Cryptocurrency has not declined. Just the value to USD has... So Let's see what that really means..

in bitcoin •  7 years ago  (edited)

Everyone is watching Bitcoin fall.  It does not take the magic away.  It is overdue and a great test of all of us.

I'm not surprised that Bitcoin is tanking, but I am happy it is, because it shows me a lot of things that I had expected to happen...   and now they are!

For the longest time, people believed that decentralized cryptocurrency was the way of the future. It was fair money, for the people.  Not centrally controlled by anyone, and the good news is that is still true to this day in some ways.

What decentralized cryptocurrency can't do, is regulate influence by people who hold USD, and we all know by now, big business, Wallstreet, and the elite have LOTS of USD..  We'll call them the "severe rich" for the purpose of this article.

The severe rich can buy Bitcoin, or Ethereum, Bitshares, or Peercoin, just like any of us can.  They can also artificially raise the prices by buying them up, with the intention of dumping them, just like any Bitcoin whale colluding group can do to altcoins too..

So what's changed?  NOTHING. :)


..and that I like...  The value of cryptocurrency WILL rise and fall, which will cause panic buys and panic sells.. and if you're the type of person to panic all the time, I suppose cryptocurrency isn't for you, so only gamble with what you can afford to lose.

...when I see the value of coins fall drastically, it is often my opportunity to buy more, and wait for the next rise again... because inevitably, it always recovers, it just takes a bit longer.  I have lots of time on my hands to wait, do you?

What's really good about this, is big business and their severe rich friends are investing in cryptocurrency these days. They buy in to move the markets up, and then they sell to bring markets down.  What they are actively doing though, is flowing USD in and out of our markets, and that just helps cryptocurrency stay alive.

The severe rich choices are:

a) Regulate decentralized anonymous cryptocurrency into oblivion. They've done very well trying to do that with Banks already, but it isn't stopping cryptocurrency.  So what next?

NEXT....

b) They can dominate the markets by having huge swings "in USD" of the value of cryptocurrency to try and cause panic sells...  They can only swat your holdings like you are a mosquito if you sell off to them.

If Bitcoin is $100 or Bitcoin is $10,000 it matters very little to me.  The concept of why I'm involved in cryptocurrency is for distribution of value between people in a decentralized environment.  As long as I can do that, I'm happy.

Let's look at Ethereum for a quick moment. People were buying up Ethereum, because well, everyone else was buying Ethereum. Most people who own ETH don't even know how Ethereum works, and have never even used their ETH via smart contracts on that blockchain.

...that's amusing to me, because right now it is obvious that the cryptocurrency space has more speculators than users of the very products and services that cryptocurrency can provide.


...with the exception of STEEM


Oh yes!  People who buy and sell STEEM actually benefit from steemit.com, busy.org, and the great content that this blockchain provides.

There are more people actually using STEEM related products and services than there are for people using Ethereum in my opinion.   STEEM's content rich blockchain is easier to use than Ethereum today and that's easy to see.

Let's go back to the severe rich and the huge corporations.  What are they investing in?

Ethereum. 


Look at this Fortune 500 article which I'll quote:

Thirty big banks, tech giants, and other organizations—including J.P. Morgan Chase, Microsoft,  and Intel—are uniting to build business-ready versions of the software  behind Ethereum, a decentralized computing network based on digital currency.

So if the severe rich are interested in Ethereum, and we already know they're interested in USD, wouldn't it stand to reason they'd also be interested in Bitcoin and the value of Bitcoin to USD  too? (because after all, Ethereum can be traded for Bitcoin, and Ethereum can be traded for USD)

All of this is related.

So how did this crash begin?  Just look to this CNBC article dated May 25th, 2017

[Nicola Duke, an analyst at Forex Analytix] told CNBC that the correction could see bitcoin fall as far as $1,470, marking a 46.5 percent decline.

...and then minion, after minion, and analyst after analyst got on the bandwagon.  Huge financial institutions and investment firms got on the bandwagon too. 

