Topic: Perfect example of why governments must hold Bitcoin - page 3. (Read 21528 times)
One thing that keeps occurring to me is when an institution own bitcoin, who will be in custody of the private key to the wallet? Don't you think this will be an issue for the institutions coming in to invest in Bitcoin or other cryptocurrencies?
I do not see why it is convenient to hold bitcoin rather than gold. I know the benefits of holding bitcoin but we also know its risks and everyone suggested to invest on bitcoin with the money that one can afford to lose. This problem does need to go with a law and it can be resolved. The country knows that they the gold is not their so there is a high chance that it will be withdrawn.
There is a huge difference between gold and bitcoin right now. Gold has a stable value and bitcoin has a fluctuating value. There is no application of bitcoin in your specific example. I would agree that bitcoin could provide an easier and freer way of withdrawing the money that was stored but for the time being, these two commodities are not the same.
EU and UK are toothless loyal US dogs. They doesn't have own decision making process now. The point here isn't is Maduro good or bad, but the point is they are breaking all democratic principles.
Having Bitcoin will not help Maduro anyway. He will need to convert to fiat at some point. And all cryptos are what 120B? This is nothing compared to world finances and needs.
Having Bitcoin will not help Maduro anyway. He will need to convert to fiat at some point. And all cryptos are what 120B? This is nothing compared to world finances and needs.
Not really an argument. Appealing to low liquidity just proves that Bitcoin is still tiny and thus potential for growth huge. If you look a the fundamental analysis, it still applies: If Maduro had Bitcoin reserves instead of gold reserves, it would be better than 0, which is what he is going to get as soon as US gets a foot inside Venezuela
Agree, that's a shaky argument
But before "appealing to low liquidity" counterargument, we should ask why would this villain want to cash out everything? Cashing out so much would definitely raise a lot of red flags as to the source of all this wealth. And Maduro may end up losing his bitcoins just as easily as he has already lost the "Aztec gold". In this manner, if we assume he was prudent enough to exchange the gold for crypto, we should as well assume that he wouldn't be that stupid to try selling all his bitcoins at once
EU and UK are toothless loyal US dogs. They doesn't have own decision making process now. The point here isn't is Maduro good or bad, but the point is they are breaking all democratic principles.
Having Bitcoin will not help Maduro anyway. He will need to convert to fiat at some point. And all cryptos are what 120B? This is nothing compared to world finances and needs.
Having Bitcoin will not help Maduro anyway. He will need to convert to fiat at some point. And all cryptos are what 120B? This is nothing compared to world finances and needs.
Not really an argument. Appealing to low liquidity just proves that Bitcoin is still tiny and thus potential for growth huge. If you look a the fundamental analysis, it still applies: If Maduro had Bitcoin reserves instead of gold reserves, it would be better than 0, which is what he is going to get as soon as US gets a foot inside Venezuela.
As other realized this fact, Bitcoin would grow and liquidity problems would vanish.
Also we are looking at 1.2 billion. Bitcoin moves $6 billion daily on traded volume. The market could absorb it.
I agree with you on the fact that the things happening to him right now won't have occurred if it were to be bitcoin but don't you think his bitcoin asset would have dropped drastically if that's where his investment is in. Well gold price also fluntuate and I think the best way for anyone planning something like this, is to put half of their investment into cryptocurrency which is the next big thing in every sector.
Just the opposite is true. It is good that he has everything in gold. If there were Bitcoins, he would have lost 80% to nowhere due to a fall. And gold remains gold. It is still able to "win" it.
If he used Bitcoin as a store of value, he would lose a lot of money. That is not 1k or 10k, storing such a money with BTC, it is a million dollar loss when Bitcoin loses every $ 1. In addition how and where money would be sold was a extra problem.
If Maduro was holding Bitcoin instead of gold, specially gold outside of your borders, he wouldn't have had that little problem. Of course Maduro is probably too computer illiterate to get the thing done.
You could make the argument of "if he was holding his gold inside his country he wouldn't have been denied access". Well still, it would make sense to hold Bitcoin and not gold, specially when you have an empire like US always threatening anyone with entering your country and taking all of your gold and oil reserves as they will do with Venezuela. With Bitcoin they couldn't be able to take them as you could have safe backups overseas.
This is an unbeatable logical argument for the bullish case of institutions holding Bitcoin. Im not saying they should dump all of their gold, but definitely dump a certain % and diversify with Bitcoin. This will happen sooner or later, and it just takes a first mover for the rest to follow, they will not be able to afford not having some due game theory, similar to not having powder back in the way when when wars were fought with swords.
