Post
Topic
Board Goods
Re: Ron Paul Bitcoin Cheque
by
DeathAndTaxes
on 30/11/2011, 19:54:28 UTC
I have mixed feelings about this, solely because I feel like it uses Dr Paul's name, words and likeness almost to promote Bitcoin.

Also, given that a good many "True Believers®" genuinely believe that Bitcoin's value would be soaring right now were it not for some mysterious "manipulator", the quote chosen almost seems counter-productive: if the allegations of "the manipulator" are true, then Bitcoin is no better than USD, except you have the option not to use Bitcoin.

Of course it is different.

If a manpulator exists he isn't granted some special powers by the government (and thus indirectly via their police/military force).  He is risking his capital to influence the market (just as every other market participant does).  The size of his wager gives him an advantage but he can still lose.  He is putting capital at risk calling that manipulation is weak IMHO.  If you had two "manipulators" each deploying $1M capital in opposite directions the net effect on the market would be nothing (actually it would be improved price stability).

The difference w/ the fed is they are risking nothing.  When the fed decides to raise or lower the value of the dollar they are operating out of decree.  You can't challenge them in a free market.  They can create or destroy infinite amounts of currency to force their will on the market.  The fed could make the value of the dollar double or get cut in half and there is nothing anyone on the planet could do about it.