I don’t know whether I have been uncannily prescient at predicting where the cryptocurrency market is going… or if I am causing all of the things I am predicting.
It’s a serious question. It seems that when I say I expect a cryptocurrency to go higher it immediately spikes massively higher right after.
And, yesterday, I said that a pullback in bitcoin and the altcoins was not only to be expected but was a healthy thing after such a massive run-up.
And then, today, bitcoin and the altcoins all pulled back for the first time in weeks.
Only bitcoin and Ethereum Classic avoided the bloodbath… and even bitcoin had a major selloff of its own in the last 12 hours, as it rose to nearly $2,800 and then sold off to below $2,400 before recovering somewhat.
Many are calling this a crash… and it was, bitcoin has crashed all the way back to where it was about 18 hours ago.
This is a much, much needed breather for both bitcoin and the altcoins which I pointed out had begun to become “loco” yesterday.
And this breather gives us an opportunity to respond to critiques and concerns about bitcoin.
The latest came from Mike Adams of www.healthrangerreport.com who put out this video yesterday with the title, “BITCOIN WARNING: When you want out, you won't be able to sell”:
I like a lot of Mike’s health stuff and am speaking at the same conference as him at G. Edward Griffin’s upcoming Red Pill Expo next month in Montana.
Mike is known as the Health Ranger, and dishes out a lot of truth about health… but why he decided to weigh in on bitcoin, which is clearly out of his area of expertise, is beyond me.
In the video, he had three warnings about bitcoin, so let’s go through them.
#1 BIG SELLS CAN CAUSE THE PRICE TO CHANGE
Mike mentions how a drop on the Bitfinex exchange happened when someone sold 2 million dollars worth of bitcoin or 1000 bitcoins and the price dropped $80 per bitcoin on that exchange.
And, uh, yes, this is what happens when people sell large amounts of ANYTHING in a very short amount of time. If you sell a massive amount of US dollars, or Apple stock or, well, just about anything… you will cause the price of it to go down briefly as the market corrects and bids are hit.
Why he is warning people about this in bitcoin is anyone’s guess. My guess is that he should stick to talking about health stuff since he is clearly new to how markets work.
#2 THE BANKS CAN SELL A LOT OF BITCOIN TO DISCREDIT BITCOIN
Here Mike says that if someone sold 10,000 bitcoin at one time the price could tank a few hundred dollars. And he says that central banks could buy up and sit on bitcoin, because they can print unlimited fiat to buy and strategically plan a massive sell-off to discredit bitcoin/cryptocurrency.
And, again, that is what central banks do in EVERY market. They and their Wall Street friends often buy up the stock market and then crash it almost every seven years (Shemitah!). And they do the same with currencies, commodities, real estate and nearly everything else.
So, why make a point of warning people about bitcoin?
Mike is right, the central banks can print up as much money as they want and buy up anything they want. And they could do this with bitcoin. If they do want to do it, however, they haven’t done it yet.
Bitcoin is still only about 1/6th the size of Apple. It’s still tiny. If the central banks wanted to print up hundreds of billions of dollars to buy bitcoin we’d see the price of bitcoin very quickly skyrocket above $20,000/coin.
During that process nearly everyone in the world would be talking about bitcoin, learning about it and trying to buy it… and this would cause the price to go even higher… which would cause even more people to get excited about it.
At that point bitcoin would be so well-known, owned and used by people worldwide, it may already displace the US dollar as the main currency used in the world. And, it’d make thousands of anarcho-capitalists super wealthy.
And if the banks, after doing all that, decided to sell all their bitcoin, all at once, to cause an unprecedented crash, all it would do is give those who missed buying the first time a second chance to buy.
In other words, the banks buying large amounts of bitcoin and selling large amounts would only serve to increase the awareness of bitcoin, make a lot of libertarians incredibly rich, and then offer people a second chance to buy it if they missed it the first time.
#3 TRANSACTIONS ARE BECOMING EXPENSIVE AND SLOW
Mike then points out the blatantly obvious… that bitcoin has already become so popular that it is outgrowing its current infrastructure. Because of that, transaction fees have increased and transaction times have slowed.
This is already known by most and is an issue caused by the popularity of bitcoin but, is also in the process of being fixed.
SUMMARY
So, to summarize, Mike is warning people about bitcoin because it is a market like any other market in which someone can move the price by selling or buying large amounts at once; the central banks can buy and sell large amounts of it just like they do with everything else; and bitcoin is becoming so popular that it needs to upgrade its software to keep up with demand.
Thanks Mike for stating the obvious and trying to make an anthill sound like a mountain of problems for bitcoin. I suggest sticking to the health stuff.