You could make the argument of "if he was holding his gold inside his country he wouldn't have been denied access". Well still, it would make sense to hold Bitcoin and not gold, specially when you have an empire like US always threatening anyone with entering your country and taking all of your gold and oil reserves as they will do with Venezuela. With Bitcoin they couldn't be able to take them as you could have safe backups overseas.
This is an unbeatable logical argument for the bullish case of institutions holding Bitcoin. Im not saying they should dump all of their gold, but definitely dump a certain % and diversify with Bitcoin. This will happen sooner or later, and it just takes a first mover for the rest to follow, they will not be able to afford not having some due game theory, similar to not having powder back in the way when when wars were fought with swords.
good luck trying to liquidate $1.2 billion in bitcoin if you needed too.
You think the price is looking bad now, it would be under $1k
Couldnt they just as easily block his access to exchanges rendering his bitcoin worthless?
Maybe there's a big reason why the Bank of England denied this guy's withdrawal of gold. Even Bitcoin would not be able to help Maduro on this. Imagine Maduro investing his gold to bitcoin on December 2017 and having it to the present? It would mean a big big loss of profit dude and the government will not afford that kind of loss since they can't even control/manipulate the market that enough. I also think that England listens to US's pieces of advice that will make US benefit
In fact, something is better than nothing. And right now he has been denied access to all of the Venezuelan gold stored in London's vaults, i.e. he's got nothing, a big fat nothing, if I may say so. Thus, even if he exchanged his gold at December 2017 prices, he would still have one fifth of something, much better than nothing, if you ask me. And it is unlikely that he would have bought at such prices anyway (if we don't take into account the effect that purchasing so much would have on prices) as Bitcoin had been priced so high only for a very brief period of time
Maybe, someone like him (well, actually a little wiser than him) had been prudently and providently selling his country's gold reserves at that time (and buying bitcoins)
I remember a movie called "The Aviator" and I saw what's the truth about the old-school executives and government and how they control things and how they decide. It's more of things like this as well where they are capable of controlling the decision of others in order for them to benefit
Never saw that movie. What's its main idea, the lesson to take home?
Maybe there's a big reason why the Bank of England denied this guy's withdrawal of gold. Even Bitcoin would not be able to help Maduro on this. Imagine Maduro investing his gold to bitcoin on December 2017 and having it to the present? It would mean a big big loss of profit dude and the government will not afford that kind of loss since they can't even control/manipulate the market that enough. I also think that England listens to US's pieces of advice that will make US benefit.
I remember a movie called "The Aviator" and I saw what's the truth about the old-school executives and government and how they control things and how they decide. It's more of things like this as well where they
are capable of controlling the decision of others in order for them to benefit.
I remember a movie called "The Aviator" and I saw what's the truth about the old-school executives and government and how they control things and how they decide. It's more of things like this as well where they
are capable of controlling the decision of others in order for them to benefit.
~snip
You are looking at it from a wrong angle
Why do you not ask yourself why he would have to cash out in the first place? He could just declare Bitcoin as a legal tender in Venezuela instead of Bolivar (i.e. official currency), and that would solve most if not all woes with hyperinflation in this country. If Bitcoin is too expensive for that purpose and not very efficient as a means of payment (which seems to be the case), he could also make Litecoin an official medium of exchange in addition to Bitcoin being legal tender. This couple would work just wonders together in curbing insane inflation rates in Venezuela
Yes, I'm absolutely sure
In fact, you don't even need to be as sure as I am to see things from a proper angle since you can just look into how countries fought with hyperiflation in the past. You may start, for example, with the Weimar republic. Stabilizing money is the first thing you should do if you want to get out of the pitfall you got into. Well, in case of Venezuela, you should first get rid of this clown which usurped power there, indeed
As the saying goes, you can't solve a problem relying on those who created it. And in this I agree with you 100%, i.e. Bitcoin is unlikely to help Venezuelans as long as Maduro rules them unless they start using it on their own (which they are likely already doing anyway, even without any Maduro sticking around)
If Maduro was holding Bitcoin instead of gold, specially gold outside of your borders, he wouldn't have had that little problem. Of course Maduro is probably too computer illiterate to get the thing done.
