Quote from: itsAj on August 25, 2014, 11:46:14 PM

Quote from: DannyHamilton on August 25, 2014, 06:22:17 PM

Quote from: RaheemRaj on August 25, 2014, 06:14:10 PM

If the government really wanted to fuck Bitcoin they would only need to folk out a few million and buy out most of the Bitcoin in existence right now and Bitcoin would become worthless. they see it has a threat so this is going to happen if we like it or not. They have a plan and this is probably it. theres only 13 million in existence right now thats like a few billion dollars right? the government can afford that. All they would have to do is buy anonymously and offer 10% more than the current price peoples greed would take over and it would then be fucked Bitcoin would become worthless in less than a week.

unless we have a way of protecting this? did not think so.

That's not how open markets work.

Many people wouldn't sell their bitcoins for such a low price. As the government bought up the available bitcoins, the price for the remaining ones would continue to rise (due to the surge in demand with limted supply). The increasing exchange rate would cause many other people to buy bitcoins hoping to make money on the rising exchange rate. This would drive the exchange rate even higher. It would quickly become prohibitively expensive for the government to buy all the bitcoins in existence (especially since 25 more bitcoins are being created every 10 minutes.

Meanwhile all the people holding bitcoins would make a lot of money on the huge investment bubble that would be triggered. Eventually the bubble would pop, and the price would come crashing back down. All those that made large amounts of money would have the opportunity to buy even more bitcoins at the new extremely low price.

I would disagree that this would necessarily create a bubble. The added demand would be from the government buying up the bitcoin only and would not be demand that the market would not otherwise see (apart from the government). So when the government were to stop buying the additional coins the price would simply stop rising.

I do agree with you that this would not at all do anything that would hurt/destroy bitcoin. All it would do is cost the government a lot of money. It would actually likely make bitcoin more secure because the block rewards would then be worth that much more giving miners a more incentive to mine, which would increase the hashrate, which would make the network more secure.

Wait a minute, how do you know the added demand would be from the government? The price will rise further UP UPUPUPUPUP, more people will jump on the BTC boat to buy not only the government, If the government were to put buy orders in this does not mean they will get all the buy orders, and if they put buy orders for 10% higher this will start a rising buy price which will gradually increase and the 10% will have to increase and be 10% of the new base buy price and will just repeat again rising, this will be a extremely slow process which will end up driving Crazy public interest which will attract 10000s of brand new people to study Bitcoin when they realize how it works we will have a whole new world of adoption, most likely hedge funds will jump in, and the government will have to work even HARDER to buy it all, eventually they will get to a dead lock as there are MILLIONS of BTC in Cold storage with never even the thought of being sold. The amount the governments bought, will mean there isn't 13Mill out there anymore and there are heaps less, meaning LESS SALE orders and MORE buy orders. And if it were to get to that stage, it would have TAKE YEARS and there would be much less sale orders than buy orders. Then there will be people competing with the government trying to get their hands on the VERY rare BTC and guess what? prices will be staggering and only rising, and even after that, they still will not be able to buy it all dont forget as I said there are 10000s of people out there holding onto there BTC with dear life. Mehhh this will be a stupid tactic to say the least