How the federal reserve will react to the bitcoin growth ?

[QuestionAuthority]

I don't know why everyone doesn't just stop worrying about what governments are going to do about Bitcoin and start spending them on everything. More spenders and less hodlers would make Bitcoin so commonplace  governments couldn't do anything without ruining part of their economy.  

[izanagi narukami]

My goverment already state that they will forbid bitcoin usage. As for now even bitcoin reach highest value  , it did not affect any response for their legitimacy.

Fact : I'm glad that using bitcoin can't make me go to jail at the moment

[Kakmakr]

I don't know why everyone doesn't just stop worrying about what governments are going to do about Bitcoin and start spending them on everything. More spenders and less hodlers would make Bitcoin so commonplace  governments couldn't do anything without ruining part of their economy.  

We should worry about these things, and prepare for contingencies when these governments react negatively toward bitcoin. We should create untraceble black markets to provide for alternative commerce in the event where Bitcoin is banned. That is what happened with Prohibition in the USA during 1920 to 1933. The governments will soon realize that they are going to lose a significant amount of tax revenue, when Bitcoin goes underground, and that it would be more beneficial for them just to leave it to prosper and grow.

So they can chose between having Bitcoin bootlegging like the old days, or having legitimate busineses that create job opportunities and generate tax income. ^smile^

[ajaxmoor]

THey will not. Bitcoin isn't such a bit threat to them, and they or the financial institutions have already done what they could to demotivate or create a negative sentiment about bitcoin among people.

[Quantus]

Please forgive me I'f I'm wrong but as long as fees stay high on the main chain we should be safe but any side chains run by private companies will always operate at a higher risk.

For instance if Starbucks wanted to set up a Bitcoin sidechain so people could set up accounts payable in bitcoin then Starbucks would have to ensure the security of that side chain. 

Again I don't understand the deferences between side chains and segwit but I think they operate for a time then all funds are moved back to the main chain in ether one transaction or a set of transactions.

Maybe this has been the plan of the government all along. To take over control of all the little side chains and leave the main chain alone.

[chesatochi]

I think bitcoin are not a direct threat to them at the moment; they will replicate what is working in this technology and replicate it. The federal reserve cannot control the entire planet, and even it is trying to influence the government toward to implements policies or laws. Bitcoin have eight years of track records, and the federal reserve should have already done something to avoid his progression.

[yayayo]

First they will wait and watch. They won't believe that Bitcoin has any chance to change the monetary order, so they will not consider it a threat. Maybe they are curious and will try to create their own centrally-controlled altcoin (which will fail of course).

Once Bitcoin continues its inevitable growth, they may sense a unconscious fear that they might loose their jobs and status because of it. But I don't think they will ever concede that. Nonetheless they might take various actions to hinder its growth via political influence. However there is not much that they can do about it. In fact they provided for the perfect environment for Bitcoin growth with their excessive monetary expansion.

ya.ya.yo!

[QuestionAuthority]

I don't know why everyone doesn't just stop worrying about what governments are going to do about Bitcoin and start spending them on everything. More spenders and less hodlers would make Bitcoin so commonplace  governments couldn't do anything without ruining part of their economy.  

We should worry about these things, and prepare for contingencies when these governments react negatively toward bitcoin. We should create untraceble black markets to provide for alternative commerce in the event where Bitcoin is banned. That is what happened with Prohibition in the USA during 1920 to 1933. The governments will soon realize that they are going to lose a significant amount of tax revenue, when Bitcoin goes underground, and that it would be more beneficial for them just to leave it to prosper and grow.

So they can chose between having Bitcoin bootlegging like the old days, or having legitimate busineses that create job opportunities and generate tax income. ^smile^

My point is, we have to stop being the mouse worrying about the lion and become the lion. Only when we become a formidable opponent will the lion think twice about attacking.

Increasing the velocity of Bitcoin through spending is the only way to become the lion.

[YuginKadoya]

Hi, i believe the bitcoin will be the currency of the future
and it's a threat to the federal reserve
but they are not going to just watch their system collapse of course
how do you think the federal reserve will react ?

They don't really think that way, even if bitcoin has been very stable in growing there are a chances that it still goes back down a bit that is why the Fed does not need to worry I think there is a balance that keeps it like that, even if the government would like a thing or two with bitcoin, Bitcoin would remain uncontrollable by one person I think just like in mining pools it would need the cooperation of all users in uniting their held BTC!

[ethereumhunter]

i think the federal reserve will want to get involve in bitcoin industry because they see that there is a chance for them to make money with the bitcoin growth, maybe they will apply some tax for people which using bitcoin or make some regulations for bitcoin community or maybe they want to make their own crypto currency.

[Ayers]

My goverment already state that they will forbid bitcoin usage. As for now even bitcoin reach highest value  , it did not affect any response for their legitimacy.

Fact : I'm glad that using bitcoin can't make me go to jail at the moment

what country are you in? russia maybe? not many country currently are against bitcoin and none put you in jail

They will do something when bitcoin become threat to their currency such as interfere with bitcoin development, ban bitcoin usage and block known bitcoin nodes.

i'm fairly sure that not all government will be against bitcoin no matter what will be the value, bitcoin will always seen a good suage in the world, so i'm not worried about his

[error08]

Hi, i believe the bitcoin will be the currency of the future
and it's a threat to the federal reserve
but they are not going to just watch their system collapse of course
how do you think the federal reserve will react ?

