Manipulation

Article by super_crypto

https://steemit.com/bitcoin/@supercrypto1/4th-dimension-bitcoin-manipulation-cartel-price-suppression-is-the-goal

Every market has three major dimensions and everyone knows that

1) Technical Analysis 2) Fundamental Analysis 3) Manipulation.

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This post has been going viral, therefore, I would like to remind all — Please take this as an opinion only. I am trying to point out the undercurrents in the water we are swimming in. Undercurrents are never seen, they can ONLY be experienced. I can be proven wrong in the end. Only time will tell — Therefore “Please Validate, Verify and Trade according to YOUR plan”. Use it as a “Pause-for-thought”.

This is a copyrighted content. Please do not reproduce. You ARE WELCOME to post a short summary and link to this post.
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Cartel — The 4th dimension of the market

There is 4th dimension that exists in FEW Markets, Its called “Cartel”. Its primary Goal is “Price-suppression”. Please note — it IS NOT “Manipulation”.

Is Cartel Active in Crypto Space?

I strongly feel so. I am presenting my research so you can validate yourself.

I called for Bitcoin correction of 95% before CME opened its doors. Check my Twitter account @Super_Crypto So far 70% of it is already in place. (But don’t expect 95% correction to happen in one shot. We will see many Rallies and Dumps in between. Nothing goes in a straight line. 20K is just the first inning. We are in for a long ride of a few years.)

Since When Cartel Is Active?

Cartel entered Crypto space somewhere in Oct-2017. Their presence started showing the HOUR CME-Futures Market Opened it doors for Crypto.

Bitcoin DUMP started exactly at the moment CME opened Doors at 5PM on Dec-17–2017. See this Daily Bitcoin chart (image last updated Apr-01–2018)

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Don’t believe in Cartel?

I know, its hard to!

In my view, everything that happened since CME opening on Dec-17–2017 has been “Manufactured”. Bitcoin is being taken for a Ride with the rookies at CME. We will wait till the “real” players join the table.

This Is How Cartel has Worked Since CME opened

Check this chart. Click on the image and read all NEWS as they were “Released” EXACTLY at the important TA resistances levels.

Please note: The items listed under Jan-30 and Mar-07 below are the NEWS ONLY. This is how cartel uses media-propaganda to break the price. Ex: Mt. Gox did NOT sell on Mar-07 but the NEWS of this sell was released on Mar-07. Also, the Tether subpoena was issued in Dec-6 but the NEWS was released with the other critical news releases on Jan-30 with the objective to start the next dump….Why did they wait 55 days to release the Tether subpoena news and how did it hit with all other Bad news on the same day? Now you know why.

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Do you know there were 6 days of daily dump after March-07 starting exactly at 11:30 ET?
Zerohedge has recorded it here — It’s 1130ET, Do You Know Where Your Crypto Crash Is?

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A serial DUMP since Mar-24 to Apr-01!!!

Below is another interesting pattern-selling observed from Mar-24 to Apr-01, 2018. What do you see here?

Anytime price tries to recover Dump appears from nowhere

  1. All these are HIGH Volume DUMPS
  2. MOST of the DUMPS start Below the Previous DUMP Price

Does it look like a seller who wants higher price for their Bitcoin or a lower price? I see they want a lower price. Why? You tell me.

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See what happened Crypto Exchange OKEx on Mar-30–2018?

This is announcement from OKEx: “Dear valued customers, At 5:00–6:30 on Mar 30, 2018 (Hong Kong Time), a number of users performed unusual transactions to manipulate the price of BTC quarterly futures contract, making it deviate greatly from the BTC index. Based on our team’s investigation, the user closed a huge amount of positions at market price without considering the cost, causing it to drop to an unusually low level. We will disclose the transactions details in further notice”

Note the words – “without considering the cost”? This is a footprint of the Cartel in my view. Will the Manipulation Stop after it has been caught? I doubt.

Want to See How the FUD is Manufactured?

Do you know on Feb-07 Someone hacked China’s central bank mailbox to email a bogus notice about bitcoin crackdown.

Bogus press invitations was distributed to US media organisations claiming that the Hong Kong Monetary Authority (HKMA) and People’s Bank of China (PBOC) are about to jointly introduce new measures to crack down on “all aspects and services of bitcoin trading in both mainland China and Hong Kong”.

Read the above article and ask a question to yourself — Who would do such a thing? Only those who have interest in breaking down the Bitcoin price — Right? Would an ordinary IT guy or a hacker do this? NO — because they cannot benefit from doing this FUD. Only influential cartel who can benefit by creating a FUD would do this.

Let’s get into the fundamentals of the “Cartel theory”

What is Cartel?

Here is definition of Cartel from Investopedia

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Is Cartel active in all Markets?

