Killing Bitcoin With A Million Sob Stories
It could reasonably be argued that the only constant in human society, is change. Throughout recorded history we have seen customs, traditions and beliefs come and go. One minute things are a certain way, the next, they are being done in a new way.
During these societal changes that we experience from time to time, there is always a case of the old guard having to adapt to the incoming new kids on the block.
For instance, during the long transitional period from feudalism to capitalism, the old guard was made up of royalty and their barons. Land owners and tax collectors that had long been used to having everything their own way.
The new kids on the block were the merchants, fuelled by travel and mechanisation these nouveau riche traders ran things differently. Suddenly power came down to the contracts you secured, rather than the families you were born into.
Members of the old school who understood they would have to change, survived, the ones that bitterly clung on to the lavish lifestyles to which they had become accustomed to, perished. For examples of the former we can look to the royal families of England and Spain, for ones of the latter we go to witness the grisly deaths of the French and Prussian royal families.
Blockchain Paradigm
No matter where you stand on the subject of cryptocurrency, it is hard to argue that it hasn't already had a major effect on society, and changed the way a lot of people interact with finance.
The players of the unfolding drama are easy to identify; the royal families and their barons have been replaced with the governments and their federal banks.
The banks, like the robber barons of old, in many cases have far outgrown the power of their previous benefactors, it is they who rule the land in all but name.
The incoming new kids, are of course represented by the various blockchains, with Bitcoin at the forefront of the sweeping changes taking place.
We have seen some of the banks coming out making cautious noises in support, and with events such as the CME creating a futures market, it is easy to believe that history is repeating. The banks that get on board with the new paradigm will survive, the others won't.
The question is; are any of them really on board?
The Wolves Dressed As Sheep
Goldman Sucks, sorry I mean Sachs, announced last year that they were to start a Bitcoin hedge fund. This move sent out a clear message, that as far as they were concerned, investment was investment, regardless of what form it takes.
On the surface, this seems completely natural, after all, they are an investment bank, they are not responsible for the printing and control of fiat currency, they merely attempt to increase their profits year upon year.
However it is hard to ignore that they are a bank, and as such are part of the same club as the very people who control our money.
It is not too hard a stretch to imagine they may want to keep these powerful members of their club as happy as possible.
If that is indeed the case; then why would Goldman Sachs turn to Bitcoin?
The Million Sob Story Attack
The most obvious way to destabilise an emerging market such as Bitcoin, would be to manipulate it in such a way that you can crash it, and thus discredit it.
However the structure of Bitcoin, and indeed the nature of all cryptocurrency, makes it very difficult for one entity to gain control of enough of the market to have any long lasting effects.
Maybe though short term effects are enough, and it is definitely possible to control enough Bitcoin to cause mini flash crashes.
By doing this you create countless sob stories of people who bought at the top and lost, those heartbreaking stories filter through the market, as people who lost their money cry scam.
Possible Or Probable
I'm not sure if it is possible let alone probable; I suppose at the end of the day, corporations such as Goldman Sachs have a huge warchest. Whether they are prepared to lose some of that money in order to crash a market they see as a potential threat, is another thing entirely.
One thing I have to concede though, is even if Goldman Sachs are completely innocent of such a dastardly plan, it doesn't rule out other nefarious banking organisations.
I feel that crypto, and especially Bitcoin has become too big to fail completely, regardless of the price, it will always be there, and I will be there too, using, spending and investing in Bitcoin and other cryptos.
To that end; vive la revolucion!
Related reading
CAN YOU THINK 0F ANY WAY THE BANKS MAY TRY AND STOP THE EMERGING CRYPTO MARKETS? OR DO YOU SIMPLY THINK THAT WON'T HAPPEN? AS EVER, LET ME KNOW BELOW!
They ARE of course going to manipulate the market. This is the chance for cryptocurrencies(all of them, not only bitcoin) to show that they can thrive despite manipulation and become resistant to it(At least, more resistant than traditional public companies). The game is on, its showtime for crypto. I´m sorry for all those people who get caught in the economic crossfire(myself included), having descentralized blockchain markets is necessary for the future of everyone´s economic freedom.
As long as cryptocurrencies are diverting funds from deposit and interest-bearing accounts, banks will be at war with crypto.
I think there WAS an attempt made to crash crypto. The powers behind the drive soon realized they could not crash crypto without crashing themselves. Other markets responded in kind. There was also an attempt to lower the price so the late-comers could buy in. When the price of crypto fell, many sold stocks to buy into crypto. A lot more of the old guard now have interest in the success of crypto. The resistance isn't what it used to be and the banks would be wise to hedge their bets, so to speak. But I cannot claim expertise in this matter. Just a women following strings of action.
To sob stories. There is no argument made against crypto that could not be as readily laid against the stock-market, not a one. You want to talk about sob stories. Stock markets sob stories out-weigh every tragedy tome ever written. Yet, no one is suggesting we dismantle stock markets. The nonsense got up in these markets has crashed world economies more than once, as has the recent nonsense within the banking industry, yet we keep banking. ( I use nonsense highly euphemistically.)
I like your work here and think it is very insightful and the parallels you draw are accurate.
I still maintain currencies like steem are more valuable in the longterm because there is not just technology, but an economy backing it up. The need to maintain an investment in SP offers security and stability that other cryptos might not have. The only aspect holding us back is that we must go through other crypto.
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We all have to adapt to the new trends sometime. Many banks in my country are against cryptocurrency due to the fact that it decreases the need for such banks.
Change as you said is constant and at some point change has to take place and the quicker it is accepted the better.
Bad information cause a lot of problems(((
my humble opinion, the bankers even seeing a financial development in the btc would not really drive it, the growth of the btc could generate a financial independence even from the governments themselves, that would be fantastic... but the face of the currency is another, individualism always triumphs and only think of a better world for all, because they would no longer support anything. I apologize if I can't explain myself maybe the translation doesn't help me, good point friend.
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Goldman Sucks! LOL I am actually rooting for 'power to the people' currency. Tired of overlords. I want to see this world free to create AMAZING. Crypto could be that little nudge. After all, 'we' decide what has worth. Great follow-up article. Wonderfully written.
That's a very good article..
They're just crying because the new kids got a better toy...
Crypto is here to stay
I know I might catch some flack for this, but Ripple has always stood out to me as an anomaly. It is a cryptocurrency built basically by the banks for the banks, which is totally against what cryptocurrency was created for. I think blockchain is here for the long haul whether it is specific cryptocurrencies or not. The practical applications are undeniable. It will be hard to move things forward. I think the auto and energy markets are a good indication of that. Two industries that most anyone will acknowledge are harmful to the planet, yet coorporate interests allow them to continue with little to no change. The move away has been slow and gradual and I feel like that is probably going to be the case with cryptocurrency. The arugement can be made that crypto has been around for a long time, but it hasn't really been in the light like it is now. I think we can see this past year as the real starting point and unfortunately the growth from here on out will be slow and wrought with ups and downs as we have seen.
Ha, you won't catch flack for that, as far as I can see there is a lot of hate for Ripple :-)
I think you're right regarding growth, however steady growth with the odd spurt is a good thing :-)
Cg
There are some people that really love it though. I don't know if it is because they believe in it or just because they were making some money on it. I agree with you, any growth is good!