Why don't US gov buy a trillion worth of bitcoin?

Kyraishi

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Quote from: coin-investor on October 16, 2019, 07:27:12 PM

Quote from: custard_pudding on July 16, 2019, 06:32:25 PM

We all know the US gov rules, dictate to rest of the world.
So if they cornered the btc market, afterwards the btc price could only go up, factor with this a few btc friendly directives, and a massive coup would have been achieved.
What is the downside?

That's possible, you can control what you already have, they have the capability to do this maybe they are already doing this and they are not yet exposed, but what if they are exposed, how will the international community react to this, supporting something that they are against with
the scenario will be very bad if they are exposed, they rather make it hard for Cryptocurrency than being part or getting a hold of it, they can build a good reputation, because we all know Bitcoin and Cryptocurrency is till has conflict on the system of government

Not sure if the price would actually go up - we could see a complete change of pace where investors would no longer be interested in crypto-currencies due to the control the US government would have.

I'd probably estimate that a lot of the people who are in bitcoin due to decentralization would pull out when the US is able to manipulate the markets, and the US wouldn't do this anyway. Don't think they even have the money to do so.

coin-investor

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Quote from: custard_pudding on July 16, 2019, 06:32:25 PM

We all know the US gov rules, dictate to rest of the world.
So if they cornered the btc market, afterwards the btc price could only go up, factor with this a few btc friendly directives, and a massive coup would have been achieved.
What is the downside?

That's possible, you can control what you already have, they have the capability to do this maybe they are already doing this and they are not yet exposed, but what if they are exposed, how will the international community react to this, supporting something that they are against with
the scenario will be very bad if they are exposed, they rather make it hard for Cryptocurrency than being part or getting a hold of it, they can build a good reputation, because we all know Bitcoin and Cryptocurrency is till has conflict on the system of government

DaftAjax

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Quote from: 7788bitcoin on October 15, 2019, 12:40:46 AM

Quote from: ivakar on October 14, 2019, 10:08:51 AM

oh, common! who will be asking this questions and who will answer that? taking into account current life style of people, if media will tell them that government is buying bitcoin to insure national security, no one will ask questions Grin

The government cannot spend money like that and start investing in a decentralized currency, for everything there is a process to follow and everything will be accountable, i am not sure about the procedures in third world countries but here in the west you need to follow these procedures if you are investing public funds.

I think he doesn't know how the government handles things. And what I'm surprised about is, the Media being aligned with the government(?), what is this some kind of propaganda? AFAIK, the Media usually targets the government, their allegations especially politicians (ohhh they love the drama).

So he thinks that just because the government said so would also mean the citizens would just obey and believe what they say? Huh, Unlikely.

Quote from: 7788bitcoin on October 15, 2019, 12:40:46 AM

Quote from: ivakar on October 14, 2019, 10:08:51 AM

"national security" phrase will shut any mouth. I think the main problem - they can't take over control over it. it is just too decentralized already.
But maybe they will start their own project based on blockchain technology, like digital dollar or something like that, why not?

You cannot spend million of funds and say it is for national security because people are not dumb Tongue

.

This guy doesn't know what he's talking about. National Security huh, the government tends to not tell their operations boldly in public.

7788bitcoin

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Quote from: ivakar on October 14, 2019, 10:08:51 AM

oh, common! who will be asking this questions and who will answer that? taking into account current life style of people, if media will tell them that government is buying bitcoin to insure national security, no one will ask questions Grin

The government cannot spend money like that and start investing in a decentralized currency, for everything there is a process to follow and everything will be accountable, i am not sure about the procedures in third world countries but here in the west you need to follow these procedures if you are investing public funds.

Quote from: ivakar on October 14, 2019, 10:08:51 AM

"national security" phrase will shut any mouth. I think the main problem - they can't take over control over it. it is just too decentralized already.
But maybe they will start their own project based on blockchain technology, like digital dollar or something like that, why not?

You cannot spend million of funds and say it is for national security because people are not dumb Tongue

.

Murat

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How do you know that the USA government didn't buy and still not buying Bitcoin for the future purpose, I believe everything is happening behind the stage, A lot of things is happening but we don't even know. in terms of cryptocurrency, Sine the opposite position of both The USA and China government, but are they really on the side? I think they are taking advantage within this system, already China has got an initiative to create their own crypto which will be the digital version of Yuan but The USA still observing this platform because China is their main competitor, But the main thing is that the USA government is under pressure financially due to a huge loan to the world bank and other financial institution so they are not able to take risk anymore right now, What's going on who knows?