You don’t see me here, at The Dollar Vigilante, warning people about which vitamins they are taking… That’s not my area of expertise. I leave that to guys like you… and perhaps you should leave bitcoin to guys like me.
For anyone who wants to learn about bitcoin and be eligible to receive their first $50 in bitcoin directly from me, check out this free 4-video tutorial here.
Aside from that, I’ll be seeing Mike where we’ll both be speaking at The Red Pill Expo next month.
Maybe I can speak about the importance of amino acids while Mike can talk about how central banking is a scheme set-up to impoverish the masses and we can both waste everyone’s time talking about things we know nothing about.
Things move up and down, i think its perfectly normal. I'll be looking to buy more BTC.
Something else you should consider getting your hands on is old fashioned Pocket Change... Read some of my Posts to find out why...
@pocketechange
Great work! What's driving me crazy is the transfer waiting time with Btc and Ethereum. I'm trying to exchange bitcoin high for Ethereum while it was lower and Bitcoin drops hundreds of dollars (CAD) while I'm waiting, all while Ethereum goes up. This needs to be fixed so people can properly buy, sell and exchange.
Anyways, looking forward to seeing you at the RPE! :)
What exchanges are you on? I'm considering doing some analysis of various exchange things to look out for.
Excellent write up @dollarvigilante!
It must be one of my very favourite of yours on this platform so far. Thanks a bunch! It was highly educational and well written. Much gratitude for it all.
Namaste :)
Interesting as always...
Great post as always!
Great article, Jeff. Now how about you sending me the refund on the TDV Immigration Paraguay passport program? I've been trying to get a refund for months, since your company disappeared with my money and became non-responsive. Here's my story: https://steemit.com/jeff/@rich-meister/jeff-berwick-and-tdv-immigration-passport-scam-my-story
You might feel like Mike "... dishes out a lot of truth about health… " but I think he's a kook.
I expect a very large price drop in BTC and altcoins in the near future. Even though in the long term the future is promising for the cryptocurrencies.
Agree with you Jeff, correction is needed for the great future of bitcoin. Best time to buy ofc
Hello @ dollarvigilante,
I look at buying cryptocurrency as voting to change the system. This is the largest political event I have ever voted in by using my dollars to vote. We say we want to see freedom from the ongoing corruption that we have been experiencing for so many years. This is the way to vote to end the banking corruption.
Best,
Isaac
just keep sitting on it, or buy on a dip!
I watched Mike's video. I agree with you Jeff.
It's strange when you lose money and feel good about it. That was this correction for me. Feeling a bit more like a normal market now :)
I remember when Bitcoin was at $600 and people said it could not go higher. Am I wrong in thinking that regardless of what is going on, we should park some money into Bitcoin and just leave it...no matter what is going on with the market?
that's my strategy, just buy and don't sell to much, it will skyrocket i think, this is just the beginning
I just don't want to be that person who sells and then it hits some insane price. I like your plan!
I think that is the way to go, we are buying it for the same reason people diversify into metals
I agree with this
Great article Jeff, and even today Mike Adams released another video talking about bitcoin....
I respect Mike Adams a lot in the natural medicine area.... but in the cryptocurrency, Jeff you are the expert.... Today I bought more BTC by the way.....
I have followed Mike Adam for years.
His mathematical skills to formulate are amazing.
Speculative equation/ unavailable exchanges during a crash makes sense to me.
"Greed Markets"
Thanks for the video @agusstin
Check my profile picture in twitter... https://twitter.com/agusstinph
Let's try to get Mike Adams on SteemIt ... I think Jeff and Mike both have about equally valid points. I have had no issues with coinbase, but I was smart and verified and tested everything and monitor it. I also prefer wallets I control and spreading my crypto out and timing it.
no twitter account, only STEEMIT !
🍁 I just did a new post 🍁
Add a new entry daily to the draw 😜
Got to say I do like most of the health ranger stuff that comes out and it is very informative.
You are correct though about this, he was kind of stating the obvious with many of his points.
He clearly cares about people and his subscribers and only wants the best for them so I think that he feels like he needs to make some kind of warning for them and honestly I appreciate his intentions even if misguided.
Jeff, lets not get too im the expert on this and you are the expert on that so lets both stick to our own sides. Lets try and educate everybody on these issues. Maybe get him on your show and have a discussion about it. We all have to help each other here and build community which I know that you are trying to do through all your work.
We all have strength in numbers here so lets make our community even bigger, better and stronger.
yesss!
I like your common sense analysis of the bitcoin situation and the crypto world in general!
According to ZeroHedge, Bitcoin is even trading above 4k usd on some Asian exchanges, which is exciting!!!
You know so much!!!! You are a money making machine or maybe a money making blockchain :)
Hi Jeff,
Don't be too harsh on the guy, we all adventure in waters that we are unfamiliar with from time to time, and if we woudn't do that we would loose the spirit. Unless we try new things we do not evolve.
