Bitcoin might create a prisoners dilema problem among the most powerful elites?

[TERA]

I think the bigger bitcoin gets, the more challenge it will have from governemnts. I remember back at $100 the bulls were telling us not to worry about governments at all because bitcoin was currently tiny and was too small to even provoke their interest. Then $1,000 must have been the critical level where this safety popped and finally some governments started taking action against bitcoin. During the next bubble when bitcoin breaks $1,000 and goes to higher levels, we'll probably see even more objection from more governments. Eventually bitcoin could get so big where it actually causes currencies to decline rather than just the fear that they will decline and then we could see a whole new wave of action.

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[zimmah]

Once bitcoin catches on enough, at least 1 of these extremely rich guys will definitly buy a shitload of them.

I heard bill gates is already bullish on bitcoin, Altough I don't know if he has some. I don't know if you qualify him as global elite either.

I think the bigger bitcoin gets, the more challenge it will have from governemnts. I remember back at $100 the bulls were telling us not to worry about governments at all because bitcoin was currently tiny and was too small to even provoke their interest. Then $1,000 must have been the critical level where this safety popped and finally some governments started taking action against bitcoin. During the next bubble when bitcoin breaks $1,000 and goes to higher levels, we'll probably see even more objection from more governments. Eventually bitcoin could get so big where it actually causes currencies to decline rather than just the fear that they will decline and then we could see a whole new wave of action.

By that time they can't stop it anymore. They will try but many would be upset if they threaten their bitcoin. It's like stealing everyone's gold and making it illegal for individuals to hold gold.

[pgbit]

Once bitcoin catches on enough, at least 1 of these extremely rich guys will definitly buy a shitload of them.

I heard bill gates is already bullish on bitcoin, Altough I don't know if he has some. I don't know if you qualify him as global elite either.

I think the bigger bitcoin gets, the more challenge it will have from governemnts. I remember back at $100 the bulls were telling us not to worry about governments at all because bitcoin was currently tiny and was too small to even provoke their interest. Then $1,000 must have been the critical level where this safety popped and finally some governments started taking action against bitcoin. During the next bubble when bitcoin breaks $1,000 and goes to higher levels, we'll probably see even more objection from more governments. Eventually bitcoin could get so big where it actually causes currencies to decline rather than just the fear that they will decline and then we could see a whole new wave of action.

By that time they can't stop it anymore. They will try but many would be upset if they threaten their bitcoin. It's like stealing everyone's gold and making it illegal for individuals to hold gold.

http://en.wikipedia.org/wiki/Executive_Order_6102

[spiderbrain]

If the world economy has another liquidity crisis (runs on banks by other banks) like in 2008/9, I'm looking forward to the possible moment when a few financial insitutions start using bitcoin as collateral for overnight swaps/repo. Those guys have so much money it could get really interesting at that point.

This would piss off their peers, certainly, but it's all dog eat dog when either you or the next bank will go bankrupt the next morning

[bitsmichel]

Once bitcoin catches on enough, at least 1 of these extremely rich guys will definitly buy a shitload of them.

I heard bill gates is already bullish on bitcoin, Altough I don't know if he has some. I don't know if you qualify him as global elite either.

I found this on the web, on an interview of him:
What are your thoughts about cryptocurrencies like Bitcoin?    
The foundation is involved in digital money but unlike Bitcoin it would not be anonymous digital money. In Kenya M-pesa is being used for almost half of all transactions. Digital money has low transaction costs which is great for the poor because they need to do financial transactions with small amounts of money. Over the next 5 years I think digital money will catch on in India and parts of Africa and help the poorest a lot

"Bitcoin is a technological tour de force."

[samsonn25]

Did anyone ever consider the possibility that bitcoin would create a prisoners dilemma problem among the worlds most powerful elites?

Basically the logic works something like this. They run the worlds financial system which is incredibly beneficial to the group as a whole. But if any one individual actor decided to quietly buy up huge amounts of bitcoin than give the go ahead to pump it on his media networks than this would offer more advantage to him personally than he could ever gain from sharing his usually scheduled portion of the fiat pie with all other elites.

Some economics buffs might recognize this as the same mechanic that prevents cartels from being able to price fix in a free market.

The cartels are not an organized group that is why they cant set the price.

In the end is supply and demand that will dictate price. Whether the elitists can hoard enough to constrain supply to increase the price is noteworthy.  We know more than half has been mined already and there is an arms race on the ASIC battlefront to get the rest.

[samsonn25]

Some economics buffs might recognize this as the same mechanic that prevents cartels from being able to price fix in a free market.

But they still price fix. Just look at cable and phone bills. Data usage plans and text plans.

Sending texts actually costs wireless providers nothing. Every time your phone checks for a signal, it sends an echo request consisting of 160 gibberish characters, and does this around every second. When you send a text, instead of sending gibberish, it sends meaningful text. The "cost" to the provider is literally zero. You might ask yourself, then, why doesn't one service provider just offer free texting and gain a huge competitive advantage over all the other companies? Then they would all have to offer free texting to survive, but none of them want to. So... price fixing is alive and well, whether legal or not.

In your example they didnt do the free texting first because they can make more money by still charging until something revolutionary comes along, its all about profits.  If you can get away with it do it and help to pay the bills and fatten your pocket until you are forced to adapt.

This is the same thing when the Chinese asic companies went independent and blew the market away late 2013 and early 3014.  Now they know they can design and manufacture and bring to market the asic machines faster then anyone else they stay just below the other companies, US and Europe that people will still but their equipment, and will keep competitively lowering prices as difficulty changes and other players come on board.