CoinLab Repatriating Bitcoin Funds to US? No Thanks!

You think Bitcoin price above silver price has not been acknowledged by High Finance? It’s likely, contrarily, they know what’s going on, and they are not pleased with this new p2p currency stealing headlines, allowing the entire world to ignore fiat in real time, now, today. Nothing short of a 51% attack on the network can allow them to control the price.  The dominant financial system must protect itself from $100 Bitcoin prices as large-scale investors move into the market. Marketing this new advent as a bank, the place to store your Bitcoin, the Bitcoin community has to acknowledge that the Powers That Be will need a mechanism (bank/exchange) to control our beloved BTC price. There is merely not enough supply at these new levels to sustain any sort of serial million dollar investments without really moving the price.  Check the Mt. Gox tick chart, the price was knocked from $34.80 to $33.15 in about one hour off 22,000 BTC ; that means only $748,000 in BTC needed to be moved in one hour to move the price 4.75%. That is 6.1 days worth of BTC supply.

15 comments on “CoinLab Repatriating Bitcoin Funds to US? No Thanks!
  1. snoop diddy says:

    very interesting…

  2. d. miller says:

    Certain readers of this blog need to pay attention : Max Keiser just posted a picture of FDR with a quote directly endorsing / espousing the tenants of communism.

    Latter-dayers may call this communism, fascism, statism, keynesianism, etc. The point is — The state never supports freedom or capitalism or a market of any kind. Only centrally planned economies, no matter how many skulls upon which it is built.

    And when the state fucks up, it gets even meaner.

  3. d. miller – you might want to read the article.

  4. snoop diddy says:

    @d. miller,
    And while it is Max’s site, also note who posted the article.

  5. Central Bank Shill says:

    I think the bitcoin community should be aware of a long game implication of bitcoin popularity. Currently, it is mainly used as an investment. Later it will be used as actual money, after people start using the federal reserve notes to wipe their asses with or to start fires with in 55 gallon drums to stay warm.

    The adoption of bitcoin as a real medium of exchange, as opposed to being simply a place to protect you from inflation, will expose a major weakness of bitcoin, and that is its relative incovenience to spend and receive payment compared to inert cash in local physical real world situations. You need a network and a little bit of electronic gadgetry and the merchants you visit need a little bit of gadgetry also, along with their network connection in order to commerce in BTC.

    This is where the long game bankster types could be waiting right now. They could be just waiting for it to become popular enough to where it is demanded in low-tech local marketplaces. Then they will step in and use it as reserves to issue notes on, promising to redeem the notes for the real network blockchain BTC and vice-versa at a convenient branch banking location near you. These BTC reserves can be transported rather instantly all over the world. They could be hoarding BTC for this purpose as we speak. They have access to a spigot of paper money for which to buy BTC with, so why not?

    If there is enough demand for lowtech local anonymous transactions, and there is no method of exchange that competes with its convenience and anonymity, then the notes will be just as good as money. BTC is not all that anonymous contrary to what some people think.

    Also, a double edged sword of BTC is its irreversibility. It’s got its pros and cons. The note issuing banks can provide the ability of reversing transactions if they are dealing in notes rather than real blockchain BTC. Also checking accounts, etc. A lot of users might like this.

    We know the rest of the story. It goes like this: Banks issue more notes than they have reserves (BTC, gold, whatever, it doesn’t matter), either because mostly nobody realizes they’re doing it, or ostensibly to create capital to grow the economy, but mainly it’s so they can loan out the counterfeited notes to get some wool off the sheep. Some banks will screw up and have too many notes issued during some kind of a panic situation and suffer a run. They will either go out of business or be bought out by another bank. These mergers and buyouts will occur until we end up with a giant BTC note issuing cartel bending everybody over like in 1913.

    If you are going to say that it’s already convenient enough, there’s iphone apps that make it easy and all that, ask yourself, does it really compare to cold hard cash? Are there enough features of BTC now that compare to the services and conveniences of the kind that banksters can offer using note issuing? Is the community willing to take that chance?