The severe rich and large corporations started singing "Bitcoin is going to fall" song, and sure enough, Bitcoin did (and continues to drop in USD value)


Analysts are like dominoes.  They can predict the future, because they can convince everyone of the future....

...because the future has proven itself to be nothing more than a domino toppling show...

So who owns the analysts?  No one.  They're usually just rented on contractual basis. :)

Yeah, blah, blah, blah.. these things they use are legitimate, undisputed tools to shroud the secrecy that happens in the background.  When these same analysts decide to broadcast themselves on TV, or write public blogs and alerts. It's those key moments I question.  By the time an analyst shares his or her predictions or analysis, their own boss, their own friends and family, and large market makers already hear about it well in advance of the public.  

Positions and investments are already changed BEFORE the public hears about it for the first time. That's the part I don't like...  You can't find out what the analyst is going to go public with unless you have insider relations with them.

Analysts to me, are no different than trolls in a chat trollbox on a cryptocurrency exchange.  I have no use for them.

...but this recent shift in Bitcoin's price (and Ethereum's price too) shows you that the severe rich and large corporations are pumping and dumping crypto markets using the same methods they've used in the real markets.  So nothing has changed and finally we can see it now on coinmarketcap.com too.

Thankfully the Ethereum Alliance has posted publicly who some of these people and organizations are (the severe rich), let's take a look:

https://entethalliance.org/members/

(Scroll to the bottom of that page and look at all the pretty logos of BIG BUSINESS/severe rich)

  • Ethereum investors include JP Morgan, Deloitte, ING, Intel, Samsung, British Petroleum (BP), and more..

Ha Ha Ha... and CNBC and Sheba Jafri (from Goldman Sachs) all help tell people where they think Bitcoin's price should be... and like minions everyone follows them.

Everyone is watching Bitcoin fall.  It does not take the magic away.  It is overdue and a great test of all of us.

Are we going to continue to invest and support or build new cryptocurrency projects even if big business likes to influence when Bitcoin pumps or dumps? 

I am, and I will.  Will you?


(Please resteem if you enjoyed this article so more people can see it.)


** Disclaimer. All statements in this article above may or may not be factually true and are the opinion of the author only and not to be taken investment advice. Please do your own research, formulate your own opinion, and make your own decisions.

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This is a fabulous post on so many levels. I dont think I can find anything I disagree with. Ill have to read it again. Upvoted, followed and resteemed. Thanks again.

Analysts are tr0lls as are the banks who screw us over ever day that goes by.

I agree. The value against the USD is somewhat irrelevant.
I am in crypto for the long term for when all fiat tanks completely. When that happens the analysts ans nay sayers will be begging us for our stored values in crypto.

Thanks for the insight Intelliguy. I really liked this post not just because I share your view but more than that is I can relate to this Article. I do believe cryptocurrency is the future, that is conceptualized for everybody and should benefit everybody. However trading, market swings and all other fancy method to make more money is not for the general people like me. So rather than trying to make a quick buck by trying to buy low and sell high and then miserably fail at doing so, I should stick to what the heart of your article wants to say and that is to "Believe in Crypto, to Hodl and never sell " . Let's let the big players play the market and eventually Crypto will win.

That is a very solid method I've used myself. When I use to day trade in the early days as a newbie, I had huge ups and huge downs with my amateur market predictions. Eventually I found myself losing more than winning, so I stopped trying to act like a big shot trader and realized my limitations.

Now my moves are slow, and more carefully planned. I support your comment and view on trading, and I appreciate that you enjoyed the post.... its comments like these that really show me I should continue writing and sharing if it helps someone (or even just mirrors what they thought already might be true, it just helps to hear someone else say it).

I think you'll do well... you're pretty in tune with reality :)

This post received a 48% upvote from @randowhale thanks to @intelliguy! For more information, click here!

I will .

You're the first person that answered the question. Upvoted your comment.

I'm glad I read this. I just recently got into trading different coins and have been freaking out today due to the huge drop. However I just pumped in as much money as I could today to take advantage of the drops.

