If they can print unlimited fiat, can they just not buy up all the bitcoin?

Pearls Before Swine

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Quote from: TimeBits on August 06, 2019, 03:02:08 AM

I made a post like this yesterday, mods removed it with no notice again.

If you made that post in this section, there's a higher probability that someone reported it if it was even in the least bit spammy, and I'm not saying that it actually was. Bitcoin discussion has a very high proportion of crap posts in it, and a lot of members have been reporting them.

But as to the topic...of course 'they' could buy up all the bitcoin with unlimited fiat that they print at will. This is the U.S. gov't I assume you're talking about, but it could very well be any gov't. Why would they, tho? Who would make that decision? The U.S. gov't is at least nominally accountable to the voters, and those voters would have a hell of a hard time understanding why their elected leaders used taxpayer money to buy up all the bitcoin in existence. Even tho it wouldn't amount to a huge amount of money in the grand scheme of things, there would be an outcry that taxpayer money was squandered on something so unnecessary. Especially if bitcoin dropped dramatically afterward.

Thus there is no threat whatsoever that this is going to happen. Even if any gov't thinks bitcoin is a threat to their economy, none of them are going to go on a bitcoin buying spree anytime soon.

Devawnm367

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I believe before the federal reserves print more money the equal destroy that much!!! Or so they say. How many people can take hundreds of thousands of dollars and destroy it. I am sure some of it gets pocked everyday. But I am sure as far as the government goes I am sure they have began purchasing bitcoin. Lets face it the US dollar is crashing more everyday. Bitcoin has only began to be used!

Memminger

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Why don’t you think that about countries that have debts? Couldn’t they just print unlimited money so they pay it all off? Or are there repercussions in doing so? What would the repercussions be by printing a lot of money? Maybe you can look it up in the google first? Maybe that’s the reason the mod had deleted your previous post?

Sometimes asking the right questions solves everything. Also answers might be at the tip of your fingers.

Eclipse26

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bullsvsbears.io

They can but they won't. There's a consequence of printing unlimited cash and they wouldn't risk the economy of a country just to buy and hold bitcoin. That's nonsense. They can't depend on bitcoin because of its volatility. If they will do that, if feels like they're putting the while country in a risk.
The government can't print too much money, becaude they have to balance the circulation. If they can, why haven't they do it before to pay all their debt? It's because it'll only cause a major problem.

pgbit

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The answer is no, they cannot just buy all the Bitcoins in existence because there are some people out there who don't hold the bitcoin just because of the profits it would fetch them, they believe that bitcoin is the future of money and they want to hold as much of it as possible when bitcoin takes it's rightful place at the top of the currency foodchain, these people wouldn't sell their Bitcoin at all, not to mention the economic disaster it would cause in any country that tries such am underhanded tactics.

Anegg

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Simply printing money may seem like the solution to most economic problems to those who do not understand how a country's economy actually works. Obviously a country's central bank has the ability to print money but it this form of quantitative easing has huge impacts on the economy, devaluing the currency and increasing inflation due to the increased supply of notes. If a country did decide on printing money it would most likely only occur when they are trying to reach their inflation targets.

In OP's given scenario, after printing the amount of money required to purchase all of the bitcoin in supply, inflation within the given country would be so high their currency would be worth nothing and the economy would be fully crippled, meaning that there would be no chance for them to buy their desired amount of bitcoin.

gunhell16

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Nice question, I have a question on that, if a government can issue and print more money why there is a poor country?
Why they can't print more until they manage to have enough bills to give to their people and paid their debt to other countries or world bank?
Is there an international law that you can only be print in a year?

For those countries who don't like bitcoin to be more successful and be gone, why they have an alliance for this and buy all the Bitcoin and leave it in one wallet or burn?

Lizzylove1

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This money that is been printed is not gifted to one man or a single organization to use for whatever they like to. The money is suppose to be plugged into the economy for daily business, One person can't just wake up and use the money not available to him to try and buy up bitcoin, if it was possible, the price of bitcoin will just rise beyond every imagination. Although the world economy Mafias do share printed money that are meant for bailout during a troubled economy like we saw in Greece.

bitcoinst

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Take gold as an example. If someone wants to buy all the gold, then the seller will raise the price until the seller runs out of money, or, in our case, until the gold put up for sale runs out.
Similarly, you can not buy bitcoin that has not been put up for sale.

blckhawk

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It's the logic of supply and demand. Increase the number of printed fiats and you end up crashing its price until it's worthless since there would be too much in the circulation. Limited supply of fiat makes the demand to it rise and thus, makes one unit of it worth something to others. If unlimited fiat is printed, it would just make that currency worthless to people, which in turn means you still can't buy all of the bitcoin. They could do it but your main goal would not be attainable.

Cryptopher

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Keep it dense, yeah?

