Everyone is watching Bitcoin fall. It does not take the magic away. It is overdue and a great test of all of us.
I'm not surprised that Bitcoin is tanking, but I am happy it is, because it shows me a lot of things that I had expected to happen... and now they are!
For the longest time, people believed that decentralized cryptocurrency was the way of the future. It was fair money, for the people. Not centrally controlled by anyone, and the good news is that is still true to this day in some ways.
What decentralized cryptocurrency can't do, is regulate influence by people who hold USD, and we all know by now, big business, Wallstreet, and the elite have LOTS of USD.. We'll call them the "severe rich" for the purpose of this article.
The severe rich can buy Bitcoin, or Ethereum, Bitshares, or Peercoin, just like any of us can. They can also artificially raise the prices by buying them up, with the intention of dumping them, just like any Bitcoin whale colluding group can do to altcoins too..
So what's changed? NOTHING. :)
..and that I like... The value of cryptocurrency WILL rise and fall, which will cause panic buys and panic sells.. and if you're the type of person to panic all the time, I suppose cryptocurrency isn't for you, so only gamble with what you can afford to lose.
...when I see the value of coins fall drastically, it is often my opportunity to buy more, and wait for the next rise again... because inevitably, it always recovers, it just takes a bit longer. I have lots of time on my hands to wait, do you?
What's really good about this, is big business and their severe rich friends are investing in cryptocurrency these days. They buy in to move the markets up, and then they sell to bring markets down. What they are actively doing though, is flowing USD in and out of our markets, and that just helps cryptocurrency stay alive.
The severe rich choices are:
a) Regulate decentralized anonymous cryptocurrency into oblivion. They've done very well trying to do that with Banks already, but it isn't stopping cryptocurrency. So what next?
NEXT....
b) They can dominate the markets by having huge swings "in USD" of the value of cryptocurrency to try and cause panic sells... They can only swat your holdings like you are a mosquito if you sell off to them.
If Bitcoin is $100 or Bitcoin is $10,000 it matters very little to me. The concept of why I'm involved in cryptocurrency is for distribution of value between people in a decentralized environment. As long as I can do that, I'm happy.
Let's look at Ethereum for a quick moment. People were buying up Ethereum, because well, everyone else was buying Ethereum. Most people who own ETH don't even know how Ethereum works, and have never even used their ETH via smart contracts on that blockchain.
...that's amusing to me, because right now it is obvious that the cryptocurrency space has more speculators than users of the very products and services that cryptocurrency can provide.
...with the exception of STEEM
Oh yes! People who buy and sell STEEM actually benefit from steemit.com, busy.org, and the great content that this blockchain provides.
There are more people actually using STEEM related products and services than there are for people using Ethereum in my opinion. STEEM's content rich blockchain is easier to use than Ethereum today and that's easy to see.
Let's go back to the severe rich and the huge corporations. What are they investing in?
Ethereum.
Look at this Fortune 500 article which I'll quote:
Thirty big banks, tech giants, and other organizations—including J.P. Morgan Chase, Microsoft, and Intel—are uniting to build business-ready versions of the software behind Ethereum, a decentralized computing network based on digital currency.
So if the severe rich are interested in Ethereum, and we already know they're interested in USD, wouldn't it stand to reason they'd also be interested in Bitcoin and the value of Bitcoin to USD too? (because after all, Ethereum can be traded for Bitcoin, and Ethereum can be traded for USD)
All of this is related.
So how did this crash begin? Just look to this CNBC article dated May 25th, 2017
[Nicola Duke, an analyst at Forex Analytix] told CNBC that the correction could see bitcoin fall as far as $1,470, marking a 46.5 percent decline.
...and then minion, after minion, and analyst after analyst got on the bandwagon. Huge financial institutions and investment firms got on the bandwagon too.
The severe rich and large corporations started singing "Bitcoin is going to fall" song, and sure enough, Bitcoin did (and continues to drop in USD value)
Analysts are like dominoes. They can predict the future, because they can convince everyone of the future....
...because the future has proven itself to be nothing more than a domino toppling show...
So who owns the analysts? No one. They're usually just rented on contractual basis. :)
- But what about the fibonacci method many analyst and traders use?
- What about chart trends? Analysts and traders use that too!!
Yeah, blah, blah, blah.. these things they use are legitimate, undisputed tools to shroud the secrecy that happens in the background. When these same analysts decide to broadcast themselves on TV, or write public blogs and alerts. It's those key moments I question. By the time an analyst shares his or her predictions or analysis, their own boss, their own friends and family, and large market makers already hear about it well in advance of the public.
Positions and investments are already changed BEFORE the public hears about it for the first time. That's the part I don't like... You can't find out what the analyst is going to go public with unless you have insider relations with them.
Analysts to me, are no different than trolls in a chat trollbox on a cryptocurrency exchange. I have no use for them.
...but this recent shift in Bitcoin's price (and Ethereum's price too) shows you that the severe rich and large corporations are pumping and dumping crypto markets using the same methods they've used in the real markets. So nothing has changed and finally we can see it now on coinmarketcap.com too.
Thankfully the Ethereum Alliance has posted publicly who some of these people and organizations are (the severe rich), let's take a look:
https://entethalliance.org/members/
(Scroll to the bottom of that page and look at all the pretty logos of BIG BUSINESS/severe rich)
- Ethereum investors include JP Morgan, Deloitte, ING, Intel, Samsung, British Petroleum (BP), and more..
Ha Ha Ha... and CNBC and Sheba Jafri (from Goldman Sachs) all help tell people where they think Bitcoin's price should be... and like minions everyone follows them.
Everyone is watching Bitcoin fall. It does not take the magic away. It is overdue and a great test of all of us.
Are we going to continue to invest and support or build new cryptocurrency projects even if big business likes to influence when Bitcoin pumps or dumps?
I am, and I will. Will you?
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** Disclaimer. All statements in this article above may or may not be factually true and are the opinion of the author only and not to be taken investment advice. Please do your own research, formulate your own opinion, and make your own decisions.