Not many. Cartel is active in only few markets. If you look at it, in a way OPEC is also a cartel because they control the supply.

Which are those markets?

It’s Gold, Silver, Oil and Bitcoin. Bitcoin was added to the list two months back . (Invisible hand started showing its presence since Dec-2017, even though they entered the market much earlier.) Most people deny Cartel exists, even if they experience the results every day they will continue to deny until 95% REKT. Gold bugs denied it even when Gold and Silver was brought down to earth before their eyes. Gold and Silver was REKT to its production cost ($1200/$14) and many miners went bankrupt. Still there are many Gold bugs that are clueless about Cartel.

— — — The PROOF

Before you read any further let me provide the proof of price-suppression in Precious metals (Gold, Silver, Uranium and all that)

See this 25 years Uranium Chart ?

  1. Uranium rose from $5 to $130 from 1993 to 2007.
  2. Futures Market started in May-2007
  3. See what happened? DROP in Uranium started exactly from May-2007 and it never recovered since then.

Any doubts about what started the precipitous drop in Uranium? Its the Cartel people, and their playground is Futures market.

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Lets look at Gold 25 years chart. Cartel started ACTIVELY Suppressing Gold price in Futures market since 2011. What do you see?

(Please note: The Gold futures started much earlier than this — in 1974. In fact Gold rose after futures were introduced in 1974. The reason it was not suppressed in 1974 was — A) there was no need to since Gold was just decoupled from USD in 1971 B) US did not have Debt of 21 Trillion that time. The need arrived with 2008 financial crisis when Gold rose parabolically in 2011 with DEBT. Since then the price-suppression actively started in Gold and Silver markets.)

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Lets look at 25 years chart of Silver now. Same as Gold

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Can we compare these charts with Bitcoin now? (as of Mar-2018) #

Do you see any Similarities here? What does it tell you? coincidence? Natural-correction? Naaaa. It’s Price-Suppression (not Manipulation).

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So far Bitcoin has consistently gone down since the day CME futures started on Dec-2017. Will it follow Precious Metals path? I think so.

Still have doubts? See this recent news in the Gold “futures” market:

Jan 29, 2018 — CFTC Files Eight Anti-Spoofing Enforcement Actions against Three Banks (Deutsche Bank, HSBC & UBS) & Six Individuals — for spoofing with respect to certain futures products in Gold and other precious metals traded on the Commodity Exchange, Inc. (COMEX)

Again, note the word “Futures” above.

Also read “6 Traders Arrested For Manipulating The Gold Market” — Jan-2018

6 traders that manipulated the Gold/Silver markets were “Currently or formerly employed by UBS, HSBC and Deutsche Bank”

This is just TIP-of-an-ICEBERG. I hope to write a separate post on PM-suppression-scam later.
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Cartel is like an Invisible Hand!! Deal with it

Who are these entities?

They consist of CERTAIN Traders, Agencies, Big Financial institutions & Media (I can list many more but let’s keep it limited). They all work in a perfect synchronization to pull coordinated attacks to attain the goal of price-suppression. See what happened on Jan-30–2018 and Mar-07–2018? (many bad news hitting the market within hours of each other as Bitcoin was sitting on a critical support at 10K). Once 10K was broken the Cartel took over and started shoring Bitcoin like HELL. today we almost hit 8K. (and we are again below 8K when this post was updated on Mar-18)

Why do they do this?

It’s all about money control. Financial elite has recognized that Bitcoin and Crypto in general is a threat to their existence. What do powers do when they see anything as a threat or enemy? You got it, they try to destroy the enemy (by all means). Therefore, It is extremely important for the Financial-elite to stop bitcoin’s rise so their show can continue.

What do they do to stop the RISE of Bitcoin? They first let it rise to unimaginable height (20K first stop). Then they drop it to unimaginable lows. They will do this many times. They have trillions of dollar to maintain the show going, UNTIL the RETAIL investor gives up in frustration. What you are seeing since Mid-2017 is just the 1st inning of 9 innings Bitcoin game.

Bitcoin has been placed into Geopolitical chessboard since Mid-2017. Most of the Bitcoiners have NO IDEA how big this game is. Crypto space is just a pawn on this chessboard and there are elite-fingers moving these pawns (Gold, Silver and now Bitcoin).

Why only Gold, Silver & Bitcoin? Why not Stocks, Bonds, ETF, Index funds, Mutual funds etc?

The answer is in the previous question. “It’s all about money control”.

When money flows into Gold, Silver and Bitcoin it shows that powers are bankrupt and their “Fiat” money is worthless. If these assets rise, all the money supply will dry up and move into these assets. World will know the King has no cloths.

