The public is being sold a lie
The Value of Bitcoin
Bitcoin has no independent existence such as fiat money has. If you have funds in a bank account, you know that you have a certain amount of fiat money available in that account, which you can draw more or less freely, according to the nature of the contract with your Bank. The value of the account depends upon the value of the fiat money which it represents.
At present, the owner of 1,000 Bitcoins thinks that he is the owner of over $4 million dollars. But he is mistaken; he will only have $4+ million dollars when he has sold them all for $4+ million dollars.
Bitcoins cannot be used to purchase anything directly from just anyone; in order to purchase something with Bitcoins, you have to find someone who is willing to accept them in payment of what you wish to acquire, and for which that person is willing to accept Bitcoins in exchange.
In such a theoretical operation, both the person who tenders Bitcoins in a purchase, and the person who accepts Bitcoins in a sale, are both of them calculating their exchange in terms of fiat money, not in terms of Bitcoins.
Thus, Bitcoin has no independent existence such as fiat money has. Bitcoin’s worth depends on the existence of fiat money in which to transact exchanges. As long as there are more buyers of Bitcoin, than sellers, the value of the Bitcoin will continue to rise, and that will bring in still more buyers and its value may rise to the skies.
But when the moment comes – as it must – when there are more sellers than buyers, then the value of the Bitcoin will fall. When the holders of Bitcoins begin to see a trend of declining value, there will be nothing and no one to stop the trend: Owners of Bitcoins will rush in panic to sell their holdings – to other holders of Bitcoins – before its value falls even further. With more and more owners trying to sell, there will soon be no buyers: no one will want to catch the falling knife! The value of Bitcoin will fall to practically zero. When the famous Tulip Mania of the 1600’s was over, the losers at least had their tulips to look at.
The Bitcoin rise in “value” that took months – or even years – will be over in a matter of hours. Bitcoin will become a phenomenon in history of mass speculation that amounted to ultimate mass grief.
The Devil’s Advocate
What if this is just a ploy to bring everyone to a cashless society? That could be one of the possibilities. The BRICS crackdown on cryptocurrencies could be an elaborate machination to bring the global resistance movement into the next enslavement program that the Vatican and Bilderbergers have in store for us.
No matter how we look at it, it is truly a dangerous path for any country to allow its people to invest in a highly volatile Deep State cryptocurrency market. Uncontrolled capital flight is something every country needs to protect itself from. The cryptocurrency’s value fell to half that of three months ago, when it reached a whopping $20,000 per coin. But it remains volatile, and the bitcoin price reacted swiftly this week to warnings from the U.S. Securities and Exchange to register with it or face legal action—falling to $9,520.
Meanwhile the price has plummeted even further, from originally nearly $20,000 to under $6,500 now, severely punishing enthusiastic bandwagon investors.
The fact that the fiat dollar, and Bitcoin, et al, are behaving the same way is proof enough that both systems are run by the same banksters, and are literally and figuratively, merely two sides of the same coin.
At the very least, Bitcoin is now serving as the safe refuge for those who want to escape from the fiat dollar system that is about to collapse and die, and as a matter of consequence, the cryptocurrency has become a de facto fiat currency in itself. Its real value has been diluted much like the paper gold that remains, and will never become deliverable in the foreseeable future.
There is no substitute for thinking logically. The entire financial system has been rendered obsolete. Someday, we will all look back at this period and see the absurdity and tragedy of it all.
Mankind stands at a crossroads, and the path that humanity chooses may have a greater impact on our freedom and prosperity than any event in history. The in 2008 newly introduced blockchain technology is important because its destiny and the destiny of mankind are inextricably linked. It is so powerful that if usurped and controlled, it could enslave all of humanity.
There’s a reason why China, Russia and South Korea are about to shut down Bitcoin operations on their turf. It has been a CIA project from the very beginning. That explains why there’s no transparency as to who actually created it, and the impending shutdown is bringing bitcoin’s market value down to at least 40%, for now.
Natalya Kaspersky, known for her principal role in the foundation of Kaspersky Labs, presented some interesting assertions about Bitcoin at a university in St. Petersburg.
She claimed that Bitcoin was designed to provide financing for US and British intelligence activities around the world. The expert called the cryptocurrency “dollar 2.0.”
The Bitcoin cryptocurrency was developed by “American intelligence agencies,” Natalya Kaspersky, CEO of the InfoWatch group of companies and specialist in cyber security systems, said during her presentation at ITMO University in St. Petersburg.
She also claimed that Satoshi Nakamoto (the pseudonym used by Bitcoin’s founder or founders) is the name of a group of American cryptographers.
The Deep State has no other choice but to keep using the same scheme of luring ambitious investors in with their teaser of Bitcoin’s ability to reach $125,000 a piece by 2022, only to eventually bring it down, so the cycle can begin again. Surely, the real economy has nothing to do with that.
The public is being sold a lie
A distinguished gentleman at Carnegie Mellon University, Vivek Wadha, explains why he thinks Bitcoin is the largest Ponzi scheme in human history. The majority of people don’t understand Bitcoin, many people seem to be in on it – making unimaginable fortunes – and many others are sounding the Ponzi alarm.
The story goes that we can’t trust government-issued currencies and therefore Bitcoin is the future of money. On the other hand, if the price of Bitcoin keeps rising, doesn’t that make it the ultimate investment? Some investors have even called it the new gold.
The thing is, the rising price is based on pure speculation and stories of it rising feeds such speculation, says Wadha.
“But Bitcoin’s market price is almost certain, at some point, to crash and burn, just as the dot-coms did, and for the same reason: because it is all a hype. And there will be no one to turn to when it does, because no government or bank is backing it up; and the people who are hyping Bitcoin will have cashed out and be long gone,” he states.
It is not difficult to grasp his argument. The price is not rising because Bitcoin is increasing in value – it’s rising because people hear stories of how investors have doubled or tripled their money in a short period and they want to do the same.
What Happens When Bitcoin Goes Below the Cost of Production?
In all economic systems where the law of supply and demand functions, it is entirely possible for commodities to sink below the cost of production. It happens with all commodities and it is perfectly normal. When the price of a commodity drops below the production cost, growers, miners, manufacturers simply stop until the price recovers.
“Weak hands are definitely wanting to sell. If Mt. Gox can dump $400 million of Bitcoin just like that and there’s still billions left, the fear is when is the big drop coming.”
Mt. Gox’s bankruptcy trustee, Nobuaki Kobayashi, disclosed last week in Tokyo that he sold about $400 million of Bitcoin and Bitcoin Cash since late September, part of the hoard left behind when the exchange collapsed four years ago. Kobayashi is studying further sales of the $1.8 billion remaining.
Even worse, is the fatal flaw with Bitcoin mining that not many have pointed out yet. The math of the blockchain requires people to mine Bitcoin. When people stop mining, the value plunges and when the price drops below the cost of production, your bitcoin value goes down the drain.
By the way, there are already over 600 deceased cryptocurrencies and counting.
But here’s the really scary part of the Bitcoin saga
Bitcoin is EVEN more tied to the existing financial market than most people realise.
Recently they launched Bitcoin futures. That means that Bitcoin has a direct link for spilling over to the global derivatives market. That is a market which is worth well over the ridiculous figure of $1.2 quadrillion. The derivatives market is far bigger than the world market for stocks, bonds and gold combined.
In fact, the global derivatives market is in dollar terms, valued at twenty times greater than the GDP of Planet Earth. So, when Bitcoin crashes to $200, it will be just a matter of time before the damage hits the derivatives market, wreaking complete financial mayhem.
The Scary Truth About Bitcoin | The Dark Future of 2018