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Quote from: custard_pudding on July 16, 2019, 06:32:25 PM

We all know the US gov rules, dictate to rest of the world.
So if they cornered the btc market, afterwards the btc price could only go up, factor with this a few btc friendly directives, and a massive coup would have been achieved.
What is the downside?

who knows owning large amount of bitcoins?remember that we don't have idea about the wallets that exist so if they have already having some or large amount only US government can answer that
and on the other scenario,why would they do that?when this will affect their dollar value?but what even their insights on this matter the most important thing is they will not manipulate the crypto market just to favor them.because if does then thats the end of this market

worldtraveller321

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the government could do like what they did with gold. Make a force sale and collect all crypto.
Yet they have to justify crypto having value first. For them to do that.
They can go to a ban situation. More less and forbid anyone from using it. and just let everyone live in poverty.

its really a complicated situation

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Quote from: minersday on October 14, 2019, 06:56:13 PM

Quote from: custard_pudding on July 16, 2019, 06:32:25 PM

We all know the US gov rules, dictate to rest of the world.
So if they cornered the btc market, afterwards the btc price could only go up, factor with this a few btc friendly directives, and a massive coup would have been achieved.
What is the downside?

First and foremost, you need to know and understand that US does not dictate or rule to the rest of the world. Secondly, the US government will never waste a trillion dollars to purchase Bitcoins worth that. All the US government is really interested in is finding a way to regulate and control the use of Bitcoin. Governments are just looking for a way to regulate the use of Bitcoin, because there is no way they can kill or destroy it.

United States isn't dictating to the entire world, but there are few countries that are supposed to do as United States suggest. If things were done against their advice they'll be given pressure from different sources, particularly breaking the economy. Few reasons I found of USA not buying trillion worth of bitcoin is due to the fear of hack, buying will make it legal and the market will devalue dollar.

millennium00

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The government's mission is to ensure stable conditions for the economy in order to seek the common good, on the other hand, cryptocurrencies in general are decentralized and the more people involved are in a project, their safety and benefits are greater, therefore I do not believe that a large investment by a certain State is convenient.

minersday

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Quote from: custard_pudding on July 16, 2019, 06:32:25 PM

We all know the US gov rules, dictate to rest of the world.
So if they cornered the btc market, afterwards the btc price could only go up, factor with this a few btc friendly directives, and a massive coup would have been achieved.
What is the downside?

First and foremost, you need to know and understand that US does not dictate or rule to the rest of the world. Secondly, the US government will never waste a trillion dollars to purchase Bitcoins worth that. All the US government is really interested in is finding a way to regulate and control the use of Bitcoin. Governments are just looking for a way to regulate the use of Bitcoin, because there is no way they can kill or destroy it.

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Quote from: tippytoes on July 16, 2019, 06:39:46 PM

Quote from: custard_pudding on July 16, 2019, 06:32:25 PM

We all know the US gov rules, dictate to rest of the world.
So if they cornered the btc market, afterwards the btc price could only go up, factor with this a few btc friendly directives, and a massive coup would have been achieved.
What is the downside?

For all we know, they might have btc stash in place already. Maybe some of their government officials already have and silent about it.

The US government might have acquired huge amount of bitcoin secretly or possibly buying it secretly and stashed it I am sure when a time comes the Government might want to regulate it thus control the price having a very good percentage in their kitty, doing so with the knowledge of the people will lead to discontentment and mass protest.

kooboat

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For security reasons and other similar factors, I don't think the US government would even make it public for the world to know even if they have huge amount of bitcoin at their disposal. Looking at the huge investment in bitcoin, I guess some great countries have secretly invested in bitcoin.

Eugenar

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Quote from: custard_pudding on July 16, 2019, 06:32:25 PM

We all know the US gov rules, dictate to rest of the world.
So if they cornered the btc market, afterwards the btc price could only go up, factor with this a few btc friendly directives, and a massive coup would have been achieved.
What is the downside?

Basically, if you will going to think about it deeply, if the US government will buy trillions of bitcoin, there will be no definite increase in its market value because the demand will be low. Through that, we can infer that the main reason why bitcoin's market value is through distribution of huge volume of bitcoin to many holders and investors, in this case, it adds demands and further increase its market value.

