Bitcoin and The Crashing Game
If you are reading this after the latest “bad news” that drove Bitcoin to lose another 10% or more of its price, maybe you should be informed of the fundamentals regarding its price manipulation.
“Price manipulation? What price manipulation? Is it rigged?”
Well, yes, it is rigged.
Newsflash:
EVERY SINGLE MARKET ON THE PLANET IS RIGGED.
Interest rates and monetary supply? Rigged.
Precious Metals? Rigged.
Other commodities? Rigged.
Houses and land? Rigged.
Energy? Rigged.
Everything is rigged.
The only thing different is the method employed for fixing each market. Given all this market-fixing why would anyone believe that Bitcoin is beyond manipulation?
Initially Bitcoin hadn't attracted as much attention. But since people took it seriously and it came to threaten paper currency it naturally became a target of extremely powerful interests that had the need to control it, destroy it, or make people lose faith in the wider cryptocurrency ecosystem which is like burning the entire forest instead of just cutting down a tree. The people behind those powerful interests need to see people getting “burned” and bail. When they achieve that they can pat themselves on the back for keeping the sheep in conformity to the established system that is the only one “worthy” of people's trust. This established system is their system of hierarchical power, with them sitting atop the pyramid.
So what is the method employed for fixing the Bitcoin market?
Bitcoin was genius in its inception because it “trolled” the system against itself.
1) Who could argue that Bitcoin is worthless when its benchmark is paper currency that is even more worthless: Just a paper that does not correspond to gold or silver. On top of that it is issued to infinity instead of being rare and increasingly hard to acquire.
2) How could the elite control Bitcoin through financial instruments with “futures”, “shorting” etc without de facto legalizing it? How could they do that without giving Bitcoin a tremendous legitimacy and desirability boost if it is traded in the “big” markets?
3) How could they tax it without acknowledging it as having genuine value? If it is illegal then one cannot be taxed for it. If it is taxed then everyone can say “I'm paying my taxes and I am legally owning and using this”.
Yet, the absence of #2 (financial instruments) and the convenient gray areas of #3 (whether it's legal or illegal to own, trade, etc or whether its taxable or non-taxable) is the fertile ground from where the manipulation scheme arises.
In finance the second most desirable ability is knowing what is going to happen. However the most desirable ability of all is being in a position to actually control what is going to happen.
Most people are not ideally positioned to practice either ability. They live in a state where their financial moves are intertwined with uncertainty, fear, pressure, anxiety, hope, rational and irrational expectations given one's own understanding, etc. As such they are simple “dancers” to the tune that is played by those who control what is going to happen.
Those who control politics, economy and the media can, for all intents and purposes, create a “disaster story” or an “announcement” about Bitcoin every now and then. “The politicians took the X negative decision” or “the financial authorities tighten the rules for money laundering”, “the FBI raided that exchange” etc...
The dynamic is clear: “Quick, dump your coins so we can buy them from you for pennies”. The “sheep”, living in uncertainty about the grander design, naturally feel that they have to make a decision regarding the latest “news”. Do they bail, or do they stay? Knowing not what is going to happen, they have to balance their conservative side, their hopeful side, their greedy side etc. So some will be selling and sending the price down, creating avalanche-type ripples.
This process is repeated in cycles, as a long-term strategy, where the value of the coin is degraded temporarily for two-digit percentages in order for those who want to control the cryptocurrency landscape to be able to buy more Bitcoins without driving the price to astronomical levels. Such an increase in price would also increase the desirability factor which is the total opposite of the result they are trying to create with the frequent scares.
For those in power who want to control the BTC market, a starting capital of just 100.000 Bitcoins and only 10% drops in price for each crash-cycle is enough to assure success in the long-run.
Starting Capital: 100.000 BTCs
End of Cycle 1 of scare tactics: 110.000 BTCs (+10% gained or 10.000 BTCs by the drop-cycle for cheap).
End of Cycle 10 of scare tactics: 259.000 BTCs
End of Cycle 20 of scare tactics: 672.000 BTCs
End of Cycle 30 of scare tactics: 1.744.000 BTCs
End of Cycle 40 of scare tactics: 4.525.000 BTCs
End of Cycle 50 of scare tactics: 11.739.000 BTCs (close to the total market supply right now)
This is just an illustration of how the mechanism works – it is expected that some will not sell their coins, especially as the supply of the “weak hands” is diminished. This will necessitate a more sinister approach with an even more deliberate attack on cryptocurrencies and even more negative news that have the potential to shake even the “stronger hands” with the rationale that “others will be selling too, even if I am not selling”.
The buying cycles of those who desire to control the BTC supply are performed through a mix of cash use and cash gained from dumping coins during the upward phase. As the numbers escalate it is increasingly difficult to dump, say, 5 million BTCs and preserve the uptrend and then, after creating the crash, to come and buy back 5.5 million. That's why cash/fiat is essential.
In the end, the accrual of a large quantity of BTC leads to controlling the entire cryptocurrency ecosystem due the trading of other cryptocurrencies in BTC. The BTCs that ended up to users of other cryptocurrencies that sold out their coins for BTCs will find their way back to the market controllers, sooner or later, through the scare mechanism. In this way an inexpensive way to control BTC and the alternate cryptocurrencies is achieved.
By controlling a large share of coins in cryptocurrencies (through owning a large BTC wallet) they can make sure that they are able to smash them at will and shatter people's confidence in them. This is more easily performed in alternative cryptocurrencies which are way more volatile and fragile than Bitcoin.
If you are asking “what to do about this?” I will tell you that it is up to you to decide how you utilize this information. It is also entirely possible that if most people become aware of how this strategy works, the strategy may be adjusted to something else.
For the time being the bad-news-game is being played massively and it is also building up characteristics of psychological conformity to an anchor/trigger situation where people are conditioned to react negatively and expect the worst based on prior events (that “seem” to repeat inside the market).
In a way, people are conforming to the same anchor/trigger pattern where a dog salivates when he hears the dish where his food is served. Every cycle of bad news-market crash will calcify an even deeper emotional sense of impending doom as the “anchor” and “trigger” mechanism are reinforced. Some will feel it as a panic, others may feel it in their gut etc. Awareness of how this works on one's own self is also useful although emotions are harder to reason with.
You can bookmark or share this with anyone you like and you can also contribute your own thoughts and experiences below. You can also make informative videos on YouTube explaining the situation of how some can dominate the BTC market and the alt-crypto ecosystem by simply controlling the flow of events and news/announcements etc.