    The BTC community needs to come up with some kind of enhanced inert cash solution and/or some crypto note issuing network mechanism and other convenience solutions, and to be very wary of using substitutes for the sake of convenience, if and when bitcoin takes off and is used more like currency rather than an investment. Most people don’t realize the power that is inherently wielded by note issuing/redeeming entities on large reserves or how reserves always tend to consolidate through panics and other human nature shenanigans. They should be made to know.

  6. Dick says:

    I don’t get it. Once you purchase your bitcoins via CoinLab, why would you want to keep them with them? Rather than trust someone else with your bitcoins, isn’t keeping them parked at multiple cold storage addresses that only you have access to the prudent thing to do? If you’re at all worried about government confiscation, I would think that there would be no way you would even consider leaving the possession and security of your bitcoins to someone else.

  7. jarrollin says:

    You see, the problem with articles like this is; bitcoin is this meta-money not very connected with pragmatic reality(TBX the money is hard to access when needed.) That is also the nature of these electronic manipulated markets — that they don’t seem tied to reality. I like the physical silver thing better b/c it is more grounded, more real. I guess I prefer the ground attack.

  8. Terrapin says:

    So, the CIA had one of the bitcoin guys in for a friendly chat a while back. Is this them making a move for control ? If not now, when ?

  9. Flopot says:

    @D.Miller

    “what this ‘ere situation needs is no law”

    Please note that any criticism of advocates of the “lawless market” should in no way be taken as support for a totalitarian system. In fact, surely promotion of the law to prevent fraud and debt slavery is a good thing?

  10. Flopot says:

    Could somebody with a brain please summarize that article – is it suggesting that the banksters are setting us up to steal our bitcoins or merely rigg the system and crash the value?

  11. One guy says:

    I read this article as saying that accounts at mt gox could be compromised similar to an mf global account theft.
    Also the article mentions “paper btc” trading similar to silver paper I guess. This one I don’t quite get. Isn’t the btc network 1. Decentralized, 2. The network as a whole validates transactions.. How could 1 exchange wreck the network, unless it had 51%? If the new mt gox makes paper btc that is supposedly backed by actual btc then wouldn’t the btc network just ignore it as the other nodes won’t count it as valid btc transaction. Eg. It’s not digital therefore can’t be run through the network.

    Maybe paper silver works cause there is this inherent trust /ignorance the average joe has that the paper silver is backed by something. Btc is still relatively new and it’s users aren’t average people. If my choice is to buy actual btc or Monopoly money that is linked to btc then the choice is easy.

    Btc is digital so any attempt to inflate through Monopoly money doesn’t seem to work . Why couldn’t I as an owner of paper btc be able to check its authenticity on the btc network? With paper silver my understanding is you don’t have a decentralized unstoppable network to validate if your paper is backed by anything, just blind faith and some corrupt regulators.
    Just sayn

  12. One guy says:

    If the new btc bank says they have 1000000 btc in their vault and can now loan people money, thus starting the fractional reserve system again I don’t see how they could loan out btc. Wouldn’t it have to be another currency they loan out? I don’t see how they can inflate btc.

    And finally about the last bit in the article on btc price being moved easily, so what. This article is like throwing spaghetti on the wall to see what sticks. To the author, Address each issue in this article individually please.

  13. Fred says:

    what i can gather, besides possibility of inflating supply, which i’m unsure whether is possible and how, is the idea that large amounts of coins would be one big step closer to government jurisdiction/regulation. this is under the guise of insurance, liquidity, innovation, etc etc. very bad.

  14. Mother Earth says:

    Guys, give it up. The bitcoin price is exactly what disqualifies the scheme. Everyone is worried about the relation with the $, and quotes the value of the bitcoins in $$. This is -not- why bitcoin was created, it’s intention was to be a money like gold or silver, used and valuable in isolation.

    I’m not trollin’, just saying that I believe bitcoin was scheme to burn more fossil fuels by running the algorithm. Users have bought the coins at a low price ‘from the energy company’ and are now using it as a conduit for sending $$ from A to B. That can stop working at any time, just like the USD can stop working at any time (at least, as a dollar substitute).

  15. Mother Earth says:

    I made that ebay tracking website mygoldprediction.com I dumped it but I think I still have the code..

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