The enthusiast that you are will not minimize the fact that bitcoin is a stick in the wheels of banks and lovers of centralization. Sure, they tried to find fault with the queen of cryptocurrencies and all her gang. So far, they have only found bitcoin price and cryptocurrency market manipulation. Which is understandable since no institution with age could be corrected by a representative of a 13-year-old minor.
What does bitcoin (BTC) promise.
In 2008 heroes like Satoshi Nakamoto set up a new system that had the power to largely replace the centralized finance proposed by the banks. He didn’t wait very long to develop an alternative to fiat which he gave the name “Bitcoin”.
Bitcoin is simply a consensus network that allows a new payment system and digital currency powered by its users. Thanks to it, peer-to-peer payments become decentralized, that is to say without relying on a central authority or a third party.
Its particularity lies in the absence of an individual or institution that has a monopoly of the web. As mentioned above, users have carte blanche to make sure everything goes well. Blockchain helps, they have access to all transactions and have validation power. Hence the decentralization.
Also note that bitcoin has several advantages:
- the freedom to send and receive BTC worldwide;
- freedom of choice of transaction fees;
- the ability to purchase goods and services with bitcoin;
- accepting exchanges for fiat;
- lack of risks for users;
- the transparency and neutrality that the blockchain brings;
- access to a new store of value;
Everything seems perfect if you ignore a small list of bitcoin disadvantages. But not on the side of the banks, the first institutions frightened by his arrival. Suddenly, all methods are good to remove this thorn from their feet, even if it means manipulating the price of bitcoin.
Attempts to manipulate the price of bitcoin (BTC).
Some observers, particularly crypto enthusiasts, are quick to dub bitcoin the “central bank killer.” However, the central banks, which have experience of being up and running, work to control the repetitive inflation that some countries experience. The FED has a habit of increasing key interest rates to better deal with the difficult situations faced by American families. Some, like the Bank of England, go so far as to guarantee the stability and solvency of the financial system.
However, it must be recognized that bitcoin will become the successor of these institutions with its unspecified economic and technological powers. After its appearance, the average individual, especially a bitcoin holder, is deprived of double spending in any transaction. Of course, the idea of a decentralized monetary system could only be beneficial to this same person.
This is why followers and heirs of the old financial system definitely denigrate bitcoin. Since it seems difficult to push cryptocurrencies towards a collapse, you could also play on their weakness: volatility.
“They know you are poor and cannot tolerate big price swings. [La manipulation du prix du bitcoin] It is the #1 tool they will use whenever their system is threatened to keep the masses under their boots», says u/Apprehensive-Log-849 on Reddit.
The pro-traditional financial system has a habit of manipulating the price of bitcoin and other cryptocurrencies. As far as possible, they will ensure that market behavior as well as artificial price volatility is kept in check. whether suddenly”pump and dump“, of”Whale Wall Spoofing(creating panic situations by the whales) or the “wash trade(providing incorrect market information). And all this requires vigilance on the part of investors.
Sources: Bitcoin; Investopedia; Reddit; Binance
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The blockchain and crypto revolution is underway! And the day the effects are felt on the most fragile economy in this world, against all hope, I will say that I was involved.