Why the big whales are not cashing out?

[tee-rex]

That question has always been intriguing me. Reading about possible control over Bitcoin by the government, I thought about the ways how they could actually do it. One idea that came to my mind was to print enough fiat to buy all bitcoins existing and get done with it for good. But then I recalled about the top Bitcoin holders including Satoshi himself keeping their coins, and it struck me that they might not be selling their stashes just because of this, for the fear that government could easily buy up all bitcoins that are traded and turn into the biggest whale itself.

How likely is that?

[RealEstCoin]

At $12B market cap a government, investment fund, or bank itself could purchase the majority of Bitcoin in circulation. This technically would not be the end of bitcoin, but the scenario you propose is possible.

[tee-rex]

At $12B market cap a government, investment fund, or bank itself could purchase the majority of Bitcoin in circulation. This technically would not be the end of bitcoin, but the scenario you propose is possible.

If they wanted to do something like that, they would need a lot more money because prices would skyrocket instantly if someone or some entity started to buy up bitcoins. But it wouldn't matter in the end just because they could print as much money as might be required to get a controlling stake in Bitcoin.

[TastyChillySauce00]

Printing a lot of money would make the value or rate of the money itself decreasing and will happen fluctuation. Fiat is now working on demand - supply, so if the supplies were just too much, the value would be decreased. Making money is not that easy, and that's why the country would prefer to take a loan from another country and not to print the money themselves

[mobnepal]

That question has always been intriguing me. Reading about possible control over Bitcoin by the government, I thought about the ways how they could actually do it. One idea that came to my mind was to print enough fiat to buy all bitcoins existing and get done with it for good. But then I recalled about the top Bitcoin holders including Satoshi himself keeping their coins, and it struck me that they might not be selling their stashes just because of this, for the fear that government could easily buy up all bitcoins that are traded and turn into the biggest whale itself.

How likely is that?

Any government or big banks can easily buy all the bitcoin currently in supply, there will be lots of hurdles for them to do this but this doesn't mean it is impossible. Also i don't see any incentive government/bank will have doing this.

Satoshi himself and many other big holders seems holding their bitcoin quite tightly not because of fear you have mentioned for sure. Talking about satoshi he will not move any single bitcoin from his known addresses because that can destroy whole bitcoin market due to fear and talking about other big holders they are just holding it as good investment. Some of them keep on cashing out profit which can't be noticed from outside because that amount is really low to make any significant move on market.

[The Sceptical Chymist]

Printing a lot of money would make the value or rate of the money itself decreasing and will happen fluctuation. Fiat is now working on demand - supply, so if the supplies were just too much, the value would be decreased. Making money is not that easy, and that's why the country would prefer to take a loan from another country and not to print the money themselves

Did you just wake up from a 60 year nap or something?  "Quantitative easing" ring any bells?  The US has been printing money like there's no tomorrow,  enough to buy 21 million bitcoin many times over.

[DimensionZ]

I think the key to controlling Bitcoin is not by buying out huge amounts of coins but by controlling the Bitcoin network itself. If they can shutdown or manipulate the Bitcoin network people will try to bail out and panic sell all their coins. Then the Bitcoin price will crash to the rock bottom and the government will sweep up all coins for pennies on the dollar. Going from decentralized to centralized overnight.

[tee-rex]

Printing a lot of money would make the value or rate of the money itself decreasing and will happen fluctuation. Fiat is now working on demand - supply, so if the supplies were just too much, the value would be decreased. Making money is not that easy, and that's why the country would prefer to take a loan from another country and not to print the money themselves

Governments are printing piles of money regardless of Bitcoin. Ever heard about the aeroplane money? In my view, it wouldn't hurt them as much as Bitcoin could potentially hurt them in the future unless they nip it in the bud today. For example, by buying enough bitcoins. They might have that on the agenda, but the time has likely not come yet.

