Today, I was reading tons of articles about Bitcoin value taking a dive due to somebody calling it a fraud or China banning ICOs.
Jeff Berwick of the Dollar Vigilante adressed the issue in his video:
Jeff's video made me thinking, especially when he said that contrary to the printer friendly fiat currencies the number of Bitcoins was limited.
So what is about this whole current black PR campaign against Bitcoin? Who is going to profit from the declining Bitcoin value?
The story could be as follows:
After 2008 Financial Crisis, the markets were floaded by the freshly printed fiat currency. The declining value of the toilette paper money forced the banks to invest it in all kinds of asset classes (stock market, real estate etc.).
The digital currencies could have provided for another investment target.
The banks could be thinking: "If we cannot beat them, why do not we join them". They could acquire large amounts of crypto currencies and then build whole derivative businesses around them (like it was already the case in the real estate and auto loan sectors) and offer various crypto currency related financial products to mom and pop investors. The limited amount of cryptos could make the investment much more sexy.
The aim of the current black PR campaign could be to sink the value of crypto currencies in order to buy the huge amounts of them for a song.
I used the word "could" in this article very often, because the smoking gun evidence is still missing. However, imagine such a scenario - you are sitting on a huge pile of fiat currency rapidly losing value. What would you do?
