Dislikedlove reading this. i came across this one https://medium.com/@super.crypto1/4th-dimension-bitcoin-manipulation-cartel-can-it-be-burnt-no-way-c53de65c166a so mentally very ready to live thru this long dark bearish months....... lol {quote}Ignored
Let me get first thing straight , if i was believer that cartel was able to hold price and push it downwards for next decade, i would have not invest in cryptos that i invested from speculative reasons, surely i would put some money just for sake of technology but overall at least half of investments were placed from speculative reasons and profits. There is no point in fighting battle that you cannot win, all the gold bugs that are every day putting tons of articles how banks manipulate gold markets and yet they still put 100% of their holdings into it is basically the worst strategic move one can do, its fighting battle you know you cant win, but you fight it just for sake of it.
So this article bulks together (as pretty much 90% of such articles do) precious metal markets with cryptos, which is by so many levels just completly wrong, really wrong. Why? Because precious metals solved problems in human society 1000 years ago, and now they only do on smaller scale (inflation hedge) while cryptos backed by strongest protocol to be ever invented- the blockchain are solving like a mountain of problems in society right now, those two sectors cannot be compared. Its like comparing what problems did trees solve for human housing 3000 years ago, and what mortar, glass and solar cells do in 2018. Incomparable.
Basically what most people miss, is that they bulk together two things just because they share some similar variables ("BTC being digital gold") and they severly oversimply things.
Think of it this way, would you really compare horse to a car in 2018? Just because they share common variable in being transport solution, by no means should you really closely compare those. Car is efficiently far more than just that, it is a battery charger , it provides light if needed, it provides 5 times faster speed, it can do 1000 times the distance without break if fuel is provided, it has about at least 10 strong features that horse does not have. So those two products are very far appart , and while they share one similar variable its really naive to compare them to expect similar behaviour of growth or especially use case.
Just due to some people still using horse one shouldnt draw projections in what car industry will do in future based on similar projections from horse market, one market is on its way out, the other one is only at its early stage, thats the point made here.
From market cap side, sure you can compare cryptos to metals, but mind that is only short term. Internet was young once, so is today blockchain, but that doesnt render proper future projections.
Why am i saying all the above? Because in markets where no significant adaption and demand is made (gold) cartel can simply push huge fiat capital and manipulate it down by future markets. Easy. Gold as technological product is on its way out, anyone not realizing that is simply having old fashioned mind set, simply because variables of gold are already displaced by certain crypto assets, which besides those hold many more positive variables.
Why cartel cant manipulate cryptos over long run so effectively? Because there is explosive growth in sector and there is future demand to be built from technology.
I dont think there is any question that cartel manipulates crypto markets, that was my expectation from day one sice CME futures launch. Thin markets are easy to scare of, fiat shorts can press hard and push the longs into panic, but if progress of tech development doesnt stop, at certain point demand squeezes the shorts out of the way, thats what happens in such markets always. In world simply isnt enough inflationary pressure for gold longs to squeeze out Wall street shorts, but there certainly is enough pressure in crypto side for that to happen, and we have already seen that 2 months ago in heavy 1k BTC move short squeeze.
I see cryptos same as Tesla. TSLA is the most shorted asset in the word, today. 10 years from now the shorts will most likely be annihilated at least those who will hold onto them. You either have ability to see 3 steps ahead, or you dont, and the only way in tech sector is by actually understanding and knowing technology from inside out and having good strategic thinking which gets you aligned with business. Blockchain sector and Tesla (and few other Musks companies) in being at the spear top of galleon in sector that it attaches to, while the only thing holding it back is cost efficiency, but the cost efficiency is determined more or less by utility/ productivity and demand, both of those are on exponential growth for both cases. History shows what happens to most techs that have those two variables.
All i am saying here, dont take authors that compare metal markets with cryptos seriously because most of those are comparing apples to meat. One needs to fully understand what you are getting into, if cartel was to short internet in 90s they would be liquidated by 2018. Same would go for blockchain, and that is why markets will outperform on long side, but on short term basis, sure, there will be manipulation as long as utility growth is lagging far behind the actual market cap.
But overall one thing that this thread has pointed many times before, dont ever complain about anything in markets. Any anomaly you find, use it in your advantage. So many traders complain over manipulations in markets on broker or market side. If you think you found manipulation pattern then use it in your side, go short. One can still stay long term long biased but just use short term bursts, thats what is all about patterns explained in this thread, .....dont complain. Find soluation, and go for it.
Thing is in markets, anyone who has more knowledge on topic than you do will look "right on topic", the reaility is that much of such market knowlege is utterly underperformant. Majority of market participants and authors DO NOT stress test their opinions or knowledge, keep that in mind forever, as that is one of the most important bits of knowledge youll ever get as far as it comes to dealing with other peoples opinions. Anyone can put 10 books of knowledge in the market, but the question is how much of that knowledge does really perform in real world.
As Aristotel putted it, hypothesis needs to be tested before it can be turned into practical information to be followed by. Or in my view there is better quote to go by from PT : Beliefs are theories / hypothesis to be tested, not treasures to be protected.
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