[TastyChillySauce00]

Printing a lot of money would make the value or rate of the money itself decreasing and will happen fluctuation. Fiat is now working on demand - supply, so if the supplies were just too much, the value would be decreased. Making money is not that easy, and that's why the country would prefer to take a loan from another country and not to print the money themselves

Did you just wake up from a 60 year nap or something?  "Quantitative easing" ring any bells?  The US has been printing money like there's no tomorrow,  enough to buy 21 million bitcoin many times over.

I'm actually was reffering if the government are going to print money in the future and not the money which had been printed in the past.Well i can't argue that I missed things like Quantitative easing.so, pardon me if I'm wrong

[Labumi]

That question has always been intriguing me. Reading about possible control over Bitcoin by the government, I thought about the ways how they could actually do it. One idea that came to my mind was to print enough fiat to buy all bitcoins existing and get done with it for good. But then I recalled about the top Bitcoin holders including Satoshi himself keeping their coins, and it struck me that they might not be selling their stashes just because of this, for the fear that government could easily buy up all bitcoins that are traded and turn into the biggest whale itself.

How likely is that?

A good thing is when indeed satoshi has a key to be accessed for each Government that is in it. because if that is not done then the Government will never accept bitcoin as part a recognized currency. Because the Government will surely look for comfort and security for all the funds are there, so this is something that is difficult to solve because satoshi (makers of the bitcoin) have never appeared and gave an explanation on the issue of bitcoin. Just wait and see the results

[1Referee]

There are two types of Bitcoin whales;

1] Trading whales -

2] Holder whales (e.g. Roger Ver, Satoshi, etc) -

You are directly referring to 2] where you are basically answering the question yourself for a certain part already. The main reasons of them not selling any of their coins, or at least not a significant amount, is indeed out of fear for the government. But also the fact that they strictly believe in the future of Bitcoin, in the way that they can become some sort of an elite at some point in the far future. This definitely goes up for someone as Roger Ver.

Another reason is that a significant amount of their stash is sitting unknown in a huge number of different wallets. Imagine what would happen if the governments notice you have been declaring your wealth wrongly to the tax agency for years, and later turns out that your wealth isn't $50 million for example, but $250 million. It will be a direct hit of tens of millions $$ including fines at everything.

[tee-rex]

Printing a lot of money would make the value or rate of the money itself decreasing and will happen fluctuation. Fiat is now working on demand - supply, so if the supplies were just too much, the value would be decreased. Making money is not that easy, and that's why the country would prefer to take a loan from another country and not to print the money themselves

Did you just wake up from a 60 year nap or something?  "Quantitative easing" ring any bells?  The US has been printing money like there's no tomorrow,  enough to buy 21 million bitcoin many times over.

I'm actually was reffering if the government are going to print money in the future and not the money which had been printed in the past.Well i can't argue that I missed things like Quantitative easing.so, pardon me if I'm wrong

You can rest assured that they will print even more money in the future, and not for buying Bitcoin. Governments seem not to be particularly worried about Bitcoin existence so far because it is still too minuscule to give them a real butthurt, but things may change in the future, and then they will need all that money they have been printing. 

[hilariousandco]

Snip

How likely is that?

Not very. When you print more money it just devalues it which is exactly what's wrong with fiat. When you save cash over time you actually lose money because it is continually deflating in value. Bitcoin is the opposite and in theory your money should grow in value over time. If the gov or anyone else attempted to 'buy all the bitcoin' (which wouldn't happen) that would also just keep pushing up the value of bitcoin exponentially. If the powers that be wanted to control bitcoin they would just do so by passing laws that either make it straight up illegal to use or severely restrict its use by strict regulation.

[chesatochi]

The only way they can make it illegal is to make an international law that every country in the world would approve. I don't think this would happen, bitcoin will simply coexist with real world fiat economy from my point of view.

[tee-rex]

Snip

How likely is that?

Not very. When you print more money it just devalues it which is exactly what's wrong with fiat. When you save cash over time you actually lose money because it is continually deflating in value. Bitcoin is the opposite and in theory your money should grow in value over time. If the gov or anyone else attempted to 'buy all the bitcoin' (which wouldn't happen) that would also just keep pushing up the value of bitcoin exponentially. If the powers that be wanted to control bitcoin they would just do so by passing laws that either make it straight up illegal to use or severely restrict its use by strict regulation.

