Bitcoin Forum

Do You think banks are involved in the bitcoin and they will be doing price crushes ? To dislike the bitcoin from using it ? What do You think about that ?


Check it out 00:00 - 4:00   http://www.youtube.com/watch?v=Uf7gUx1O78s

I don't think that banks are involved in Bitcoin. The reason why Bitcoin has been at risk of such a spectacular crash due to speculative investments and we all know that Bitcoin is now a multibillion dollar market.

Bitcoin is the savior of banks, sooner or later they will realize this and start to mass support it

The current system require an ever-expanding debt level which is simply not sustainable without another huge bubble (magnitudes higher than housing bubble). With bitcoin, that becomes possible (people taking out millions of loans to purchase bitcoin and get high return), at least for decades. And then more and more people will go retirement and the jobless rate will reduce dramatically, everyone will be happy

Banks will not, and simple cannot, support anything that is unregulated.  I'm not disputing the fact that they may in the future be buyers, but that future is WAY far away.  Especially with all the new laws passed on banks since the 2008 debacle, banks cannot touch anything even close to Bitcoin.  If the Fed comes  out and says, yeah, ok, you can own and trade, we'll regulate and tax, then they can.  Until that time banks will stay away, simple because they have to legally.

On a different but similar note, remember a month or so ago JP Morgan filed a patent for its own crypto-type currency?  So if banks do get into it, I think it'll come from the inside.

no yet. but when bitcoin gets more and more regulation, they will be a part of bitcoin.

I think the banks and government are wringing their hands with glee that there is now one more level of smoke and mirrors for laundering money.

I am always amazed how the masses think that the biggest criminals are the ones peddling the various vices on the street corner.

On the contrary, the biggest criminals out there wear suits and show up for work in banking sectors and government offices all around the world.

Skilled handlers and polished media presentation does wonders.

More like concerned that they now have viable competition.

Aside from that, Bitcoin is far too small a market generally for big funds to get involved with, these guys need to get in and out of market with huge volumes of money that would drive Bitcoin to stratosphere and crash it into basement when they tried to exit, which means that big money can't make money trading Bitcoin.....With that said, I am sure many banks have a certain level of finance aimed at Bitcoin, with perhaps some sitting on large volumes 'just in case'.

No.  NO. NO!

Banks are not involved in bitcoin.  Banks don't like bitcoin.  They can't make money on transaction fees, They legally can't hold it. Why would anyone put bitcoin in a bank except to get interest?  There is not interest on deposits right now for regular money.  In fact, the low interest rates makes bitcoin more viable since you can't earn significant interest by depositing normal money in the bank right now so no one cares that they don't get interest on their bitcoin and leave it in bitcoin instead of exchanging it for local currency they could deposit and earn interest.  Several bitcoin start up companies have had banks refuse to do business with them because the banks see them as competitors even though they have piles of cash from venture capitalists. 

Banks will have no interest in bitcoin until they figure out how to make money from it.  Then they will start lobbying for laws to be changed so they can use it.  Until then they will either ignore it, or try to fight it.  Once the realize they can't really stop it if people want it, they may try to propagandize and shake people's faith in it.  But make no mistake, they don't want it to exist.  It exists outside their system, they can't make money on anything outside their system.  If many people start using it, they lose money. 

That's OK right now since the Fed is printing money and giving it to the banks at 0% interest and they can make money with free money.  It's easy when you get free money you can loan it out at even low interest rates and make a fortune.  Of course it's the taxpayers and people holding cash that get screwed at some point in that scenario.  But by the time the shit hits the fan, someone else will be in office to take all the blame, so who cares!  Democrats have been doing that to republicans for ages, why stop now!  when the adults finally show up to clean up the mess you can blame it all on them since it supposedly happened under their watch, never mind the seeds were already planted.  Happens constantly, the housing bubble was just the most recent example.  Carter passes laws that force banks to make home loans to people that can't possibly pay them back.  Clinton puts that program on steroids so the banks try to come up with a way to do what the law forces them to do without losing their shirts, they come up with packaging the loans up in the thousands and selling them to wall street.  Bush tried 11 times to roll back the programs but the Dems and the media all call him mean and say he want to hurt the poor and that he's a racist etc.  When in reality he was trying to protect those people from taking out loans they couldn't possibly afford.  Then when it all collapses, it's Bush's fault.  This is exactly why we need bitcoin!  We must get the monetary supply out of government hands!

