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CrazyCoder

Bitcoin is Going Belly Up and Here's Why

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Going to give you an example of government money vs Bitcoin to put it in perspective:

In an alternative Universe I became the Living Prophet of Southern New Jersey. Population is around 2 Million people. Jersey Dinars (our money) is total of 40 Million Jersey Dinars.

1 Jersey Dinar (JD) = 2 Bitcoin (BTC) in February 2018

Now the value of the Jersey Dinars are worth how valuable the Country's economy is. Another-words, If the Living Prophet orders his Country to annex Northern New Jersey and New York State in the winter time and looses the war badly then 1 JD = 0.001 BTC. If the Living Prophet dies and a dummy takes over deciding to increase money supply to 40 Trillion Jersey Dinars then 1 JD = 0.00001 BTC.

Bitcoin unlike Jersey Dinars is not backed by anything at all. It's like using stocks as virtual money. Stocks are extremely volatile. The company stake of stocks can increases to major amounts. There is no limit to have many kinds of Crypto Currencies can be in circulation. Currently there is around 1 thousand different Crypto Currencies and a maxmuim of 21 Million Bitcoins.

Bitcoin much like stocks are very vulnerable to speculation and insider trading. Top Crypto Gurus can decided to spread rumors about Bitcoin or Litecoin demise due to Sewit or other changes. The sheeple will go along and mass sell, Crypto Gurus mass buy at rock bottom prices. The mass buying drives the prices up and the Crypto Gurus make big return.

Nevertheless, Bitcoin has attracted opposition from the other side. Most governments are taking steps to stonewall it. There want a centralized Crypto Currency, why would European Union or Uncle Sam (US Gov) allow people to do financial transactions without getting a piece of the pie? You'd be living in a fools paradise if you really think the International Bankers are going to allow an decentralized entity be traded to evade taxation and replace their paper money that has no melt value.

The governments are shutting down Mining Farms in droves. China, Egypt (Fatwa against Bitcoin: Gambling), India (possibility), USA (Anti Crypto Laws), Canada et al. If no one mines or only a select few, Bitcoin will fail for sure. It's going to fail if the powers to be are fully against it.

Edited by CrazyCoder

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