Bitcoin doesn't threat anything, it's just a currency for a new way to do better transaction over the world.
Yeah, bitcoin has potential to become the currency of the future but not as a single one, there are a lot others currencies in the future.
If you mean that bitcoin would be the main currency, I don't think so, the highest exchange rate maybe.
Federal reserve will issues another regulations about bitcoin that correlate to users taxes imo.

[Kprawn]

Hi, i believe the bitcoin will be the currency of the future
and it's a threat to the federal reserve
but they are not going to just watch their system collapse of course
how do you think the federal reserve will react ?

Bitcoin doesn't threat anything, it's just a currency for a new way to do better transaction over the world.
Yeah, bitcoin has potential to become the currency of the future but not as a single one, there are a lot others currencies in the future.
If you mean that bitcoin would be the main currency, I don't think so, the highest exchange rate maybe.
Federal reserve will issues another regulations about bitcoin that correlate to users taxes imo.

No my friend, Bitcoin is definitely a threat to them, if it becomes so popular that it replace the reserve currencies. You have to remember,

the masters can only rule the puppets, when they have control over the strings. The fiat currencies gives them the strings, because they can

manipulate it. Bitcoin will never replace the fiat currencies, while the masters attach strings to it. { Example : Services that has to adhere to

AML/KYC regulations. } They monitor, manipulate and spy on us, and we have no choice in the matter. 

[sportis]

Hi, i believe the bitcoin will be the currency of the future
and it's a threat to the federal reserve
but they are not going to just watch their system collapse of course
how do you think the federal reserve will react ?

Bitcoin doesn't threat anything, it's just a currency for a new way to do better transaction over the world.
Yeah, bitcoin has potential to become the currency of the future but not as a single one, there are a lot others currencies in the future.
If you mean that bitcoin would be the main currency, I don't think so, the highest exchange rate maybe.
Federal reserve will issues another regulations about bitcoin that correlate to users taxes imo.

No my friend, Bitcoin is definitely a threat to them, if it becomes so popular that it replace the reserve currencies. You have to remember,
the masters can only rule the puppets, when they have control over the strings. The fiat currencies gives them the strings, because they can
manipulate it. Bitcoin will never replace the fiat currencies, while the masters attach strings to it. { Example : Services that has to adhere to
AML/KYC regulations. } They monitor, manipulate and spy on us, and we have no choice in the matter. 

Doing a small research I found that there are some articles from 2013, 2014 which have involved with this issue. They had written that Fed and ECB had expressed the hope that bitcoin will fail. I agree with Kprawn that till now they have not do anything impressive to stop the growth of bitcoin because most of bitcoin users they don't use it as money to buy/sell goods and services but only as an asset for hoarding i.e gold and they wait bitcoin's price to jump up to sky so to exchange it with fiat. But if people start to use it as payment processor in their daily lives banks and goverments will surely react. I don't know the way of reaction but if they see that they lose the game who knows what they think?

[mrkevio]

Hi, i believe the bitcoin will be the currency of the future
and it's a threat to the federal reserve
but they are not going to just watch their system collapse of course
how do you think the federal reserve will react ?

Bitcoin doesn't threat anything, it's just a currency for a new way to do better transaction over the world.
Yeah, bitcoin has potential to become the currency of the future but not as a single one, there are a lot others currencies in the future.
If you mean that bitcoin would be the main currency, I don't think so, the highest exchange rate maybe.
Federal reserve will issues another regulations about bitcoin that correlate to users taxes imo.

No my friend, Bitcoin is definitely a threat to them, if it becomes so popular that it replace the reserve currencies. You have to remember,

the masters can only rule the puppets, when they have control over the strings. The fiat currencies gives them the strings, because they can

manipulate it. Bitcoin will never replace the fiat currencies, while the masters attach strings to it. { Example : Services that has to adhere to

AML/KYC regulations. } They monitor, manipulate and spy on us, and we have no choice in the matter. 

I agree with you, but at the same time there's something contradicting us: Bitcoin replacing all currencies mean one currency worldwide. One currency worldwide means globalization. Isn't this their plan? For now I don't think Bitcoin is theirs, it's just one question..

[Yakamoto]

Hi, i believe the bitcoin will be the currency of the future
and it's a threat to the federal reserve
but they are not going to just watch their system collapse of course
how do you think the federal reserve will react ?

The federal reserve is likely not going to be the primary organization reacting to the growth of Bitcoin, assuming it ever gets to a point like that. You're going to more than likely see governments (In this case the US gov't) reacting and restricting Bitcoin, and the fed will just benefit from that. The IRS will seek to tax it, and so on.

If the dollar is ever on the brink of serious collapse, though, they'll likely pretend they can fix it.

[derprinz]

 is this possible ?
https://www.youtube.com/watch?v=bi2thGzzNSs 

$20 millions for a 51% attack