Does Bitcoin Have Its Own Plunge Protection Team? – July 23, 2021
So some findings have come to the attention of quite a few, since I don’t have the expertise to explain what’s going on and the article of origin hasn’t been published yet, I’ll let the experts reveal the discovery. But wouldn’t it be interesting if it came to everyone’s attention that Bitcoin had a plunge protection team?
The crypto markets are setup to facilitate a plunge protection team or barrier to entry, and it’s to the benefit of the hoarders that Bitcoin does have a plunge protection team to protect the U.S dollar price from crashing. This does however put Bitcoins’ true value into question if a plunge protection team exists.
The fiat plunge protection team prevents the U.S stock market from DEFLATION which could have a devastating effect on asset prices if it were to occur. If asset prices crash, lending tightens, I’m personally of the belief that a lot of Bitcoins value is derived from the expectation that asset prices will continue to ascend.
Where this becomes problematic, is when asset price appreciation is constrained by labor/wage growth. I personally don’t tie Bitcoins value to labor, for me Bitcoins value is tied purely to speculation, the bitcoin ledger is merely an improvement to the Federal Reserves Ledger, but who’s to say that in a world devoid of central and retail banks that any price should be determined by digital currency?
Wage/commission growth is of course the most important price to an economy because once the currency is decoupled from the cost of labour the market will have a hard time finding value, especially when governments are dependent on private-sector labor growth to SERVICE their existing public sector debts. Even if we stopped using money, Governments need labor in order to function.
Gold and silver are easy to value, devoid of organized labour and excessive government costs, it’s easy to find the cost of digging silver out of the ground and refining it, this is actually true of many commodities, so even if temporary, it’s easy to discover the true value of a medium of exchange using commodities, finding the true value of a digital asset is different, technology, in general, is deflationary, Nobody builds a machine or computer software for it to be less efficient than its predecessor? so a rising price of Bitcoin in a deflationary environment in which using any computer software is optional, puts into question Bitcoins value in a world devoid of fiat currency.
Why in a world without fiat money wouldn’t Apple, Amazon, or even a Microsoft currency not have more practical value to the world at large? Now, the truth as many of us know is that if the government leaves most of us alone, the world at large would be far better off. Not to say there aren’t bad people in the world, but government policies often target the good people, because bad people are bad with or without laws.
Make no mistake about it, if these central bank schemes fail to deliver the US dollar price of things as we know it today will vanish and I don’t know how you value Bitcoin in a world in which people are rediscovering prices? I bring this up because if the market price of Bitcoin can be manipulated you might find yourself holding a propped-up asset that nobody wants to own during periods of panic. Ask yourself what good is a high Bitcoin price if you can’t sell what your Bitcoin FOR ANYTHING at the plunge protection price that was sold to you!
Interesting times ahead!