What’s with Bitcoin lately?

I could be wrong, but my best guess is that the PTB are still very much in control of what is happening with bitcoin. Bitcoin can’t succeed while people are hoarding it – while all of the coin is in the hands of a few it can’t fulfill its role in their plan – not that I know what their plan is anyway, but I am guessing that they need to get it distributed across as many people as possible. (btw I don’t know who the PTB are either, but by all means google the acronym – I’ll wait.)  So the problem that they face is – how to get those that are hoarding it to give it up, while at the very same time get those that do not have any coin to acquire some. And they need to achieve this while causing minimum damage to their assets – the exchanges, the bitcoin network, and their key players.

So that is what I think that this is all about – create confusion, uncertainty, fear, and you create opportunity.  Do it in a way that can appear devastating, but can then be quickly mitigated with a technical bug fix and you can turn confidence in the network on and off like a tap.  People will go from “we are all doomed” – to “wow – look how fast they fixed that” – in less time than it takes to complete an overseas funds transfer.  Meanwhile, let the press churn things up – exaggerate both the ups and downs, and scare the hell out of the hoarders so that next time the price reaches $1,000 they will sell.  Then, in from stage left comes the open source bitcoin developers – saving the day with a quick code fix – proving that the life of the new currency is safe in their hands – boosting confidence even higher than it was before.

All publicity is good publicity, and there is nothing like an almost fatal crash where phoenix rises from the ashes to get people’s attention.  While the hoarders are still recovering from the shock, and selling fists-fulls of coin as the price passes through $1,000, $1,100 $1,200 (because I can tell ya, they ain’t gonna sell at $600) –  The average Joe is buying what they can with the little cash that they have – it has been all over the media, and has proven that it is resilient – even to technical glitches – which in any case have now been resolved. Money 2.0 is maturing and it is here to stay. Camera pans to the west, and fades. It’s a take.

And the great thing about this particular plot, is that you can run variations of it over and over again – each time shaking a few more coins out. No damage done to your assets either – they are even stronger now than they were before.

As for the volatility, people love it – its a great story. No one is buying bitcoin so that they can use it to buy a milkshake. Sure that is the long term plan, and that will be great, but it is not where it is currently at. Bitcoin does not need a stable price at the moment, even at $2,000 a coin, there would not be enough of it to go round, so price stability at this point in its development would just be impeding its growth. What it needs is dramatic booms and busts, and most of all churn.

Eventually, once the price is sufficiently high and everyone has some – well not everyone – some people are just always going to be broke no matter what you do hey, but once the price of coin measured in paper rectangles, has broken $10,000 a couple of times – or whatever that magic figure is, then we might see a new strategy from the powers that be, and we may even see people starting to use it buy a milkshake, it is then that we might see some stability. In the meantime, hold on tight, this could get scary.

 

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