When money stays in Stock and bond markets it supports Fiat Currency trade. Therefore, it is very important that stock and bonds markets remain intact and have been kept elevated artificially.

In fact, you know what? There is a counter-party to Cartel in stock market and it is called — Plunge Protection Team — PPT.

Cartel’s job is to keep Gold, Silver and Bitcoin markets suppressed while PPT’s job is to keep the stocks and Bond markets elevated.

Here is the definition of PPT from Ivenstopedia

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Here is the job description of the PPT in Stock and bond markets

To keep the Stocks and bond markets artificially elevated using the printed (Helicopter) money so that the dream of fake-prosperity continues for ever as the nations go bankrupt.

Why not Simply Ban Bitcoin (& Gold) and get over with it?

It does not work that way folks. There are severe consequences and repercussions of banning any asset, more so in the world of a social media.

Lets look at the history first
Most of the people don’t know uncle Sam had banned and confiscated gold in 1933 using presidential executive order. See this Gold confiscation order

Two things happen when a particular asset is banned 1) Govts and politicians have to face people’s anger and 2) the banned asset gets people’s sympathy (and people tend to hoard it even more). It did happen to Gold since 1933.

There is another option: Price suppression

This works far better than banning anything. When price suppression happens 1) most of the people reject there is anything wrong or malicious about the price drop (even though the fundamental are strong in favor of the asset). In fact, those point out the suppression are called “conspiracy theorists” 2) As price keeps dropping people start despising the asset. See what happened to Gold and Silver since 2011. The more it dropped the more people hated it. Many Gold bugs sold precious metals at the bottom and switched over to Bitcoin and Crypto (when it was at the top.) This exactly what “they” want the retail investor to do as “they” collect more of it at the lower prices.

Therefore, in the 21st century the easiest option is to manipulate the price of an asset so people themselves want to get rid of it without politicians or govts having to face the consequences of banning an asset. Govts and banks have realized that this works far better than banning anything.

Therefore, in my view, bitcoin will not be banned as long as it can be controlled. But its price will continue to drop (with many rallies in between) so the average Joe remains a bag holder in the end, starts despising Bitcoin & sells it at the bottom as Cartel collects more of it at a lower cost average. Bitcoin will be banned (selectively initially) ONLY if the crypto bull rages out of “their” control.

Sounds like a “Grand conspiracy” Right?

Yes it is. Let’s look at the history of the “Conspiracy Theory”: In 1967, the CIA Created the Label “Conspiracy Theorists” … to Attack Anyone Who Challenges the “Official” Narrative 🙂

You have two options

Continue to deny it.

OR

a. Recognize the threat
b. Understand the strength of the enemy
c. Play the Cartel’s cards
d. Protect your capital now
e. Buy Bitcoin DAMN cheap later
f. DO not sell your Core position (I am still hodling 70% of my position because I cannot tell when it will turn)

Do anything but please DO NOT sell your Bitcoin to the Cartel. In fact, ADD more as they DUMP it on the market.

This is a game of “Wealth-transfer-from-Plebs-to-Elite”. Here is my pinned tweet written on Dec-02–2017 (I warned Well before it started, thank me later)

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What is the Strategy I am using?

  1. Less of HODL, Less of BTFD
  2. STFR — Sell the F** Rallies
  3. BTFDD — Buy the F** “DEEP” Dips.

“DEEP” is extremely important word here. The DIP must be so DEEP (or bad) that everyone must have given up by this time. Buy ONLY that time.

I understand: Trading is difficult. If you cannot handle anxiety, then just Buy DIPS and HODL.

Please note: I am not claiming I bought/sold at these points. I am just explaining the strategy with this image.

4th-dim-stfr.jpeg

Where will the price suppression take place?

It will be at the Futures Markets and Futures trading at Crypto exchanges.

How did they do it so far?

Cartel heavily bought Bitcoin at the exchanges starting from 2K all the way unto 12K. They let the market fly until 20K. CME opened on 17th December and they started selling on exchanges. (See one month before and after CME). Since then the price has gone down tracing about -70% so far.

This is from someone on the Gold/Silver side explaining how Bitcoin is being manipulated down. We can learn it from those who have experienced it first-hand for 8 years – this is by TFMetals – twitter.com/TFMetals/status/979733775633575937

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How will they do it in the future?

Initially Cartel will continue to suppress the Crypto prices at exchanges until futures market volume builds (track futures Volume here). Once enough volume is built at the futures market will take over. They will not need cartel to work at exchanges anymore. At this point, cartel will move to futures market, which is their home ground anyways. In simple terms, Bitcoin will be sold as Soybean when volume like Soybean is built at CME.

How long will it continue?

