Question to you: Will governments and big banks beat down Bitcoin in a similar way they have been manipulating down Gold and Silver?

in #bitcoin3 years ago

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Dear Steemit friends,

In gold and silver we have seen big banks and governments manipulating the prices down via various mechanisms, one of which is future contracts. Central Banks don't like these two assets as they can't print them (Google "Gold manipulation" and you will see more on this. Just one link here as a point of reference: https://www.cnbc.com/video/2016/02/23/manipulation-in-the-gold-market.html).

Since December 2017 we have two markets where Bitcoin future contracts can be traded. What do you guys think?

  1. Is the drop of Bitcoin from >$19K to ~$15-$16K due to big investors (i.e. banks, governments) shorting Bitcoin contracts to bring them down for the same reasons they have been beating gold and silver down?

  2. Will they win this battle? Gold/silver are different than Bitcoin for many reasons, here are a few: Bitcoin is tradable 24/7, millenials are exited by it, opening a Bitcoin trading account is easier than opening a TD Ameritrade or an ETrade account and lastly the world is exited by this new asset and there is a lot of momentum.

Give me your thoughts.

Thanks!

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I think the bankers and governments do not like bitcoin and will use the new futures markets to try and keep it where they want it. If they succeed with bitcoin I think other cryptos will step up.

I fully agree, so far only Bitcoin and Ethereum are traded as futures on the CME and CBOE, initially both went down but now both are going up again. But yes, like you I think that if banks and governments beat them to where they want them other crytos will take the lead.

I dont think governments will be able to keep up. They are fighting amongst themselves in terms of currency controls, taxation, manipulating rates to entice investment in their economies. Businesses see the risk and are starting to take decentralized digital currencies more seriously every week. They might be dipping a toe in at first, buying some as a hedge against currencies. But it wont be long before we see a big B2B deal done with cryptos as a component of the exchange.

You bring a good point, big deals will soon be made in cryptos... It would be interesting to see oil bought in cryptos... Interesting times...

Also, many governments have legalized Bitcoin, for example... https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory

Venezuela is trying to make the crypto work for oil.... if OPEC did this as an organized move, then it'd probably work (and send the USD into a death spiral).... but not when only one nation who has zero credibility in terms of finances.

On OPEC, I fully agree, time will tell. On Venezuela, I also agree, good luck to Maduro. I am not planning to buy any "Petro"