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Author Topic: trading fiat for crypto can be a risk to bitcoins future  (Read 476 times)
lxdr1f7 (OP)
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July 03, 2013, 12:52:51 AM
 #1

Large financials could use their financial largesse to buy up large quantities of the supply of bitcoin in order to undermine it by creating volatility, manipulate its price or reduce bitcoin liquidity. Bitcoins divisibility helps to offset the liquidity aspect for quite a while I suppose.

What do others think? Could this potential threat be combated as bitcoin becomes more of a competitor to the major established financial entities?
Robixen
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July 03, 2013, 01:00:28 AM
 #2

It's not a potential threat. If they buy large quantities then the price will simply go up and people would pay with fractions of bitcoin.
worldinacoin
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July 03, 2013, 01:05:51 AM
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I totally agree with that, that's why I choose to trade whatever I can instead of exchanging Bitcoins into fiat
airbit
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July 03, 2013, 03:25:26 AM
 #4

Large financials could use their financial largesse to buy up large quantities of the supply of bitcoin in order to undermine it by creating volatility, manipulate its price or reduce bitcoin liquidity. Bitcoins divisibility helps to offset the liquidity aspect for quite a while I suppose.

What do others think? Could this potential threat be combated as bitcoin becomes more of a competitor to the major established financial entities?

This is really no different than what they do with the stock market on a daily basis.

If they succeed they get richer and if they fail we print more fiat money.
Wary
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July 03, 2013, 11:57:44 AM
 #5

Large financials could use their financial largesse to buy up large quantities of the supply of bitcoin in order to undermine it by creating volatility, manipulate its price or reduce bitcoin liquidity. Bitcoins divisibility helps to offset the liquidity aspect for quite a while I suppose.

What do others think? Could this potential threat be combated as bitcoin becomes more of a competitor to the major established financial entities?
By the time bitcoin become big enough to be viewed as a serious competitor, it would be too late to buy up large quantities of bitcoin. Smiley
IMHO, large financials would use other methods, namely their political clout to make BTC illegal. It may harm BTC, but it won't kill it, just slows it down a bit.

Fairplay medal of dnaleor's trading simulator. Smiley
MineriaCloud
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July 03, 2013, 01:06:09 PM
 #6

This was discussed several times already.

If someone tries to overtake BTC by buying huge quantities, the prices will skyrocket, just having to lay more and more money into the buying. The more someone buys, the more the price would go up, and even so they cannot buy all bitcoins on earth, as some still have to be mined, and others are not on sale.
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