Look at the Gold/Silver Markets for the answer. Price-suppression (manipulation) started actively in 2011. Its still going on in 2018

He told “We Will TAME Bitcoin” even before CME started

Do you think Leo Melamed made this comment without this knowledge?Nope! He did mean it and you can see it every days since Dec-17–2017 (CME-future’s market Open)

tame.jpg

How will this end?

One day Cartel will lose control of the markets. That day will be EPIC. The prices of Bitcoin (and Gold/Silver) will rise astronomically.

My Bitcoin path is 20K to “VERY-LOW-PRICE” to 100K

Many people ask me do you think it will go to 1K? Here is what I suggest

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You want to OWN lot of Bitcoins when it ends

Here is my tweet about why.

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Why I think Cartel will lose the game eventually, you ask?

See this tweet

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So, can the Cartel be defeated?

“I don’t think so”

Most of the Crypto community does not believe Cartel exists or there is any kind of coordinated attack going on at Bitcoin. At the most they think it’s Whale or manipulators. They consider everything as “Coincidence”, and that is because it follows Technical Analysis (TA). Of course it will follow TA. The Cartel is investing trillions of dollars behind such efforts, do you think they don’t have highly paid chartists on their payroll? They pay $700 pa for their chartists. How many Twitter-TA-Experts have that income level?

So why did Bitcoin start going down exactly on the evening CME opened? It’s “Coincidence” according to the Bitcoiners. At 20K they were pitching for 100K, but now they say the correction was due anyway and we are seeing that normal 50% dip. This correction will soon be over and we will be going to 20 first and then the moon…so they say.

First they said the correction is because BCH was listed at Coinbase, then they said its Tether subpoena, then they said No, No its Mt. Gox selling. Later on Mt.Gox changed his dates of selling. No its because of facebook ban, then Google ban, then Twitter ban. Market is still falling. What is the next excuse, people?

Therefore, the crypto community as a whole CANNOT come together against Cartel until it’s too late. What is too late? That is the time when most Crypto owners will start hating Bitcoin (see Gold/silver for reference)

Anyways, I wish I am wrong and this does not happen and we will go to 20K and then moon soon.

This is one of my tweets on Dec-10–2018. It’s so true event today.

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Here is the image of that “CME-is-just-a-coincidence” in terms of Market cap. Please note the Bitcoin started going down exactly from the evening of CME opened on Dec-17–2017.

So far, 200 Billion Dollars have been wiped out from the Market Cap. ($327B to $130B as on Mar-18–2018). Does this look like a Natural-Correction to you? Let’s hope so.

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Why am I doing this?

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More at my twitter @Super_Crypto

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a response written to this article
https://medium.com/cryptomedication/the-worlds-worst-crypto-article-of-all-time-331f337a25f8

The World’s Worst Crypto Article of All-Time

Interested in access more free crypto analysis, resources and information like this? Check out these platforms:

Telegram — t.me/CoinEducation

Twitter — www.twitter.com/cryptomedicated

So, recently it came to my attention from a user in my chat (t.me/CryptoMedication) that there’s this ‘theory’ about bitcoin that I should check out.

Naturally, I thought, ‘Why not?’. I’ve read a lot of really good articles in the space that accurately capture the essence of a situation/idea and provide a new perspective on the situation that I had never previously considered.

This article, however, was not one of them.

The article, which was posted on Medium, is titled, ‘4th Dimension: Bitcoin-Manipulation-Cartel-Price-Suppression is their Goal’. Here’s the link to the article: https://medium.com/@super.crypto1/4th-dimension-bitcoin-manipulation-cartel-can-it-be-burnt-no-way-c53de65c166a

With such a bold title, I figured, ‘This should be a good read. What ‘Cartel’ is this individual talking about?’

At the very top, you can see the user’s author profile, aptly titled, ‘Super Crypto’, which proclaims: “I called for 95% Correction when Bitcoin was at $20,000. So far we have traced 70% of it. Will there be another 25%? Futures Market will help us. Stay tuned!!”

This seems to be an attempt at establishing the author’s credibility. Despite the fact that many, including the vast majority of financial institutions were declaring that bitcoin was in a massive bubble, we’ll give the author the benefit of the doubt in this situation.

Forethoughts

To be transparent, the author of this article (CryptoMedication — Pete Mercury), in no way, shape or form believes that there is a ‘Cartel’ or other dedicated organization of shadowy, unknown individuals that exists for the sole purpose of suppressing the price of bitcoin and precious metals such as gold.