Must go to bed now..  G'night and don't belive everything you hear in the main stream media!

Korxax

___________________________________________________________________
Bitcon -- cash for the 21st century!

I hate to beg... but...
Looking for donations for a poor disabled guy to get a mining rig.  Long sad story that boils down to Cluster headaches- think a day long migraine packed into a half hour to 2 hours and repeat up to 10 times a day.  And my insurance company screwed me over to the tune of $50k when I had a plumbing problem flood my house, destroyed tons of my stuff including several computers.  Total loss, about $50k  Beware the red umbrella.  Any little bit of help is greatly appreciated.  I have fairly low power rates... so if you have an old miner that you want to donate I would be very grateful.  Contact me and I'll get you an address.
1NtV1q29FtRAYAkMJHMYbASZLiLur2FQe

I think we'd be delluded if we didn't think the banking cartel had appointed a bank to figure out how to manipulate our exchanges.

A lot of the BS, especially that we saw last spring in the run up to $266 and especially the crash down from it, was classic High Frequency Trading. I have no doubt that there are now multiple banks figuring out to play us.

BitCON

uh huh  8)

Fidor Bank anyone?

And Hear Hear! to this... Every sentence of this comment is right on. I can hardly believe how hook line and sinker people are buying the mass media parrots about bitcoin being for criminal enterprise.... Ya for the ultra rich, the CIA, NSA, banking cartels, etc.

ROFL  Woops!  I suck so bad at typing.  And since Bitcoin isn't in my spellchecker as a word either, every time I type it it has the little red underline.  Thanks Peat!  I probably never would have seen that.  I even suck at begging, I guess you are bound to make mistakes on your first attempt right?  :P  I really hate even asking, but I keep getting told there are people out there that will help if they know my situation.  We'll see I guess, I'm really not holding my breath.  I really am excited about bitcoin and wish I could mine faster.  I'm afraid I missed my chance, I was just starting to look into it 3 years ago but then the headaches ramped up and when that happens I'm pretty much a basket case so I never got it set up. I even had a 5970 at the time.  I don't even want to think how many bitcoins I could have if I had been able to get started mining back then with that.  It's too depressing.

Korxax

___________________________________________________________________
Bitcoin -- cash for the 21st century!

Looking for donations for a poor disabled guy to get a mining rig.  Long sad story that boils down to Cluster headaches- think a day long migraine packed into a half hour to 2 hours and repeat up to 10 times a day.  And my insurance company screwed me over to the tune of $50k when I had a plumbing problem flood my house, destroyed tons of my stuff including several computers.  Total loss, about $50k  Beware the red umbrella.  Any little bit of help is greatly appreciated.  I have fairly low power rates... so if you have an old miner that you want to donate I would be very grateful.  Contact me and I'll get you an address.
1NtV1q29FtRAYAkMJHMYbASZLiLur2FQe

Banks are involved in BTC...

Where do you think the exchanges are keeping the money you give them... Under their mattresses?

How do you think they write you a check, or deposit into your BANK account, the currency you exchanged? They don't use magic, they use some form of money transfer. They are not mailing you cash in the mail. That "device", is placing money in their bank, to deliver it to your bank.

I am sure you are using the money you get, to buy something from someone... who is also using a bank.

Banks are into BTC, as much as we are. Even if it is indirectly involved.

That's like saying I'm "involved" in the forest because I walk through it. :) Banks are an intermediary, money passing through them to purchase Bitcoin.  I think the original poster was asking in they are involved in Bitcoin as in trading, buying and selling.

Alex Jones invented BTC along with his globalist buddies in the NWO.

