Bitcoin Forum

     Ok so I have this thought that maybe the feds are buying up a lot of bitcoins.

as you all know the Federal Reserve Bank has NOTHING to do with the federal government, they are a wholly separate entity that makes these pieces of paper (dollers) in exchange for the governments little pieces of paper (bonds) and these bonds are a promise of repayment WITH interest. so this small groupe of people known as the fed res are in control of the money supply. government doesn't really like it but I wont get in to that here, they do like taxes though. so im thinking (obviously) that the feds do not like this new money, they hate it actually, so they get a couple hundred people and there job is to buy up a lot of bitcoins. but not all at once. maybe a few hundred thousand here and a few thousand there, do this for days and days and weeks and make a few dumps along the way but soon enough they will have an incredible amount of coins and they will dump sell them so fast it will cause a panic sell. they will keep doing this till everyone want out of this horrible up down market.

Just a thought. - they know about bitcoin, they dont like bitcoin, they are doing something right now about bitcoin, they will stop at nothing to destroy bitcoin.

what do you think- how else might this play out?

I've seen this brought up a number of times on the forum as well as /r/bitcoin, and while it's theoretically possible I doubt the Fed even knows what Bitcoin is at the moment. It's still a fringe currency. While the scenario you've set forth might theoretically work, I imagine a $1 billion market cap currency is too small to consider a threat from their perspective.

There was a newspaper article I came across mentioning Al Gore's semi-endorsement of Bitcoins. I thought that was somewhat interesting.

I could try to find the link, but i saw this youtube video that showed a hearing on bitcoins to the feds asking them to not mess with the bitcoin market and allow the market to figure it self out.

they know! make no mistake of it, they know

very! wow!!!  :o    can you post link for everyone to see?

what happens in a world that bitcoins are the currency? how will they be taxed?

the government has all ready announced that they should receive taxes on bitcoin exchanges.

The Treasury has a $550bn fund called the Exchange Stabilization Fund to manipulate currencies against the dollar.
http://www.newyorkfed.org/aboutthefed/fedpoint/fed14.html

The Fed is also printing new money through POMO/TOTO at rate of $14-112bn per month to buy assets too.
http://www.newyorkfed.org/markets/tot_operation_schedule.html

CIA is reported to be investing in the Bitcoin project through http://www.iqt.org/ after a couple of Bitcoin founders went to see them.
http://en.wikipedia.org/wiki/In-Q-Tel

Bitcoin CIA Connection Video
https://www.youtube.com/watch?v=K5VC58gjnjY#t=3m33s

thank you!!! ill look more into this.

Oh and CIA's investment arm In-Q-Tel (added to my previous post)  ;)

Considering its easier to buy blow on SR, than to drive into crappy DC neighborhoods, I assume many politicians are users of bitcoin.  To endorse it openly, is another thing entirely.

MANBEARPIG DEMANDS AN ANSWER:  How soon until DC madams and brothels accept bitcoin?  Or will LiteCoin snap up the snatch market first?!

I'm not sure the Federal Reserve really cares about Bitcoin yet (although the Cyprus situation might change that) but you can bet that agencies like the FBI and CIA do. Because of the potential for anonymous exchange, it's the perfect currency to pay informants. Additionally, it wouldn't surprise me if governments are using it to pay double agents. Again, the potential for anonymity makes it perfect.

So yes, I believe the feds are buying Bitcoin. Maybe not to destroy it but to use it to their ends.

It would make quite a few of us super wealthy. If the fundamentals of bitcoin are still intact, ie the only thing difference being the price, there will still be a significant number of people that would only see the low price as an opportunity to buy more, never intending to sell.

a positive spin on it? nice, I love to look at all angles and possibilitys of situations.

I would bet no, at least not in large quantities.

I hope I am wrong though, because if they are investing then they are only giving it credibility. Also, it is very unlikely that they would destroy the bitcoins. They run the risk of losing a huge investment if they fail in crushing it. Bitcoin is also not the only decentralized currency, and they can't single out every one. If they want to stop decentralized currencies in general they will need some major deterrents.