There are a few reasons why I believe this:

  1. There are various incidents that have occurred over the span of bitcoin’s existence that would’ve given the government or any other anti-bitcoin entity more than enough incentive to absolutely destroy the currency if they wanted to (which is what the author of the ‘Cartel’ article is alleging is their primary goal). For example, when the Silk Road situation imploded, there was more than enough ammo for the government or other entities to spread out propaganda or lobby for legislation that would have destroyed bitcoin. For those that are unfamiliar with Silk Road, it was essentially a dark web marketplace that specialized in allowing individuals to purchase everything from child pornography to paid hitmen. Bitcoin was the only form of currency that these vendors accepted.
  2. There are no lobbyists for bitcoin and the community is small, at best. Before the December bull run, bitcoin was a somewhat fringe investment/community when looking at it within the context of the mainstream. Passing legislation to have bitcoin destroyed/eliminated wouldn’t be that difficult. If there were such a ‘Cartel’ that wielded so much power that it influenced governments, it stands to reason that they would attempt to undermine the bitcoin protocol via making it illegal.
  3. What sense does it make that this ‘Cartel’ would wait until October 2017 to suppress the price? Why not do it in the beginning of 2017 when the price was hovering around $900/coin? Why not create a competing coin? Why not put all their resources behind supporting a competing coin like Bitcoin Cash in order to create more confusion/disintegration among the community?
  4. The painful truth is that bitcoin is not ready for mainstream adoption. This isn’t FUD, it’s a widely known fact and one that has been stated openly by the Core Team. It is why they are working in conjunction with Lightning Labs, Elizabeth Stark, Jonathan Poon, Vitalik Buterin, and other developers/companies within the industry to create the proposed sidechannel, off-chain scaling solution, Lightning Network. The throughput of bitcoin had been exceeded multiple times over in December 2017. I covered this in another article of mine where I showed that there were hundreds of thousands of transactions that were backlogged on the network. When comparing this to the quickness and ease of transaction of Visa/Mastercard/PayPal/Venmo/CashApp, it was more than apparent to casual spectators of the coin’s process that it was not at a stage or state where it could truly be adopted in the mainstream for the purposes of everyday payments or used as a ‘currency’.
  5. The ‘powers that be’ have actually spoken favorably on cryptocurrency (bitcoin is used synonymously in popular culture), in recent days. On March 19th, 2018, Congress released ‘The Joint 2018 Economic Report’ where they stated that, “Blockchain technoology — providing cybersecurity and many other potential benefits — broke into the mainstream in 2017 driven by widespread interest and surging valuations in digital currencies such as Bitcoin and Ethereum.” Source: https://www.congress.gov/115/crpt/hrpt596/CRPT-115hrpt596.pdf

I’m not denying manipulation. It exists in every market (yes, the ‘traditional markets included’. See: Economic Recession 2009). What I’m disputing is that there is some sort of widespread, coordinated global effort to undermine the price of bitcoin. If so, then this ‘Cartel’ has done an absolutely terrible job. In this article, I will dissect the argument made by the author of this ‘Cartel’ article, then I will provide more links, evidence, and questions that should inspire the reader to seriously question this ‘Cartel’ article that has gone viral within the cryptocurrency community.

Without further adeiu:

Dissecting the Introduction of the ‘Cartel’ Article

Before the author even gets into the article, he begins with the ominous disclaimer of, “Don’t be surprised if this post just disappears one day. As I record more & more manipulation, here, one day I may receive a ‘friendly request’ from the influential sources to delete this post. Read while you can 😊 81,000 people have read this post as of Mar-29–2018.”

With such a high viewership and apparent secretive knowledge, I was thoroughly prepared to be introduced to one of the biggest bombshells in crypto history.

However, what I received was quite the opposite, and the ‘information’ contained within the article seemed to be more akin to the ramblings of a conspiracy theorist rather than the frantically released discoveries of a true whistleblower.

But, without further adieu, let’s get into dissecting the article’s contents and exposing the issues/problems/logical inconsistencies embedded within

The Article

From the very beginning, the author mentions some vague, unknown source called the ‘Cartel’, which exists in the “4th dimension of the market”. The author claims that the Cartel’s number one goal above anything else is ‘price suppression’, but not ‘manipulation’ (although price suppression is a form of market manipulation if it is indeed occurring).

The author then claims that the ‘Cartel’ is very active in the crypto space and that this knowledge of their activities is what led him to pinpoint a drop in the crypto markets from the time that the CME futures were initiated in mid-December. No further information is given anywhere in the article as to how the author stumbled upon the ‘Cartel’ or why he chose to use this name as opposed to calling them ‘whales’. The author also provides no further information on how they found out about their relationship to the major financial institutions that they allegedly work on behalf of. There is no greater information on how these shady figures would be paid by the financial institutions either (assuming they’d be paid, since the author makes it clear that they are separate from the financial institutions themselves) or what techniques they would use to suppress the price.

