I Predict The Financial Establishment Will Crash Bitcoin

I think people had better be careful about investing in bitcoin. As far as I can tell, they are in the process of trying to destroy cash. If bitcoin is able to survive they will not be able to control it, and governments that the financial establishment don't like, such as Venezuela, will be able to bypass their control. Therefore I say that they will crash bitcoin.

That's just my opinion.

 

Why would anyone need to crash Bitcoin? It's widely hyped but it doesn't have a major practical impact on anything and will inevitably crash on it's own at some point anyway. Some people have a fantasy about it replacing fiat currencies but it's not going to happen, especially not in the foreseeable future. It doesn't pose any kind of threat, however much some might alternatively wish or fear it does.

 

Agreed. Bitcoin is going to crash, but it won't have anything to do with governments or financial markets and everything to do with the fact that it has no intrinsic value. Dot com bubble, anyone? That was the most recent time something with no intrinsic value was hyped to the skies, soared in value, and came crashing back to earth and made a spectacular crater. But it's not the only time.

 

I have no opinion on the matter, but I am trying to follow the evolution of bitcoin.

How would they crash bitcoin? I'm just curious...

 

I'm no expert, but I would speculate that it could be done in the same way that a person with sufficient financial resources can cause stocks to crash. You bid up the price by making incremental purchases, then you induce panic selling by dumping the assets on the market. They call it pump and dump.

 

I think one thing that is problematic for the financial establishment is that they can control the behavior of governments by locking them out of the global financial system. For example consider the government of Venezuela. They don't like Maduro, so they have locked his government out of the financial system. This means that if Venezuela does not produce enough of something like toilet paper, it has to buy it from other nations. However, companies in those other nations that produce the toilet paper will not accept bolivars as payment. But they will accept dollars. Because Venezuela is locked out of the financial system, their ability to acquire dollars is restricted, so they may not have enough dollars on hand to buy the toilet paper that they need. If however, bitcoin is established as a stable mechanism of payment, Venezuela can bypass the financial system through the use of bitcoin.

At least that's how I see it. If you think that what have said is flawed, I would be interested to hear your understanding.

 

That it is, and it's quite a paranoid one. "They" can do anything as long as you don't bother with substantiating what you dream up and testing your own hypotheses.

I see these crypto currencies as being very volatile due to market forces alone. They have no intrinsic value, being nothing but a hash. They are also something quite new and all of sudden being invested in and thrust onto the open market. I expect to see these perceived market values stabilize in time, and I imagine bitcoin and possibly other such currencies will end up with gold and silver in the commodities basket as a store of value and an alternative to holding cash, one of those things people buy when they're feeling bearish about the economy and the USD, and sell again when they're feeling more bullish. I can also see these things becoming more mainstream, though at the same time I imagine they will become more regulated by governments due to the abuses that they make possible. What better currency is there for black markets than a completely anonymous currency beyond all government control? They're digital smugglers' coins.

 

I'm sorry but I really think you are ignoring the notion that if bitcoin becomes a stable mechanism of payment, then governments, like Venezuela, can bypass the global financial system by using bitcoin. Thus the power of the financial establishment becomes eroded. Difficult for me to see how they will stand by idly and let that happen.

Again, if there is something that I am missing here, please point it out to me.

 

How are "they" going to crash bitcoin, anyway? I think it would require a pretty high level of interference, to the point of making bitcoin transactions impossible without their control. I would expect to see that first - attempts by governments to regulate and control these alternative currencies, perhaps even outlawing them in their current form while issuing their own alternative. However, this would also be a monumental undertaking.

What you suggest, however, would seem to require massive manipulation of the free market. This would be detectable. Also, I don't think picking on Venezuela is important enough to any other government to make that worthwhile.

By the by, have you seen what the Russians have been saying about crypto currencies? Seems they want to regulate them. Russia is generally perceived as one of the countries (generally all BRICS nations) that the US is out to pick on, one of those underdog heroes who resist US or western domination.

What you have missed is bothering to test your hypothesis in any perceptible way. I just see a lot of talk about "them" and what they would want to do, in your view. I find it paranoid and simplistic.

