Central Banks & Bitcoin - What if they start accumulating?

[Kemarit]

I am interested in thought on this topic,  hypotheticals:

1)  What if a small / medium / large country central bank begins accumulating

It will likely raise the price of bitcoin to a certain extend.

2)  What are the chances of this ever happening?

Small. I don't think the a country's central bank will be accumulating bitcoin
anytime soon because the price of bitcoin is not stable.

3)  How much would they buy?

If they ever buy, I think 1 million bitcoin will be a good start.

4)  What would the effect on price be?

Again, it will drive the price of bitcoin for a bit.

5)  If it is a 'rogue' nation,  would it kill bitcoin?

No. it will not kill bitcoin because because is global and not just tied
to a certain country.

[azguard]

I wouldn't be surprised if central banks are and have been accumulating bitcoin quietly/secretly. In fact, I would be more surprised if central banks weren't buying bitcoin. As much as they are hated, they aren't stupid. Even though they are driven mad about taking over the world, I think they do understand risk/reward just as much as we do. They certainly have the means and capital.

We dont know for sure are they doing it or not, but if they do they doing very good job in hiding this fact. Can say that they do or they just buying some small amount 1-2 then test it in different way maybe investing in some alt or something. There are also some rumors that bank are in developing there own blockchain dunno if this is true or not but believe that bank dont like this.

[gentlemand]

I wouldn't be surprised if central banks are and have been accumulating bitcoin quietly/secretly. In fact, I would be more surprised if central banks weren't buying bitcoin. As much as they are hated, they aren't stupid.

People like this deal in trillions. You're not going to find them making 0.1 BTC trades on Yobit and there really aren't very many people in the world to satisfy the buying needs of any major player.

Considering they can press a button and magic up a few billion for free it would be a bit of fun for them but they've got more important things to do with their time.

And unless it's done in some type of mutually agreed manner with other central banks, all they're going to do is end up having paid free billions for strings of numbers no one else is interested in at that level.

Everyone from a toothless goat herder in Pakistan to the sleekest Washington operator knows that gold has value. You can't say the same for BTC at present.

[tiggytomb]

My opinion is most of us here will be very well off and potentially very rich in the future if we hodl and accumulate as much btc as we can now.

This may be a 5,10,15 year plan but be patient. There aren't enough to go around so get your btc onto a paper wallet and make copies and store them in 2 separate locations in fire proof safes.

Thank me in the years to come.

Indeed it is not a short term thing here, now is the time to get as much as you can and put it away for a good few years, I reallly do believe bitcoin in 5 - 10 years as you do that a lot of people involved now will be very happy like we saw with the birth of the internet.

[jjacob]

I wouldn't be surprised if central banks are and have been accumulating bitcoin quietly/secretly. In fact, I would be more surprised if central banks weren't buying bitcoin. As much as they are hated, they aren't stupid. Even though they are driven mad about taking over the world, I think they do understand risk/reward just as much as we do. They certainly have the means and capital.

We dont know for sure are they doing it or not, but if they do they doing very good job in hiding this fact. Can say that they do or they just buying some small amount 1-2 then test it in different way maybe investing in some alt or something. There are also some rumors that bank are in developing there own blockchain dunno if this is true or not but believe that bank dont like this.

If they did buy, its impact would be visible on the price. Central banks deal in huge volumes. They have the ability to stabilize FX markets, where the market players are banks and hedge funds. So if central banks started buying bitcoins, the price would be in 5 digits now.

[Seansky]

If any country's central bank begins accumulating bitcoin and using it, it will not only drive bitcoin's price up but it will also increase the trust of the citizens on bitcoin and other countries' banks might begin to accumulate bitcoin too which will cause more demand. The chances of this ever happening in the future is just less than 5% and they would buy I think as many as 1 bitcoin at least and 1500 bitcoin at most depending on bitcoin's price at that time. Of course it will drive the price up if this begins to happen and I don't see why a rogue nation would kill bitcoin if it is a rogue nation since many users have trust in bitcoin already unless if many will start to not use bitcoin because of this rogue nation that might use bitcoin.

[bohr]

I am interested in thought on this topic,  hypotheticals:

1)  What if a small / medium / large country central bank begins accumulating

2)  What are the chances of this ever happening?

3)  How much would they buy?

4)  What would the effect on price be?

5)  If it is a 'rogue' nation,  would it kill bitcoin?

Any large player that tries to enter the market will end up making the price to go up since demand will go up and the supply will go down as they keep buying bitcoin, an important central bank could potentially buy as much bitcoin as it is available in the market since they can literally print money out of thin air.

[sakinaka]

1) That would make less bitcoins on the market, and that would lead to price increasing.

2) Chances are probably very low as a central bank is not meant to make profits but to print the legal tender and emit monetary policies.

3) In the very little probability that they would buy, they would buy a lot.

4) The price change would be the same as if it was some random user buying, as buy orders to not have a name put on them.

5) That would create a big big amount of mass medias FUD. Just imagine the fuck it would be if ISIS used it as a reserve currency. But however that would not kill Bitcoin, just delay a bit the global adoption.