Another reason bitcoin will succeed: US to target Putin's $40 billion stash

[Peter R]

This is another reason I think bitcoin will succeed.  Zerohedge claims the US may go after Putin's $40 billion dollars in financial assets stored in Switzerland:

http://www.zerohedge.com/news/2014-04-20/means-war-us-target-putins-personal-40-billion-stash

Whether you agree or disagree that Putin's fortune is "fair" and whether you agree or disagree that it is right for the US to take his wealth, I believe that if you were in Vladimir Putin's position you'd feel more comfortable with a cool billion (2.5% of his financial wealth) sitting in a secure brain wallet, and perhaps another billion or so in carefully planned m-of-n wallets.

I wonder if Vladimir understands bitcoin.  

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[smooth]

I wonder if Vladimir understands bitcoin.  

Probably not. But that's not the point. If V's stash does get raided, it creates that much more incentive for other elites to seek out safer places to store wealth than banks, and eventually they will find bitcoin. For that matter, even just the threat of such a raid has the same effect.

Big money figuring out the value bitcoin offers them is coming. The only question is when.

[Siegfried]

This (not Putin in particular) has been one of the biggest reasons why I believe an explosion in Bitcoin price is inevitable.

[tabnloz]

This (not Putin in particular) has been one of the biggest reasons why I believe an explosion in Bitcoin price is inevitable.

Yep, I think a bail in of a euro country (for eg) that is nether isolated nor smallish like Cyprus should rally the troops to defect to btc. Cyprus was a catalyst for the 266 run up but it was also 'dealt with' and forgotten relatively easily. Now a year later if it goes bigger, btc as an alternative springs to mind as it isnt a strange a phenomenon as last year

[tabnloz]

This is another reason I think bitcoin will succeed.  Zerohedge claims the US may go after Putin's $40 billion dollars in financial assets stored in Switzerland:

http://www.zerohedge.com/news/2014-04-20/means-war-us-target-putins-personal-40-billion-stash

Whether you agree or disagree that Putin's fortune is "fair" and whether you agree or disagree that it is right for the US to take his wealth, I believe that if you were in Vladimir Putin's position you'd feel more comfortable with a cool billion (2.5% of his financial wealth) sitting in a secure brain wallet, and perhaps another billion or so in carefully planned m-of-n wallets.

I wonder if Vladimir understands bitcoin.  

I suppose this begs the question: as we enter an unfolding currency war (us v rus in this case re: ukraine), how does bitcoin fare?

[bitebits]

Really interesting thought Peter R. Think it is beyond our imagination what happens of some Francs from the Swiss mountains are moved into bitcoin.

Now lets pretend we are Putin, and he wants to move one billion from his Swiss bank account into bitcoin. Lets try to help him, because I really see a few hurdles:

- Volume on online exchanges is way too low: getting 2 million bitcoins is near to impossible
- Therefore the price of one bitcoin needs and will rise, so less bitcoins are needed. But this only happens because of the one time instant demand, and likely pops afterwards. Not really a safe storage of value, when 50% of your Francs are happily converted from bitcoin again in fiat by all the current bitcoin holders.
- Think it would maybe be interesting to get a deal with a large mining pool?
- Better ideas?

[smooth]

- Volume on online exchanges is way too low: getting 2 million bitcoins is near to impossible
- Therefore the price of one bitcoin needs and will rise, so less bitcoins are needed. But this only happens because of the one time instant demand, and likely pops afterwards. Not really a safe storage of value, when 50% of your Francs are happily converted from bitcoin again in fiat by all the current bitcoin holders.

These two contradict each other. If he can't go ahead and buy 2 million bitcoins at the blink of an eye (which he can't) then he's going to have to do it over a period of time, in which case his continued buying will continue to support the price.

He won't be the only one of his type buying either.

This will drive the price to much higher levels and keep it there for a very, very long time, once it happens.

- Think it would maybe be interesting to get a deal with a large mining pool?
- Better ideas?

He can set up his own farm. If he mines and holds, fewer bitcoins go onto the market from other miners, and the price goes up.

[drawingthesun]

Really interesting thought Peter R. Think it is beyond our imagination what happens of some Francs from the Swiss mountains are moved into bitcoin.

Now lets pretend we are Putin, and he wants to move one billion from his Swiss bank account into bitcoin. Lets try to help him, because I really see a few hurdles:

- Volume on online exchanges is way too low: getting 2 million bitcoins is near to impossible
- Therefore the price of one bitcoin needs and will rise, so less bitcoins are needed. But this only happens because of the one time instant demand, and likely pops afterwards. Not really a safe storage of value, when 50% of your Francs are happily converted from bitcoin again in fiat by all the current bitcoin holders.
- Think it would maybe be interesting to get a deal with a large mining pool?
- Better ideas?

At the moment getting a billion into bitcoin and not losing your principal because you pushed to price artificially high is simply not possible.

Less than 8% of all bitcoins are available on exchanges and other sources for purchase.

Putin would be better off buying about $500,000 worth per day for the foreseeable future, it's not going to be a billion for a long time, but it's the safest way to do it. Even now I think $1,000,000 a day would be too much.

