Mike Adams Natural News April 10, 2013
There’s a bigger agenda happening with bitcoin that needs to be publicly stated, and this goes far beyond the issue of the financial harm that will be caused when the bitcoin bubble finally implodes.
Central banks hate bitcoin. They hate it because it doesn’t allow them to loot bank accounts (Cyprus) and control the movement of capital around the globe. Bitcoin, in fact, threatens the very foundation of monetary control that underlies all the corrupt governments of the world. As such, bitcoin is a huge threat to the status quo, making it an obvious target for the globalists to attempt to destroy.
Discrediting bitcoin isn’t enough, however. To really be effective, they need to make bitcoin illegal.
The plot to criminalize bitcoin
How do you criminalize bitcoin? The same way you get guns banned: Plan an attack, make sure lots of people get hurt, roll out all the victims in front of the cameras, then use the sob stories as moral justification to crack down with oppressive new laws.
This is the agenda being planned right now with bitcoin. The recipe works like this:
- A d v e r t i s e m e n t
Step 1) Central banks buy up massive quantities of bitcoin currency, driving the prices into the stratosphere and encouraging millions of people around the world to jump on board the “get rich” bandwagon.
Step 2) Once bitcoin valuations reach a sufficient level of insanity, start a massive selloff by dumping the bitcoins you already bought onto the market, offering them for sale at any price (i.e. sell into falling prices, accelerating the loss in valuations).
Step 3) Watch panic take hold as the bitcoin crash accelerates, ending in a catastrophic wipeout of “valuation” of all bitcoins.
Step 4) Find “victims” of the bitcoin crash who can tell a good sob story for the mainstream media about how they invested little Johnny’s college money in bitcoin and lost it all. Roll them out on CNN and MSNBC where they cry on camera and talk about how they were ripped off by bitcoin and now they only trust the government from now on.
Step 5) Demonize bitcoin by characterizing it as a “libertarian pyramid scheme.” Lash out against both decentralized currencies and libertarians.
Step 6) Once the demonization gains traction, have traitors in the U.S. Congress announce a “Consumer Currency Protection Act” that outlaws non-central bank currencies such as bitcoin. It’s all “for your safety,” of course. Shut down all online bitcoin wallets and exchanges, calling them “criminal pyramid schemes” and arrest a few people using bitcoin to send a warning message to the rest.
Mission accomplished! You’ve now made bitcoin look like a “pyramid scheme,” you’ve scared the public into being wary of “anti-government currencies,” and you’ve criminalized their use by consumers.
That’s the goal the central banks are trying to achieve right now. It’s all be set in motion by the bitcoin bubble which will inevitably lead to a bitcoin crash.
Bitcoin is being manipulated as a pawn in the globalist scheme to destroy freedom
The bitcoin bubble is to currency freedom as the Sandy Hook shooting was to firearms freedom. In both cases, governments will use a crisis to destroy freedom while claiming to be “saving” the people.
The government WANTS bitcoin to be a disaster, and the mainstream media, which has so far refused to give bitcoin much attention, will leap all over the story like vultures once it crashes.
For the record, I’m a proponent of bitcoin and I want it to succeed in the long run, but the mania speculation happening with bitcoin right now is going to be disastrous for its reputation. It is the worst thing that could happen to bitcoin.
What we would prefer to see is a slow, steady rise that reflects stability with low volatility. Instead, we see extremely high volatility, wild price ranges, desperate purchasing patterns and even purchase queues at some exchanges where the demand for bitcoins is so high that it exceeds the limits of the services (such as Coinbase, where you now have to stand in line to buy bitcoins two days later at whatever “market” prices are offered that day).
Why the bitcoin craze is the modern-day equivalent of tulip bulb mania
Bitcoin has become a casino. It is almost a perfect reflection of the tulip bulb mania of 1637 in these two ways: 1) Most people buying bitcoins have no use for bitcoins (just like tulip bulbs), and 2) The rapid increase in bitcoin valuations cannot be substantiated in any way that reflects reality.
In other words, there is no fundamental reason why bitcoins should be 2000% more valuable today than four months ago. Nothing has changed other than the craze / mania of people buying in.
Mark my words: A bitcoin crash will occur, and a lot of people are going to be financially hurt by it. More and more, this bitcoin craze is looking like a “pump and dump” operation, where the only winners are those who are the first to sell.
When bitcoins were in the sub-$20 range, I was not concerned about any of this. I actually encouraged people to buy bitcoins and support the bitcoin movement. But alarm bells went off in my mind when it skyrocketed past $150 and headed to $200+ virtually overnight. These are not the signs of rational markets. These are warning signs of bad things yet to occur.
By the way, the simple way to prove to yourself that everything I’m saying here is true is to ask yourself this simple question: What do the people who are buying bitcoins plan to spend them on?
The answer is NOTHING! They don’t plan to spend bitcoins on anything. They have no use for bitcoins. Their only play (for 90+% of those buying them) is to buy low and sell high. That’s it! For them, bitcoin is nothing more than a speculative vehicle for gambling with some of their money.
Every speculative bubble market that goes up must come down. And it will usually come down at a multiple of the speed at which it went up.
The velocity of bitcoins is a huge red alert
Now, if most bitcoin buyers were actually using the currency on a day-to-day basis, purchasing things online, sending bitcoins to pay off debts, exchanging bitcoins for services, etc., then that would be different. The circulation of a currency is classically known as its velocity. The higher the velocity, the more frequently the currency is being routinely used for transactions.
But the velocity of bitcoins after the initial purchase is shockingly low. What this indicates is that people are buying lots of bitcoins but then sitting on them. Once bitcoins are purchased, in other words, they basically just sit around and aren’t used for any practical purpose.
Amazon.com, for example, doesn’t accept bitcoins. You can’t buy gas for your truck with bitcoins. You can’t shop with bitcoins at the local grocery store. Until bitcoins are more widely accepted and the velocity rises, there is no fundamental reason why their value should suddenly skyrocket.
Of course, those who are deep into bitcoins right now will call me a doom and gloomer. Sure, it’s okay for them to talk about how the dollar is going to crash, or how the Fed is a criminal operation, but the minute I start invoking mathematical reality with bitcoins, suddenly I become the bad guy.
Well, my answer to the critics is that I have more faith in the laws of mathematics than the self-deluded logic of people who own millions of dollars worth of bitcoins and who therefore have a strong self-interest in promoting the bitcoin mania.
They are blinded by their own positions in bitcoins and cannot see through the fog of self delusion. In contrast to that, I own only two bitcoins worth approximately $400 or so, meaning that I have no substantial position in bitcoins to speak of. Whether bitcoins go up or down does not impact me in any meaningful way. My sole motivation in writing this is to warn others away from the extreme risks that are now clearly associated with buying bitcoins at present-day prices.