The pessimists and the critics of Bitcoin and crypto currencies are having a go at it again. First it was the “unofficial’ rumor flying around about Bitcoin China. Some “news agencies”, if they could be called that, are painting a very biased picture about certain “rumors”.
In our previous articles we have explained how people shouldn’t just act on unconfirmed “rumors” and how to check their validity. People have to always be wary when any “news agency”, like CoinDesk for example, writes loads and loads of articles about these so called “unconfirmed rumors”. It’s not a problem that a writer reports on a potential “rumor”. It becomes a problem when that writer is going to spin that “rumor” in such a way that people are going to believe it that it is a genuine “official” message. That isn’t good reporting, that is just manipulative behavior but to what end? Has CoinDesk a stake in a low Bitcoin price? Is CoinDesk bought out by a bank or a lobby group that is against crypto currencies?
Also other “not so nice questions” can be asked about the true motives of CoinDesk’s sudden change of heart. It is rather odd that, over a 3 week period, CoinDesk went from “YEAH BITCOIN IS THE BEST THING” to “Bitcoin will crash and burn” without giving any substantial evidence to validate their shift. Some people are even claiming that CoinDesk went over to “the dark side”. A reasonable claim since their behavior speaks volumes. Maybe they have been bought out or paid to badmouth Bitcoin a bit for reasons unknown. If it isn’t so then it’s up to CoinDesk to prove to the community that they are still good.
It is very strange that these “rumors” about the Peoples bank of China are getting pushed further and further. First there would be an “official statement “ from the Peoples bank of China on the April the 2nd. When that date came and went they said” oh they “postponed” their official report to the 15th”. We shall wait and see but there is a high probability that this is just another scheme to “put the fear of a crash” into people’s minds.
Reasons that Bitcoin will crash, according to a cosmologist.
CoinDesk is putting out another article out that is so biased and they are quoting and “actual person with a phd”. The only thing is that man has a wrong PhD; it’s not in economics as most of us think, it’s in COSMOLOGY. Still it could be an intuitive insight on the crypto world and economics but when you actually READ the book it is just an interpretation about how thing could have gone according to mr. PhD cosmology.
CoinDesk portrays this man, Bob Swarup, as the truly only “expert” on economics(isn’t apparent in the book) because he was educated in England. He holds an MA from the University of Cambridge, two Master degrees, and a Phd in cosmology from Imperial College London. So what he writes must be the truth right? Wrong again. We do not belittle the accomplishments of this man but honestly his book, the one CoinDesk is over the moon, is just a farce. It’s not that you have a PhD that you are an expert about anything and everything. It only acknowledges that you have studied a lot and that you are an expert in that particular field and ONLY in that particular field. So a cosmologist writing about history and economics will make a fool of himself, just like this dude did to himself.
In his book he tries to explain how economics work and tries to see some patterns in previous economic “crashes” and debacles. However he fails horribly. He simply rips the historical facts out of their context and extrapolates them to a modern day environment. This is one of the basic rules that are thought to historians at university NOT TO DO THAT.
Some examples that doesn’t make Swarup’s book a very good source of information and on things to come are things like this:
“Take a deep breath. Feel the air hitting the back of your throat and disappear down the trachea. As your lungs inflate… etc”
You get the picture. No reputable scientist, economic writer or any decent academic author would never begin his book writing this garbage as their beginning. It sounds like he’s gotten his inspiration from star trek voyager where “ the doctor” is writing his holo novel.
About the historical facts that he short sided teleports to 21st century standards, we have to say this: get another PhD in history because you clearly missed some crucial baggage. Your analytic skills about the past and the actions/reactions and consequences should be brushed up.
We aren’t the only one who has a problem with this book. When we read this book it came over like some strange ramblings of a psychologist would use to make him/her look more important while saying absolutely nothing. Here are some extracts from other critics on this book (reference to the book can be found in the link section).
“None of the exuberantly mixed metaphors are explained or alluded to before or after…If you didn’t know the book was titled “Money Mania” you might think this was talking about an epidemic, a volcano, an oil spill, a modern symphony or a power grid blackout….. The passages raise questions in the reader’s mind: “far more harm” than what? Whose “intentions” and “decisions”? What is the “herd”? Is it too big or too small? What is it that crescendos? There is little connection among the chapters, despite frequent inaccurate claims that topics have been discussed before or will be dealt with afterward. The author thinks they amount to either a discussion of the nature of money or an analysis of financial bubbles (I’m not sure which, he seems to go back and forth on that issue), but I can’t see it. Moreover, even if that’s what it is, far too much of the account amounts to “people are stupid,” and his solution is, unsurprisingly, for people to stop being stupid.”
