Warning of Price Manipulation: Bitcoin briefly plummeted to about $8,000 on Thursday – but only on the Binance US trading platform – October 21, 2021,
A few things about Bitcoin, it doesn’t do anything in the real economy, so when someone tells you that the price of Bitcoin can go to 1 million USD, yes, that’s a possibility, unlike Gold and Silver if the price of Bitcoin shoots up, the only people who care are those looking to sell at a certain price point. If the price of Gold and Silver shoots up that equates to a harmful debasement of fiat currencies that could have a detrimental effect to the overall economy.
Both Gold and Silver are used industrially and if the price of Gold and Silver shoot up too high, and the government is able to manipulate the economy SUCCESSFULLY and put price controls on other segments of the economy, you could get all sorts of theft and changing behaviors regarding Gold and Silver as it would become worth people’s wild to strip down cars and parts in technological equipment, that would have appreciated in value because of their contents.
If the price of copper skyrockets, this too could cause all sorts of problems for the overall economy, because copper is everywhere, and if governments are successful with price controls in certain segments of the economy and can’t stop prices from rising where it matters, these are the events that force interest rates up. Bitcoin has no value in the real economy, if it disappeared nobody except for its investors would even notice.
With Bitcoin, it’s a network and I’ve been arguing for months now that Hedge Funds and other Big Money/high finance types have found their way into cryptocurrencies and these people and entities schooled in finance can do all sorts of things with the value of cryptocurrencies. Most people aren’t accustomed to operating in a free market, in a free market anything goes, it’s not even cheating if you get caught, you might be shunned by the community, but there are no authority figures in a free market.
I’m not calling for the regulation of Bitcoin, I’m merely explaining that people accustomed to regulations and price controls often lose their shirts when they’re forced to barter on the streets of a third-world country, where even a U.S dollar can go a long way. So Bitcoin temporarily dropped to about $8000 on Binance’s US crypto-trading platform? Nothing to see here right? who cares about Binance’s US crypto-trading platform anyway? It’s small potatoes.
As many of us know higher prices in fiat dollars are usually a sign of economic DEFLATION as more people can buy fewer goods and services. Bitcoin so far has defied all logic, which is fine, I mean why not it’s not like Bitcoin is important in the economy, it could shoot up to billions of dollars, questionable art sells for hundreds of thousands of dollars, I believe Joe Bidens son has been selling his “works of art” for a $100K+ so why can’t Bitcoin sell for $100,000? if confidence in that market is strong it can go higher, but it doesn’t mean that the numbers make any sense.
So if you’re investing in Bitcoin, understand the risks involved!
Bitcoin briefly crashed 87% to about $8,000 on Binance’s US crypto-trading platform | businessinsider.com
Interesting times ahead!