Wednesday, January 17, 2018

It's worth noting that the Government pricked the Bitcoin bubble. It started falling right after they reported they were moving to sell seized bitcoin then worth 8.4 million. I wrote about it here. The three month chart of bitcoin shows that it started falling about the middle of December right after the article was released.

So, the government managed to get out at the top. And good for them I guess.

I wouldn't normally be so happy about people losing money, but the bitcoiners had gone a little crazy. Saying people were just jealous because the right people were now getting rich.

"So it all boils down to this: the wrong people--rebels, outsiders, nerds and techies-- got on the cryptocurrency boat while their insider/rentier "betters" blew it and are now raging bitterly onshore, not just resentful but indignant that this mania didn't enrich insiders like it should have."

If you get rich quick - it's likely you get get poor quick too.

2 comments:

Capital of Texas Refugee said...

The big push was a US money laundering case, but some changes in EU and UK laws regarding "anti-money laundering" for crypto-currencies around the same time also factored in as well.

The rise of Bitcoin thanks to all of the "Watanabe investors" made it very attractive for structured Bitcoin trading that was an unregulated form of money trading in general, which included both unregulated forex trading as well as "money laundering" within a chosen currency.

As long as the market was posting gains, the traders were in fact being paid to make forex trades using Bitcoin as a "pivot currency", but now that it's posting losses, we should see many of those forex trades returning to the commercial forex markets.

Which, of course, is exactly what was wanted all along.

she said: said...

Yeah. That seems to have happened right as, or slightly before.

I just don't understand how people really thought the government wouldn't get all involved in this. And that the banks were just going to let it happen. The government always wins. Always.