Since I have already written this article in German, I hope to reach more people with English.

Talking about BitCoin price rise and massive price drop..

Why has BitCoin dropped so drastically in the last few weeks just before the $ 20,000 mark?

For this I have my theory ..
Just last week, I finally came to an article by CoinDesk, which I had been on my "watchlist" for a while, to take a closer look. The article is from mid-December 2017. It was about 2018 that the G7 central banks will buy the BitCoin.

If you are interested in the article, here is the link:

click me

The most important points in the article I will list below - let's start!

1.What's quite interesting, the article was written by Eugene Etsebeth, a former central banker of the South African Reserve Bank! Note number 1 🙂
2.He says in this article – attention, hold on tight:

Fiat currencies are pieces of paper or coinage that inherently do not have value. If anything the currency is backed by > the shared belief of participants in a country's currency scheme.

Again, the man is a former central banker and writes:
Fiat currencies have no inherent value and are covered only by the faith of their participants!

3.The Special Drawing Right (SDR): Unfortunately, I do not know if you have heard of it before.

To understand the whole thing, we'll do a little digression

It is an artificial currency, introduced by the IMF in 1969, which can be used internationally as a means of payment. The IMF keeps its thumb on the exchange rate..

Background

In the past, gold has served as a recognized reserve medium and has been accepted as a valid means of payment in all countries of the world. Unfortunately, the amount of gold present worldwide did not grow with the ever-increasing volume of international liquidity, and thus new reserve media or currencies such as the US dollar and the British pound sterling were accepted.
Reserve currencies can be recognized by the fact that other countries accept these in addition to their own currency to pay for goods.
At first, the US dollar seemed to have been sufficiently covered by the abundant gold reserves in America, which turned out to be misleading at the end of the 1950s. Thus, in 1963, a fundamental reform of the international monetary system was decided. And there were the so-called special drawing rights - quasi a new world currency, which is cashless on special accounts of the IMF.

After we have clarified that ..

It is important to note that the G7 countries usually keep their currency reserves as just that SDR or directly as currency. Gold plays a rather insignificant role at this point.

CoinDesk's article states that if the BitCoin reaches $ 17,600, it's worth more than the IMF's Special Drawing Right - which is $ 291 billion!
Again, if BitCoin's market capital exceeds $ 291 billion, it has overtaken the provisions of the IMF Special Drawing Right.

According to CoinMarketCap, we saw exactly this price twice on December 12, 2017, and then again on December 15, 2017, whereupon the price rose to $ 19,991.60 and a maximum market capital of nearly $ 335 billion was reached, later the price begin to drop continuously - Coincidence!?

For me, the 291 billion of the SDR in my eyes have been the deciding factor why the BitCoin price has fallen steadily after reaching around $ 19.9k..

The BitCoin market capital was around $ 44 billion higher than the IMF's officially recognized world reserve currency, which should have been a slap in the face..

Especially since this currency is probably used to support the national currency of a nation!
Since, as we have learned before, classical Fiat money has no real value and is only "kept alive" by the beliefs of those who live and believe in the system - similar to BitCoin. Only with the difference that BitCoin cannot be increased infinitely - sure as AltCoin, you could now critically add, but an AltCoin is just an AltCoin and not a BitCoin! You can also paint a stone in gold and it doesn’t turn it into real gold..
In view of this fact, it is not surprising why the BitCoin price, despite this massive demand and this run on all Exchanges, which are constantly overloaded with fresh new people, not continue to rise..

The price is artificially kept down!

So just those central banks that have failed in the past to invest in BitCoin and other real and meaningful crypto currencies, they can now buy cheap and strengthen their currency basket with crypto currencies in order to stabilize further inflation in the Fiat currency world continue so that the system "Fiat" doesn’t collapse!

You should really think about it, if you have not done so yet!

Let the graduate economists and professors of any financial institution speak of a bubble.. I've been laughing about it for months, because people just have not learned what the real value of a real cryptocurrency like BitCoin is. And yes, capitalism doesn’t work in the BitCoin world - properly recognized by Professor XXX, but who says capitalism has always been the right system and that it is flawless? Perhaps people have always been taught the wrong system in all the financial semesters in their studies.
A world in which the rich get richer. And the poor get poorer?
Steady economic growth and exponential public debt worldwide? How long does such a system work? Come on..

The fact is: cryptocurrencies such as BitCoin have a solid future due to their blockchain technology - whether you like it or not

Since central banks - but because of still missing regulations (I think it's always funny - I'm looking forward to the day when BitCoin can be regulated.. The exchange of BTC in Fiat and back can be regulated but not BitCoin itself. But they will also "hopefully" understand this at some point😂) - cannot participate in the crypto market, the purchase of crypto currencies by central banks still have to wait.. And before BitCoin again exceeds its market capital of the artificial international world reserve currency of the IMF, the price is consequently pressed down.. (Who likes to tear his scepter from his hand ..?)

4.Finally, you can read in the article that central banks are not purchasing directly in the crypto market but their "henchmen".. aka any bankers (JP Morgan sends greetings) and experienced fund managers..

Most G7 central banks will likely use external fund managers to invest in cryptocurrencies over this new epoch. But don’t expect this information to be freely available.
This will happen in the dark. Old habits die hard.

And we already see that now how the market is manipulated by the big players.

So our central banks are buying cheap at every panic sell, stabilizing their reserve currencies in the future while everyone else panics outside, believing that the crypto world is going down..😂

Once you understand this system, you will not care about the current rate. In 5 years you will be rich with enough "real" cryptocurrencies. Don't let yourself go crazy ✌️😎

I hope I could help you a bit with this article and maybe now you can react more relaxed on "doomsday news" in the crypto market - this market lives on uncertainty among investors. Those who already have money and power know this exactly and use it shamelessly to get even more money and power. Be smart and think about it, use dips to buy and not to sell in panic.

I would appreciate it if you share this article with your friends or new crypto fans so that others understand how this market is ticking. Let's not make it so easy for the big players!

Thank you