Thursday Afternoon Coin Clarity Check-Up: Bitcoin Not A Bubble, A Corporation, Or Free from Evils of Greed
Hey there kids, adults, senior citizens and others, we hope your week has been a good one so far. Only one more day to go before the weekend – you can make it! Just power through it, fueled by prospects that the intelligent, booming investments you made in cryptocurrencies will soon bear ripened fruit for the picking. Have you dipped into any of the never-ending flood of ICOs recently? Have any in particular caught your eye? Later in the week we’ll have a special article on the “Five Worst ICOs of All Time” and trace their commonalities to help you identify warning signs before buying a lemon. So, what’s been catching the eye of the media this week? Let’s do a quick recap, shall we?
ZeroHedge released an article detailing 5 reasons why bitcoin is definitely not in a “bubble” (though we personally remain unsure on the issue). Most of the reasoning has to do with the rationale that, no matter how hard the sellers, shorter-sellers and other manipulators try, the price of BTC could not be sunk to lower than $5300 this week. This means that whenever bitcoin sinks to certain levels, there are buyers willing to buy it up at what they consider to be “cheap” prices. They also cite bitcoin officially becoming “legal tender” in certain countries and the fact that it is still in the process of catching on with a mainstream, global audience. And sure enough, at the present moment, bitcoin is currently on its way back up to $6000, to test the waters at those prices once again.
Tom Lee, the Wall Street strategist that predicted that bitcoin could reach a price level as high as $55,000 in the next 5 years (!), is also endorsing the introduction of upcoming bitcoin ETFs to the stock exchanges, claiming them as an “attractive buy” while the majority of his cohorts consider such a move to be highly risky. The power of Wall Street money is so great and overwhelming, CEOs of major banks and hedge funds certainly have the power to make Lee’s prediction’s come true. On the other hand, they also have the power to move things equally in the opposite direction on what may seem like a whim but is actually a profit-making opportunity.
Wall Street isn’t the only source of major moolah entering the blockchain space. Swedish company Hive Blockchain announced plans to raise $30 million to complete the purchase to expand their bitcoin mining operations. Unfortunately for Hive, the prospects of being listed on a Vancouver-based stock exchange were temporarily halted by the IIROC, a Canada-based securities oversight administration firm, but luckily for Hive the suspension lasted only for a total of 2 days.
Forbes Magazine wrote up a piece explaining how changes made to the bitcoin software are driven by a model of evolutionary consensus, in an attempt to make it easier for the average investor to understand how, unlike a S&P 500 corporation, the process of the development of bitcoin is ultimately democratic in nature, with no one big-wig in particular capable of acting as a general or captain in terms of decision-making processes. They further go on to explain how reliance on wisdom generated by a democratic process, rather than by a CEO or president, is less susceptible to being faulty or incorrect, since multiple entities are allowed to chime in, and reasonability and rationale take precedence over authoritarian command. This makes it harder for massive corporations to make massive blunders, like those committed by the CEOs of the Wall Street bankers that crushed the U.S. economy in 2008-09.
If this were warfare, people such as Jamie Dimon would have been relieved of command some years ago. Yet this is not warfare, its Wall Street, where cash is king, and horrifyingly erroneous maneuvers (which wiped out billion of dollars of money for average Americans in the form of 401k and real estate losses) can be slowly erased through history, which can ultimately be re-written to make globally destructive executives like Dimon seem like saints in the books. Also thankfully, Dimon is not actually a general, and has recently been scolded by fellow financial industry titans for not knowing more about cryptocurrencies before making such underhanded statements (of which we have already well-documented on this site).
At the end of the day, Dimon’s comments about people who buy bitcoin being “stupid” was simply an attempt to quickly drop the price of BTC so subsidiaries under the control of JP Morgan could snatch up as much of the “digital gold” as they possibly could. Whether or not Dimon actually believes the words that come out of his exaggeratedly important mouth doesn’t matter. What does matter is to remember that these liars are in the business of hoarding money and not out to help their fellow citizens of this planet we all share.