Bitcoin is (or soon could be) a serious problem for the established banking system and most Western intelligence agencies. It can’t be printed on demand, like the established currencies, and it can’t be used to track your movements, like basically every other form of payment except cash. Thus, bitcoin can expect to come under serious attack from every angle, and to a lesser extent, so can cash. If you find that to be conspiracy theory nonsense, this post isn’t intended for you (continue as usual, your fiat currency is safe, go back to sleep).
Mike Hearn, who I previously accused of trying to control and kill Bitcoin, recently published an article calling Bitcoin a failed experiment, presumably because he and Gavin Andresen haven’t had much luck in taking sole control of the currency with their hard fork, I guess then he would call it a “success”if they were able to take control (despite Satoshi saying he himself would call it a failure if Bitcoin needed “leadership”).
The timing of the article is impeccable. Yesterday at the Hutchins Center on Fiscal and Monetary Policy there was a meeting which included 8 members from the Federal Reserve, various R3 members. R3 is a consortium of 42 banks that Mike Hearn now works for setting up their own Blockchain system (I wonder if he was already in discussions with them while working on his Bitcoin takeover with XT). When one of the R3 members was speaking, he made an interesting remark: “I don’t know what time it is, but any minute now there will be a New York Times article saying Mike Hearn broke up with Bitcoin and called it a failed experiment.” A remarkably accurate prediction, even getting the wording correct! The article was indeed published during the meeting.
How interesting that the New York Times article was published during an industry and policy panel talking about Bitcoin? During this panel, which was attended to and viewed by numerous financial industry heavy-hitters and traders, we’re all learning all about Bitcoin and the Blockchain. Once they get out of the meeting and google anything about Bitcoin, they’ll be inundated with articles saying a “key” bitcoin developer (now go and see how many lines of code he actually wrote) is saying Bitcoin failed. Couldn’t have timed it any better.
There’s also more to it than this from a broader intelligence and banking industry perspective, but I don’t have time to write an essay. If you want a foundational understanding of what’s happening you might want to start by having a read of Pieter Hintjens’ book: Culture and Empire.
I’m not going to give investment advice, and even if I did you definitely shouldn’t listen to me. But as a disclaimer, I’m guessing the price will drop from the current $430 to maybe $360 and then come stuttering back up with growing confidence to a new normal of $450. I have buy and sell orders reflecting these kinds of numbers.