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With Bitcoin acting as the lead element, we are less than 24 hours from the opening shots fired in the coming battles over the future of cryptocurrencies in a financial world tightly controlled by central banks and the laws and regulations defending them.
At 2200 GMT on this day, the 10th of December 2017, futures markets will officially open at the Chicago Board Options Exchange and institutional finance will undoubtedly open a volley of fire into the market price of Bitcoin in order to prove to the whole world what they all already know -- Bitcoin and other cryptocurrencies aren't really backed by anything and its a Ponzi scheme in need of being destroyed in order to protect everyone from being scammed.
If you're reading this on Steemit, chances are you know what the Crypto Armies are thinking: Now is our chance.
Those of us who have been involved in this space for a number of years (or months, depending on how quickly you learn) should see this as an opportunity to absorb the assault. The proposition of Bitcoin, and any cryptocurrency running on a decentralized blockchain, is a peer-to-peer exchange of value with no need for trusted third parties. Truly, the Internet of Money, as Andreas Antonopolous has famously coined.
But right now, the equivalent of $12 is the recommended fee for a simple Bitcoin transaction and there's no guarantee it will be confirmed in the next block... or the block after that... or after that. The Bitcoin blockchain is rapidly becoming unrecognizable from when I first started using it.
Exchanging funds in person is painful because you spend half your time staring at a block explorer hoping your transaction gets confirmed in the next block so you can both go about your business, know that you each got what you wanted. Meanwhile, both parties are thinking "I wonder which bureaucrat I need to report this transaction to in order to avoid being prosecuted?"
KYC/AML laws effectively cut off all avenues of approach, leaving average people limited to Coinbase. Everyone has seen what happens when Coinbase goes down for even 15 minutes.
Right now, Institutionally Funded Bears like Jamie Dimon of JP Morgan are salivating at the thought of a thousands of dollars per BTC being bled out of the exchange rate in order to be handsomely rewarded in USD when their put options settle, if for no other reason than to prove their point. This will be a chance for revenge in the eyes of some.
These are the stark realities the crypto community needs to face and come to terms with, and quickly. Those who are standing on the sides, wondering what to think are reading rather objective analyses like this and wondering if the term 'Tulip' may be appropriate. Psychological warfare is a powerful tool.
Despite the seemingly insurmountable challenges facing the community from the beginning, up to the point where someone decided a pizza was worth approximately 10,000 BTC, Truth in Numbers stands as a beacon that shines on anyone who spends enough time to understand what is really going on behind the crypto-curtains.
The technology behind Bitcoin isn't JUST a blockchain... its a growing network of individuals who want to truly own their assets and know with certainty who is creating more, when, why, and how much is being created.
Understanding cryptocurrencies requires, at minimum, base knowledge in cryptography, computer science, economics, psychology, and business. It changes your mentality on personal security when you become your own bank. It makes whatever shackles you have on you jingle just a bit louder.
This is the danger the Institutional Finance Bears face, even if they don't realize it.
Bitcoin is going to be the 'first through the door' in this coming war. It may survive, or it may be crushed under the weight of future market traders putting every ounce of capital into making the charts bleed red. I suspect there are a few regulatory tricks from lobbying up their sleeves as well. Expect a one-two combo punch.
But what happens after those first rounds are fired is always an unknown. Strategists can wargame and plan all day long, which is wise, but its impossible to know what the battlefield will look like afterwards.