But that may be a lesser evil today than when Bitcoin gets a widespread usage tomorrow. And its market cap is tiny right now, so I don't think they will need to print anything at all. I'm certain that many government agencies like CIA, NSA and their colleagues in other countries have budgets which make provisions for such expenses. Regarding price going up, they don't have to buy all bitcoins, just enough to get a controlling "stake" in it, and they don't need to buy them all at once.

[talkbitcoin]

That question has always been intriguing me. Reading about possible control over Bitcoin by the government, I thought about the ways how they could actually do it. One idea that came to my mind was to print enough fiat to buy all bitcoins existing and get done with it for good. But then I recalled about the top Bitcoin holders including Satoshi himself keeping their coins, and it struck me that they might not be selling their stashes just because of this, for the fear that government could easily buy up all bitcoins that are traded and turn into the biggest whale itself.

How likely is that?

this is mostly another conspiracy theory in my opinion and the first important question is WHY? that these theories never think about. why would government want to do that? printing money and then spending lots of time to buy and invest lots of money ,.... none of these are easy ways. the easy way in case government wanted to go against bitcoin is simply announcing it illegal like countries such as (i think) Bangladesh!

[azguard]

The only way they can make it illegal is to make an international law that every country in the world would approve. I don't think this would happen, bitcoin will simply coexist with real world fiat economy from my point of view.

They have to coexist there is no other way at least not for now maybe they will be in future some attempts to be accepted on everyday trades/market but for now its good as it is. If you look in BTC -> Money we all do this is some direction we eaither buy/sell. Printing money wont solve anything it will make things only worse but that is not our prob its that country/government problem.

[erikalui]

The Government will never buy bitcoins that are already in circulation and would take the step that the Indian Government took (demonetization). They would start up their own currency via blockchain technology and make bitcoins invalid and even the Indian Government are trying to monitor bitcoin currency to see how it's beneficial for them. The other way would be making online wallets verify their users with their Government ID.

[tee-rex]

But also the fact that they strictly believe in the future of Bitcoin, in the way that they can become some sort of an elite at some point in the far future. This definitely goes up for someone as Roger Ver.

It seems like the new money is fighting the old money, and this should now be interpreted in the literal sense of the phrase.

That question has always been intriguing me. Reading about possible control over Bitcoin by the government, I thought about the ways how they could actually do it. One idea that came to my mind was to print enough fiat to buy all bitcoins existing and get done with it for good. But then I recalled about the top Bitcoin holders including Satoshi himself keeping their coins, and it struck me that they might not be selling their stashes just because of this, for the fear that government could easily buy up all bitcoins that are traded and turn into the biggest whale itself.

How likely is that?

this is mostly another conspiracy theory in my opinion and the first important question is WHY? that these theories never think about. why would government want to do that? printing money and then spending lots of time to buy and invest lots of money ,.... none of these are easy ways. the easy way in case government wanted to go against bitcoin is simply announcing it illegal like countries such as (i think) Bangladesh!

Basically, I'm only asking as per thread title why the biggest holders of bitcoins don't spend them. My take is that they keep their bitcoins mainly because of the apprehension that government or some other entity with deep pockets could monopolize Bitcoin by buying up a lot of coins that are traded nowadays. Anyway, what is your take on this, why don't they cash out?

[mundang]

That question has always been intriguing me. Reading about possible control over Bitcoin by the government, I thought about the ways how they could actually do it. One idea that came to my mind was to print enough fiat to buy all bitcoins existing and get done with it for good. But then I recalled about the top Bitcoin holders including Satoshi himself keeping their coins, and it struck me that they might not be selling their stashes just because of this, for the fear that government could easily buy up all bitcoins that are traded and turn into the biggest whale itself.

How likely is that?

Cause they want the price to climb up at 1000$ before they cashout. Those who can hold thier btc even temptations is already in ,they still want to push the price to a higher level. Must be ATH!!