Wealth Articles


Jul 6, 2018 | Wealth Articles

I’ve been hearing a lot about BTC price manipulation in the last few weeks. 

In my circles, which include many venture capital funds, they have all missed out on some epic gains.

Put yourself in the shoes of a venture capitalist who has just seen an entire industry rise from the ashes in a major technological revolution, and they allowed rules and regulations (the government) to block them from making obscene profits for themselves and their clients.

What else is left for a person who has not caught the vision and beauty of decentralization? They blame it on manipulation.

In 2017, Bitcoin gained over 1,300%. This is abnormal, to say the least, but I don’t see anyone pointing fingers now that it is down 70% from its peak.

People, more specifically investors, have short-term memory, but let me remind you of the known facts. Had you bought BTC at the absolute top for the previous so-called bubbles it went through, you’d most likely be a millionaire.

In 2011, Bitcoin fell an enormous 94.5%, from $32 to $2. Then a mere two years later, in 2013, Bitcoin was slashed from $230 to $70, a 70% drop, yet those who bought for $32 and hung on would have doubled their money.

Let me repeat that: had you bought at $32 and held on until the bottom at $2, then held all the way to $230 and saw BTC plummet to $70, you’d still be up over 100%. 

That is the definition of a bull market: sitting tight and being right.

In 2014, Bitcoin, which thought it saw all of its challenges in the rearview mirror, nosedived 85% from $1,200 to $173. This year, the entire world was stunned by the 70% cliff jump again.

The latest theory pins this on Tether, the fixed-value coin that is said to be backed by USD for every coin outstanding.

I’ve never seen proof of Tether’s reserves, nor do I care to know if it is real or not. One of the reasons I love cryptocurrencies and blockchain technology is because there is no room for tainting the waters with human intervention. 

I want complete trust, and this can only be achieved with no greed involved and no corruption on the part of anyone’s lust for profit. The trustless system only works if there are programmed codes in place to disallow bad actors from executing their will.

Tether is the new whipping boy for those who believe Bitcoin is a fraudulent bubble that popped. They say that Tether’s liquidity was the backdrop for the funds that fueled the rally to $20,000 per coin.

I find all arguments claiming there is manipulation with any market preposterous.

They are a waste of your time because uncovering manipulation in a financial market is like running a breaking news story about the sun rising every day – it’s a given.

Every second, hour, day, week, month, year, decade, and century buyers and sellers meet virtually to exchange assets.

Buyers and sellers give a value to an asset by reasoning how much it is worth. The information they are fed could be inaccurate, speculative, opinionated, based on emotional whims, special interest groups, and Wall Street power brokers. 

Let us not forget that Bitcoin topped the very same day as the futures exchange went live.

It’s extremely critical to bear in mind the difference between a fraudulent bubble, such as Enron or MF Global, and an inherently volatile asset, such as cryptocurrency.

One is destined to go to zero because it sits in shifting sands, while the other is strong as an ox.

Gold has been knowingly manipulated on the COMEX and futures markets for years. Major banks have been involved and confessed to the scheme: HSBC, Barclays, JP Morgan Chase, and others. People have been arrested and courts have passed judgements, yet there are still many allegations.

The point is that whether legally or illegally, there are powerful players who want to influence your thoughts at any given time.

Don’t listen to words – look at deeds. One of the best investment tools I use is insider filings and billionaire filings. I basically track what companies are seeing plenty of CEO share acquisitions, since he has the best idea of where his company is headed. Billionaires with a long track record of success offer the same leverage as well. By knowing that you are not the only one who sees value in something, you increase the chance that you’re right.

Smart money doesn’t pile into crowded markets, so if you notice a billionaire investor, they must be a contrarian by definition. It’s worth knowing where he is allocating his funds.

Many Wall Street firms are entering crypto for the first time. This isn’t a bubble popping, but rather a breather, and a well-deserved one.

The future is bright – don’t listen to naysayers or proponents of conspiracy theories. Decentralization will change finance in the most fundamental way, and we’re at ground zero.

Best Regards,

Brad Robbins
President, PureBlockchainWealth.com

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