Topic: Does the FED already control Bitcoin? (Read 3170 times)

One word in reply to your post:

Horseshit.

oooh! good stuff 

I sincerely hope they do.  The price will crash (temporarily) and I could scoop up a lot of btc at bargain basement prices. ))

Big banks and the government that use fiat currency to fund wars and their political agenda

what is this fed you speak of 

No government can completely control bitcoin, however they can heavily influence it. Just look at China. Even a single announcement from their bank, causes panic and price dropping a good margin. The US government is also holding the second largest amount of btc from the silk road bust I believe. If they want to directly crash the price, they can dump it into the market at any moment.

Can't put anything past them. Many have floated the theory that the whole Bitcoin system was started to get people used to a cashless society where every transaction can be tracked. I don't buy the theory myself though. However, they can certainly cause havoc in the markets due to all the seized BTC they have!

You can store a bitcoin in a vault but you'd still be the sole owner of the private key. Or at the very least have an x-of-y key. With gold though it's not possible to have a key. And for various reasons it does make sense to 'own' gold but not store it at home.

For example the delivery of gold is expensive, and the risk of getting robbed and losing thousands worth of gold are quite high. While if you store it in a vault it is insured against theft. However the vault owners are nog stupid and they know most people will not pick up their gold for a long time, so they sell the same gold again and again. And on average each ounce of gold has ~48 owners as a result.

In other words if you own gold you better buy your own firesafe and lock it in your own home. And if you own bitcoin, make sure you have your private keys, and back them up in a secure location, or preferably multiple locations.

Because they were no longer buying bitcoin, they were gambling in goxcoins. Either they could cash out very cheap bitcoins or they could lose everything. We all know what happened to goxcoins.

You may be correct.

No. If they did it would probably be utterly fucking worthless by now. Judging by their track record.

Why would you keep your gold in their vault?
You should rethink your story because it is the same with bitcoin.
Bitcoin can be held in vaults other than your own house because it is way too portable for a robber to take it away from you.

If you choose to store your 10000btc at another place, they are more or less in control. If you don't hold it, you don't own it.
Ok, there are some work arrounds to make it more difficult, bip38 and multisig.

they can't really control bitcoin anywhere near as well as they can control fiat.

In fact, they can't even control it as well as gold. Since gold is often stored in vaults and all you get is a little receipt that says you own x amount of gold that is stored at their vault. However, they could easily sell that gold to someone else, and as long as no one claims it, they'd be none the wiser.

if they'd try to do that with bitcoin, they'd most likely not come very far with their scam.

Now yes, they could buy a lot of bitcoin, but that would increase the price a lot. Now if they'd dump bitcoin afterwards, they'd just be handing out cheap coins and since they no longer have a majority because they just dumped their stash, they have also lost their control. If they want to buy t back, they'll drive the price up again, and they'lose a lot of money in the process.

Bitcoin is just nearly impossible to really control

The center of the world has shifted to Asia and whoever doesn't know that hasn't been in Asia recently

There have been many other long lasting empires before; the US haven't been the richest for that long compared to UK or China and they won't be the richest very soon when their unfunded liabilities, budget debt, negative trade balance and heavy cost of public spending will lower dramatically the average american standard of living, it already relatively did when you compare the average american way of life in the 50's to what it is now

There are a lot of human and physical capital in the states and a spirit of freedom moral and work that can be the foundation for a return to what allowed them to become the richest country in the first place : innovation, freedom, low taxes, small government

Perhaps Fed controls some large usa based exchanges.

Because once the thief realized he couldn't get the BTC out (Knowing none was actually there.... because he stole it all.)... He attempted to cause a panic, reflected in other markets, to lower the price so he could get more from the ones he stole and had cashed-out previously on other exchanges.

As for us... The buyers... Why pay $800-$400 when you see it is going to $100, and you can get 8x to 4x more, for the same money.

In any event, those coins that were stolen, were part of what has been keeping BTC on a steady decline. (Part of it.)...

The one thing that is becoming clear, over the historic charts, is this... BTC is becoming more stable, and they will soon turn into more of a gradual slope upward, with less erratic falls in the future. (Look at historic charts with the LOGARITHMIC scale, since this is an exponential growth coin. Linear scales are for FIAT.)

http://bitcoincharts.com/charts/bitstampUSD#tgTzm1g10zm2g25zvzl

See, in this chart above, you can see that the end of the steady fall (Which is not abnormal, and damn near predictable as the sunrise), is ending, and will soon launch to the next high of $12,000-$6,000 USD/BTC. I have no fears buying BTC at this point, or selling things for BTC. It is not like going from $500-$6,000 or $12,000, is going to be much more gains than going from $300-$6,000 or $12,000... Heck, I could buy all the way up to $1000 USD/BTC and still feel comfortable about the next coming months. It's a win-win situation buying BTC at the moment. The hardest part is getting BTC with USD for most of us.

Need some visuals to go with that chart?


P.S. This is an older chart... missing the last few weeks... It is near the end of the orange low line now.. the "Bleed-out", before the pink line which is the "Incline" to the next level.

P.P.S. A bitcoin year is not 12 months... it is closer to about 8-10 months. From peak to peak.

Because there were no buyers because they were not able to put FIAT into gox soon enough. (or did not dare too loose all)
IF there are no buyers, price drops.
Other exchanges were fine.

Because it became fairly obvious to many users that MtGox itself was failing, and therefore the MtGox trade price wasn't real.  The other exchanges never got anywhere near $100.

There are good reasons for such a US centric perspective.  Since at least 1945, the United States has been the political and economic guiding force of the entire English speaking world.  Which, thanks to the British, was and remains the only truly global empire to ever exist.

And don't forget, that Japan remains a US protectorate.  If you don't think that US government agencies do have an influence on the MtGox case in Japan, you're delusional.  I'm not claiming that is how the world should be, I'm saying that is how it actually is.  One of the obvious and professed motivations for Satoshi to create Bitcoin in the beginning.

Then why MTGOX exchange rate dropped below $100?