Perhaps the biggest stake through this article is the fact that there’s no apparent logical reason for letting the price run up to $20,000 (which the author alleges happened), when the ‘Cartel’ could’ve initiated their price suppression efforts when the price of bitcoin was hovering around $900–1000/piece earlier that same year (2017).

The ‘Cartel’s’ Alleged Entry into Crypto

The author claims that the ‘Cartel’ entered into the crytosphere around approximately October of 2017. Once again, there is no greater information given by the author as to how they know that the ‘Cartel’ entered the space specifically on October 2017. Also, given the fact that the price was at $5.9k and it is still higher than it was at that point at this current point in time is pretty conclusive evidence that the Cartel has failed entirely in its alleged mission to ‘undermine’ or suppress the price of bitcoin/cryptocurrency.

What is also confounding is why the ‘Cartel’ would wait until the price of bitcoin had appreciated by well over 1000% before even attempting to intervene when there had been weeks, months, and even years where they could have easily dissected and undermined the price of bitcoin.

He claims that their presence in the space became immediately apparent as soon as the ‘CME-Futures Market Opened it [sic] doors for Crypto.’

While the peak of bitcoin’s rise does appear to coincide with the CME’s launch of their derivative futures product based on bitcoin’s spot price on crypto markets, the proof provided thus far of some ‘4th-dimensional’ dark market force, is non-existent at this point in the article.

How the ‘Cartel’ Works

Despite the lack of evidence presented at this very point in the article, this does not stop the author from continuing on to make the claim that the ‘Cartel’ has worked behind the scenes to generate news that would result in the reduction of bitcoin’s price specifically.

The author claims that certain news events/speculative theories, such as the alleged ‘Mt. Gox dumping’ and the subpoena that Tether Limited received from the CFTC, were released in an orchestrated manner. They claim that this news was delayed purposefully.

Here are a few problems with this theory in itself:

– The article provides no plausible reason for what inherent advantage there would have been in releasing the news at the date that it was released on.

– The author asserts ‘Mt. Gox did NOT sell on Mar-07 but the NEWS of this sell was released on Mar-07’, without giving any greater evidence or explanation as to why they believe this theory. They also do not state when the ‘Mt. Gox dumping’ allegedly actually happened. So, we have to discount this portion of the argument as well.

6 Days of Daily Dump after March -07 starting exactly at 11:30 ET

This article does not dispute that this event did occur. However, there doesn’t seem to be any more evidence that a ‘Cartel’ was behind these sells than there is for the magic tooth fairy or a pin-striped unicorn. In other words, the ‘Cartel’, at this point in the article, appears to be a completely fabricated, unverifiable magical entity with no known source, whose sole purpose is to disrupt the crypto market for the purposes of helping out the federal government (?).

If this sounds convoluted thus far, that’s because it absolutely is.

However, since this article has apparently been taken seriously by at least some individuals, it is behoove me to do the same.

Other Alleged ‘Evidence’

The author mentions the hacking of the Chinese central bank mailbox as further evidence of the ‘Cartel’s’ active price suppression of bitcoin.

Definition of ‘Cartel’

Finally, after paragraphs upon paragraphs of conjecture, the article provides more details about what they claim is the ‘Cartel’.

They state that the ‘Cartel’, “…is [a] collection of entities that work together to attain certain goals on behalf of the financial elite. Their goal is to control-the-price or suppress-the-price of a particular asset as desired by their ultimate boss (mostly government). Who is Government’s boss? It’s the financial elite.”

Once again, despite the ‘definition’ of ‘Cartel’ being provided by the author of the article, there doesn’t seem to be anything else other than the author’s own musings that provide evidence of the existence of such an entity.

There are no studies, alternate articles or pieces of research that corroborate the idea of such an entity.

This begs the obvious question of how the author would have obtained such intimate information about this entity without help/assistance or independent third-party source that could be audited.

It also isn’t clear what ‘financial institutions’ are behind this ‘Cartel’, according to the author.

Their Activity

The author claims that the Cartel isn’t active in all markets, only a ‘few’; namely, the gold, silver, and bitcoin markets. The author claims that the primary purpose of this ‘Cartel’ is to suppress the prices of assets that they deem would be a threat to the ‘fiat stronghold’ that currently exists on the planet.

The Alleged ‘Proof’

Above is a screenshot from the article where the author gave their first example of ‘proof’ that the ‘Cartel’ had been using ‘price manipulation’ in order to suppress the price of Uranium (does this mean that the author thinks that Uranium would have ever been a form of currency?).

