Bitcoin has lost half of what It was designed to do – build Trust and Transparency. Bitcoin has lost trust.
The recent rise from $4,000 to $14,000 in the past three months may be the end of Bitcoin as we know it. It’s the second worst thing that could have happened. Here’s why?
1 – Mass volatility is a sign of speculation and manipulation.
2 – For mass adoption, Bitcoin needs more people and larger “funds” to jump in, they need some predictability, not volatility.
3 – I have not seen any credible articles on a fundamental reason for this rise…The “people jumping in ahead of Libra” excuse is not holding water.
4 – Main credible reason presented for the rise – Pump and dump schemes verified and predicted by the influx of Tethers to market manipulators.
5 – “Bitfinex issues tethers to their traders for market manipulation, market manipulators pump and dump, then ‘pay’ for the tethers later.”
6 – Cointelegraph article – Mass false news is creating fake hysteria for Bitcoin.
7 – In the same article – There are 5x fewer traders than there were in 2017. This means that the libra excuse is not working.
8 – The Bitcoin ETF was denied a year ago for these same reasons. Seems to have gotten even worse.
The worst thing that could have happened for Bitcoin was to continue down past $3000. Establishing a new bottom was healthy. A steady climb to $4,000 and then $5,000 was healthy. This rise is unhealthy, unsustainable and may even lead to a massive sell-off that will leave Bitcoin even lower than $2000 next year.
It’s not the end for a new financial marketplace and cryptocurrency. Something like Libra may establish a new benchmark and a new sense of Trust and Transparency. Algorand released their token this week and it was immediately valued at $24 Billion making it the third largest coin. Hedera is also doing a project very similar to Libra. Will one of these projects establish itself as the new standard? They won’t If they can not solve the need for stability… Maybe Libra has it right…peg the value to multiple assets.
I hope I am wrong and there turns out to be a bright future for Bitcoin. The facts say otherwise.
Eulogy made by David Fritsche