  ·  7 years ago (edited)

Stunning insight also believe Markets are not the place for people who can not grasp the realty of how markets work . It is sad that the serve rich can actually move the markets up or down at their leisure as the panic sellers stand a lot to lose if they cant get back when Crypto really starts to rise when the currant system fails.

^This.

I see it all the time. People get into crypto not understanding that it's a financial market. You aren't guaranteed growth, you can lose your money, and it's not just a glorified savings account. This ignorance very much works to the advantage of the big investors. I could care less about it, except too many of these people buying into crypto are looking for a get-rich-quick lottery ticket that they're paying for with money they can't afford to lose.

So true most people hears something from a friend or read this person made so mush money but meanwhile that person was informed and new what he was doing they jump in and don't have a clue whats going on expecting to make great returns when they went in at the top .

I am new to the cryptocurrency world and I love so many aspects about it. The decentralized nature of it is my biggest draw and a reason that I am beginning to invest in it. What guarantees are there that the "severe rich" will not be able to take advantage of it, and wrest control in some way? The powers that be are not going to stand by and watch a source of power (currency control) be scattered to the masses. I recognize that this question comes from a place of ignorance about blockchain and the nature of cryptocurrency. I am but a newb in search of knowledge.

Thanks for the post. I look forward to more.

What guarantees are there that the "severe rich" will not be able to take advantage of it

Does that stop you from using USD today? No?

So what changes? :)

The difference is that cryptocurrency allows you to hold funds in your own private wallet, and transmit those funds to people you want. There is no need for a bank or a Western Union or even a Paypal.

But! If banks, western union, or Paypal where to get involved in their own unique way, they could be making millions before their competitors start doing it. So eventually cryptocurrency will probably become a mainstream, efficient way of transmitting money on the internet.

Imagine that, no credit card needed. Cryptocurrency is best suited for fast internet transfers. It is only the news that keeps saying that it can be used to fund terrorists.

Well here's a spooky thought. 9/11 happened before Bitcoin was even created. So what is their point of demonizing cryptocurrency so much? It's stupid.

Good point. I had not thought of it that way. As much as I am loving the CC world, I remain skeptical mostly because it pushes me to keep reading and learning. I will definitely be reading your posts as part of that.

Great post :) My number 1 rule is hodl all day every day no matter what price I last bought in at.

A quite reasonable assessment. It is going to be crazy.

I agree about the analyst trolls. They have no idea.

Great information , loved reading the post !

Wow! This is brilliant. It's so true, To be honest I've never understood those panic investors. Sure, I'm a bit disappointed when I see my investments falling, Who wouldn't be. But I'm always holding onto it until it goes back up, Thats what I did when I bought Synereo AMP. It fell rapidly. Instead of selling, I waited for over 8 months until it went up again, Then I quickly sold.

People need to practice patience with investing! Just wait out those ups and downs.

I'm not backing bitcoin or other cryptocurrencies as much as I'm backing the technology behind. Blockchain is going to be the next big thing in the progression of IOT. If you're in it for the short term, you're missing out. Even if it falls drastically one day, it won't die. See it for th buying opportunity that it is.

I do truly believe that people will move more and more money from stocks and assets into crypto, if there is to be a financial hurdle on the horizon you can bet that money will flood into prospective investments that aren't hit by inflationary rises. If BTC/ETH and other players get a percentage of the money that would normally go into those investments, we are talking big crypto prices!

Very informative post, I really appreciate it, especially the clear perspective.

I think the traditional financial system will be obsolete in the future and need to be revolutionize and the best and practical substitution are cryptocurrencies and blockchian.

This is a very nice article, Well just wrote a blog list of BTC's, hopefully u can check it out. Good luck with the investments :)
@Styxer

Great article. Certain people just ruin a lot.

The severe rich choices are: Regulate everything into oblivion. They've done very well trying to do that with Banks already, but it isn't stopping cryptocurrency. So what next?

Actually severe rich is against the regulation of banks since they own the banks. 2008 crisis wouldn't happen if the state could regulate banking practices. I think you mean they want to "regulate" as in control the cryptocurrencies. But I don't share your illuminati point of view.

