The Great Bitcoin Crash of April 2013

[jalaffa]

As simply as I can put it, the Bitcoin over the past few days/hours has been crashing harder than ever.

I've already laughed at the idea of Bitcoins, and the schadenfreude is delicious.

Hopefully people wont take it seriously anymore after this.

[DKT27]

Bitcoin crashes, losing nearly half of its value in six hours

[Ambrocious]

How the looming bitcoin crash will be exploited by globalists…to outlaw decentralized crypto currencies

Mike Adams
Natural News

April 10, 2013

There’s a bigger agenda happening with bitcoin that needs to be publicly stated, and this goes far beyond the issue of the financial harm that will be caused when the bitcoin bubble finally implodes. Central banks hate bitcoin. They hate it because it doesn’t allow them to loot bank accounts (Cyprus) and control the movement of capital around the globe. Bitcoin, in fact, threatens the very foundation of monetary control that underlies all the corrupt governments of the world. As such, bitcoin is a huge threat to the status quo, making it an obvious target for the globalists to attempt to destroy.

Discrediting bitcoin isn’t enough, however. To really be effective, they need to make bitcoin illegal.

The plot to criminalize bitcoin

How do you criminalize bitcoin? The same way you get guns banned: Plan an attack, make sure lots of people get hurt, roll out all the victims in front of the cameras, then use the sob stories as moral justification to crack down with oppressive new laws.

This is the agenda being planned right now with bitcoin. The recipe works like this:

Step 1) Central banks buy up massive quantities of bitcoin currency, driving the prices into the stratosphere and encouraging millions of people around the world to jump on board the “get rich” bandwagon.

Step 2) Once bitcoin valuations reach a sufficient level of insanity, start a massive selloff by dumping the bitcoins you already bought onto the market, offering them for sale at any price (i.e. sell into falling prices, accelerating the loss in valuations).

Step 3) Watch panic take hold as the bitcoin crash accelerates, ending in a catastrophic wipeout of “valuation” of all bitcoins.

Step 4) Find “victims” of the bitcoin crash who can tell a good sob story for the mainstream media about how they invested little Johnny’s college money in bitcoin and lost it all. Roll them out on CNN and MSNBC where they cry on camera and talk about how they were ripped off by bitcoin and now they only trust the government from now on.

Step 5) Demonize bitcoin by characterizing it as a “libertarian pyramid scheme.” Lash out against both decentralized currencies and libertarians.

Step 6) Once the demonization gains traction, have traitors in the U.S. Congress announce a “Consumer Currency Protection Act” that outlaws non-central bank currencies such as bitcoin. It’s all “for your safety,” of course. Shut down all online bitcoin wallets and exchanges, calling them “criminal pyramid schemes” and arrest a few people using bitcoin to send a warning message to the rest. Mission accomplished! You’ve now made bitcoin look like a “pyramid scheme,” you’ve scared the public into being wary of “anti-government currencies,” and you’ve criminalized their use by consumers.

That’s the goal the central banks are trying to achieve right now. It’s all be set in motion by the bitcoin bubble which will inevitably lead to a bitcoin crash.

Bitcoin is being manipulated as a pawn in the globalist scheme to destroy freedom

The bitcoin bubble is to currency freedom as the Sandy Hook shooting was to firearms freedom. In both cases, governments will use a crisis to destroy freedom while claiming to be “saving” the people. The government WANTS bitcoin to be a disaster, and the mainstream media, which has so far refused to give bitcoin much attention, will leap all over the story like vultures once it crashes.

For the record, I’m a proponent of bitcoin and I want it to succeed in the long run, but the mania speculation happening with bitcoin right now is going to be disastrous for its reputation. It is the worst thing that could happen to bitcoin.

What we would prefer to see is a slow, steady rise that reflects stability with low volatility. Instead, we see extremely high volatility, wild price ranges, desperate purchasing patterns and even purchase queues at some exchanges where the demand for bitcoins is so high that it exceeds the limits of the services (such as Coinbase, where you now have to stand in line to buy bitcoins two days later at whatever “market” prices are offered that day).

Why the bitcoin craze is the modern-day equivalent of tulip bulb mania?

Bitcoin has become a casino. It is almost a perfect reflection of the tulip bulb mania of 1637 in these two ways: 1) Most people buying bitcoins have no use for bitcoins (just like tulip bulbs), and 2) The rapid increase in bitcoin valuations cannot be substantiated in any way that reflects reality.

In other words, there is no fundamental reason why bitcoins should be 2000% more valuable today than four months ago. Nothing has changed other than the craze / mania of people buying in.

Mark my words: A bitcoin crash will occur, and a lot of people are going to be financially hurt by it. More and more, this bitcoin craze is looking like a “pump and dump” operation, where the only winners are those who are the first to sell.

