Hacker News Reader

Comment by D9u | Hacker News Reader

I'm still kicking myself for not buying into BTC back when the exchange rate was $0.50 per BTC.

That said, I keep wondering when the crooks in the "District of Criminals" will raid Bitcoin the way they did Liberty Reserve.

View on HN

Why would anyone in DC 'raid' Bitcoin (which isn't possible in any comparable sense to LR btw)? The Feds are now major stakeholders, holding 100,000s of coins.

160k btc is worth $64M at $400/coin. It's a drop in the bucket. The Fed prints 40X that amount in USD on a daily basis.

Yup, I am amazed at how people seem to be blind at the scale of money when we are talking about whatever. I can't be arsed to dig up credible sources ATM but my business is ecigs so I pay attention to the lobbying by big tobacco and pharma against ecigs. The federal government isn't supposed to use tax money for lobbying but there are loopholes which essentially allow it. The number I remember is something like $2 billion given to anti-nicotine zealots to end up lobbying even though it is truly said to be for some sort of "social awareness service". There are billions given out for war and Fed thrift plus all sorts of horrible programs but they seem to come up short for $20 million for some sort of space program.

Still, the DoJ might like to use it for law-enforcement toys, as with other seized funds. (The DoJ can't print its own money and like other agencies, fsces practical budget limits.)

Which raises the interesting question: if they win their case against Ulbrecht, and the right to keep the coins, what will be signalled by the moment and method thay choose to liquidate?

Should whatever exchange they use be happy — chosen by the FBI! — or fear it's a trap?

Might the Feds be signalling, based on inside info of upcoming enforcement, that the BTC/USD rate is at a local maximum?

Are they really stakeholders? Given they are in control of the most valuable currency on the planet, why would they care if they realized the value of a hundred thousand coins or if they didn't?

Reply on news.ycombinator.com