2 hours and repeat up to 10 times a day.  And my insurance company screwed me over to the tune of $50k when I had a plumbing problem flood my house, destroyed tons of my stuff including several computers.  Total loss, about $50k  Beware the red umbrella.  Any little bit of help is greatly appreciated.  I have fairly low power rates... so if you have an old miner that you want to donate I would be very grateful.  Contact me and I'll get you an address.
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