Why aren't the governments doing anything?

Y

yangnw

Every college-level economics professor will tell you that it's a Ponzi scheme. Then why are the governments not doing anything?

Some possible speculations:
  1. Governments are run by politicians who don't understand economics at all. (I don't think they are that stupid.)
  2. The politicians are holding bitcoin in secret. They are breaking the national economy in order to boost their personal wealth. (scary)
  3. If the government burst out the scheme, the entire economy will stagger and they will lose votes.
  4. The First World governments are envisaging the scheme themselves, in order to break the economies of Third World countries (Venezuela, for example). (scary)

Any analysis / evidence / speculation?
 
Because this is 'merica and fuk you?

But more seriously....now that the banks are pulling the trump strings (and this is no longer a conspiracy), we may see some regulation as their coffers migrate to crypto and they can't lend other people's money.
 
yangnw said:
Every college-level economics professor will tell you that it's a Ponzi scheme. Then why are the governments not doing anything?

Some possible speculations:
  1. Governments are run by politicians who don't understand economics at all. (I don't think they are that stupid.)
  2. The politicians are holding bitcoin in secret. They are breaking the national economy in order to boost their personal wealth. (scary)
  3. If the government burst out the scheme, the entire economy will stagger and they will lose votes.
  4. The First World governments are envisaging the scheme themselves, in order to break the economies of Third World countries (Venezuela, for example). (scary)

Any analysis / evidence / speculation?
More...

Bitcoin is not any more of a ponzi scheme than the US Dollar. And thats one reason why they are not doing anything to outlaw it. If it ever went to court it would be all over the internet that in essence there is *nothing* backing the US dollar or most other currencies. Also, they probably were gifted some by satoshi.
 
bookish said:
Bitcoin is not any more of a ponzi scheme than the US Dollar. And thats one reason why they are not doing anything to outlaw it. If it ever went to court it would be all over the internet that in essence there is *nothing* backing the US dollar or most other currencies. Also, they probably were gifted some by satoshi.
More...

Yeah, some Third World countries are already bankrupted. They were somewhat protected from U.S.D. by their anti-U.S. attitude, but they got nothing against the internet. World denomination on the way.
 
Here4money said:
Because this is 'merica and fuk you?

But more seriously....now that the banks are pulling the trump strings (and this is no longer a conspiracy), we may see some regulation as their coffers migrate to crypto and they can't lend other people's money.
More...

And what if people are mortgaging to invest in bitcoin? The banks will be facing serious default risks, like in 2007-08
 
yangnw said:
Every college-level economics professor will tell you that it's a Ponzi scheme. Then why are the governments not doing anything?

Some possible speculations:
  1. Governments are run by politicians who don't understand economics at all. (I don't think they are that stupid.)
  2. The politicians are holding bitcoin in secret. They are breaking the national economy in order to boost their personal wealth. (scary)
  3. If the government burst out the scheme, the entire economy will stagger and they will lose votes.
  4. The First World governments are envisaging the scheme themselves, in order to break the economies of Third World countries (Venezuela, for example). (scary)

Any analysis / evidence / speculation?
More...
how could you stop it? this isn't like a futures contract traded on a centralized exchange. it's totally decentralized
 
cole_ said:
how could you stop it? this isn't like a futures contract traded on a centralized exchange. it's totally decentralized
More...

I recall Trump talking in an election campaign about building a great firewall around U.S. financial system and going after Satoshi.. Then he probably forgot about it after he got elected.
 
yangnw said:
And what if people are mortgaging to invest in bitcoin? The banks will be facing serious default risks, like in 2007-08
More...
Seriously, dude, that's your argument for contagion? Okay, let's do some simple math.
- The market cap of bitcoin is about $270 yards, taking BTC at the current level.
- Let's say we have 5 percent of bitcoin owners that were stupid enough to mortgage their house to buy bitcoin (probably a gross overestimate)
- so we are talking 13 yards of exposure transferred to the American banks
- market cap of top 5 US banks is just about a trillion dollars
- so, in case of complete destruction of bitcoin, we are talking about about a 1% exposure to the equity value of the US banks
- yeah, that's going to take down the US economy :)
 
sle said:
- yeah, that's going to take down the US economy :)
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Sure, U.S. is too big to fall. The U.S. government never gives you a damn, as always.

But I'm more curious why all the other smaller economies aren't doing anything. They can easily plunge into hyperinflation. Venezuela already have. Bitcoin-less households are already bankrupt.
 
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