So why would anyone want to use this as an “expert source” to claim that Bitcoin will “crash and burn? Maybe the “people are stupid” part but that is not a genuine reason. Not all of us are stupid or misguided but yes we do tend to make mistakes and some horrible choices in our lives. Being stupid is a bit harsh, well maybe it is appropriate for those who are saying that Bitcoin will crash.
Bitcoin: NO DOOMSDAY scenario.
Being active in the buying/selling and trading stocks for about 15 years on nearly every market out there is you tend to pick up a lot of the tell-tale signs of “real trouble” on the horizon. One of the golden rules that one can use is: “when the advisors (like banks, authority figures, experts etc) are telling you NOT TO BUY this or that stock or crypto, do the exact opposite”. However make sure to do a quick research before you do. This is what we have experienced first-hand. We took a gamble on some stock and shares that most experts said “ it
wouldn’t go at all it will crash and you will lose your money”. We didn’t listen and we quadrupled our money. Not that we put in much but still it made a nice tidy profit.
Crypto currencies aren’t banks. They aren’t stock either in the conventional meaning of the word. They are currencies like the dollar, Euro, Yuan, etc. Those currencies never go bankrupt, the can drop and rise against other currencies but they can NEVER go “kaboom”. This is something people tend to forget. They see Bitcoin and other currencies as “companies” while Bitcoin and others are currencies. Like all currencies they tend to fluctuate but we aren’t going to bore you to tears about the hows, the whys and “what ifs”.
These fluctuations create “waves”. In the real world people tend to buy currency (like dollars when you live in EU since the dollar is at a very low point at the moment) and they can sell them back at the banks when they are at a high point. This is a fairly safe way to invest in something and get a guaranteed return.
Another thing that people need to realize is that Bitcoin and most other crypto currencies are limited at a certain number. For example Its 100 billion coins made of coin x and not 101 billion. They don’t print, or make more money because they “need some”. It is more likely that the Dollar or the Euro could crash than Bitcoin and since the banks won’t let a currency crash or devalue it won’t happen to crypto currencies. Not that it is controlled by the banks but because nobody controls it . Its us, the consumers, the Crypto users, etc that are mainly responsible for the crypto currencies and its fluctuations.
Bitcoin is getting more attention in the general public and in a positive light for a change. The fact that most countries begin to view Bitcoin as a virtual currency and accept it as one, Bitcoin will not “CRASH and BURN” like some misguided bad writers proclaim.
Yes there have been problems with shady companies and exchanges. We all know the drama show that is called Mt. Gox and others. People need to understand that Bitcoin and exchanges isn’t the same thing. IF we had to believe some reporters Bitcoin had a hand in the Mt.Gox problems. It is clearly the greed of the CEO and others that caused the problems. If we start believing that nonsense the Dollar needs to be punished because GM had to recall 8 million cars because of faulty steering wheels, airbags, brakes etc.
So what is this all about? The reason to keep bashing Bitcoin and other crypto currencies with the same old tunes and fraudulent practices that have plagued the modern economy for years, is done because certain people can buy Bitcoin and other currencies at a very low price. After a while, a couple of months, the price of Bitcoin starts climbing again and it can reach the 1000 dollar mark again.
Some critics are also saying that “because Bitcoin is a virtual currency it is doomed to fail”. This is another misconception about Bitcoin. It isn’t just virtual it is also real. There are PHYSICAL coins available. For those critics that do not know what physical is: something you can touch and is made from some kind a precious metal, exactly like the coins in your pocket.
Regardless what the naysayers, and apparently CoinDesk too, would want to see Crypto is here to stay. As a closing quote we will use another star trek reference which we slightly altered: “ when we get your Crypto foot in the door they will never get it out”.
Reference material, links and some books you might enjoy.
A special thanks to Mr. Aaron C.Brown for his excellent analysis of that horrible book.
we find this a very well written comprehensive book series.