Thought experiment about Bitcoin
Thought experiment about Bitcoin
For many years I have been following the bitcoin story. There has always been a disjointed collection of information decimated over the years that did not sit right with me. I have this thought in my head for a very long time that I want to share. And I think this is the forum for it.
We know that:
- A mysterious man named Satoshi Nakamoto is the Bitcoin founder.
- He is in possession of 1.1 million bitcoins.
- He is altruistic and hence will never spend his bitcoins.
- His coins have not moved since 2009.
- He is worth $55 billion dollars if Bitcoins are priced at $50,000 / bitcoin.
- That would make him the 9th richest man in the world.
I am going to be a fiction writer for the next few minutes.
Imagine if in 2006-2007 (or there about), the US government (FED, Treasury, Etc.), are in the early stages of the financial crises. They mount a think tank with the likes of Rickards and so forth. They come to the realization that the entire global financial system is about to implode. That all they could do is kick the can down the road for a few more years.
What if they realized that a newly revamped currency was needed that would give them more control such as an electronic currency controlled within a network. Supposed they knew that the Chinese and Russians and other ‘enemies of the state’ would be racing to create said technological advancement before the USA. Imagine faced with this task and knowing that the government is totally incompetent to create a robust, bullet proof and functional system (but all too competent to destroy one).
What would you do … how would create a system quickly and test it and then introduce it?
How do you get the massive number of brilliant geeks around the world to work cooperatively and feverishly at developing this new financial network?
Do you create a fictitious character that no one has ever met? Do you create an anti-establishment narrative?
‘Shatoshi’ gets the ball rolling with a rudimentary system and makes it open code. He launches it on the eve of the largest global financial crises known to man (…so far) in 2009. You make it the ANTI-Bank & ANTI-Government movement. You encourage geeks around the world to work on it for free … as a labor of love. You let it keep going until you get all the bugs worked out. You make it bullet proof. In the meantime you keep the economy going at all costs. You throw endless trillions at it because you know this money has a short expiry date.
You also get the added benefits of distracting the masses. They are not focused on gold and silver. They think they are sticking it to Wall street and big government. You create a feeding frenzy. You don’t let anything falter in the stock market and you don’t let any banks go down because you need this block chain network up and running tickety-boo. And then you wait for the right moment.
The altruistic mystery man story just doesn’t jive for me at all. An altruistic man is so interested in banking that it leads him to create bitcoin and block chain but he never cashes out a single Bitcoin? Or a government in a frenzy to create a solution to an impending problem … and $50 billion is a drop in the bucket?
I welcome all positive and negative commentaries, should you care to offer one. Be gentle :))
Cheers
Rob
A couple observations: Satoshi is more likely dead than altruistic. Also, you give the government way too much credit. They are reactive and not proactive. Thinking that they had any involvement in creating bitcoin is nonsense, IMO.
Sir traderscott, Or Satoshi was never a live person. I agree whole heartedly with you … governments as a whole are imbeciles.
However, the banking/financial arms that manage, control and manipulate the governments are not stupid… they are diabolical (evil genius’s). In that context you might see this theory differently.
Cheers
R
I like your fiction. In fact I think most of it is what has really happened. I think a government, don’t know which one, could even be the World Bank, started this as an experiment. They want to see how it works and as you said, work the kinks out. I don’t think this will be the currency/currencies actually used, but the new currency/currencies will be based on the lessons learned with Bitcoin. I hate saying it, but I think this is where we are headed, and sooner rather than later.
The whole bitcoin story has a foul smell to me.I agree it is the forerunner of the bankers “nefarious coin” where all transactions are recorded. In their view cash, gold and silver are just too private and empowering for the user for them.
Sir JSKauai, Cannot disagree. They want full control and visibility into our wallets.
Sir KenS, Exactly how I see it unfold. The platform is there to launch the NEW currency and the existing cryptos get discarded.
Is there a way to buy home heat, gas or food with BTC in Texas these days?
Excellent Thought Experiment Sir Wallnut.
Great to have a mind such as this join this Forum.
I certainly agree the benevolent Billionaire Story doesn’t seem likely !
Bitcoin is a conundrum …wish I had some
Playing GBTC for now
So fifty billion barely gets you into the top ten. This is one sweet world we’re living in.
Agreed. I don’t think we realize how good we have it right now.
Here’s some food for thought from Grant Williams and Bill Fleckenstein and their podcast “The End Game”
https://www.grant-williams.com/podcast/the-end-game-ep-13-the-return-of-the-lord-of-the-dark-matter/ Go to the 1:48 minute mark where they talk about China and the digital currencies
Here is a great bitcoin debate between 2 intellectual giants involving using Tether to inflate the price of bitcoin:
https://podcasts.apple.com/us/podcast/grant-williams-podcast-both-sides-coin-civilized-bitcoin/id1508585135?i=1000506524887
Sir Banimal, That audio from 1:48 where James Aitken speaks out about digital Yuan, Bitcoin and undermining the USD is brilliant. Thanks for sharing. Cheers.
You’re welcome. Make sure you listen to the other podcast, as it has a lot of good arguments both ways also. Cheers