Here’s the next example that the author gives:

The author claims that the gold markets were also subject to rampant manipulation in 2011

The author then goes on to state their theory for how they feel that the ‘Cartel’ contributed to the price decline of bitcoin from the ‘top’:

From that point, the author then goes on to detail President Trump (leader of the United States) issued a recent ban of the Venezuelan cryptocurrency that was supposed to be backed by oil. Below is the reason that the author gives for this occurrence:

Now that we’ve covered this mess…

Let’s Call Bullshit For a Second

Why the Explanation of the Uranium Markets is Bullshit

Here is the price of the Uranium over the time period that the author identifies (1993 to 2007) as well as afterward (2007–2018).

Source: https://www.cameco.com/invest/markets/uranium-price

The peak in 2007 occurred at $136.00 as the article stated.

It then went down to the price of $41.75 shortly thereafter in April 2010, before rising back up by 77.14% to its last peak of $71.50.

There are a few things that precipitated the dramatic drop in Uranium prices (hint: price suppression isn’t one of them).

· The Global Recession of 2009 killed prices everywhere without exception almost.

· The price of uranium leading up to 2007 was overpriced, to say the least. If you look at the chart leading up to the apex of its price point, the price was parabolic at that point. In fact, the vast majority of the price gain occurred between 2005 to 2007.

o In 2005, the price of Uranium was only $25. By 2007, it had appreciated by 500%, which is insane. To insist that a drawdown from that price required price suppression is absurd, to say the least. Ironically, bitcoin had a similar rise — but we’ll get to that a bit later.

· The fact that the price rose again by damn near 80% seems to imply that the price suppression efforts of the ‘Cartel’ were a huge failure at that point. It’s also worth considering that despite Uranium’s drop from the top, it was still up 300% in 2011 from where it was in 2005 (number controlled for inflation).

· In 2011, the explosion of the Japanese nuclear plants occurred. For those that have a hazy memory of the incident, this essentially resulted in the shutdown of numerous major plants until the source of the incident could be pinpointed. Thus, the demand for Uranium in general went down and there different calls among regulatory agencies to control/limit the usage of Uranium as well.

Other nuclear disasters in different areas (Russia is the most recent example) have also greatly impacted the price of Uranium. Political scandals and the advocation of the U.N.’s nuclear proliferation treaty to a greater extent in recent years have also suppressed the prices of Uranium. All of this excludes the fact that there is still no logical reason for the price run-up that occurred which pushed the price of Uranium all the way up to $136 from $25 (+500% delta) in two years (’05-’07).

Why the Author’s Explanation of Gold Markets is Bullshit

The author’s argument about gold is bullshit for a host of reasons.

Reason #1 — The Price of Gold Has Depreciated Substantially Over the Last Few Decades

In 1980, the price of gold maxed out at $850 (see below)

In today’s dollars (2018), that would be the equivalent of $2,568.48:

Currently, gold is trading for $1,345.45:

In 2011, when the author claims that the ‘price suppression’ kicked in, gold was valued at $1,833.

This total is still well below the value of gold in 1980 (and 1980 wasn’t anywhere close to the peak of gold’s price).

Reason #2 — The author appears to have a fundamental lack of understanding of how gold works

Despite the fact that the world has moved away a gold standard, gold is still considered to have inherent value.

This means that the value of gold technically never changes.

How is this possible?

Let’s say a gold bar is $100 one day. The next day it’s $200. The gold bar didn’t become more ‘expensive’ — the currency has simply depreciated. Thus, a rise in gold price essentially translates as ‘This country’s currency is worth less’.

So, when 2009 hit, of course, inflation rates were absolutely ridiculous. As a result, the spot price of gold increased all over the world. There are other reasons for the spike in its price, but I won’t get into them in this article because there’s just not enough room.

Reason #3 — The author lacks a fundamental understanding of how Gold ETFs work

ETF is an acronym for the term, ‘exchange traded fund’.

Exchange traded funds are derivatives.

This means that one is simply trading the spot price of a real asset without having to transfer the actual asset.

This is what is happening with Gold ETFs. So, when the author asserts that the ‘rich’ or the ‘Cartel’ simply wants to ‘hoard’ gold in order to keep resources allocated among the richest people in the world/financial institutions/Bilderberg/whatever vague agency they feel the ‘Cartel’ represents, their argument falls flat because Gold ETF ownership does not equal actual gold ownership.

Reason #4 — Devaluing the price of gold (which is theoretically impossible anyway) would have been counter-intuitive for any ‘Cartel’ working on behalf of financial institutions

This is because financial institutions are centralized, for-profit entities that are designed to store, distribute, and loan money. Specifically, this money is fiat currency.

Many countries are still evaluated by their stores of value — namely, gold. This bodes true for the United States, France, Britain, etc.

Although fiat is no longer traded by the gold-standard, gold is still a major asset that nations hold.