The Sceptical Chymist

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That would be as stupid a move as the US government has ever done.

Taxpayers would revolt en masse. Bitcoin could crash hard and then all those voters would be wondering why their government invested a shit ton of their own money in an asset notorious for its volatility. Does that sound like it would be a smart move--by any government?

I totally get how passionate people are about bitcoin here, but really. OP, you need to really think about these things before starting threads like this, because what you proposed would not and should not ever happen.

Oh yeah also, a trillion dollars worth of bitcoin? Do you know what bitcoin's market cap is?

JohnSegWick

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It's easy for any government to covertly buy Bitcoin or any other coin for that matter. They already buy all sorts of things without the public knowing. They already operate black sites and fund black ops.

They can always just create an illegal entity, let that said entity buy coins, that they then seize and can auction off.

Distraction

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I don't think the U.S. doesn't see that the future of fiat money is going to be replaced by digital money. I believe that the U.S. government have a stash of Bitcoin. I think the reason they don't like Bitcoin is that they don't want Bitcoin or any other cryptocurrency to replace USD.

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Quote from: febriyana on October 14, 2019, 09:16:10 AM

Why must buy Bitcoin if they are hate about cryptocurrency?
Bitcoin is based on decentralized. So they can't control the price and also have limited supply.
Opposite with fiat they can create it as much they want, price can they control.
So they prefer to protect fiat and trying regulate cryptocurrency maybe want kill it.

The US government doesn't usually "purchase" anything. On the other hand, in order to finance their budget deficit, every year they "sell" their federal debt in the form of the United States Treasury Bonds. As of now, the total federal debt of the United States stand at more than $20 trillion and most of it is owned by foreign governments and foreign citizens.

The US treasury can sanction the purchase of Bitcoins. But for that they needs to get sanctions from the lawmakers. First of all, Bitcoin needs to be classified as an asset that can be included in the Forex reserves of the United States (right now more than two-thirds of their forex reserves is made of solid gold), and that is not going to be very easy.

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Quote from: darkangel11 on October 14, 2019, 09:39:20 AM

Quote from: ChrisPop on October 14, 2019, 08:58:18 AM

I assume that they need to justify their purchases and Bitcoin is not quite cheap. Also I don't think there is enough liquidity in the market to purchase massive amount and OTC desks don't possess that kind of liquidity either. Moreover once the world sees that USA govt. started stacking Bitcoins what do you think the other countries will do? - Will follow of course and create a snowball effect sky rocketing the price of bitcoin.

They do. Buying Bitcoin would raise questions. Who agreed to it? Who is lobbying for Bitcoin in the government? Maybe those politicians don't believe in the usd? Maybe if they don't believe they know something and are trying to dump some of their paper money for digital gold?
A government buying Bitcoin is on a way to panic, hyperinflation, losing voter support, and more. Most governments that admit their fiat is doing bad try something like this. Look at Venezuela.

oh, common! who will be asking this questions and who will answer that? taking into account current life style of people, if media will tell them that government is buying bitcoin to insure national security, no one will ask questions Grin

"national security" phrase will shut any mouth. I think the main problem - they can't take over control over it. it is just too decentralized already.
But maybe they will start their own project based on blockchain technology, like digital dollar or something like that, why not?

darkangel11

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Quote from: ChrisPop on October 14, 2019, 08:58:18 AM

I assume that they need to justify their purchases and Bitcoin is not quite cheap. Also I don't think there is enough liquidity in the market to purchase massive amount and OTC desks don't possess that kind of liquidity either. Moreover once the world sees that USA govt. started stacking Bitcoins what do you think the other countries will do? - Will follow of course and create a snowball effect sky rocketing the price of bitcoin.

They do. Buying Bitcoin would raise questions. Who agreed to it? Who is lobbying for Bitcoin in the government? Maybe those politicians don't believe in the usd? Maybe if they don't believe they know something and are trying to dump some of their paper money for digital gold?
A government buying Bitcoin is on a way to panic, hyperinflation, losing voter support, and more. Most governments that admit their fiat is doing bad try something like this. Look at Venezuela.

febriyana

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Why must buy Bitcoin if they are hate about cryptocurrency?
Bitcoin is based on decentralized. So they can't control the price and also have limited supply.
Opposite with fiat they can create it as much they want, price can they control.
So they prefer to protect fiat and trying regulate cryptocurrency maybe want kill it.

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