Volatility In The Bitcoin (and others) Market

I couldn't help but notice that Bitcoin and other "Ecoins" skyrocketed the last few days only to plunge today. It appears to me as manipulation of the ecoin market.

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We know that silver and gold have been manipulated by paper trades for years. There have been successful anti-trust suits with some of the big banks paying millions of dollars to settle suits because of illegal fixing of precious metal prices. So as the ecoin market fluctuates wildly with extreme swings what would the manipulators have to gain? Well if we are talking about the big banks perhaps we need to look at what they would lose if ecoins became universally accepted. First they would lose control of the "money supply". That capability is nearly their entire power base. In fact it was Mayer Amschel Rothchild who said "Give me control of a nation's money and I care not who makes the laws." With this power they can create money and reap profits on the interest on that money which has made them extremely wealthy. With this wealth they can buy influence in the form of bribes, extortion, and purchasing influence centers such as news organizations and TV networks. When they have control of the money supply the "leaders of the nation" can conspire with the bankers to spend more than they can afford which makes the people of the nation in debt to the bankers for the money they created. So how does the ecoin phenomenon affect the central banks and the industry in general? Let's look at the main ecoin, Bitcoin, and see how it changes things. First of all one of the primary properties of Bitcoin is the fact that the rate of creation is immutable. Creation of Bitcoins is a function of a fixed algorithm and can not be changed or manipulated. This makes it honest money in that sense. However, the price in comparison to the dollar, for instance, can be manipulated in the short term. If some person or organization has unlimited funds they could purchase a lot of Bitcoin in a short period of time which would have the effect of raising the price in dollars. Subsequently they could sell those same Bitcoins which would have the effect of lowering the price in dollars. The net effect would be nearly zero unless it scared people out of the market or encouraged them to get in. I believe with this manipulation the overall effect will cause more publicity for Bitcoin and more people will decide to participate. If Bitcoin is being manipulated to scare off would be investors I believe it will backfire and actually bring more people into the fold. For those interested it would be wise to purchase Bitcoin on the dips that are created by the manipulators. It could be profitable for you, beneficial to the Bitcoin market in general, and perhaps take back some of the power of the central banks and big bankers.

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