 

I wish I would of put money in it, but I would not do it now

I would guess what is happening now is people are trying to pump it up while selling as fast as they can

 

With regards to how they would crash bitcoin, I have said they could crash in the same way that people with enormous amounts of capital crash stock prices. They bid the price up by making incremental purchases, then they dump the assets on the market to induce panic selling. And BTW massive market manipulation is something that already takes place. Perhaps you have not heard of the plunge protection team.

As far as the Russians go, I'm going to take your word for it and assume that they want those currencies to be regulated. That would make sense as it would make those currencies more stable, and therefore less susceptible to the type of manipulation that I have put forward, though not completely immune to it. The problem that they have now is that the global financial system is centered on the US dollar, something that they have little control of. So yes, it makes sense that they would want an currency like bitcoin to be regulated, as long as the US government did not have complete control of it.

 

This happens daily in crypto investments.

 

The thing about the internet is that it isn't easy to control. I feel this struggle for control will actually fuel more crypto usage.

 

I think the use of crypto currencies will continue. As long as it is more or less confined to the type of things that bitcoin was originally designed to facilitate, there won't be a large problem. However, when it gets to to point where such a currency can be used by governments to bypass the global financial system, then I think such a currency is in danger of the type of manipulation that I mentioned.

 

Well I don't believe in some grand international conspiracy by "the financial establishment" to control governments just because they "don't like" their leaders. I'm sure there are practical limitations on nations with unstable economies engaging in large scale transactions but that it's personal on the part of the financial institutions, just capitalist realism; why would anyone agree to exchange large volumes of an unreliable currency?

I also don't see how bitcoin would help unless they previously sat on large volumes of it before any troubles (as they would have done with dollars now). After all, nobody is going to exchange bolivars for bitcoin any more than they would for dollars.

 

He could watch Trading Places. It explains it simply enough=)

 

Regulation will be stepped up at some point. UK is certainly planning to do that.

Today, cryptocurrencies are being used as a method of laundering money, benefiting those who trade in illegal products - drugs, guns, etc.

It's being used by foreign countries who face trade sanctions.

Banking regulation and reporting requirements have been stepped up since 2001 as a way of identifying and tracking terrorists and slowing their ability to move money. Cryptocurrencies help terrorists with that.

 

The thing that bitcoin was designed to do is now obsolete. It has name recognition, but not functionality. How do you suppose gov will crack down on crypto?

 

Well I'm not going to go to a lot of trouble to try and convince you, but I will point you to the work of John Perkins. Its up to you how much credibility you want to give to the notion.

https://en.wikipedia.org/wiki/John_Perkins_(author)

Foreign exchange markets are controlled by the financial establishment. As far as I know bitcoin is not. I'm not sure, but I think its harder to tell who is trading what with bitcoins. If you are going through the financial establishment it is probably easier to detect. Therefore it would be easier for a government like Venezuela to purchase bitcoins simply by creating to money in Venezuelan banks. That's my speculation. Perhaps you know more than I do. What is your opinion of that idea?

 

Ah!! Thanks!

That's what I suspected. Because of banking regulation and reporting requirements, it would be easier for the government of Venezuela to get bitcoins by artificially inflating their currency, than if they had to rely on the FX markets. I made mention of that in another post.

 

I was not referring to a direct crackdown on usage of bitcoin. My point is that they will cause the value of bitcoin to crash. Of course that would have to effect of decreasing its usage.

 

The government controls currency. They don't control this one.

They make it illegal. Done and done.

 

Yes - I saw that.

I'll have to say I'm not a fan of cryptocurrencies. We have banking regulation for a lot of good reasons. Freeing "banks" to do absolutely anything and everything they want to do is not in the interest of the public, I believe.

I fully understand out and out hate for our banks given the crap they pull, but I don't believe the answer is to simply allow some OTHER "bank" to be free to do all the same stuff and FAR more.

 

I hate to say it, but you have a point. Even with all the regulation in the equity markets, people pull off all types of artificial manipulation.

 

I assume you mean our government. But I don't see how they could make it illegal. What would such a law even say? That it's against the law to go to certain websites? Even if there were a way, how would they enforce it?