Bitcoin Forum

I expect that if the US government shutdown occurs, then the price of bitcoin will go up. It has been described as a chaos proxy. Opinions?

The price really jumped starting exactly when the government shutdown began. Is this the reason for this rise?

please explain why.

it's happened before. it's threatened all the time. as far as i can tell some museum workers don't get paid for a while and then a few weeks later everything gets back to normal again. the true agents of chaos carry on getting their wages. 

A government shutdown occurs because they spent too much; in other words they are irresponsible, even more so that there were so last minute that they were working on a deal hours before the deadline. A lack of confidence in central governments has correlated with increases in the price of bitcoin in the past. Irresponsibility regarding financial matters affects the USD, and thus the USD-BTC exchange rate.

The last government shutdown in 2013 was also associated with a jump in the price of bitcoin. Some rationale on it:
https://motherboard.vice.com/en_us/article/3ddxg5/why-bitcoin-boomed-during-the-government-shutdown

Another example of the rationale:
https://bitcointalk.org/index.php?topic=2792941.0


The tangible effect, as you point out, is small, but still 2 million workers who will not be paid or will be expected to work without pay. In 2013 they were all paid retroactively (even the ones that did no work), but we don't know that a future deal with include this this time. But the big effect is a lack of confidence in government.

Wow. I thought it was crazy that people even attribute that for the small rise, but I didn't know there was a precedent. I kind of don't buy it, because the rise was miniscule enough to have been normal market movement, and that Bitcoin was actually trading above $14,000 before the slide began, but I guess we'll see in the coming days. Correlation does not always equal causation after all.

Also, Roger Ver being supportive of Bitcoin in the article made me lol. How times have changed.

There is absolute no relation to the fact of us government shutting down and Bitcoin price rising, both are different matters. Its kind of sad that the government has shut down, I hope better sense prevails and they keep it running up. While as far as bitcoin is concerned I'm sure there must be some positive news that's triggering it up. I hope it keeps going up, and the only way it could be related is if trump tweets we'll use bitcoin till this is solved and then it's relatable and prices shall rocket.

seems to me that it depends what kind of light is shined on bitcoin? And factoring that, the article was written 5 years ago, It's safe to assume that there were less people using bitcoin back then. Meaning, there was more room to grow. All the events that unfolded, just made it more popular and caused it to boom.  As it is now, the bitcoin network is much more congested and the popularity is sky high. So im speculating that the goverment shudown, isnt going to affect the prices significantly. But we'll probably see a hike since, the value is a bit low right now.

Yeah. I agree with what you are saying. It has obviously been a long time since the US Government got shut down like this(Think the last time something like this happened was way back in 2013) and I don't think this affected the bitcoin value in a major way or anything. The uptrend is simply the market recovering after the bloodbath recently. I feel like a huge bitcoin rally is incoming very soon just like last year and I don't think there will be another bloodbath for a long time.

In Russia become very popular theory that bitcoin are developed  by US government. So, bitcoin do not jeopardize US government

The shutdown of the U.S. government doesn't seem to have anything to do with the rise in bitcoin.
The rise or fall of bitcoin is a big factor. The policy intervention of bitcoin will cause people to panic and affect the transaction of bitcoin, which is determined by the supply and demand of the market!