Governments attempt to destroy crypto

[FiiNALiZE]

I personally think that the idea that the world governments would attack cryptocurrencies is somewhat of a conspiracy theory but it seems that it is possible. Recently I read an article that was stating that bitcoin could be destroyed by governments who buy up a large amount of bitcoin over time and then sell all of the coins they own at the same time. This would cause a panic and even more people would sell their coins. The governments would then buy up these coins and do this over and over till they owned enough bitcoin to absolutely destroy its value.

While I think this is extremely unlikely I found it very interesting and would love to hear what others think.

What would stop governments from doing this?

Is crypto safe from governments who want to destroy it?

Crypto is kind of safe from the Government trying to shut it down because there is people that are hosting nodes for Bitcoin transactions to flow smoothly.

[squatter]

According to this theory, governments will buy up bitcoins using their own money. In order to control the majority of the bitcoin market you have to spend a lot of money now. If governments then dump their coins to destroy it, then they are basically burning their own money. If they want to destroy crypto, they will try to do it via bans or restrictions, but not by buying the entire stock and then destroying it.

Are they really "burning" their own money? They can simply print more via the central banks. That's the essential problem with pricing extremely limited commodities like Bitcoin in fiat currencies. Those fiat currencies are and can be endlessly inflated.

Accordingly, it's theoretically possible that governments could collude to accumulate and dump the markets as the OP suggests. It seems very unlikely, though, because of geopolitical realities. Governments are in stiff competition with one another. Those governments that see the writing on the wall -- that cryptocurrencies are here to stay -- will do everything they can to facilitate commercial advancement in cryptocurrency sectors. If a government can't destroy crypto, their best option is to leech as much tax revenue from it as possible.

[freebutcaged]

I personally think that the idea that the world governments would attack cryptocurrencies is somewhat of a conspiracy theory but it seems that it is possible. Recently I read an article that was stating that bitcoin could be destroyed by governments who buy up a large amount of bitcoin over time and then sell all of the coins they own at the same time. This would cause a panic and even more people would sell their coins. The governments would then buy up these coins and do this over and over till they owned enough bitcoin to absolutely destroy its value.

While I think this is extremely unlikely I found it very interesting and would love to hear what others think.

What would stop governments from doing this?

Is crypto safe from governments who want to destroy it?

Crypto is kind of safe from the Government trying to shut it down because there is people that are hosting nodes for Bitcoin transactions to flow smoothly.

Mate nodes can do no shit, stop believing some people saying that nodes are the only needed part of the Bitcoin network to completely function.

@OP, they are accumulating right now, I just need everyone to know something, when wall street fuckers dumped Bitcoin in a day back to @$6000

And pumped Bitcoin cash up to @$7000 if you follow their example, Bitcoin is destroyed then. if they are printing paper money to buy all of your coins

You should buy gold, if price of gold increased suddenly, it means they have no real gold to back their paper money.

[zinok474]

This is what Banks, Hedge Founds do on stock exchange, commodities (mostly gold and silver contracts) and on currencies exchange(Forex)..
The "big whales" play in this way, they collaborate buying in the same time and selling in the same time to re-buy. Almost all the times when this happens the small fishes on the market are moving in the opposite direction. (check gold price and Silver price after Brexit and you will notice that something "weird" happened with Silver.... These are the big whales, but that doesn't mean that will destroy Bitcoin. Maybe in the future they enter strongly in Bitcoin market to move the market in the direction that they want (Buying a lot BTC and then Selling all to create panic and to sent price in very low levels) but this is life... last thing: From this big fluctuations that may happen in the future we can also earn , buying BTC with a low and under-estimated price.

The only way that Governments can harm BTC is by regulations... In my opinion has almost 0 chances to happen that. Even JPMorgan that publicly was against Bitcoin calling it a fraud is investing on it.

[duola9527]

Governments can easily control the supervision of bitcoins by controlling core nodes, so that bitcoin can't escape the fate of supervision by governments~ .

