Bitcoin Forum

Hi, i believe the bitcoin will be the currency of the future
and it's a threat to the federal reserve
but they are not going to just watch their system collapse of course
how do you think the federal reserve will react ?

Their mindset is just like that of Bitcoin.

The other team does not exist.

They cant do anything! Btc will keep rise!

I don't think they feel much threatend. They still think they are very solid and that something like Bitcoin can't put them out of track. With time they will probably realise the real situation but so far they are acting like nothing is happening. And what can they actualy do about it?

They will spend a greater amount of resources investigating how to control it via the protocol, then via the userbase, then via incentivized alternatives. We see that kind of thing being looked at already.
I think, in the end, they will conclude they can't control it well enough that way. Best they could do is make it unattractive to most people in places where they can offer a better alternative. In places where the gov surveillance isn't worrying people much.

At that point, they might try more overt methods. Banning, regulating out of existence, jail sentences.
This could become quite extreme, since it does indeed threaten their golden goose.
I doubt if this could be made to happen in every single country though. Still, I'd rather not have my bitcoin and my if linked at that time. Long before this time, bitcoin will evolve to avoid their actions, but people will still take damage.

Eventually, I think they will fail to control it everywhere, but it could become hard to use. What's left then will be interesting to see. :)

I think the "fashionable" answer to this nowadays would be "they're going to try and build their own blockchain and coin" :D

Bitcoin won't be a threat unless it grows more than what it is right now. Over 100 or 500 million users would become a threat already for them. Although there are a lot of shops in the world at which you can pay with Bitcoins, these shops can still be controlled by the governments because the wallets can be easily tracked if you have the addresses. But if our community grows, this will get out of their control. And that is a problem for them.

The Fed?  I don't think they care all that much about bitcoin.  The IRS, on the other hand, seems to be greatly interested in it, and that's the agency I'd be watching.  The Fed's got its hands busy raising rates and dealing with the bankers.  Bitcoin isn't probably even on their radar.  But you know that if the IRS can fuck you out of money, they will.

Somethings will happen because we have seen in the past that when the bitcoin price gets higher something else happens and bitcoin price gets dumped hard, like last time when China government did something and there was a panic in the bitcoin world.

Bitcoin will rise, but federal reserves can speed up or slow down that process. They can create laws about bitcoin, their actions will effect on public opinion. Their reaction is not visible yet, but I`m sure that different agencies already investigating bitcoin. They have teams of expert that will try to create some plan, like always big countries like to manipulate with everything.

they already react ...

http://imagizer.imageshack.us/a/img923/6572/cP9iFb.gif

they print all money that they can to submerge the Bitcoin capacity.
(and destroy many forest ... for bills).

Federal Reserve
https://bossip.files.wordpress.com/2014/06/lions.jpg?w=700
They say I'm supposed to worry about you



Bitcoin
http://john.moisttowelettemuseum.com/mouse/deadmouse.jpg

The Fed surely can use resources to stimulate not only the fiat economies of the planet, but also virtual economies by distributing excess funds into circulation...

Despite popular belief if countries pooled efforts like they do in cryptonomics there wouldn't be these problems present. It's only a matter of time before government systems adapt so easily break through time and wait it off.

- Yes bitcoin/cryptocurrency are the currency of future.
- Yes it's threat to the federal reserve.
- They have already started to research on blockchain technology to create their own centralized crypto.
- Many banks and government may launch their own centralized blockchain based crypto/currency and may forced their citizens to shift towards their  so called crypto from bitcoin.

Bitcoin is still too small and the federal reserve doesn`t care about btc right now.

If they see it as a threat,they will destroy btc very fast.The federal reserve and the government have the

power to do it.

They have to do something, because the current system is failing on a massive scale globally. I think Denmark will be the first country to develop their own digital currency and then the other countries will follow their lead. The signs are already there that they are turning against the use of cash. We will see a clear division between <Private Blockchains> and < Public Blockchains > by the end of 2017. The difference will make it easier for governments to regulate Crypto Currency in the future. ^mark my words^

That makes perfect sense. What better way to have full control of their citizens. Fully traceable currency will allow them to track every aspect of someone's life. Every like and dislike is revealed by what we purchase. Paper currency allows some of that to be hidden. It can eliminate vice crimes completely as people are caught and jailed for crimes based on the blockchain data.

We should not forget one thing here. The FED is not a part of the Government. They have their own goals and i am not sure how much they are interested in such government related things. It is however true that you can gain a lot of control and this is something people always want whether they represent government or companies.

The federal reserves or whoever are the people behind it are going to react big time. There will be panic, but possibly they do not worry. I do believe that it is possible that they too have purchase large amount of bitcoins. Remember that they have big capital and they have the best financial analyst and consultants. And so they already making their move today but secretly, if there is a federal reserve breakdown, the first people to know are them and they will save their selves and their capital before everyone else.

Not really sure the Fed really will do anything like this, why cause it will put it self in poor light and give the impression that is weaking and that will take the trust of the people away from them. Let's say worst case scenario they even try to, will they succeed nope, the community is not a single person it's decentralised and no one can shake it, not even the Fed. All they can do is try and make a centralized system which will fail over time. So you relax and buy Bitcoins.

I don't know why everyone doesn't just stop worrying about what governments are going to do about Bitcoin and start spending them on everything. More spenders and less hodlers would make Bitcoin so commonplace  governments couldn't do anything without ruining part of their economy.  

