The "inherent" problem with the Bitcoin (and other crytocurrency) markets

in #bitcoin7 years ago

The main reason why bitcoin will likely never be the alternate currency that all of the advocates think it will be is because it is too easy to control pricing by a few very strong hands. Everybody thinks that the price of the dollar, silver, gold, oil is "controlled" by the big banks and hedge funds. But the "manipulation" (which I disagree with) in those markets is tame compared to the manipulation that occurs in the price of bitcoin. If you honestly think that price isn't being controlled by a very few strong hands (i.e. hedge funds, the bankers you all abhor) you are simply kidding yourself. The price just dumped from 2325 to 2220, and then back up to 2400 in the past 30 minutes! That's ma n pa public doing that...right? "Yeah but, bitcoin is rapidly gaining worldwide acceptance, especially in Japan and Asia." you reply. And it "should" too! If you knew the dollar was on teh verge of complete collapse I would imagine you would trade your dollars in for any alternative that showed "promise" for the future too. Is it not better for someone from China to buy a home in Canada that is "about to be" worth $100K for $200K if they knew the yuan would lose 90% of it's value in the next year or 2? At least you'd have something in the end. There will be one last currency standing, people. The almighty U.S. dollar. Give me dollars over everything else until the day there are only 2 currencies left standing, the dollar and whatever the other currency happens to be. On the day that other currency drops I will simply double my bet in the dollar for the 1000% 1 day move higher. Only then would I consider, gold, silver, real estate, a long term stock portfolio, or any crypto currency.

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