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.
Understanding Why I'm Worried: We Are All Brothers in Arms
BTC is an on-ramp to more serious crypto dealings and the uninformed start there.
It is also full of blatant propaganda to brainwash people into becoming BTC Maxis.
Fortunately for everyone, people are waking up, but there are still a lot of well-meaning crypto believers in the "Maxi Pods".
We need to wake them up before it is too late.
Why?
Because BTC is approaching its expiry date, and if you want to learn why - read below.
Understanding BTC's Pricing Mechanism: Guaranteed Implosion, No Value, Constant Selling Pressure
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.
Understanding BTC's Price Manipulation: The Artificial Pumps
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.
Why?
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.
The Court Scandal: Take a Look At These Documents
So, today I discovered a Court Document posted by Jacob King in which we can read the following:
To give you some context, the date on which this conversation between top Bitfinex and Tether executives was taken place was in 2018 when BTC was at $6k.
This means that even then they knew the "natural" price of BTC, the organic value the market would balance the token at, was way below the current price of 6K.
So, this is now a fact and not just only speculation, and if you want to check the source, here is the FULL DOCUMENT: https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=vIexA1b0spKOnK_PLUS_ZUGTJ3A==&system=prod
The worst thing?
Nobody cares as long as the price goes up... but when Tether needs to print in the trillions to keep the price up - maybe they will.
And this is why I'm worried about our friends at BTC... they are seeing all of this, and that most of these problems come from the fact that:
A) They don't let the market act organically
B) They don't have a token with real use-cases
...but they still don't care as the price is going up.
If you're reading this and you hold BTC, you should probably trade your BTC to a token with real use-cases, and that prices itself organically... like BCH.
Of course, you can always ride the wave higher, but be sure to do the switch while you can.
Finally, know that this is just my opinion... I know nothing!
Cheers
A-Coin, @CryptoBabe , Scott Cunningham- Thank you!
Yes exactly Future of BCH is bright .