Is the fed inflating bitcoin to crash it?

deadweasel

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Quote from: RodeoX on April 03, 2013, 03:42:03 PM

Quote from: DeathAndTaxes on April 03, 2013, 02:41:30 PM

Quote from: RodeoX on April 03, 2013, 01:05:36 PM

No. This is not what the feds do. Imagine the firing if it came out that tax dollars were used this way.

The Federal Reserve has as much to do with the Federal government as Federal Express.
Funny how many people don't realize that the Federal Reserve is a private cartel of banks which operates completely outside the control of the US government.
The Federal Reserve doesn't use taxpayer money to buy assets, they simply magic new money out of thin air and buy "stuff" with it. When the Federal Reserves says they are buying $85B worth of MBS each month it means they magically created $85B and exchange that newly created money for the MBS they are buying.

An idea of the scale of printing we are talking about ...

Yup $2T created out of think air and used to buy assets (to drive prices up and yields down).

I do know that the reserve is not a gov agency. But nor are they divorced from the federal gov. I'm just saying that they would not be involved with some kind of "crush bitcoin operation". Especially by printing money at a loss to taxpayers.

they might actually... but not yet.

crazy_rabbit

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I normally don't go in for conspiracy theories like this, but this isn't the first time I hear this rumor. That said, when I heard it, the name mentioned was the ECB, the fed seems like they don't care. The ECB on the other hand has a reputation that is spiraling out of control.

RodeoX

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The revolution will be monetized!

Quote from: DeathAndTaxes on April 03, 2013, 02:41:30 PM

Quote from: RodeoX on April 03, 2013, 01:05:36 PM

No. This is not what the feds do. Imagine the firing if it came out that tax dollars were used this way.

The Federal Reserve has as much to do with the Federal government as Federal Express.
Funny how many people don't realize that the Federal Reserve is a private cartel of banks which operates completely outside the control of the US government.
The Federal Reserve doesn't use taxpayer money to buy assets, they simply magic new money out of thin air and buy "stuff" with it. When the Federal Reserves says they are buying $85B worth of MBS each month it means they magically created $85B and exchange that newly created money for the MBS they are buying.

An idea of the scale of printing we are talking about ...

Yup $2T created out of think air and used to buy assets (to drive prices up and yields down).

I do know that the reserve is not a gov agency. But nor are they divorced from the federal gov. I'm just saying that they would not be involved with some kind of "crush bitcoin operation". Especially by printing money at a loss to taxpayers.

zarl

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ok .. not i not understand the complex tech behind it
Thanks for explaining .. Qoheleth

Qoheleth

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Quote from: zarl on April 03, 2013, 02:38:03 PM

51% attacks , does this mean they need to have 51% of the excisting coins.. to do that ?

No. It means they need to have 51% of the computing power used of mining.

I'm not sure how much of the technology behind Bitcoin you understand, so I'll try to explain it simply. The big feature of Bitcoin is that when you send someone your coins, the transfer is unambiguous and impossible to undo. But the reason that works is because of Bitcoin miners, who make their computers do busywork in order to "vote" on the order in which they saw transactions occur. Thus, in order to fork the blockchain, or undo a transaction, or stuff like that, an attacker would need enough mining power (computers doing busywork) to outvote everyone else. Under normal circumstances, it's reasonable to assume that this would be infeasibly hard.

But if you have an attacker who is willing and able to sink huge amounts of money into an ASIC-based supercomputer before the honest miners have adopted ASICs themselves, they could break that assumption.

DeathAndTaxes

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Gerald Davis

Quote from: RodeoX on April 03, 2013, 01:05:36 PM

No. This is not what the feds do. Imagine the firing if it came out that tax dollars were used this way.

The Federal Reserve has as much to do with the Federal government as Federal Express.
Funny how many people don't realize that the Federal Reserve is a private cartel of banks which operates completely outside the control of the US government.
The Federal Reserve doesn't use taxpayer money to buy assets, they simply magic new money out of thin air and buy "stuff" with it. When the Federal Reserves says they are buying $85B worth of MBS each month it means they magically created $85B and exchange that newly created money for the MBS they are buying.

An idea of the scale of printing we are talking about ...

Yup $2T created out of think air and used to buy assets (to drive prices up and yields down).

zarl

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Quote from: Qoheleth on April 03, 2013, 02:17:16 PM

If an established capital-holder (NSA, Joe Billionaire, whoever) really wanted to kill Bitcoin, there would be far better ways to do it. For instance, they could build a supercomputer to execute 51% attacks and difficulty fluctuations, making BTC transfers uncertain and eroding confidence in the core premise of the technology (that honest nodes can outvote a conspiracy) while using the generated coins to short like mad.