No one is born an expert, we all learn, I do that everyday, more and more lately.
Thanks Jeff, I love all the up-to-date info. Any time something big hits I can't wait to see what you have to say about it. I appreciate all your hard work the world is a better place for it.
Thank you for this work ! People should choose Bitcoin and not the fiat cashless elite money!
Agreed. However, what if the plan all along has been to trick the people into accepting/using cryptos and subsequently ditching dollars. And then pull the ole bait and switch and lock us into the one world currency. Great explanation here:
This is a very dynamic conversation but you'll have to get past the criticism of Steemit at the beginning. Grid your loins and get past it, maybe start at 8:00 minutes more or less. Truth regarding cryptos and PMs and where we stand on this spinning bullet of a planet is worth considering.
Competition in banking & money, is like the final frontier. Inflation hyper is here, everywhere - devaluation is here. The DAOs Decentralized Autonomous Organizations are not Robot Rockies, they won't be dominating, they will have to learn to compete in a sportsmanlike manner.
Love not the world. Feel empathy for humanity. Ronald Bernard video. Great Interview.
Hmmm... maybe that's why LTC is so cheap!
The great thing about fire is that you can move where it gets put. This powerful tech can either be conquered by us or them. Horse has left the gate, blockchain is here. Either we would have to break the blockchain or keep improving it in our favor, or maybe both (break theirs and improve ours.)
nice....upvote and resteem for your post...
Jeff thank you for your post we love the info
What a chode swallower. Talking right out of his ass.
like the way you cover the updates on crypto
The blockchain has established a beachhead as a disruptive technology. In a world of manipulated assets, it's only natural for Mike to ask that question are we seeing price discovery or more of the same. I am pleased though that Steem has a natural buffer with the 3 month cycle for powering down.
well said jeff. i agree 100 percent. one of my friends sent me his misguided article yesterday and i immediately saw he does not know what he is talking about. like the part where he says you can't get your bitcoin to cash, nonsense, i can get it to cash in seconds with bitpay visa card and you don't need a crazy friend to sell you his gold for your bitcoin you can buy it form jmboulion or amagi metals. health ranger needs to stick to health.
Just like you said with Steem before it went up to 4$ eh? :)
as well as
A healthy pull back.
Agreed!
Thank you. Listening to you is how I found Sttemit. Happy Bitcoin is taking a breather - it appears to have been on steroids. :)
Thanks Jeff. I read Mike's stuff too and he's usually spot on in the health arena. Bitcoin definitely ran up and was due for some kind of pull back. But I'd hardly call it a crash.
Great post! Thank you.
ha ha ha ha good stuff. been a follower of your work for a few years now Jeff. I am never disappointed
BWAHAHAHAHA tomorrow's head line #Bitcoin drops by 20%? Then #MSM will call it a #Bubble...them over paid halfwits don't even know what a "Bubble" is...Do you know what an "Economic Bubble" Involves?Most of us here do (and most of us still only equates to less than 10% of the Global populous...if less than 10% of the World's population can effect such a swift to the paradigm within the Corporate Establishment's Financial "services" industry, wouldn't that mean that "we" have a lot of influence?
Big fan of yours @Jeff, just wished that I had found out about you guys and this "alternate world" Passive income 5 years ago.
Followed, Up voted and Re-#Steem-ed.
"Follow me and I'll follow you, let's get together and grow as a community of passive income earners."
Nice work Jeff, keep up the great work you do!
I would love to go to the red pill expo... perhaps I'll get to see you there.
very nice video !!!
Hello world should I use etheruim or bitcoin? Wish is more stable? Thanks for the help world
both are stable and you'd be ok if you got some of each, but if it has to be one or the other i would say bitcoin.
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Fully agree with your points :)
is also in the process of being fixed.
We will see.
Jeff, Your excellent analysis and response reminds of the danger of becoming "jack of all trades and master of none" if one is not careful.
#dollarvigilante
Thank you again Mr Berwick for your insightful wisdom. I recently downloaded your four videos,I hope to put them to good use.
Major lolz. I have transaction that is taking a long time to be confirmed. It appears that you have to increase the transaction fee on the transaction to increase the priority. The big boys, JP Morgan et al, can do a DDOS on bitcoin by simply bidding up the transaction fee so only their transactions complete. You only know they have the deep pockets to do it.
"What goes up, must go down" - this rule applies to crypto currencies as to other asset classes.
http://www.naturalnews.com/2017-05-26-bitcoin-moves-into-pump-and-dump-phase-as-heavy-bitcoin-holders-push-mania.html
Feom the sound of Mikes tone, id say not even Mike believes whst hes saying. Probably handed a script.