You can't buy it all if it isn't all available...

micalith

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When they print money and buy bitcoins, this doesn't mean that they will buy at low rate. They will drive the price up and the cost will be very high. In contrary, unlimited printed money will have its own consequences as we are having currently. Let's say that if they buy lots of bitcoins, what will they do with it? You buy a thing to sell higher but if you have the most and the price is too high, you may not find yourself a buyer which results with the instant dump surely. If we realize that all the bitcoins belong to big companies, we can create another coin alternative to bitcoin and let the bitcoins to them. They can do whatever they want with them

shield132

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I guess when you print a lot of money, value decreases. Please can you clarify how will they be able to buy all the bitcoin? At first remember how much bitcoins satoshi owns, consider that those bitcoins won't be sold.
Also consider the fact that despite the demand and any available money, there is not always supply.
With that logic, USA will be able to buy one small country with even their budget, that's not right thinking man.

amadorj76

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its impossible to create unlimited fiat, you have to spend millions or billions for creating an enormous amount of fiat, if creating a money is free, then the government doesn't need to loan from other countries a money, or they don't need to collect taxes from the people.

Lalafell

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Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value. It was introduced as an alternative to commoditymoney and representative money. Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it. Printing more money will simply spread the value of the existing goods and services around a larger number of dollars. This is called inflation.

TimeBits

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Quote from: Dildo Shwaggins on August 09, 2019, 02:40:41 PM

Fed printed trillions and boosted the failing 2008 stock market. They started a new bull run as all of that money went mostly into stocks in form of bailouts, incentives, subsitizing and tax cuts.
US companies started rolling again, hiring and increasing wages so Americans can afford to buy the products they were making.

I don't see any economist thinking that this dream gdp growth was organic and that stock market isn't a bubble.
120% Debt/Gdp and 22 trillion USD Debt is a lot to sustain. I can't see how a collapse isn't around the corner.

Bitcoin rose because of this. Don't ever forget which newspaper title Satoshi used in the genesis block.

"Chancellor on brink of second bailout for banks"

Prepare yourself, buy land, where you can grow fruit, buy guns, than buy bitcoin and gold.

RonPaulLibertyReport
Central Planning Always Fails: The Fed Will Self-Destruct
https://www.youtube.com/watch?v=xG9qeEvCwjA

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FAITH HAS BEEN LOST IN THE SYSTEM, THE WELL EDUCATED ALREADY KNOW IT, NEXT WILL BE THE $LAVE CLASS TO FIGURE IT OUT.
THEN R.I.P FED AND EVERYONE MAKING FIAT

Dildo Shwaggins

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Fed printed trillions and boosted the failing 2008 stock market. They started a new bull run as all of that money went mostly into stocks in form of bailouts, incentives, subsitizing and tax cuts.
US companies started rolling again, hiring and increasing wages so Americans can afford to buy the products they were making.

I don't see any economist thinking that this dream gdp growth was organic and that stock market isn't a bubble.
120% Debt/Gdp and 22 trillion USD Debt is a lot to sustain. I can't see how a collapse isn't around the corner.

Bitcoin rose because of this. Don't ever forget which newspaper title Satoshi used in the genesis block.

"Chancellor on brink of second bailout for banks"

d5000

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Decentralization Maximalist

Quote from: TimeBits on August 09, 2019, 03:27:57 AM

Quote from: d5000 on August 08, 2019, 09:01:27 PM

His theory, in reality, would only work if all major governments would cooperate (in the case the central bank in question is the FED).

Governments don`t need to work together

STEP 1) FED prints more money (like they do daily)
STEP 2) FED BUYS ALL THE SUPPLY OF BITCOIN (and my fucking peaches and cherries that I back with my time, lifespan and work FOR FREE!)

I was referring to this post and your answer, and to ETFBitcoin's post. This is really the only option I see for your plan Grin

You still fail to explain me what happens with the fiat that the Bitcoin sellers which sold their money to the FED/central bank get. Only if the central bank buys all exchanges at once (!) and then retire them from the market (exit scam) the same day (!!) even those outside of its jurisdiction (!!!) then the sellers could not bring the money back into circulation. And they must bribe all judges in all jurisdictions where there are crypto exchanges which were bought with central bank money and didn't return their money to the owners (which will initiate legal action), or alternatively kill everybody who complains about not getting his/her money back from the exchanges (=all Bitcoin holders).

Otherwise, simply the money returns into circulation, and then you get high inflation, probably hyper-inflation, like many others wrote already.

veleten

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you think they don't? pretty sure some of the funds are doing this , the ones that are "not connected to the Central bank"
the main problem though is not printing money , they can do it all day every day , but to keep the debt at least somewhat reasonable
one day there will be no selling resources for printed paper and countries will start to oust dollar from international banking operations
and the process has started already , look at China striking a deal with Russia to sell things only for national currencies , same goes for India and Russia
the US' 20+ trillions of debt and counting , even if they bought all of the bitcoins, it is going to be negligible , a drop in the ocean in the grand scheme of things
but the purpose is not to store the value , but to have a speculative instrument to burn extra dollars by exchanges and price manipulation

TimeBits

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Quote from: sehoon on August 09, 2019, 07:19:09 AM

Printing unlimited fiat is impossible since if that happens, fiat is not going to have any value anymore which can be related to cryptocurrency and cryptocurrencies are also going to lose their value.

impossible? my dood they been doing it since 1971 (And shadow doing before then) That is why they had to take the gold off the dollar LOL! because they $cammed the people so much but guess what now they can unlimited $cam us.

They literally do it everyday.

tell me my friend, what is the supply cap of any fiat? THERE IS NONE! that = PRINTING UNLIMITED

Topic: If they can print unlimited fiat, can they just not buy up all the bitcoin? (Read 905 times)