Let's look at the USA track record, it is always about controlling the people and them always failing... They privatize banking and bankers maintain a monopoly for 100 years, they implemented income tax for 100 years, they wage a war on drugs so far has been failing for 40 years, they wage a war against P2P file sharing and are failing for approximately 10 years. Entrepreneurs sick of government attempts to control create decentralized currency and now government starts losing monopoly on banking/taxing.

The only battle against freedom the US Government/Private Elite has ever really won was controlling people with debt/taxes. Now they are at risk to lose it all. The future inability for the government to print money means they won't be able to wage war, and banks won't be able to fund them with fresh money off the press. Nothing they can do to stop it now, so they better get used to it.

I've been thinking about this as well:

https://bitcointalk.org/index.php?topic=162438.0

another certain funded group.... (i didn't want to use their acronym for many reasons) is actively pursuing btc and sr.  i won't post anything else here.  from what i've gathered they don't care about btc but only sr stuff and channels.....

I like your link, I can see you have given it some thought.

Wish there was a "like" button :)  Thanks it' intriguing stuff.

Bitcoin cannot be shut down unless the entire internet infrastructure is removed.  So, in the meantime, yeah....government and federal reserves are definitely going to get involved in some way. hmmmm..

hey, at least we can all go and buy some tin foil to make hats out of with the profit we've made in the last month :-)

yes some profits, but this topic should be taken seriously, this little idea of bitcoins is not so little any more and the ones in control of the money...actually physically making the money and charging intrest for using this money are not just going to sit back and do nothing. these people dont work, they let there money make them more money.  these people think its funny that we work three months out of the year for free. but now with a monetary system that cannot be tracked then there are no taxes or no need to print more money or at lest less of it and less intrest paind back to them. so you may joke about tinfoil hats but we need to keep an open mind about what could what is and what may allready be happening.

untill you have bought somthing and own it or transfered your coins into actual cash you realy truly have nothing but the possibility of that welth. it could go to ten buck tomorrow or less and all that money you spent on tinfoil makes you look kinda dumb.

dont count your chickens untill they hatch. dont count your chips while at the poker table. etc etc etc. 

Feds cannot just buy an uncertain thing. It is public money and its spending is regulated, I belive.
If bitcoin fails for some reason who will be responsible for buying them ?!
Such action could trigger a death sentence in money oriented country like United States of Dollarica ;]

im sorry but im talking about the federal reserve. the ones who print the money. the government buys there printed money. they are no more federal government than fedex. they do not answer to anybody. they are absolutly not at all the government or elected people. please educate yourself on this.

[The Federal Reserve is] no more federal government than fedex. they do not answer to anybody. they are absolutly not at all the government or elected people. please educate yourself on this.
[/quote]

You are absolutely, positively, spot on and I thank you for reiterating what I fail to mention as I have lost much faith in my fellow citizens.  Thank you.

I am not from America and thus not interested in very detail.
Even if they (feds or whatever) can buy bitcoins right away they will be still limited by many other factors.
Like company policy, modeling, prediction and analysis. It cannot be done in a matter of days. They still will have to evaluate purpose and means to do so.
Any high ranked employee who commit to the deed will be hugely responsible for undertaking the risk.

The CIA is buying en masses... actually they created BTC.... j/k or not? lol

After all the CIA has been involved since the beginning: https://bitcointalk.org/index.php?topic=6652.0

the people who control the fed are the same people who control the world, the richest people in the world. surely they hate bitcoin but i doubt they would do this. if they did, us poor people could take advantage of it. buy when it crashes and sell when it rises. maybe they would destroy bitcoin by making laws designed to hurt it or they could use their resources or a government supercomputer or something to perform a 51% attack. i don't know how else they might try to destroy bitcoin but if bitcoin becomes too popular they will stop ignoring it and making fun of it and instead try to destroy it. that's my opinion, i could be wrong.

I think governments will start attacking it when it approaches a market cap of 50-100 Billion. But also some smaller government might make it their official currency. :)

is it at about 3 billion now!?!

If the Fed was buying up bitcoins, then there would be less in the public and would drive up prices.