Categorized | Business

The War on Cryptocurrency

Posted on 05 February 2018 by Thraxxus

On December 16, 2017 BTC hit an all time high of $19187.00. This seemed nuts to many – however, rumor has it, that the UK reported an explosion in citizens getting second mortgages on their home, presumably yo invest in BTC – not something that I would ever advise. Why? The crypto market is just too easy to manipulate. In fact, it is happening right now – and those people that did mortgage their lives to make a buck in crypto basically just had their lives destroyed. Coincidence? You judge.

First off we have China, a country that I said would find a way to manipulate the bitcoin market. Naturally, they have. The scary thing is that they didn’t do it alone – LLoyd’s worked with them. The issue started last year when China tried to stop crypto trading in China by taking crypto off their exchange. That worked for about a day. Then the traders moved their coins off China soil – getting back to the game. Fast forward to February 5th, 2018 – China announces that they are going to block off soil exchanges as well. Boom – that entire trading population goes south. Think that might affect crypto?

But wait, there is more! India also made an announcement about crypto that was not so friendly. Basically, this dude, Arun Jaitley, went on a rampage and said all sorts of discouraging things about crypto. The fun one?

“Distributed ledger system or the block chain technology allows organization of any chain of records or transactions without the need of intermediaries. The Government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system. The Government will explore use of block chain technology proactively for ushering in digital economy.”

Basically – crypto isn’t money in India so stop acting like it is. Strike two.

At this point one has to wonder what is going on? Two major markets make moves to stop crypto from doing well, and for the most part, being used at all. Seems a tad nefarious – almost… conspiracy worthy!

Is there another strike?

It turns out that the USA banking system also announced a block against crypto – you can’t buy crypto with credit cards any more – a similar action that was taken to block online gambling – which didn’t prevent anyone, who really wanted to play, from playing. Bloomberg discusses it here. TheNextWeb discussed it here.

That is some serious play against crypto by some major, major players in the world, all at basically the exact same time. I am not one to scream conspiracy theory – although I do enjoy a well thought out one – but in this case, there does seem to be a war against crypto going on, and its almost totally obvious. Why?

This article says it all:

“Bitcoin – and other decentralized cryptocurrencies – allow people to trade directly with each other, cutting out the need for a middleman which, in traditional commerce, is a bank.

Banks generally charge fees for doing anything with money, even just holding on to it. That’s because the banks have created a level of trust that transactions pass smoothly and everything is recorded and accounted for correctly.”

If the citizens can pay each other directly, without the banking system being the conduit for those payments, then the government loses control over financials – in other words – banks lose money off the transactions and the government loses the audit capability for the sole purpose of collecting taxes. In effect, the rich lose money and the government loses money. The government will argue that it has to do with tracking money laundering – right now bank transactions are a great way to see who is making money and who is moving money – do too much of either and you are flagged and investigated – crypto disallows that.

Its not all dark. Here are some bits of good news:

  1. South Korea’s Ripple coin is still expected to explode, even though it took a dive recently as it is directly related to Ethereum. They do have their concerns though.
  2. Monero is still doing great – apparently drug lords love the stuff
  3. Exchanges are still expanding regardless of the constant scrutiny and forceful blocking. Bittrex being one of them.
  4. If you get rich enough with crypto – you could join these guys who are creating a new utopia!

Expect more move by major players to try to arrest control of crypto from the populace. It won’t stop, and if you pay attention to those manipulations then you could use them as a barometer to making real money – well as real as a fiat currency can be.

 

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