Hi All,
I know, hundreds of posts like these have probably been written throughout crypto’s relatively short history: crypto is a fraud, a ponzi, etc.
I wasn't sure where to put this, but I ‘d very much like to hear your opinions on my particular take on this matter. So Here it goes:
Seeing how much the physical metals market has been and continues to be manipulated, the trillions of dollars conjured up by the fed the prop up the stock market, …
and really, how the story of modern man has always been one characterised by an elite fleecing the proles at every step; doing everything they can to make sure
they never get the chance to really build and safeguard capital for the long term, I wonder how the cryptomarket fits into to this story.
At least to me, this notion that for the most part, the enormous run-up in prices until the last bubble popped, has been purely speculative, makes much sense to me.
A bubble driven by the idea that there’s always a sucker somwhere down the line willing to buy a stash of coins preferably at much higher prices. I mean, was it really
a question of user cases? Perhaps for BTC to some extent yes, with a few revolutionary minds thinking it will provide them a way of definitively escaping fiat,
and the games central banks play. For the great majority however, it was and continues to be about hoping history repeats itself, in short, about an easy way to riches,
about greed.
Thinking of this little history, this reality I outlined here. It would make perfect sense for the FED to print a few billion dollars at no cost, and then use it to drive up
the market by proxy, merely creating one more elaborate scheme to fleece the people. The few who got in early and took profits and got rich, well, I guess it is not
that troublesome a thought to TPTB.
Anyway, I wonder where the money is going to come from this time around? Institutional investors? And with the world’s dwindling middle-class
(please see Chris Hamilton’s blog -
https://econimica.blogspot.com/2019/07/how-this-plays-out-deceleration_39.html) subjected to ever more forms of financial repression,
are there really that much people left willing to prop up this highly uncertain and volatile market with their hard earned cash? Then there are the one’s I hear of that
bought in the green, near the top of some movement, only to get burned badly, shortly after. Do you think people like these - often still possesing enough capital to
frivolously spend, will instead buy in when there’s fear in the market, when they should? No, I don’t think so. They got burned and are staying away for good.
Ofc, it might turn out to be the classic Wall Street chart. Hopefully we’ll see the disbelief phase soon, as a new bull market emerges. But I have my doubts.
The manipulators of this market can keep this thing going for a long time, each time just draining away funds, giving hope and a bit of relief from time to time.
One of the things that still keeps me in, is the knowledge that as easy as it is for “them” to drain this market, they can pump it up in the same manner.
Again, is it that implausible for certain parties buying and selling crypto with fiat provided by the FED? The money for these investors is free basically, just like it was
for Blackrock or Blackstone buying tens of thousands of homes with FED money
https://wallstreetexaminer.com/2015/11/stench-freddie-mac-back-18-billion-crony-capitalist-thievery/ Am I wrong in thinking that if they want to, they can just keep on pounding this market into oblivion? They don’t need it to succeed or even have a return,
they need to see it fail, and for the time being, have it draw in as much capital and savings as possible, until a nice reset, with a date of their choosing. Until then
everyone keeps on buying the “dips”, and the suckers do it in reverse ofc.
They say the market is there to inflict as much pain as possible. Likewise I can also see a scenario play out, where they do pump it up again, but slowly at first,
so those of a cautious nature, decide to just play it safe, and be content with a little profit, only for TPTB to then pump it up to new ATH’s. The story repeats itself,
people buy in higher, their stash now smaller, and then the market turns again. But yeah, this sort of contradicts my story perhaps. But then what, after that?
Rinse and repear, one boom and bust, parabolic rally after the other?
Perhaps, if the FED just keeps on printing and the stock market continues hitting ATH’s, then maybe some of this money will splash into the cryptomarket,
but then there’s the political aspect to this money printing, hence we get articles like
https://www.zerohedge.com/news/2019-07-05/blain-central-banks-will-keep-easing-until-parliaments-and-palaces-burnAs far as XRP is concerned, because it is sometimes mentioned in regards to a coming liquidity crisis, and how XRP would be used to solve that. I just cannot see
how any of the major banks will pay the small timers out there, holding Xk of XRP, a few or even tens of dollars or whatever per XRP. It would be such a break
of this age old dynamic. This time the powerful somehow bowing to the weak. For once being in a position of subservience, of dependency. With J.P. Morgan or
Goldman Sachs paying the little guy to please part with his XRP so they can use it. I just cannot see this scenario play out.
This crypto history somehow also reminds me of the classic private business MO: governments and the taxpayer providing the funds for projects
(universities, laboratories) which then down the road, get bought up by private business. So the cost of development is on our dime, and the rewards, the profits
are syphoned off to a nice tax haven.
Crypto feels a bit like that to me. Suckers funding it all, only for the big players to come afterwards (with a mature product) and buy it out or use the developed
tech and stamp their name on it. If it succeeds and end up into something useful, great, if it turns out to be a dead-end, but somehow good lessons were learned,
to improve on a next iteration, all is good. Isn’t this how things work often.
As Michael Parenti once wrote:
They are not going to leave any little bit for you. There’s only one thing that the ruling circles throughout history have ever wanted-all the wealth, the treasures,
and the profitable returns; all the choice lands and forests and game and herds and harvests and mineral deposits and precious metals of the earth; all the productive
facilities and gainful inventiveness and technologies; all the control positions of the state and other major institutions; all public supports and subsidies, privileges
and immunities; all the protections of the law and none of its constraints; all of the services and comforts and luxuries and advantages of civil society with none of
the taxes and none of the costs. Every ruling class in history has wanted only this-all the rewards and none of the burdens.
I know, reality is often far more complex and ambiguous, nor is it captured in lineair, deterministic thinking, of which I’m guilty here perhaps.
Some of you may be familiar with the writing of a certain J.C. Collins and his blog philosophyofmetrics. First it was the introduction/widespread adoption of the SDR
that would fundamentally change the economy, then Collins started writing about crypto’s, and XRP in particular, replacing the SDR. With central banks having enabled
the industrial revolution; this time around the crypto market would replace central banking to provide the world with the liquidity it needs to spur the new economics,
and the enormous technological progress that is upon us. Something along those lines. About a year ago, he wrote how central banks would soon start to add crypto’s
to their balance sheets, and how the crypto market would swallow the PMs market, etc.
https://philosophyofmetrics.com/crypto-market-will-swallow-gold-market-in-2019/.
Yet here we are now.
Who knows, instead of a fortress world, or barbarization scenario, utopia (The Great Transition -
https://en.wikipedia.org/wiki/Great_Transition -
https://greattransition.org/documents/Great_Transition.pdf) might really be around the corner, and we’ll see the advent of the third industrial revolution,
the internet of things, the sharing economy, where trust is currency, the demonetization of all essentials as Peter Diamandis writes, and “radical abundance.” All in all,
a more humane system where, for example Collins writes at one point:
The onset of robotics and AI technologies will further release man from the long hours of labor.
This will fundamentally alter the existing relationship between capital and labor. Capitalism and Communism, the diametric manifestations of capital and labor, will
consolidate around a new form of socialism which is meant to accommodate the expansion of man’s creative and spiritual “sovereignty”. -
https://philosophyofmetrics.com/new-age-socialism-and-the-end-of-debt-based-money-creation-freepom/I have my doubts though, more inclined to believe that it will be just more of the same and maybe a lot worse before it gets better. But what do I know.