The Mike guy in the video was only right about the first half, if it happens to crash like tulips, I'll be the first in line to buy Bitcoins. Unless of course there is a flaw in SHA-256. Until then, I'll keep on buying.

I am wondering is there anything that can be done to prevent the banks from manipulating the bitcoin exchange rate with High Frequency Trading (HFT). My concern is that the banks can buy an excessive amount of BTCs and then sell them all at once and use HFT to buy even more at the cheaper rate. They can repeat this until they own enough BTC to control the market.   Are there mechanisms to control this type of manipulation? Can the other miners reject a blockchain that is mined that has a suspicious transaction (either too big or too often)?

People already manipulate the price, so I'm sure banks can do it also.

Ya the mechanism is already in place...its called switch to Litecoin.

That's the beauty of crytocurrencies...when some idiot tries to corner the market on one...people just switch to another.

So many people on these forums seem to forget that Cryptocurrencies are not legal tender.

My small town bank is involved in bitcoin, they are glad to receive my fiat deposits that are transferred from Coinbase into my business account.  They think it is amazing what I am doing and are all in favor, especially as I am reinvesting in my small coal mining town that is struggling under the coal mining issues created by the current administration.

Mtnminer

I don't think banks are allowed to trade bitcoins, at least not the big American and European banks.  There are all kinds of regulations on what they can and can't own or trade.  Most banks are not even interested in bitcoins at this point.  They are too new, volatile and risky in their eyes.


Korxax



1NtV1q29FtRAYAkMJHMYbASZLiLur2FQe

Thanks, that is very clever. But that works only when BTC/USD rates and LTC/USD rates are not tied to each other. Why is it that BTC/USD and LTC/USD fluctuation rates as shown in http://www.cryptocoincharts.info/v2/main/smallCharts (http://www.cryptocoincharts.info/v2/main/smallCharts) seem to follow each other very closely? Are you saying that if BTC/USD rates crash due to HFT, then LTC/BTC rates will skyrocket? 

My statement does not mention anything about ratios.

I am basically trying to say that no one is forced to use BTC...it is not legal tender.

With this being said, if a government or bank or person attempted to gather enough BTC to control its value in a way that I don't like, I can simply cash out and use a different form of currency.

Moving to another crypto-currency would be ideal however I can just go back to fiat or precious metals (or tulips :-) if things get too stupid.

How can you tell if HFT manipulation has been going on except after the crash? Can miners mining the blockchain tell if someone was gathering enough BTCs to control its value?  If yes, can they reject such transactions?

Bitcoin is a very stable and high quality investment target, the volatility is irrelevant, since banks will always use risk adjusted return to evaluate the performance. The return/risk ratio of bitcoin is much much higher than any other investment on the planet, including government bonds/Apple's stock/Gold etc...

Bitcoin unfortunately is not very stable.  Not sure what your definition of stable is!  Per a bank, a T-Bill is stable.  A GIC is stable.  Even most stocks aren't -that- stable.  This is an investment that may or may not be legal, that moves up or down 5-10% in a 24 hr period, and that is not traded on any major exchange (NASDAQ, Forex, NYSE, etc).

I agree that the risk to return ratio is excellent on Bitcoin.  But it is not something that banks will be buying anytime soon.

And what formula did you use to calculate this? Sounds like bullcrap to me.

Lol, how can something be both stable and volatile?

It is volatile because it rises in value, but it is quite stable around a superexponential function.

Volatile means a security/commodity changes in value more than a specified value.  Ok, so Bitcoin is volatile, I think we can all agree.

Superexpontential function?  Explain how Bitcoin is stable around this?  Because it's rises at a fast rate, so far?!

It is a common thought among permabulls. You can see it presented as graphs with super exponential axis' and lines. I don't necessarily agree, but at least exponential. But we do not know the exact parameters. Start from 1, adding 1% per year, is also an exponential function.

The point is if that if the bitcoin value is rising, it is per def also volatile. It does not have to both rise and fall again and again to be volatile.