My goverment already state that they will forbid bitcoin usage. As for now even bitcoin reach highest value  , it did not affect any response for their legitimacy.

Fact : I'm glad that using bitcoin can't make me go to jail at the moment

We should worry about these things, and prepare for contingencies when these governments react negatively toward bitcoin. We should create untraceble black markets to provide for alternative commerce in the event where Bitcoin is banned. That is what happened with Prohibition in the USA during 1920 to 1933. The governments will soon realize that they are going to lose a significant amount of tax revenue, when Bitcoin goes underground, and that it would be more beneficial for them just to leave it to prosper and grow.

So they can chose between having Bitcoin bootlegging like the old days, or having legitimate busineses that create job opportunities and generate tax income. ^smile^

THey will not. Bitcoin isn't such a bit threat to them, and they or the financial institutions have already done what they could to demotivate or create a negative sentiment about bitcoin among people.

Please forgive me I'f I'm wrong but as long as fees stay high on the main chain we should be safe but any side chains run by private companies will always operate at a higher risk.

For instance if Starbucks wanted to set up a Bitcoin sidechain so people could set up accounts payable in bitcoin then Starbucks would have to ensure the security of that side chain. 

Again I don't understand the deferences between side chains and segwit but I think they operate for a time then all funds are moved back to the main chain in ether one transaction or a set of transactions.

Maybe this has been the plan of the government all along. To take over control of all the little side chains and leave the main chain alone.

I think bitcoin are not a direct threat to them at the moment; they will replicate what is working in this technology and replicate it. The federal reserve cannot control the entire planet, and even it is trying to influence the government toward to implements policies or laws. Bitcoin have eight years of track records, and the federal reserve should have already done something to avoid his progression.

First they will wait and watch. They won't believe that Bitcoin has any chance to change the monetary order, so they will not consider it a threat. Maybe they are curious and will try to create their own centrally-controlled altcoin (which will fail of course).

Once Bitcoin continues its inevitable growth, they may sense a unconscious fear that they might loose their jobs and status because of it. But I don't think they will ever concede that. Nonetheless they might take various actions to hinder its growth via political influence. However there is not much that they can do about it. In fact they provided for the perfect environment for Bitcoin growth with their excessive monetary expansion.

ya.ya.yo!

My point is, we have to stop being the mouse worrying about the lion and become the lion. Only when we become a formidable opponent will the lion think twice about attacking.

Increasing the velocity of Bitcoin through spending is the only way to become the lion.

They don't really think that way, even if bitcoin has been very stable in growing there are a chances that it still goes back down a bit that is why the Fed does not need to worry I think there is a balance that keeps it like that, even if the government would like a thing or two with bitcoin, Bitcoin would remain uncontrollable by one person I think just like in mining pools it would need the cooperation of all users in uniting their held BTC!

i think the federal reserve will want to get involve in bitcoin industry because they see that there is a chance for them to make money with the bitcoin growth, maybe they will apply some tax for people which using bitcoin or make some regulations for bitcoin community or maybe they want to make their own crypto currency.

what country are you in? russia maybe? not many country currently are against bitcoin and none put you in jail


i'm fairly sure that not all government will be against bitcoin no matter what will be the value, bitcoin will always seen a good suage in the world, so i'm not worried about his

Bitcoin doesn't threat anything, it's just a currency for a new way to do better transaction over the world.
Yeah, bitcoin has potential to become the currency of the future but not as a single one, there are a lot others currencies in the future.
If you mean that bitcoin would be the main currency, I don't think so, the highest exchange rate maybe.
Federal reserve will issues another regulations about bitcoin that correlate to users taxes imo.

No my friend, Bitcoin is definitely a threat to them, if it becomes so popular that it replace the reserve currencies. You have to remember,

the masters can only rule the puppets, when they have control over the strings. The fiat currencies gives them the strings, because they can

manipulate it. Bitcoin will never replace the fiat currencies, while the masters attach strings to it. { Example : Services that has to adhere to

AML/KYC regulations. } They monitor, manipulate and spy on us, and we have no choice in the matter.  :o

Doing a small research I found that there are some articles from 2013, 2014 which have involved with this issue. They had written that Fed and ECB had expressed the hope that bitcoin will fail. I agree with Kprawn that till now they have not do anything impressive to stop the growth of bitcoin because most of bitcoin users they don't use it as money to buy/sell goods and services but only as an asset for hoarding i.e gold and they wait bitcoin's price to jump up to sky so to exchange it with fiat. But if people start to use it as payment processor in their daily lives banks and goverments will surely react. I don't know the way of reaction but if they see that they lose the game who knows what they think?

I agree with you, but at the same time there's something contradicting us: Bitcoin replacing all currencies mean one currency worldwide. One currency worldwide means globalization. Isn't this their plan? For now I don't think Bitcoin is theirs, it's just one question..

The federal reserve is likely not going to be the primary organization reacting to the growth of Bitcoin, assuming it ever gets to a point like that. You're going to more than likely see governments (In this case the US gov't) reacting and restricting Bitcoin, and the fed will just benefit from that. The IRS will seek to tax it, and so on.

If the dollar is ever on the brink of serious collapse, though, they'll likely pretend they can fix it.

 is this possible ?
https://www.youtube.com/watch?v=bi2thGzzNSs 

$20 millions for a 51% attack