Topic: I'm a Central Bank trying to keep Bitcoin from being adopted - page 5. (Read 13966 times)

Manipulate the market is difficult, the best a central bank can do is simply deploy $100 million worth of ASIC mining farm, which is more than 10 times network total hashing power, and hide them. They will select a time when BTC is suffering from an internal problem and start all those hashing power in one night and make a 90% attack, make millions of transactions invalid and cause huge loss for merchants

But what is the purpose? If bitcoin is so great then why not join the game? It is just another star performence asset in their portfolio. Their debt based money issuering have huge sustainability problem and bitcoin is their only hope to bring the sustainablility back. Unlike housing, the demand for bitcoin can be endless, and supply is always limited, its price will never stop rising, means economy finally have a growth area which can last forever

Imagine in not so far future, almost 20% of people are working with bitcoin related business, this dramatically reduced the jobless rate, and those who still work get higher and higher salary due to labor shortage, then FED have to tighten to prevent price inflation, and that action have almost no effect for bitcoin, by that time, bitcoin value could still be driven up by physical goods/services

Agreed. Bitcoin is the only way to reform the system without loud noises and weeping mothers.

The goal isn't to destroy bitcoin - If you do that, another fork will pop up that fixes whatever caused/allowed Bitcoin to be forced out of existence.   

The goal is to discredit bitcoin, to prove it's unsafe and therefore should be left to people who are not you, the average user of  money.   

Can't start a new bitcoin fork that fixes most of the world hating cryptocurrency

Indeed if all the worlds central banks actually started to do their jobs; keeping prices rock steady with no inflation or deflation and made transactions free and private and stopped seizing bank funds - the appeal of Bitcoin would lessen.

Add some exchange crack downs, attack-mining and repeated hacking attacks against all Bitcoin users and they might do very well.

As for manipulation I would buy 100 billion $ of BTC and then just sell slowly "forever" in such a way that anyone who held Bitcoins would always loose money over time for years and years. I would make a few millionaires sure but from then on drive most away.


However their system is fundamentally broken, they rely on printing money to line their pockets and keep their friends happy. It's a card house of excess and decadence waiting to fall.

It's a system of plunder with corporations paying politicians for parts of the pie. Well such a pie quickly shrinks and Bitcoin is the spark.

Not being colorblind and not knowing anyone who has advertise their colorblindness to me, I do not think of it when post. 

Guilty as charged.


Who do you think the largest purchaser of US debt is?    That'd be the Fed. 

The chinese didn't stop buying, but we're spending more than they're willing to lend us.

What you're saying would be true if we weren't running a 1 trillion+ yearly deficit, but we are and it looks like that won't change in the foreseeable future.  If you don't think the Fed is printing money and devaluing the currency already, you need to take a look around. 

Outside of attacking me personally and saying it could never happen, you really haven't said much here at all.

Color blindness is not a laughing matter.

Actually, there may be a very easy way for a central bank to destroy Bitcoin. Just back their money 100% with precious metals.

For a tomatter with a mind he never learned about red/green text. Bad tomatter!

Every part is unfeasible.  First of all Central bank from where?
For simplicity, lets assume it's the Fed, which issues the world reserve currency.

Second, not all the bitcoins are for sale and if they bit a huge amount of bitcoin the price will skyrocket exponentially, and I'm talking near the hundreds of thousand per btc. offer and demand.
But the entirety of the bitcoin market is 1 BILLION USD  - Every month I print and  purchase 65 BILLION USD worth of Mortgage Backed Securities at face value - These are financial instruments that cannot be sold on the open market because they're really worth a fraction of the value the FED pays for them at, so clearly the amount isn't the issue.

Let's assume you're right - In order to buy 10% of the bitcoins on the market the price goes up to $100,000 or even $100,000,000 per coin -  That actually accomplishes my purpose BETTER because it means newbies will feel like they MUST buy into bitcoin because it's clearly going up in value and will never come down.  "I wish I had bought it at $1000 per coin, so I better buy when it's $10,000 per coin so I don't miss out when it becomes $100,000 per coin.      

The higher the price goes, the more attractive it is to those not holding any and the more likely they'll buy at the inflated price.   Then when I'm done accumulating, all the suckers are in the market, and I want to make sure they're never in it again I sell all at once and DO NOT rebuy.  With the largest buyer turning into the largest seller, demand collapses and as the price plummets all the newbies decide to take the loss rather than risk losing EVERYTHING, so they all turn into sellers to.

