The Fed Could Buy Bitcoin and Stabalize a USD backed Bitcoin based economy

[CtrlAltBernanke420]

This does not mean they will have authority over bitcoin and the protocol itself but they can act as a buffer to the supply of bitcoin on exchanges.

This would be used as a last ditch effort to save the people from wall streets greed.

Wall street has the ability to do what the fed could also do. A free market could do what the fed would need to do.

The fed would act a relay in a relay race. the fed makes bitcoin worth something serious, say 10,k or 100k/btc

They would also have a better ability to keep it betwee $95,000 and $105,000/btc for say 1-5 years, eventually allowing the bitcoin economy to hold it own once there is an economic floor the size a major global economy beneath it, kinda like the dollar. This would allow it to act like a western union for a period of time before becoming its own thing entirely, as this would put it on the path to settle trades and have goods priced in bitcoin,  instead of dollars.

This would be if Russia and China create a system that causes everything being done to IE QE, to backfire on the USD, among other reasons or catalysts that could occur that would get a major central bank to get behind bitcoin.

After this, any outside intervention on economies would have little affect.

 

[odolvlobo]

It will be difficult for the Fed to peg Bitcoin to an inflationary currency because they will have to sell bitcoins and they will run out at some point.

[Meuh6879]

fed have 4500 milliards of debt and 2700 milliards of deposit.
bitcoin ?



no thanks, we don't have virtual money here ...

[jackpotjoe]

fed have 4500 milliards of debt and 2700 milliards of deposit.
bitcoin ?



no thanks, we don't have virtual money here ... http://25.media.tumblr.com/tumblr_m9pi22wUtk1qzssrlo1_500.gif

Lol that is a funny GIF..

[ANTIcentralized]

This is not going to happen. The federal reserves duel mandates are to maintain maximum employment and to maintain stable prices. It is not their job to "protect" anyone from "wall street"

They also have no reason to need the bitcoin economy to flourish as the US economy would do just fine without bitcoin just as it has for the last several hundred years

[CtrlAltBernanke420]

This is not going to happen. The federal reserves duel mandates are to maintain maximum employment and to maintain stable prices. It is not their job to "protect" anyone from "wall street"

They also have no reason to need the bitcoin economy to flourish as the US economy would do just fine without bitcoin just as it has for the last several hundred years

The dollar and other national currencies could if there a pardigm shift of energy occuring beyond bitcoin. Bitcoin in my cosmological viewpoint is not the only shift occurring. There is an entire paradigm shift on our footsteps.

As Bill Gates mentioned, Bitcoin is "tour De force" but govt's are going to have trouble grappling with it.

So if all else fails, the elite would rather Bitcoin be on top, than russia or petrogold.

It is there best and only chance. If Buffets Bershire Hathaway began using Bitcoin as a payment system, he would still retain being one of the richest men, just would need to learn how to work a cold wallet, and private key the same as he does to writing a check.

[51percemt]

So if all else fails, the elite would rather Bitcoin be on top, than russia or petrogold.

I disagree. There are many elite people in other countries that do not have a problem with their currency being a world reserve currency. If they do not want the russian economy to be better then ours then better geopolitical policies are needed, not a better currency.

It is there best and only chance. If Buffets Bershire Hathaway began using Bitcoin as a payment system, he would still retain being one of the richest men, just would need to learn how to work a cold wallet, and private key the same as he does to writing a check.

Using bitcoin is much different then writing a check. If a particular check is unusual then then the bank will likely contact you to confirm that it is okay to pay a certain check, and you can advise them not to even if you did write it. You also have other protections like the ability to put a stop payment on a check ect.

With bitcoin on the other hand as long as the TX is valid there is nothing to stop anyone with the private key from sending a TX to themselves

[lihuajkl]

This is not going to happen. The federal reserves duel mandates are to maintain maximum employment and to maintain stable prices. It is not their job to "protect" anyone from "wall street"

They also have no reason to need the bitcoin economy to flourish as the US economy would do just fine without bitcoin just as it has for the last several hundred years

Yes, that is true. That is why Fed auctioned off cofisicated coins from Silk Road. Another reason is that they have no spare cash to buy it and barely keep their lopsided balance sheet.

[Undermood]

It is really a good concept. I mean any bitcoin institution or big whales are for the sake of bitcoin  and could come out to buy them when the price is low. When the demand for bitcoin is high, they can release some from their reserve pool to balance the demand and supply.