[Kakmakr]

Governments already control Banks and they supply the rules by which these financial institutions operate. Why would they want to bother with something as small as Bitcoin? The market capitalization for all Crypto currencies is currently at roughly $300.5bn. Of that amount, bitcoin's market cap represents about $158 billion.

This is relatively small in comparison to most entities that are controlled by Governments. JP Morgan Chase's capitalization amounted to around 311 billion U.S. dollars this year. <That is just one Bank>

https://www.statista.com/statistics/264905/top-10-banks-by-market-capitalization/ < Bitcoin is no threat to them, while they have the Banks and the major companies in their pockets >

[dansmith_99]

Governments already control Banks and they supply the rules by which these financial institutions operate. Why would they want to bother with something as small as Bitcoin? The market capitalization for all Crypto currencies is currently at roughly $300.5bn. Of that amount, bitcoin's market cap represents about $158 billion.

This is relatively small in comparison to most entities that are controlled by Governments. JP Morgan Chase's capitalization amounted to around 311 billion U.S. dollars this year. <That is just one Bank>

https://www.statista.com/statistics/264905/top-10-banks-by-market-capitalization/ < Bitcoin is no threat to them, while they have the Banks and the major companies in their pockets >

Your view of this is very short sighted. Yes bitcoins market cap is a minuscule fraction of all fiat money. But bitcoin is only in its infancy. What happens when bitcoin is worth several trillion and it is no longer something to be ignored?

[Shamie1002]

According to this theory, governments will buy up bitcoins using their own money. In order to control the majority of the bitcoin market you have to spend a lot of money now. If governments then dump their coins to destroy it, then they are basically burning their own money. If they want to destroy crypto, they will try to do it via bans or restrictions, but not by buying the entire stock and then destroying it.

Are they really "burning" their own money? They can simply print more via the central banks. That's the essential problem with pricing extremely limited commodities like Bitcoin in fiat currencies. Those fiat currencies are and can be endlessly inflated.

Accordingly, it's theoretically possible that governments could collude to accumulate and dump the markets as the OP suggests. It seems very unlikely, though, because of geopolitical realities. Governments are in stiff competition with one another. Those governments that see the writing on the wall -- that cryptocurrencies are here to stay -- will do everything they can to facilitate commercial advancement in cryptocurrency sectors. If a government can't destroy crypto, their best option is to leech as much tax revenue from it as possible.

I get your point. Clearly realizing or I just slightly forgot how manipulating, taxing, banning and destroying are completely different from each other.
Do doubt that government can not destroy Btc.
Knowing that the decentralization involves every country allowing and starting to use bitcoin. A single government ( country) suggesting to destroy bitcoin is not enough to be equal with the number bitcoin users in the world.

[daringdiscovered]

Government here in our country are now warning us that they will shutdown bitcoin because of its risk to the people, I don't know what they are doing, all I know is that they are judging people without knowing it first, scammers online are the reason why the Government thought that bitcoin is a scam, but we all know that it is not.

[Habakkuk77]

Please consider this as my own opinion,
Governments cannot destroy cryptocurrency, they would only attempt but it is impossible that they will shutdown bitcoin. Because bitcoin is secured. It is time consuming for them.

[affandi]

this news is no stranger to me, it seems the government wants people no longer focus on bitcoin but rather focus on local government banks (in payments, investments, etc.). it may be that the government is also afraid bitcoin will dominate the world economy.

[jseverson]

The world governments have already tried their best to destroy bitcoin

Really? Do you have an examples? I mean yes there have been some bumps along the road caused by governments (Such as China) but I haven't seen any governments set on destroying bitcoin. They simply disapprove.

Well, I think that depends on how you would take government bans. They clearly want to destroy Bitcoin in their own country. Their jurisdiction ends there so we don't really know if they want to quash Bitcoin for good.

