Can BTC be manipulated like silver and gold?

Hypothecation is legal term that refers to the granting of a hypothec to a lender by a borrower.

In practice, the borrower pledges an asset as collateral for a loan, while retaining ownership of the assets and enjoying the benefits therefrom.

This is what is being done to gold and silver. Ever wonder how 200 million ounces can be dumped in a second (thus changing the price)? The answer lies in the fact gold has been created by a paper representation. These contracts are generally done through the Comex exchange (which is all paper).

The whole idea of gold is that it has a finite supply; similar to BTC as they can also be divisible. It can easily be manipulated if the physical does not compare to fictional paper contracts.

Current chart of AU/USD

Current chart of BTC/USD

With BTC there is a wide belief that it is decentralized. However it is vulnerable to large holders dumping. There is as well another avenue which may adversely effect (manipulate) BTC value.

What is the Bitcoin ETF

Bitcoin ETF is a type of ETF that will mimic Bitcoin’s price. Anyone will be able to invest in Bitcoin (including large institutional investors). It will also eliminate the need for storing and securing your Bitcoins since you don’t own the currency itself.

There have been a couple of attempts to create an ETF the most recent with the Winklevoss twins who had issues with the ETF they wanted to put on an exchange. The ETF currently doesn’t have insurance for investors’ money in case their coins are lost or stolen.

The question is what would lead to price discovery. BTC could go up dramatically, but the downside is the same with "dumping". There would be quiet a bit more speculation in a somewhat more virtual market. Especially with projections into the future price.