Who thinks China is buying the dip?
How long until the next All Time Highs?
For those who have been around awhile, do you remember the same kind of FUD coming from governments in 2017? China was there as well, banning IPOs and the like, forcing the exchanges like Binance to pick up stakes and move to greener pastures. I think that given the timing of this coming on the back of Musk, it is a move of opportunity to drive the values down as far as possible, shaking as much coin from the fearful as possible. It is manipulation.
The funny thing is, it works because people who get into crypto believe it is going to work, and they are also looking to increase their stack, so sell in the hope to take part in the shakening. Crypto people are very skittish when it comes to FUD, even though publicly there is a lot of bravado and speak of diamond hands. It is one of the things about the social aspect of Hive, as there is a lot of visibility, but in the markets themselves, everyone is a stranger.
How many people publicly held and privately sold?
What is interesting in these kinds of announcements is that for most people, this doesn't actually change anything at all. When it comes to Tesla not accepting Bitcoin as payment or the potential for them selling their stake in BTC, the amount they hold isn't that significant in terms of the entire market. Of course, it can be said that this is an indicator of retail adoption, but is it? The argument about energy consumption of Bitcoin - well it is still significantly less than that of mining gold per year - and then there are all the other environmental issues associated, like the chemicals used and the literal cutting into the earth etc.
But, what has changed? Why are people who are building a new economy that replaces the legacy system so concerned with the decisions of that legacy? After all, it should be pretty obvious that those who are heavily invested in the old and have a lot to lose if it is replaced, are going to defend themselves. If anything, what they are doing is buying themselves some time in order to try and play catch up. As fast as a rule can be made, a rule can also be overturned and if the past is anything to go by, it is likely.
60% of all Bitcoin mining is done in China and with the potential of it becoming a reserve currency at some point, I suspect that they don't want to miss out on that value. However, for now, they don't necessarily want the average citizen collecting it, as they want to manage distribution - after all, their entire structure is set up to be centralized. Decentralized currencies undermine their control mechanisms.
Yet, people are still affected by the FUD, still looking at the daily ups and down, the hype and panic cycle. Actions speak louder than words and it seems that there are still a lot of people who don't zoom out on the trends and will likely get squeezed out of the markets because of it, having their own stakes reduced while the stakes of the FUD spreaders grow in the background.
The crypto market value is tiny in comparison to the rest of the economy, yet it seems to be pushing governments into making all kinds of decisions, all of them aimed at maintaining control of money flows. It doesn't matter what kind of political ideology is in place, the common consensus is that individuals shouldn't own and control their wealth themselves, as it just offers to much freedom of choice and mobility. How can they manage an economic prison if they hold no prisoners.
Governments are hodlers. They hodl their citizens and they not only have diamond hands, they are willing to ball them into fists and hit anything that threatens their ability to control what thy believe they own. They own us. The more we bow to their pleasures, the tighter their grip gets, but because each person is looking out for themselves, the organization isn't there to break the hold.
I suspect in the coming days or weeks, there will be more FUD thrown into the mix, yet the crypto markets will eventually rally again. Currently, the traditional markets have been making record gains, but are running on fumes, with retail investors going to again be the ones left holding the bags and picking up the tabs. A lot of people are looking for "safe" places to put their wealth, but currently, it doesn't really exist - however, what does exist are places where wealth can be put that offer ownership and control to the investor.
It is ownership that is the value of crypto, not what you can currently buy with it. As the pendulum of understanding swings in favor of individual ownership and participation, the FUD will intensify, but will have less and less effect. The reactions of ruling authorities are predictable and expected, as are the reactions of the market, as no matter what people say, most are coupled to the legacy system and the FUD it creates.
So, how long until the next ATH?
Taraz
[ Gen1: Hive ]