Bitcoin Forum

other than that government making an insane amount of money:

what would happen before and after any news of it was leaked?

would this be good or bad for bitcoin in the short run and long run?

What do you think?

Just imagine Uganda decided to invest part of its managed pension funds or whatever in bitcoin. THE FIRST COUNTRY THAT INVESTS IN BITCOIN! What do you think how people would react, once that goes public?

--> Huge media attention (at least in the financial press)
--> Massive inflow of funds (from Malawi and speculators)
--> massive rally based on this influx and exaggerated expectations
--> big crash once the demand is exhausted
--> normalisation, followed by future Bubbles when other major investors follow or anything happens, that makes Bitcoin appear more valuable in the future

So before any governments involvement in the whole story remains unknown all whats visible is only the influx of funds, that would trigger a rally already. As soon as the story behind it becomes known, that is multiplied by all the expectations people have and imagine others having even larger expectations.

The smartest thing to do for any such investor would be to buy up funds slowly and steadily for cheap and then once his/her involvement becomes known, on the peak of the resulting bubble, sell everything to buy again after the collapse. The nature of such investors, like investment funds, etc. may contradict such actions however, as they may stay for the longhaul once they decide to invest, not shure on that.

I always thought such a monster bubble would be a great incentive for corrupt leaders of third world countries to announce adoption of bitcoin on theirs. That way the could just pocket the huge returns while bitcoin may still pose a useful alternative to common tender in their countries.



And now for something completely different:

http://img580.imageshack.us/img580/5960/demotposterpedobearsmal.jpg (http://imageshack.us/photo/my-images/580/demotposterpedobearsmal.jpg/)

There are many private investors that have more personal wealth than some governments. Combined with their ability to make riskier investments without having to justify it to anyone, I think it's more likely that we'll see someone with a lot of fiat put some small amount in BTC, like <1%. Take Bono, for instance, he could take 0.5% or his estimated billions in networth (which would be something like $5M) and buy BTC, as a high-risk, high-reward investment. Don't some of the Buffett/Gates types play poker with $M USD for fun anyhow?

I do not believe that Bitcoin is yet ready for government level use. It is not yet ready for a large business.

Companies/governments need to have staff that spends money. Right now those large businesses have processes in place for how to track all of the money going through the system and how to keep people accountable for spending (two signatures on checks, receipts, ledgers, etc.).

Imagine someone in accounting having a Bitcoin wallet on their desktop. Not only would the accountant be able to copy that wallet and take it home for later use (or skipping the country), but so would IT and possibly anyone else on the corporate network.

I am not saying that Bitcoin is not able to be used in such an environment. Just that the processes and software/services have not been properly vetted yet to do so.

Bitcoin is not yet even used in basically any medium sized businesses, let alone large ones. Bitcoin grows bottom up, from small to medium and so on. We're still at small even though I see things improving, slowly but surely.

Some day.

This is false perception since anyone in IT can already do whatever he wants to "someone in accounting".

Also people in accounting do sign "NDA" and all sorts of contracts, so it would be unwise to do anything that stupid.

However it would be much harder if not "impossible" to "get" BTCs back, like it is now.

But it would not be so hard to implement some kind of verification system, where accounting would be limited to send BTSs only to certain addresses where after that, validation and verification would be required by "senior staff" or something.

Here is Vladimir's axiom.

"Bitcoin adoption is not viable for individuals and businesses with market capitalisation higher than that of Bitcoin itself."

Meaning that Bitcoin is a playground of those who worth less than 50 million USD (so far).

means greece is a potential bitoin country^^

+1 for Vladimir and LOL for cloon :-)

that WAS funny  :D

Re: what would happen to bitcoin if a government made a large investment in it?

Somehow they would find a way to fuck it all up. Like they do everything else....

http://ts4.mm.bing.net/th?id=I5014125799212063&pid=1.1

Does this mean money is worthless like play money.  A sick and unusual sign?

If $africannation would adopt BTC, it (BTC and $country) would become target of massive international intervention (for reference refer to egypt and his plans to establish a panafrican gold-backed currency. where he at nao?).

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If $africannation would adopt BTC, it (BTC and $country) would become target of massive international intervention (for reference refer to egypt and his plans to establish a panafrican gold-backed currency. where he at nao?).
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My blessings to Egypt, Im sorry they must live this way..

http://www.nydailynews.com/news/world/a-30-second-skype-call-ethiopia-land-15-years-prison-article-1.1097288