Only if the wallets will remain anonymous. But as you can track and freeze it, as proven recently after cryptopia hack - the effect could be similar.
government and banks in some countries do not care about the price movements of bitcoin, they just want to see bitcoin fall like this, while bitcoin also cannot be controlled by banks or government so that makes bitcoin unable to get support from the government.
~snip
You are looking at it from a wrong angle
Why do you not ask yourself why he would have to cash out in the first place? He could just declare Bitcoin as a legal tender in Venezuela instead of Bolivar (i.e. official currency), and that would solve most if not all woes with hyperinflation in this country. If Bitcoin is too expensive for that purpose and not very efficient as a means of payment (which seems to be the case), he could also make Litecoin an official medium of exchange in addition to Bitcoin being legal tender. This couple would work just wonders together in curbing insane inflation rates in Venezuela
Now, you are trying to make bitcoin or litecoin or any coin their national money? Why do you think it matters what their coin is, they do not have any money, it doesn't matter if they use bolivar, petro, bitcoin,litecoin or gold it doesn't matter at all, they do not have money, let alone money they do not have FOOD to begin with, if they could gather even couple of bucks they will buy food with it, there is no monetary savings at all.
Maduro making bitcoin the legal currency in his country would not change a single thing for him, he still wouldn't be capable of spending bitcoin the way he wants, he has over 1.2 billion dollars in his gold account which means he would need to spend 1.2 billion dollar worth of bitcoin on Venezuela which they do not posses enough things that would collectively cost that much but even if it did they would sell that coins right back to market so they could get something to eat which would make the price of bitcoin fall. Hence that logic is corrupt and wouldn't work even for a day.
Omg, are you seriously on Maduro's side here? He's literally doomed the country and what UK and US are trying to do is just save its remains. Citizens of country with the largest oil reserves are struggling from poverty. If he gets the money from selling oil or gold Venezuela will no longer have overseas assets and thus, eventually, won't have any value behind it. If he had Bitcoin not only he would lose most of his assets for now, but there would also be no one to stop him from illegitimate spending of all that's left
This is not the politics board
But I still wholeheartedly agree with you. And that's why Bitcoin in the wrong hands can be a dangerous thing. As this case shows (I mean with London refusing to give back the Venezuelan gold to Maduro), dictators can be effectively dethroned by cutting them off of the financial support (it is just a matter of time), but with Bitcoin it will be a lot more difficult and will likely cause a lot more of collateral damage
Even a government personality was unable to withdraw his asset on need. This shows unlike the power they hold, they are dependent on a third party source for all their financial support. Now the same is serving as a troublesome. This gets eliminated with the use of cryptocurrency. As the Op title describes more the bitcoin hold by governments more will be the security of the nation. Because on emergency the government cannot wait anymore.
Yes it can be a good for the government, but of course if the government holds a lot of bitcoin or any coin, if they withdraw it one time big time then we will see another dump of the market and normal people will suffer. I don’t like the idea of this one since government can control the market if something bad happen. 
Omg, are you seriously on Maduro's side here? He's literally doomed the country and what UK and US are trying to do is just save its remains. Citizens of country with the largest oil reserves are struggling from poverty. If he gets the money from selling oil or gold Venezuela will no longer have overseas assets and thus, eventually, won't have any value behind it. If he had Bitcoin not only he would lose most of his assets for now, but there would also be no one to stop him from illegitimate spending of all that's left.
Or this could be a perfect example on why normal people (not in politics) should be holding bitcoin instead of gold.
You will not be a target. The thing is they cannot. You are protected by your privacy. If you are found, you can just mix it and send to another address or just put it in a trading website then withdraw to a different address again.
It will happen. Those who saves too much commodity will be an apple of the eye by their own government.
You will not be a target. The thing is they cannot. You are protected by your privacy. If you are found, you can just mix it and send to another address or just put it in a trading website then withdraw to a different address again.
It will happen. Those who saves too much commodity will be an apple of the eye by their own government.
Well, it's just that we can't easily compare bitcoin and gold, as a whole it is very different, for gold, you don't know the supply correctly but people have very high demand up to now, while bitcoin, I will say this as speculation and not suitable to be called an investment. Because of its bubble. And im sure every country has its own policy about foreigners withdraws their money in people's country.
gold has been trusted for generations, the government holds gold to print money, even though supply is unlimited, but prices tend to rise. while bitcoin may be due to new technology it needs recognition, and the government needs time to calculate profits and losses from all aspects, so as not to harm the country Jump to: