Topic: I'm a Central Bank trying to keep Bitcoin from being adopted - page 7. (Read 13966 times)

No. Why?

I don't think they'll bother trying to take down bitcoin as another would just take its place.

They'll probably just buy up a good portion of btc with their unlimited US dollars and manipulate the market.

The central banksters along with the CIA will be among the biggest users for the purpose of money laundering.

Oh, I forgot:

3b) Promote Bitcoin as a 'payment service' or an 'investment' instead of a currency in order to justify regulation and create volatility. (check)

1. Bitcoin is open source. Satoshi will return anonymosly. Check
2. Anonymous dev team will use darknet communications to coordinate counter attack because they are smarter than bankers. Check
3. FUD is ignored by anyone with a brain. Check.
4. A good thing. Monetizing Bitcoin makes my stash more valuable. Check.
5. Set up anonymity services on darknet. Check.
6. Change your name. Check
7. Compete with ASIC manufacturers by building bigger fabs. Check.
8. Use TOR. Check
9. Sell to pumpers. Check.
10. Buy from dumpers. Profit.
11. GOTO 8
Better sell all your Bitcoins.

1) Buy off / co-opt development team and major miners.  (check)

2) Establish network control via frequent, forced client upgrades and network splits.  (check)

3) Use shills to co-opt and distort Bitcoin political message away from freedom and opposition to bail-outs and towards democracy and paying taxes to support cronyist banks.  (check)

4) Support large-scale criminal enterprises to secure a supply of Bitcoins to short (ponzi schemes, thefts, fraud, etc).  (check)

5) Setup Bitcoin services designed to eliminate anonymity.  (check)

6) Identify major holders.  (check?)

7) Control ASIC manufacturers.  (in progress)

8 ) Targeted shut-downs, bank account raids, random door-kickings of major participants that fail to go along. (coming soon)

9) THE PUMP -- pump up the price by preventing selling, artificially limiting supply, and by buying en masse.

10) THE DUMP -- crash the price by coordinated technical attacks, sabotage, targeting merchants, loosening of restrictions on selling, and by dumping BTC.

11) GOTO 8

Bankers only care about making money for themselves. In fact, it looks like the BRIC nations may move in where the EURO is failing.

Central banks have always worked together against the slave class.  Watch the Forex markets if you don't believe so.

It would be naive to think they won't try to kill Bitcoin.

So far though 3 good opportunities to cause a crash have resulted in a rapid rebound.  Demonstrating some pretty good resiliency.

The momentum is only increasing.   The cost of doing something like this is going up exponentially.   

I suspect there are enough in the community to see it for what it is and buy, buy, buy.

It's the new naive user that will be hurt.

Make sure you keep your plan a secret because there is more than one central bank, and they probably have more money than you to spend. Do you think they will waste their money helping you to destroy Bitcoin, or do you think they will buy your cheap bitcoins and put you out of business?

1. Build an ASIC mining farm with at least 2x current hash power.  Make it quite obvious that one entity controls at least 2/3 the hashing power
2. Mine like a motherf&*$er (throw in the occasional double-spend, just for kicks)
3. Watch difficulty go through the roof
4. Dump your mined btc, causing minor price crash
5. Stop hashing, added difficulty will cause blocks to go through every, say, half hour, instead of 10 minutes, choking the network with uncleared transactions
6. When difficulty readjusts low, goto 1:


A few iterations of this are likely to kill bitcoin, I think.

We had a bubble already.  Tell me, how is that working out?  (look at nr of transactions, nr of wallets being used etc.)

You're assuming there is no significant amount of diehard hoarders, and more importantly, that there is no real economy here that needs these coins for trade.

Both are false, although I wouldn't expect the fed to know this.

You are also assuming there is ONE central bank, when there are many, and many countries in the world full of bitcoin holders.

Bernanke can try all of this himself, for instance, but without the coordination of the EU, IMF, China's central bank, and others, he isn't fighting the full bitcoin market; just the US market.

Too many assumptions, and too many strong bitcoin advocates. I think it would fail.

However, now that we've passed a Billion $ market cap I fully expect some bad press to be manufactured and thrown our way. Things like terrorists attacks funded fully in bitcoin and the like... If they pump out enough of that bullsh!t then the sheeple of the world will form a strong resistance and we'll be far more segregated as a race.

They are experts at propaganda. Just look at any presidential election. Once we've taken a big enough bite out of their economy, this is the big gun that they will use on us.

Originally posted at Reddit

Playing Devil's Advocate here....

Let's play a game:  I'll be the Central Bank with say, 10 billion USD to devote to the "problem" of bitcoin.  You try to think of why my plan won't succeed.    

• I win when I can cause situations that scare users away from using Bitcoins.  
• I lose when non-technical users successfully and satisfactorily use any currency that's not controlled by a central bank.

So I'm assuming everyone understands why central banks will never like Bitcoin.

It's a construct completely outside their control, and since they get their power from issuing and being the central clearing house for paper currencies the mere existence of an alternative that doesn't have those problems is very dangerous, because it's obviously a better deal for its users in the medium-long term.

You can't manipulate a currency unless you have a lot of it at your disposal. With dollars, that's easy - Just create some new currency.
But with Bitcoin, you can't do that - So what do you do as a central bank with the ability to create as much paper money as you want.....
You buy a bunch of bitcoins, and the price doesn't matter. Actually, it's BETTER for you if your buying causes the price to go up, the more the better.

The total market cap for Bitcoin just hit 1 billion, so if the Fed wanted to buy 10% at current market rates best case scenario it would be 100 million, which is pocket change for the entities we're talking about. The demand spike creates a price spike which pulls media attention which brings new buyers which feeds higher prices which feeds more media attention, the cycle becomes self perpetuating after a while. That's where we are now.

Because Bitcoin's fundamentals (stable supply, distributed decision making, borderless operation) don't really leave room to argue they're worse than Dollars, the only argument that can reasonably made against them is that they're unstable and therefore unsafe for the average person to use.

So the way you do that is help the price go way up by buying in quantity over a reasonable period of time without regard to the price, then once you've cornered a reasonable proportion of the market (say 5-10%) you dump them all at once, smash the price, and incur massive losses for the new users who bought in during the climb through higher prices.
Then (after the market exhausts itself at the bottom) you DO NOT buy any of your coins back, since the dollar amount is trivial it's better to leave the impression that demand in the market has completely left town.

This also means you can use the same trick of accumulating -> causes bubble -> encourages newbies to get in -> sell large stake -> pop bubble -> cause newbie panic -> advise currency is unsafe -> wait for fundamentals to become important again -> repeat

What do you think, why wouldn't this be easy for any major central bank to do?