2013-04-10 NaturalNews: How the looming bitcoin crash will be exploited by

[Dusty]

How the looming bitcoin crash will be exploited by globalists to outlaw decentralized crypto currencies

The plot to criminalize bitcoin
How do you criminalize bitcoin? The same way you get guns banned: Plan an attack, make sure lots of people get hurt, roll out all the victims in front of the cameras, then use the sob stories as moral justification to crack down with oppressive new laws.

This is the agenda being planned right now with bitcoin. The recipe works like this:

Step 1) Central banks buy up massive quantities of bitcoin currency, driving the prices into the stratosphere and encouraging millions of people around the world to jump on board the "get rich" bandwagon.

Step 2) Once bitcoin valuations reach a sufficient level of insanity, start a massive selloff by dumping the bitcoins you already bought onto the market, offering them for sale at any price (i.e. sell into falling prices, accelerating the loss in valuations).

Step 3) Watch panic take hold as the bitcoin crash accelerates, ending in a catastrophic wipeout of "valuation" of all bitcoins.

Step 4) Find "victims" of the bitcoin crash who can tell a good sob story for the mainstream media about how they invested little Johnny's college money in bitcoin and lost it all. Roll them out on CNN and MSNBC where they cry on camera and talk about how they were ripped off by bitcoin and now they only trust the government from now on.

Step 5) Demonize bitcoin by characterizing it as a "libertarian pyramid scheme." Lash out against both decentralized currencies and libertarians.

Step 6) Once the demonization gains traction, have traitors in the U.S. Congress announce a "Consumer Currency Protection Act" that outlaws non-central bank currencies such as bitcoin. It's all "for your safety," of course. Shut down all online bitcoin wallets and exchanges, calling them "criminal pyramid schemes" and arrest a few people using bitcoin to send a warning message to the rest.

Mission accomplished! You've now made bitcoin look like a "pyramid scheme," you've scared the public into being wary of "anti-government currencies," and you've criminalized their use by consumers.

[tutkarz]

that *could* be possible if USA $$$ would have any value and economy would be stable or growing. But its not like that and governmets are looking for ways to get taxes paid by people with something that doesn not loose value that fast as fiat. And gold is simply not practical.

[2weiX]

I can actually see this happening.

[tutkarz]

I can actually see this happening.

To be honest i think faster people will run for banks and govermnets looking for victims who made their money worthless.

[grondilu]

This has pretty much been their strategy against gold (acquiring lots of it and locking it in jail), and it worked relatively well.

Yet with bitcoin it will be difficult to justify to the public (a lot of people would find outrageous that the central bank can print money and give it to random people against worthless virtual currency) and difficult to control (there are not really derivatives market and delivery is much easier with bitcoins than with gold so it will be much more difficult to lie about the amount of bitcoins you actually own).

Corners usually don't work, but to be honnest if someone can succeed in organizing one, it is certainly a central bank.

[ShadowOfHarbringer]

There is one reason why it won't work. Because we are already expecting it. Scenario has already been written, and this information will not be forgotten, because the Internet does not forget.

And when we are expecting it, we will be prepared.

Also I don't think the current rally is an attack by the banks. If that would occur, we would see a prices in range of 10.000-100.000 USD per bitcoin, at least. I mean, they can print money - nothing can stop them from raising BTC/USD price to $1M USD / 1 BTC.

[Jutarul]

There is one reason why it won't work. Because we are already expecting it. Scenario has already been written, and this information will not be forgotten, because the Internet does not forget.

And when we are expecting it, we will be prepared.

Also I don't think the current rally is an attack by the banks. If that would occur, we would see a prices in range of 10.000-100.000 USD per bitcoin, at least. I mean, they can print money - nothing can stop them from raising BTC/USD price to $1M USD / 1 BTC.

That would be nice.

Cashing out as the price rises and buying in as the price falls. Transfer money from the central bank to bitcoin fundamentalists - I'd like that.

[Severian]

Let them make Bitcoin illegal. It would drive the price through the roof as happens with all desirable commodities that get outlawed. We'd be even richer.

Bitcoin exchanges would open in countries friendly to Bitcoin. Americans would still be using Bitcoin but they'd be dumping their dollars for whatever currency can get them in and out of Bitcoin the quickest.

Making Bitcoin or Bitcoin exchanges illegal would show how completely impotent the government's regulatory powers are with regard to Bitcoin. It would wreck the last shred of cred that the central government has in the minds of many.

[herzmeister]

Actually I think some people spreading "bubble FUD" might be a healthy counterbalance to the current media hype. Some panic sellers balanced against all the panic buyers make the Bitcoin price rise more evenly. Thanks Mike.

[hazek]

Actually I think some people spreading "bubble FUD" might be a healthy counterbalance to the current media hype. Some panic sellers balanced against all the panic buyers make the Bitcoin price rise more evenly. Thanks Mike.

Yep, we need more sellers.

[hacknoid]

Yeah, the two problems I immediately see with that plan are :

1) Which government?  There is no world government, meaning that bitcoin would continue to live on somewhere.

2) A good story need both a victim and a villain.  A Bernie Madoff, or even a company like Enron (although that ultimately  came back to being people as well) to blame.  There would be no shortage of victims in this scenario, but who do you blame as the one who pushed it?  Satoshi?  I guess ultimately, but "he" was not the one who coaxed millions to invest their life savings.

[Rygon]

Somewhat ironically, if selling bitcoins for USD was outlawed, the market for selling bitcoin for gold/silver would increase in size. Lol.

[wormbog]

Too complicated. The gov't can always declare that bitcoin cannot be sufficiently audited by the IRS, therefore it cannot be taxed properly, which means it poses an economic danger and therefore must be made illegal.

Or they could claim that bitcoin is widely used by terrorists, drug dealers, and money launderers, and must be made illegal to protect law-abiding Americans.

[simplydt]

Wow, this is scary because its so plausible. It would be a shame. I really do hate PayPal. I have since 2002.

[tjohej]

Wow, this is scary because its so plausible. It would be a shame. I really do hate PayPal. I have since 2002.

You mean PayPay.

How ironic calling them "globalists". We are also globalists because we want Bitcoin to be used all over the globe...or don't we?  
BTC(Bitcoin) is a global currency.

[grue]

You guys do realize that NaturalNews is pretty much like infowars, right? ffs, check the news at the side panel and look how ludicrous they are.

[herzmeister]

How ironic calling them "globalists". We are also globalists because we want Bitcoin to be used all over the globe...or don't we?  
BTC(Bitcoin) is a global currency.

it's a local currency. 
The currency of teh interwebz.
And by interwebz I mean teh wieerd parts of teh interwebz.

[TraderTimm]

The common trope of "what if < insert deep-pocket villan > buys up all the bitcoin" has been around for a while. This isn't new, or even that original. It also ignores a few things - such as the prior run-up that is still in everyone's minds. I've been warning about this one since yesterday, as things seemed to be getting out of hand.

It doesn't make any sense to blow money on a market, when you could be doing other things - like DDoS or covert penetration of centralized systems.

But everyone loves the "manipulator" meme too much, it will never die until the currencies we trade bitcoin for do.