I can assure you that by the time they buy say 1,000,000 BTC the price would se so high that everyone here would be a millionaire with 8 digits!
your assumption is ok, I'm a bank and I have 10 billion to spare to crash this system... but you don't realize that:

See, as the central bank I don't care about you or the other people who have been invested in bitcoin all along and understand it's value proposition - I actually don't mind if you get rich off this because it exacerbates the wealth disparity in the currency, which makes people not like early adopters.    The only thing I really care about is making sure I HURT newbie bitcoin users so badly that they never even want to hear the word Bitcoin again, and every time someone says it they cringe, responding "it's a scam - Don't lose money like I did"


A) The other btc holders also know how to play this game
B) Not all bitcoins are for sale.
A) I don't care about you or other bitcoin holders, just like I don't care about people in the gold market who understand and profit from the predictable manipulation.
B) Enough are for sale so long as I don't care about the price because it's all small potatoes compared to the value backing my operation (multiple trillions)

And sure, invest 10 billion in BTC and after you invested 1 billion the price of BTC skyrocketed to $1000, and then invest 2b and it'll go to 10,000 and so on... by the time they invest all the money, others already profited from the spikes...
Who will win?
All of US..
who'll be scared? a few noobs...
If I can prevent the currency from being adopted by the average person, than I win.  My goal isn't to prevent you from getting rich, it's to make sure Bitcoins don't replace Dollars as the currency everyone expects to do business in.   This is a success because Bitcoin is substantially better at being money than really anything else out there, so If I can prevent Bitcoin from becoming the world reserve currency, it means I get to keep running the world money supply.

without the bank example... just look at current prices... up 800%-900% since a year ago... let's pretend this mysterious central bank has been driving the price up...
I already made a shit ton of money... I can easily afford to sell at 80, 70, 60, 50, 40, 30, 20, even 10 before I start losing money!
Anyways, you need to read more about economics. Your idea is unfeasible like I stated before.
I hope that helps as an explanation.
Again, I don't care about you - You'd act in your best interest no matter what I do, I care about your mom and how upset she'll be after buying into bitcoins as an investment when they're worth $1000 each, who sells when they crash to $40 each.  

She'll never go near bitcoin again, I win.

Also, lot's of people here will be buying like nuts when the price will crash under, let's say 10 USD. I know I would

Every part is unfeasible.  First of all Central bank from where? Second, not all the bitcoins are for sale and if they buy a huge amount of bitcoin the price will skyrocket exponentially, and I'm talking near the hundreds of thousand per btc. simple offer and demand.
I can assure you that by the time they buy say 1,000,000 BTC the price would be so high that everyone here would be a millionaire with 8 digits!
your assumption is ok, I'm a bank and I have 10 billion to spare to crash this system... but you don't realize that:

A) The other btc holders also know how to play this game
B) Not all bitcoins are for sale.

And sure, invest 10 billion in BTC and after you invested 1 billion the price of BTC skyrocketed to $1000, and then invest 2b and it'll go to 10,000 and so on... by the time they invest all the money, others already profited from the spikes...
Who will win?
All of US..
who'll be scared? a few noobs...

without the bank example... just look at current prices... up 800%-900% since a year ago... let's pretend this mysterious central bank has been driving the price up...
I already made a shit ton of money... I can easily afford to sell at 80, 70, 60, 50, 40, 30, 20, even 10 before I start losing money!
Anyways, you need to read more about economics. Your idea is unfeasible like I stated before.
I hope that helps as an explanation.

I am.

I'm doing it right now.

If I were a central bank, I'd be buying into the market, keeping the price going up by providing a solid level of demand irregardless of the price and accumulating the ammunition to cause a crash to accomplish my ultimate goal:   Forcing a newbie rush-to-the-exits and creating another swath of people who were interested enough to jump through the hoops and buy bitcoins with fiat currency, and who after suffering enormous losses during the crash will never think of bitcoin as anything but a scam that cost them money.

What part isn't feasible, that a central bank whose job it is to make sure they remain in control of the currency used by its subjects wouldn't manipulate a market?   That 10 billion dollars is too much to throw at a problem like Bitcoin?

Try using actual reasoning instead of just declaring your will as fact.

you didn't win. What you're proposing is unfeasible, it won't happen.

Seems like people are out of ways to stop me the central bank) from preventing bitcoin reaching mass adoption through induced, planned serial bubbles and crashes.

I win.  Muahaha

Technically you're right - The money has to go somewhere, but you're wrong in saying it's "Free money to everybody".

The new dollars will only go to experienced traders who know the game and follow the markets like a hawk, fingers hovering on the sell button at the right time. 

The people I care about (the newbies just getting into bitcoin because it seems like such an opportunity) will be the ones who panic and sell when the market is 50% below what they paid, and it looks like it's going all the way back down. 

So while Bitcoin as a market keeps getting bigger, all the value is being collected at the early adopter/day trader user level.  People who want to use it as a currency?  No thanks, too volitile!   People who want to invest in it because it seems like a good opportunity?  Well, it was an opportunity until I lost 50% of my investment!

We all agree you can't "Kill" bitcoin, but doing this I think you could keep it VERY niche and preserve the US dollar as the world reserve currency at least a few more years.

Except that governments aren't known for being technically brilliant.  In fact, they're highly inefficient.     If what you're saying was true, why hasn't a government company taken the lead in microchip technology yet?   

Ultimately, they  use what's on the market

No, the only reason I'd think this is a serious possibility is if an ASIC firm goes private and instead of selling into the market engages in massive "proprietary use"