Bitcoin value
Bitcoin does not have an independent existence like money. If you have funds in a bank account, you know that you have a certain amount of funds in that account, which you can use more or less freely, depending on the nature of the contract with your Bank. The value of an account depends on the value of the money it represents.
Bitcoins have no specific meaning. You don't know the total value of your bitcoins until you have exchanged them for some amount of money.
Currently, the owner of 1000 bitcoins believes that he owns over $ 4 million. But he is wrong; he will have $ 4 million when he sells it for just $ 4 million.
Bitcoins cannot be used to buy anything directly from anyone; in order to buy something with bitcoins, you must find someone who is willing to accept them as payment for what you want to purchase, and for which that person is willing to accept bitcoins in return.
In such a theoretical operation, both the person who trades Bitcoins when buying and the person who accepts Bitcoins for sale, both of them calculate their exchange in terms of money, not in terms of Bitcoins.
Thus, Bitcoin does not have an independent existence like money. The cost of bitcoin depends on the availability of funds with which exchanges can be carried out. As long as there are more Bitcoin buyers than sellers, Bitcoin's value will continue to rise, bringing in even more buyers, and its value could skyrocket.
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But when the moment comes - as it should be - when there are more sellers than buyers, then the value of bitcoin will drop. When bitcoin holders begin to see a downward trend in value, there will be nothing and no one will stop this trend: bitcoin holders will panic to sell their holdings - to other bitcoin holders - before its value declines further, when more and more owners are trying to sell, soon there will be no buyers: no one wants to catch a falling knife! Bitcoin's value will drop to almost zero. When the famous tulip mania of the 1600s ended, the losers at least had their tulips.
A Bitcoin that adds value that has taken months, or even years, will run out within hours. Bitcoin will become a phenomenon in the history of mass speculation that would constitute the ultimate mass grief.
Devil's Advocate
What if this is just a ploy to bring everyone into a cashless society? This could be one of the possibilities. The BRICS 'fight against cryptocurrencies can be a sophisticated scheme to drive the global resistance movement into the next program of enslavement the Vatican and the Bilderbergers are doing for us.
If this is what is actually happening, the next question must be: is it acceptable for our children to remain at the mercy of these pedophiles and psychopaths?
Regardless of how we look at it, it is indeed a dangerous path for any country to allow its people to invest in the highly volatile Deep State cryptocurrency market. Uncontrolled capital flight is something every country must defend against. The value of cryptocurrencies fell in half in less than three months when it hit a whopping $ 20,000 per coin. But it remains volatile, and the price of bitcoin reacted quickly this week to warnings from the US Securities and Exchange about registration or litigation - up to $ 9,520.
Meanwhile, the price has dropped further, from nearly $ 20,000 initially to less than $ 6,500 now, punishing enthusiastic investors severely.
Any currency, for that matter, should never be subject to speculative maneuvers. It is a tool for exchanging goods and services, not the product itself.
The fact that dollar fiat and Bitcoin etc. behave in the same way is sufficiently proven that both systems are operated by the same banks, and literally and figuratively, only two sides of the same coin.
At the very least, Bitcoin now serves as a safe haven for those looking to get away from the paper dollar system that is about to collapse and die, and as a result, the cryptocurrency itself has become the actual currency. Its real value has been diluted in the same way as and leftover paper gold, and it won't be available for the foreseeable future.
Logically, there is no logic of thinking. The entire financial system was outdated. Someday we will all look back at this period and see the absurdity and tragedy of all this.
Humanity stands at a crossroads, and the path that humanity chooses can have a greater impact on our freedom and prosperity than any event in history. In 2008, the newly introduced blockchain technology is important because its fate and the fate of humanity are inextricably linked. It is so powerful that, if usurped and controlled, it can enslave all of humanity.
There is a reason why China, Russia and South Korea are going to shut down bitcoin operations on their territory. It was a CIA project from the beginning. This explains why there is no transparency as to who actually created it, and the pending closure is now dropping the market value of bitcoin by up to 40%.
Natalya Kasperskaya, known for her leading role in the founding of Kaspersky Lab, presented some interesting statements about Bitcoin at a university in St. Petersburg.
She noted with satisfaction that Bitcoin was designed to provide funding for US and UK intelligence activities around the world. The expert called the cryptocurrency "dollar 2.0".
Bitcoin's cryptocurrency was developed by "American Intelligence Agencies," Natalya Kasperskaya, CEO of InfoWatch Group of Companies and a cybersecurity specialist, said during a presentation at ITMO University in St. Petersburg.
She also claimed that Satoshi Nakamoto (a pseudonym used by Bitcoin's founder) is the name of a group of American cryptographers.
The Deep State has no choice but to continue using the same scheme to attract ambitious investors in their teaser for Bitcoin's ability to hit $ 20,000 apiece by 2022, only to eventually bring it down, so the cycle could start again. Of course, the real economy has nothing to do with this.
The public is fed with lies
Renowned Carnegie Mellon University gentleman Vivek Wadha explains why he thinks Bitcoin is the largest Ponzi scheme in human history. Most people don't understand Bitcoin, many people seem to be in it, creating unimaginable fortunes, and many others are voicing the Ponzi alarm.
The story goes that we cannot trust the currency issued by the government and therefore Bitcoin is the future of money. On the other hand, if the price of Bitcoin continues to rise, doesn't that make it the ultimate investment? Some investors even called it the new gold.
“The thing is, the rising price is based on pure guesswork, and the stories about it are growing, and this is causing speculation,” says Wadha.
“But the market price of Bitcoin will almost certainly crash and burn at some point, just like the dot-com, and for the same reason: because it's all hype. And there will be no one to turn to when this happens, because neither the government nor the bank supports him; and the people who hype Bitcoin will get the money and leave,”he says.
It's not hard to understand his argument. The price doesn't go up because bitcoin goes up in value - it goes up because people hear stories of how investors have doubled or tripled their money in a short period and they want to do the same.
Wadha says that many ordinary people take out loans to buy bitcoins.
What happens when bitcoin goes below production cost?
In all economic systems where the law of supply and demand operates, it is quite possible that goods will fall below the cost of production. This happens with all products and is completely normal. When the price of a product falls below its cost, producers, miners, producers simply stop until the price recovers.
Bitcoin dropped more than 20 percent in the past week due to the discovery that it is a scam. Nouriel Roubini; Says bitcoin is "much worse" than tulip mania.
“Weak hands definitely want to sell. If Mt. Gox could dump 400 million bitcoins just like this and there are still billions left, fear is when the big drop comes."
Worse, a fatal flaw in Bitcoin mining that not many have pointed out yet. The blockade math requires people to mine bitcoin. When people stop mining, the value drops, and when the price drops below your cost of production, your bitcoin value drops.
By the way, more than 600 cryptocurrencies have already died.
But here's the really scary part of the bitcoin saga
Bitcoin EVEN is more tied to the existing financial market than most people realize.
They recently launched bitcoin futures. This means that Bitcoin has a direct link to enter the global derivatives market. This is a market that is well above the ridiculous $ 1.2 trillion. The derivatives market is much larger than the global market for stocks, bonds and gold.
In fact, the global derivatives market is in dollar terms, which is estimated at twenty times the GDP of planet Earth. So, when Bitcoin crashes up to $ 200, it will only be a matter of time before the damage hits the derivatives market, ending the total financial chaos.