Thus, by ‘devaluing gold’ (which I explained is theoretically impossible since everything is valued in gold, not vice versa), financial institutions would be decreasing the relative wealth of the system which they are dependent upon.

Also, as mentioned before — Gold ETFs are based on the speculative price of gold. A stock note for the Gold ETF does not entitle one the right to obtain more gold.

Reason #5 — Governments and Financial Institutions Already Own the Vast Majority of Gold in the World

Next time you speak to a close friend or relative — ask them if they know the price of gold. Then, ask them if they have a bar of solid gold that’s verifiable. After they answer no, go ahead and ask the first one thousand people that you meet afterward whether they have a gold bar sitting in their home.

The answer from all of those individuals will more than likely be no.

Buying an ounce of gold is one thing — buying a bar is completely different. If you want a bar of gold, one should expect to kick out $5.7 million per bar.

And one bar only amounts to approximately 489 ounces per bar.

Now ask yourself the plausibility of the common man ever being able to actually acquire one of these gold bars and do so in a quantity that would even make the threat of challenging the “authority” of financial institutions a remote possibility.

Why the Author’s Theory on Bitcoin is Bullshit

The author also states that the downtrend in bitcoin was due solely to the price suppression efforts of this ‘Cartel’. The author claims that the Cartel “let” bitcoin reach $20,000 before collaborating with the CME and CBOE to ‘suppress’ the price of bitcoin by shorting it.

There are a load of reasons for why this is a crackpot theory entirely, so I’ll just summarize them in a few points below:

· Bitcoin was dramatically overextended. The price of bitcoin had extended by over 100% in a little over a month. While this is an accepted and normal occurrence in crypto, it wasn’t necessarily normal in bitcoin due to the growth of the market cap as well as the relative increase in price. Going up 100% from $2 to $4 is substantially different than going up in price from $10,000 to approximately $20,000.

o This lead to the price being overextended. Many were calling the ‘bubble’ to burst for weeks and months leading up to the $20k sell-off of bitcoin. This wasn’t something that caught the markets or the world by surprise. In fact, many financial institutions and retailers in the industry specifically stated that it was their purpose to short bitcoin to oblivion before either of the exchanges had launched.

· There were a number of fundamental flaws with bitcoin that still exist today (people will debate this point, but that’s an argument for another day). The number of unconfirmed TX/day for the bitcoin protocol was absolutely absurd. Some users had reported not receiving their funds for over an entire day. This, in conjunction with the fact that the fees that were incurred in the process were so steep that they made the use of bitcoin prohibitively expensive and inconvenient, was another major factor that led to the downturn of the market.

· Exuberance and hype by retail investors that were just figuring out what bitcoin was and how blockchain technology worked FOMO’d into bitcoin. Those retail investors undoubtedly quickly sold their position once the price plummeted down toward earth.

· The regulatory information coming out doesn’t appear to be ‘orchestrated’. Most of it is directed toward ICOs rather than bitcoin itself. There doesn’t seem to be any sort of grand collusion on a higher level to ‘suppress’ the price of bitcoin. If there is one, then it’s failure miserably because it is still worthseveral hundred percent more than it’s spot price just a year ago from the time of writing.

Why the idea that Trump Banning the Venezuelan Cryptocurrency was a Kneejerk Reaction Made Out of Fear of the Protocol is Bullshit

United States political leaders did not issue a ban on the Venezuelan cryptocurrency because they were inherently threatened by its presence. This is actually a laughable assertion given the political instability, lack of adequate resources, mismanagement of resources, economic instability, and incompetent leadership that is currently plaguing the nation of Venezuela. In fact, when all things are considered, it’s a feat that the Venezuelan cryptocurrency was even able to get itself off the ground.

However, when they did, the crypto wasn’t banned because it was a threat. The crypto was banned because the United States has active sanctions against Venezuela. So, by allowing U.S. citizens to purchase the cryptocurrency, the sanctions would be effectively nulled. Thus, the United States had to ban the Venezuelan cryptocurrency in order to remain consistent with its current political objectives. The fact that it was a cryptocurrency had jack shit to do with the decision.

Here is an article that details the political relations between the two countries (written several months before the launch or slightest mention of the Venezuelan cryptocurrency).

Now, take a gander at what the author of this horrible Medium Article that we’re reviewing said below:

Conclusion

Normally, I as an author do not take the time to even entertain such poorly-informed pieces that are devoid of any and all research. However, since this one had amassed so much attention (17k+ claps and 80k+ purported views), I felt that it was imperative to write a rebuttal piece that exposed the complete lack of information within the article.

Unfortunately, shoddy journalism has become the norm rather than the exception in crypto. So, it stands to reason that more articles like this one will come out.

Hopefully as time goes on, the sphere begins to learn to take the information that they receive a lot more seriously.