One thing to note is that with the birth of state-backed cryptocurrencies, they may want to destroy Bitcoin for good. It's competition, and it has such a huge lead that the only way to beat it would be to destroy it. We'll see though. Bitcoin has been incredibly resilient and bans don't really affect its value anymore. I doubt it can be taken out entirely at this point.

[Kizaki]

They will and they are doing it,government see this cryptocurrencies as threat on the money,banking and other stuffs connected on financial issues concering government.They see this threats becasue people are avoiding taxes specially if they are doing business

[iqlimasyadiqa]

They will and they are doing it,government see this cryptocurrencies as threat on the money,banking and other stuffs connected on financial issues concering government.They see this threats becasue people are avoiding taxes specially if they are doing business

That is the reason the government, they do not want the chaos of the economic system in the country. but if they do the right regulation then Bitcoin can improve the welfare of many people. This is being discussed now, how important a regulation to be able to implement Bitcoin to be a safe and comfortable to use by various parties. The government must do a task force and form a team to be able to analyze the impact of Bitcoin use legally. sooner or later, this should be done immediately. Our era already has a wide range of sophistication and Bitcoin is a growing form of technology owned by humans.

[CryptoGoddess]

I wouldn't put anything pass them. It has been their trait, from the begin of time, to manipulate their citizens by any means necessary to ensure they remain completely reliant on them. In that way they can twist and turn them to their liking because in the end it is all about maintaining power.

[rodskee]

i can't believe this idea government attempt to destroy bitcoin i think this is punch into the moon have many country in the news want to destroy bitcoin like the idea of banning but bitcoin still now ontop as first digital cryptocurrency as i heard if i'm not wrong have one country want to accept again the bitcoin in their country after few months of banned it means bitcoin are have an important rules in every nation accpeting bitcoin because have a big help to economy, the government official of the country realized the important of crypto's.

[pooya87]

I personally think that the idea that the world governments would attack cryptocurrencies is somewhat of a conspiracy theory but it seems that it is possible. Recently I read an article that was stating that bitcoin could be destroyed by governments who buy up a large amount of bitcoin over time and then sell all of the coins they own at the same time. This would cause a panic and even more people would sell their coins. The governments would then buy up these coins and do this over and over till they owned enough bitcoin to absolutely destroy its value.

the thing you first need to think about is that what would be the purpose of the government for this?
generally those who spread this "conspiracy theory" or as i like to call it "FUD", say government wants to destroy bitcoin. but buying and dumping so the price drops will only affect the price. so lets assume they did that. the price crashes. and then what? bitcoin won't disappear. it will still go on. crash it again? bitcoin will still go on. of course it will damage it but it will still go on. meanwhile that will cost a LOT of money!

not to mention that bitcoin is not the only thing out there! if we assume by any chance they do really crash bitcoin price, altcoins will rise. and besides government is not concerned with bitcoin price, they are concerned with where crypto currency is being used. and things like anon coins are being used anonymously and illegally. they are more focused on them than on bitcoin.

that is why i say this "theory" is more of a "FUD" for price manipulation than having any reality to it.

[wjchong]

If government really want to destroy Bitcoin they ban Bitcoin. But buying all Bitcoin and then destroy is not a good idea it is just waste of money and time.

[stompix]

Your view of this is very short sighted. Yes bitcoins market cap is a minuscule fraction of all fiat money. But bitcoin is only in its infancy. What happens when bitcoin is worth several trillion and it is no longer something to be ignored?

Deutsche Bank has 46 trillion of derivatives on its book.
Assets of the top 100 banks go over 100 trillions.
Fx markets are doing 5-7 trillions day.

The bitcoin market cap is irrelevant here.
Take a look on how it went up and down by 30 billions with a trade volume 1/4 of that.

No government (if we exclude NK as god knows what's in their head) is planning anything against Bitcoin.

The moment one will make a direct move against bitcoin, trust me, you're going to know it. Just pray it won't be a G7 member.

[dewi91]

I think what the reason the government spend a lot of money to destroy crypto currency.. many things more important from that, the government should to be more concerned on their country and improve the problems in their country..