Trying to kill Bitcoin by "moving the price around" is ridiculous when so much of the usecase doesn't even care what the price is.

51% attacks , does this mean they need to have 51% of the excisting coins.. to do that ?

Piper67

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Also, since the exchange in China seems to be leading the charge for the last few days, the Fed is either not involved or into some weird cloak and dagger shit.

Qoheleth

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Spurn wild goose chases. Seek that which endures.

If an established capital-holder (NSA, Joe Billionaire, whoever) really wanted to kill Bitcoin, there would be far better ways to do it. For instance, they could build a supercomputer to execute 51% attacks and difficulty fluctuations, making BTC transfers uncertain and eroding confidence in the core premise of the technology (that honest nodes can outvote a conspiracy) while using the generated coins to short like mad.

Trying to kill Bitcoin by "moving the price around" is ridiculous when so much of the usecase doesn't even care what the price is.

SomeWhere

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Quote from: yvv on April 03, 2013, 01:25:00 PM

Yes, if I was US ~~mafia~~, sorry, government I would mine and buy bitcoins like crazy right now, fuck the congress approval. And not to blow the bubble in future, but to make profit before Russian ~~government~~, oops sorry again, mafia have all bitcoins.

<3

I know I'm childish, but this just made my day.

seldon

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Quote from: BitcoinTate on April 03, 2013, 01:24:42 PM

If anything the CIA will make sure Bitcoin stays around. It is a dream currency for them. They can do whatever the hell they want with no money trail.

Very interesting line of thought - this should indeed be ideal for undercover operations.
http://en.wikipedia.org/wiki/Allegations_of_CIA_drug_trafficking

RodeoX

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The revolution will be monetized!

Quote from: Crazy on April 03, 2013, 01:06:39 PM

Quote from: RodeoX on April 03, 2013, 01:05:36 PM

No. This is not what the feds do. Imagine the firing if it came out that tax dollars were used this way.

I'm serious. A secret plan to buy and crash bitcoin would not only be a failure, it would never get off the ground. It is paranoid delusion to think of this stuff. The fed may ask for bitcoin to be regulated, but not in secret.

yvv

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Yes, if I was US ~~mafia~~, sorry, government I would mine and buy bitcoins like crazy right now, fuck the congress approval. And not to blow the bubble in future, but to make profit before Russian ~~government~~, oops sorry again, mafia have all bitcoins.

BitcoinTate

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DigiByte Founder

If anything the CIA will make sure Bitcoin stays around. It is a dream currency for them. They can do whatever the hell they want with no money trail.

Piper67

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It would be daft of the Fed to go all out, buy an asset that is appreciating faster than anything else in the history of finance, and then quickly let go of it, instead of keeping it and using it.

Then again, they aren't the sharpest knives in the drawer.

Cablez

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I owe my soul to the Bitcoin code...

In all honesty, the current run up is now the capitalization of fear. And we all know from these previous years that there is no upper bound to fear. All bitcoin has to do is allay enough fear and the price may not see a rational upper bound.

zarl

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I dont think the Gov just leave btc alone, waiting will make it harder to manipulate later..
They need tons of coins to do that, and i believe they are allready starting to prepare a strategy.
I just hope many fellow btc friends will be loaded, by an evil atempt

Nemesis

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Quote from: Crazy on April 03, 2013, 01:15:28 PM

Quote from: Nemesis on April 03, 2013, 01:14:43 PM

My theory?

Russian mafia has found a tax haven.... Fuck all those islands and small countries, they use bitcoins !

After they almost got their accounts "buzzed" @ 80% that's not too bad of a theory Cheesy

If you watched closely, they never got shafted due to the bail out. Cyprus banks just simply.... delayed after the withdraws. Only ppl got shafted are honest working ppl in Cyprus.

Crazy

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Quote from: Nemesis on April 03, 2013, 01:14:43 PM

My theory?

Russian mafia has found a tax haven.... Fuck all those islands and small countries, they use bitcoins !

After they almost got their accounts "buzzed" @ 80% that's not too bad of a theory Cheesy

Nemesis

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My theory?

Russian mafia has found a tax haven.... Fuck all those islands and small countries, they move to bitcoin nation!

Topic: Is the fed inflating bitcoin to crash it? (Read 2434 times)