So I lost the first two games starting in goal. I could see the captain of the team start to get frustrated, he told me, "When are we going to get our $20,000 from that Bitcoin investment?" I told the captain, "Our agreement was that I write an article on LinkedIn about your mishap and your ridiculous investment. Unfortunately the money is gone as I've told you all along. Now that we're losing games, you want me to get your money back because of your stupidity. We made a deal, and we're going to stick with it."
Many young people look towards Bitcoin as a way to earn and save money. Indeed just like Bitcoin, there are many exchange scams that exist out there. They have a habit of luring customers with better interest rates than their competitors. However, the customer never realizes their investments in bitcoin because the cash payments are extremely volatile. Bitcoin as a world currency is imperfect and it does have some characteristics of a financial pyramid scheme. There is a psychological relationship between supply and demand since only 21 million bitcoins can be mined. The real problem is the lack of accountability and disclosure regulations that don't exist with the currency. If it's non-existent, then the herd is simply speculating that 21 million bitcoins will rise year-after-year with their valuation intact because of scarcity and high demand.
What Bitcoin technology wants to do with cryptocurrency is simply shift the entire trust of financial transactions in our world. For example, in 2018, $1.1 billion worth of cryptocurrency was stolen. These are real dollars, not virtual dollars. The internet made it easier to rob banks because the aim of these hackers was to obtain valuable cryptocurrencies and cash out instantaneously. The psychological milieu of these ignorant investors is that cryptocurrency will continue to go up towards the million dollar range.
The cryptocurrency bulls want the public to devour the currency because they feel blessed that they are living in the age where the currency will perpetually go higher without any downside risk. The real propaganda of virtual currency is based on more suckers believing that they are making money. We have a generation that is absorbed with liquidity and sometimes the best thing to do is to keep the party going. When Bitcoin hit $20,000, it was a prolonged propaganda to achieve more suckers getting into the action.
This was in December 2017 where even media outlets were covering the action. CP24, one of Canada's biggest news outlets, even had their head "Market Analyst" come on air to tell families that Bitcoin would be a smart investment to finance their kids' education. Months later after the downfall, the horror stories compounded mentioning families taking on second mortgages during the uptrend and committing suicide after the cryptocurrency crash. Bitcoin even used Santa Claus at that time to promote the greatest wealth that anyone could imagine if they chose to invest their savings in cryptocurrency.
On October 31, 2018, the Fed tightened interest rates and Bitcoin dropped to $6,000. The millenials believed in the decentralization of the global financial system and also believed they could create a value-transfer system that could not be manipulated by anyone. They simply relied on Bitcoin trust. My conventional wisdom is also based on trust of the financial system. If there's no confidence in the American Dollar and/or the stock market, they will subsequently crash.
The computer programmers relied on one simple message, "If you don't know Bitcoin in the future, you will be under-classed." It's like saying a working-class citizen would have enough Bitcoin to purchase and finance their home and car. Can you imagine in 2025 looking at your computer screen counting your bitcoins and purchasing your champagne and caviar? Now can you imagine the next day looking at your bank account and seeing your balance at $0 because you failed to realize the exchange was based in countries like China and India?
So what happens? You keep refreshing your internet browser and find it impossible to connect with a live voice. Bitcoin is not an asset-based currency. In order for it to go down in price, attackers have to intercept many connection. Bitcoin does not have a traffic measuring system in place. Many times the routing data is forged, therefore individuals can manipulate the delayed routing to intercept connection and Bitcoin nodes. When the price of Bitcoin goes up substantially, one has to measure the attackers conversion rate to convert it to real cash. The real cash is converted when the price of Bitcoin goes down, not up.
The People's Bank of China announced earlier in 2019 that it was working on a digital currency backed by the Yuan. The computer computational imbeciles raised the price of Bitcoin to $10,000, without realizing it was a competing digital currency. The ones who sold Bitcoin at $10,000 became millionaires. Why? They established hard currency with their quick maneuver.
Just a few weeks ago, Xi Jinping indicated China wants their own cryptocurrency. The Bitcoin propaganda machine did everything they can to tell the world that their currency is legitimate. The real problem is that Bitcoin went up to $10,000 because people refused to listen to the geopolitical consequences of a competing cryptocurrency. That's why it plunged so rapidly. Cryptocurrency's psychological world relies on finding more suckers in believing that it will one day break the $20,000 mark again. The suckers who paid $20,000 are still holding it whether or not they're in their grave. The ones alive are sure as hell praying and still believe in Santa Claus.