Other sources are the holders of 100,000+ bitcoin, but why they would sell and loss an instant 25% to tax I don't know.

Putin could get a hundred million fiat into bitcoin if given a year, but a billion is not realistic.

Of course in a couple of years, if Ethereum or Bitcoin is truly a 100,000,000,000 economy, getting 1 billion becomes much easier (Of course if this happens, his 100,000,000 this years becomes worth billions in its own right)

[smooth]

At the moment getting a billion into bitcoin and not losing your principal because you pushed to price artificially high is simply not possible.

It's not artificial if he keeps buying, and especially if other elites do the same thing (which they will).

Putin alone supposedly has $40 billion. He can put $1 billion per year into bitcoin for the next 40 years. There will be no loss of principal.

[drawingthesun]

At the moment getting a billion into bitcoin and not losing your principal because you pushed to price artificially high is simply not possible.

It's not artificial if he keeps buying, and especially if other elites do the same thing (which they will).

Putin alone supposedly has $40 billion. He can put $1 billion per year into bitcoin for the next 40 years. There will be no loss of principal.

Well the idea brings a smile to my face. At $3,000,000 per day it's likely bitcoin would surpass the $100,000 per coin mark in several months and the $1,000,000 coin will be within a couple of years.

[notbatman]

40 billion dollar btc pump, awesome.

[gagalady]

I don't think that Vladimir understands bitcoin but i'm sure he has people who can navigate him through it.

[bryant.coleman]

I think that Obama has gone nuts. Putin's personal wealth might total $40 million, and not $40 billion. Ask anyone in Russia and they'll vouch for it. Obama is still living in dreamland and he thinks that he can make Putin concede Eastern Ukraine by using hopeless sanctions. Most of the Russian politicians don't have any financial assets in the Europe.

[Peter R]

Putin's personal wealth might total $40 million, and not $40 billion.

You have no idea of the vast amount of wealth held by the elites.  A close associate of mine is a private chef for Roman Abramovich (NW ~ $14.8 billion).  He's been sailing on the world's biggest yacht in the Mediterranean and Black seas, while other elites visit by helicopter, and I am quite certain that Putin's been a regular confidant.  Recently (and not on the yacht) he witnessed a beautiful young twenty-something female, wearing the finest furs, get dropped off by helicopter, walk into a waiting Ferrari, and then speed away.  It's a completely different world, Bryant Coleman.  


EDIT: Bryant, some people on this forum have $40 million; it's really not that much in the big Pareto distribution of the world's wealth.

[Fatpony]

USA Is like a big dog that's barking like its ready to attack another big dog but tied, and when that dog is free it's just put his tail behind the ass and does nothing. In other words USA only "attacks" weaker countries so no way they will try to take money from someone like Putin and even more so since the money isn't in USA. The other funny thing is, Russian oligarchs don't have their assets in other countries, so from that side they are secured. And the power of Tzar Putin was best shown in the case of Khodorkovsky. I can only imagine Obama doing something like that to some rich American. No secret service would save his life....

[bryant.coleman]

You have no idea of the vast amount of wealth held by the elites.  A close associate of mine is a private chef for Roman Abramovich (NW ~ $14.8 billion).  

Putin don't have any private yachts and right now he and Abramovich is not in good terms with each other.

[molecular]

I wonder if Vladimir understands bitcoin.  

I wonder if when Vladimir will understands bitcoin.

before or after his fiat stash is taken?

[molecular]

- Volume on online exchanges is way too low: getting 2 million bitcoins is near to impossible
- Therefore the price of one bitcoin needs and will rise, so less bitcoins are needed. But this only happens because of the one time instant demand, and likely pops afterwards. Not really a safe storage of value, when 50% of your Francs are happily converted from bitcoin again in fiat by all the current bitcoin holders.

I disagree: if you buy 2 million bitcoins over a certain period of time x on the exchanges, I am pretty sure the price will settle well above the starting point and not much below the last buy you make (maybe even above, it'll overshoot quite a bit after you bought your 2 millionth coin).

It would be so much fun to execute. Mr. Putin, I'm ready to help.

[giveBTCpls]

Hi, wouldn't it be more beneficial for him to put it all on Zerocoin? (allegedly will be 100% anonymous).
What would be the advantages of putting it in BTC really? If I had that kind of money, I would like it to be untraceable. Im a poorfag so I dont really care, so BTC is enough for me, but for people that move millions and are in deep shit, why dont they just use Zerocoin (or DRK, whatever is more secure)

[drawingthesun]

Hi, wouldn't it be more beneficial for him to put it all on Zerocoin? (allegedly will be 100% anonymous).
What would be the advantages of putting it in BTC really? If I had that kind of money, I would like it to be untraceable. Im a poorfag so I dont really care, so BTC is enough for me, but for people that move millions and are in deep shit, why dont they just use Zerocoin (or DRK, whatever is more secure)

What's with the zerocoin/zerocash trust?

Even the experts that have invented it admit to an insane gaping hole: Someone needs to make the accumulator and then 'destroy' the key.

If that key is kept some third party can un-anonymise all the zerocash transactions forever.

It's likely the key will be kept and sold to the NSA for however many billions, in anticipation of it taking off.