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I'm Worried About BTC Investors: A Warning, Complete with Court Scandal
You guys know I like to beat BTC up, but today I'm actually worried about all the BTC investors instead.
Let me tell you why...
You see, first of all, they are all our brothers in arms. Most of them believe in a better world and a better system, powered by decentralization and crypto - an Economic Paradigm with PROGRAMMABLE Money.
They just don't know better than BTC and are mostly uneducated, or blind with greed.
This, however, is no reason to forget we are all in the same side.
If you're a BTC investor and you're reading this, then let this be a warning to you that you're on the wrong side, and I'm going to tell you why this is a fact, complete with the story of how BTC manipulates price, is guaranteed to implode and a document - the court scandal document - to prove my theory right.
One of the first things you have to understand is the pricing mechanism behind BTC.
The formula is as follows:
d($BTC)/dt = (B(t) – S(t)) – R(t).$BTC
R is the rate of rewards for BTC Miners. S is the Selling Flow, B is the Buying flow.
Not going into too much detail here, but what this formula tells us is that to make sure the price doesn't explode we need to have balance in the B and S part of the equation, otherwise, the rise in B will be exponential, the money needed to inflow will be growing massively and uncontrollably and therefore BTC implodes after some time.
However, this wouldn't happen if BTC wasn't working... or not working... the way it currently is.
Let me add another variable into the mix.
We all know that BTC mining has costs, the same happens for every proof of work token.
For BTC, there is an ever-increasing pressure to add more and more power into the mix until costs are nearly balanced with mining rewards.
The formula for that is:
Mining Costs = Mining Rewards * $BTC = Roughly $70 million / day
This shows how numbers can easily get out of hand when:
Price is Constantly Artificially Pumped;
There's no Use for the Token Other Than Selling for Money or Other Tokens
The constant selling pressure gets manipulated to avoid price dips and therefore prevent the market from finding lower equilibrium points and balancing itself.
Miners Go Up in Debt to Compete or Spend to Upgrade and Outscale... But the Market doesn't reset due to price manipulation, and doesn't get balanced, so expenses add up until one day there's no more room for growth and when miners search for liquidity, they grasp for resources only to find out their expenses outweigh BTC's natural price for lots - only a few get to sell their bags, and BTC crashes to the low teens.
And here comes the part in which Price Manipulation comes to play, rest assured, I'll explain it in an easy-to-grasp way.
Price manipulation is being done because the price is the only thing keeping BTC afloat - and because the agents promoting said manipulation are now "in too deep" to stop.
Remember, Miners are getting increasingly big rewards, now in the $70 million per day, and these miners have been balancing their costs with their income (BTC rewards dividing by machines, so every miner wants to have more machines, leading to many more machines from all sides - leading to bigger expenses to compete).
This is why miners dump nearly everything they make to cover costs and take profit.
If you understand markets, then you understand this causes MASSIVE SELLING PRESSURE.
Unfortunately for BTC, the token has no use besides selling it for the money you can transfer with, the money you can use, such as altcoins or FIAT.
But, when there is bad news like exchanges closing down, institutions or whales selling out or miners dropping huge bags... the price doesn't go down... it even increases most of the time.
Is this faith?
Nope, it is the artificial increase of price I speculated about in my last posts on USDT and its promiscuity with BTC.
Don't believe me?
Well then, I have the proof right here for you in the form of a Court Document I found posted today by Jacob King.