Inciting Fear: Bitcoin Is A Fraud

in #bitcoin3 years ago


BitcoinFraudAs the cash system continues breaking apart, bitcoin gets more attention.

Banks Hate Bitcoin, Blockchain and Disruptive Money


As bitcoin gains more and more attention, central banks and governments start to panic. Bitcoin is disruptive in that it will revolutionize the way we trade and finance. This would push fees to miners and those invested in bitcoin and banks want to control all the fees.

"Bitcoin is a fraud, and will blow up."
- Jamie Dimon, CEO of JPMorgan & Chase (A source)

China, the U.S. and at least 4 other countries are either banning ICO's or implementing strict regulations that make it very expensive to operate (Source).

Scare Tactics

It is interesting that the scared are trying to incite fear on the masses regarding bitcoin and cryptocurrencies. Some regulation is good, necessary even. But to try and control the blockchain is a bit naive. Problem is, so are a lot of people, who just follow the masses. Massive buys, massive sells, massive investments into new coins. Most often this is referred to as FUD (Fear, Uncertainty, Doubt) and FOMO (Fear of Missing Out).

HODL Your Ground

Fiat is still the primary means of finance in every country. Don't go all in on bitcoin until you can pay your mortgage and other bills with it. I do recommend, however, investing in cryptocurrency and just holding it. Don't sell with the masses. Educate yourself before buying into the next new thing. Start with bitcoin, ethereum, steem.

Do you really think the governments and banks aren't buying their share?

Look at Wall Street. When markets take a nose dive, they recover and make insiders a mini-fortune. Bitcoin is looking pretty bearish right now...

Look at 2011, when bitcoin broke $1k USD for the first time and made millionaires overnight. Yes, it dropped again, but it continues to rise each year. It is deflationary.

Bitcoin Trade

Deflationary example:

If I have 1 pie and 6 people want a slice... no problem. Cost is fair.
If I have 1 pie and 60 people want a slice... that's a lot of slices and it will cost you.

Supply and Demand example:

60 people have 6 bitcoin, 600 more want it. Lower supply, higher demand = higher price. (Bull Market) 600 people have 60 bitcoin, 6 people want it. Greater supply, lower demand = lower price. (Bear Market)

Summary

Don't let fear-mongers make your decisions for you. Educate yourself. If everyone was jumping off a bridge... Same concept.

Be sensible. Don't dump your life-savings into blockchain, but don't sell all your cryptocurrencies at a massive loss, just cause everyone else is.

Consider the motivation a major bank or government may have for scaring you away from using a disruptive technology. What happened to all those crypto-funds from BTC-e or Mt. Gox? Is someone storing up whale shares? Ask questions.


@tunnelrat is not a financial adviser, just someone who likes to research and ask questions. The views expressed in this post are my opinion.

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Crypto currency trading is more volatile than the forex market, the feds wall street brokers and the government can't stop it, it's a new dawn

That's true, they will still try though.

They can only try to crash down the price a bit but the revolution his here the financial system as we knw it will no longer be the same

It's getting there, one painful step at a time.

For beginners i would also say, dont just buy a currency as soon as you have an account but wait for the dip (like the one we have now). As it will always come down and i would hate for a beginner to buy at the highs and never see them back again.

Good point. Buy in low and fight the fear bug. Prices today are the lowest in a couple of months with China adding more regulations on exchanges and BTCC announcing it will suspend trading on the 30th of this month. Good time to buy. Thanks for bringing that up, @attalis.

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