Topic: No internet will cause the next crash...or no access? (Read 199 times)

I've recently read several articles that put forth that the drop from $11,000 to $9,000 was due to a DDOS attack on several exchanges.  Most people on this forum would just shrug it off and insist that BTC and other cryptos will bounce back.  As of December 1st, this might very well be true.

But here's where it gets interesting...or terrifying...depending on ones point of view.

Let's fast forward to when the futures markets like the CME allow short positions....in the next couple of weeks.  Anyone holding a short position would make millions or even billions if the same kind of DDOS attack happened.  Again, most people will shrug and insist that everything will bounce back.  I don't think it will be that simple as I'll describe in the following scenario, keeping it as simple as I can:

Wealthy and connected group with several million in risk capital leverage untold thousands (or even millions) of BTC in a short position on the CME.  Shortly after their purchase, a large or powerful group of hackers that they hire launch one of the largest DDOS attacks ever seen to take down as many exchanges as possible for as long as possible.  The CME futures would go limit down for at least as long as it takes to get the sites back up.  If the attack is sophisticated enough it could disrupt the exchanges for days.  This would probably drive the futures price to $0 or near $0.  When the exchanges are finally allowed to come back online when the DDOS attack was over there would be panic selling like never seen before.  There's no telling how low prices may go.

Again, most on this forum might shrug and insist that it's a buying opportunity.  But there's only one problem...all confidence in crypto will be destroyed for probably an entire generation as far as people looking at cryptos like an investment or store of wealth.  This might be a good thing to those that want to see cryptos used as an actual currency with low fees and fast transaction times.

So that's how the "big short" might come about when futures allow big money to be made on the downside.  Everyone asserts that BTC cannot be hacked and it has no weakness in and of itself.  While this is probably true, everything is only as strong as its weakest link.  In this case, the fatal flaw to crypto is not what most focus on in their reasoning.  The flaw is the underlying system that it depends on to function.....bandwidth.

DDOS have been going on for years.  Don't think for one second that groups aren't planning this already.  Those that are cheerleading $10,000 will only have themselves to blame if they ignore the warnings.  Some will call if FUD...I call it irresponsible to not keep in mind.