Luckily for me, I never used the word illuminati.. and I don't believe in the illuminati. I do believe in the elite forms of society because that is undisputed.

Secondly they do want to regulate the control of cryptocurrencies and have done so. Cryptocurrency is seen as competition for FIAT reserve money supply... so many of the elite (that includes large trading houses, banks, etc) to regulate it out of existence they best they can..

What they don't see is that innovation by humanity is stifled under the current system... it's not good.

I think what you've done, is read this article with your own viewpoint in mind, and taken my words and made them fit into an opposing view point of yours.

We're talking very much about similar things I can tell from your comment. I also agree the 2008 wouldn't happen if the state could regulate banking practices. But the state depends on financial systems, and financial systems well... help run the state. So it's a catch-22

I see I did say this:

Regulate everything into oblivion

To correct it (and thanks) for clarity sake, I've changed it to this:

Regulate decentralized anonymous cryptocurrency into oblivion

Right thoughts !!!
That how our world works !
=[

This fits in nicely with what I wrote about today and how people's faith in the market effects the price.

Fanatic read! We just need to inform the other people to start using crypto currencies more and eventually over time it'll be so widespread even in isolated regions!

Really nice post to read. I would like to add one more thing, may be because of the BIP 148 on August 1st, there can be huge fluctuations in Bitcoin price. This may also result in Bitcoin losing automony of Cryptocurrency market cap.

Yes or no... time will tell. The one thing I found is even if the worst nightmare happens (whatever that is)... the cryptocurrency population will respond quickly and responsibly to compensate.

What does that mean?

Exchanges like poloniex and bittrex will alter there code to match every coin to something other than BTC in the worse case scenario

The new coin of the day (if its peercoin, litecoin, ethereum, or whatever) will take Bitcoin's place, and Bitcoin ATMs will soon become Litecoin ATMs or Peercoin ATMs in a matter of weeks.

I'm not worried what happens because of BIP 148 because one way or another the whole place adjusts REALLY QUICK. :)

Im new to crypto and found this to be very informative! can somebody point me towards more info for nubes like myself?

Nubes, like yourself, are best guided to keep looking for information the hard way. It's the only truth you will find, is if you investigate things at your own pace without any help.

Every link anyone can provide you will probably be self-serving for the person providing the link. In cryptocurrency, trust no one but yourself. That sounds terrible, but really... informed consumers, and informed investors who do their own research are the upper echelon of people who make out the best...

Good luck. Keep at it.. keep working.. keep researching... it will soon become obvious what the scams are, and what the truth is... the more you look. That is the best advice I can give you.

thanx! thanx! I will read about crypto till my eyes bleed.

really this article what you shared with us is great i dont know about anyone but it is helpful for me..keep it up.also followed you to get new updates

Well dollar is getting stronger atleast in asia, it was 64.00 INR, a week back, now it 64.50.

Excellent Job. This cleared up some questions for me.

Thanks! Upvoted and following

Nice post with a very good explanation. Very much informative about cryptocurrency. Thanks for sharing. Voted.

Such a valuable post would have sunk into the infinity feed if it wasn't promoted. Voted and Resteemed.

awesome post to read. thanks!

upvote

Check out my views on story crypto https://steemit.com/cryptocurrency/@newmarket65/is-cryptocurrency-your-get-rich-quick-scheme
Thanks Follow me and i will follow You

Wonderful! You made this easier to understand for me, I'm so new here!

I've never understood the panic selling, as what goes down usually comes up again and in crypto quite quick as well from what I've gathered so far.

Great job on this post!

Remember in 1943, IBM thought there would only be a market for 3 computers worldwide.

Agreed. Defining the value of Ethereum with USD is an archaic mode of thinking in the blockchain age.

One of informative article. +5 for this post

Now if only we could get everyone to think like this. Eth's value and trends are still tied to bitcoin which makes for a roller coaster of a ride. I hope that eth separates itself from btc soon.

muy pronto

Excelent post as you said the rich people and big company force the market according with his needs, bitcoin is here and will be here for ever, every that we saw more important people that play or invest on bitcoin and criptocurencyv because the saw the potential that those can provide