When bitcoins were in the sub-$20 range, I was not concerned about any of this. I actually encouraged people to buy bitcoins and support the bitcoin movement. But alarm bells went off in my mind when it skyrocketed past $150 and headed to $200+ virtually overnight. These are not the signs of rational markets. These are warning signs of bad things yet to occur.

By the way, the simple way to prove to yourself that everything I’m saying here is true is to ask yourself this simple question: What do the people who are buying bitcoins plan to spend them on?

The answer is NOTHING! They don’t plan to spend bitcoins on anything. They have no use for bitcoins. Their only play (for 90+% of those buying them) is to buy low and sell high. That’s it! For them, bitcoin is nothing more than a speculative vehicle for gambling with some of their money.

Every speculative bubble market that goes up must come down. And it will usually come down at a multiple of the speed at which it went up.

The velocity of bitcoins is a huge red alert

Now, if most bitcoin buyers were actually using the currency on a day-to-day basis, purchasing things online, sending bitcoins to pay off debts, exchanging bitcoins for services, etc., then that would be different. The circulation of a currency is classically known as its velocity. The higher the velocity, the more frequently the currency is being routinely used for transactions.

But the velocity of bitcoins after the initial purchase is shockingly low. What this indicates is that people are buying lots of bitcoins but then sitting on them. Once bitcoins are purchased, in other words, they basically just sit around and aren’t used for any practical purpose.

Amazon.com, for example, doesn’t accept bitcoins. You can’t buy gas for your truck with bitcoins. You can’t shop with bitcoins at the local grocery store. Until bitcoins are more widely accepted and the velocity rises, there is no fundamental reason why their value should suddenly skyrocket.

Of course, those who are deep into bitcoins right now will call me a doom and gloomer. Sure, it’s okay for them to talk about how the dollar is going to crash, or how the Fed is a criminal operation, but the minute I start invoking mathematical reality with bitcoins, suddenly I become the bad guy.

Well, my answer to the critics is that I have more faith in the laws of mathematics than the self-deluded logic of people who own millions of dollars worth of bitcoins and who therefore have a strong self-interest in promoting the bitcoin mania.

They are blinded by their own positions in bitcoins and cannot see through the fog of self delusion. In contrast to that, I own only two bitcoins worth approximately $400 or so, meaning that I have no substantial position in bitcoins to speak of. Whether bitcoins go up or down does not impact me in any meaningful way. My sole motivation in writing this is to warn others away from the extreme risks that are now clearly associated with buying bitcoins at present-day prices.

There is nothing new under the sun

As always, there will be people (we call them “noobs” or “suckers”) who think they have stumbled upon the one exception in the universe to the laws of mathematics and that bitcoin somehow represents a galactic shortcut to universal wealth where everyone can become billionaires by trading each other electronic chunks of data with higher and higher numbers encoded in them. These people are fools, and history will prove them so.

After the bitcoin crash takes place, people will ask me, “Mike, how did you know bitcoin was going to crash when everybody else thought it was going to keep going up forever?” And my answer will be, “Because I believe that 2 + 2 = 4.”

If you understand mathematics, you know that the bitcoin bubble is doomed. Sell while you still can and be happy with the profits you’ve made so far. Importantly, remember that the only reason you can sell is because there’s a “greater fool” on the other side of that transaction who is buying your bitcoins.

The problem with all bubbles is that sooner or later the world runs out of greater fools.

Final notes: Why 95% have no clue what I’m writing about

Frustratingly, perhaps 95% of the people who will comment on this article in social media websites have no understanding of high-level mathematics, no understanding of economics, no understanding of free markets, no understanding of greed vs. fear psychology and no historical context through which they might understand what’s happening with bitcoin. Almost no one buying bitcoins has any clue what they are. They don’t even understand the meaning of the phrase “decentralized peer-to-peer crypto currency” and they have absolutely no working knowledge of public / private key cryptography. They have no idea what they are buying and they have no qualifications whatsoever to even discuss the topic.

This is a case where 95% of the people talking about bitcoin need to be told, simply, “Shut the hell up!” because they literally have no clue what they are talking about.

If you are going to talk about bitcoin, make sure you understand the fundamentals of mathematics, cryptography, free markets, economics and human psychology before opening your mouth. Otherwise, you are only announcing to the world that you’re a complete fool who will soon be parted from his money.

And to all those who think they are going to “get rich” by buying bitcoin today and selling it off when bitcoin goes higher, let me offer you a piece of practical advice: After the bitcoin crash, when you are screaming bloody murder and selling your bitcoins at perhaps 1% of what you paid for them, it will be people like me who will buy them and thus receive a 99% discount on the bitcoins you once bought at a hundred times the price. That discount is called the “IQ discount.”

You know how lotteries are called a “tax on people who can’t do math?” The bitcoin crash will be a massive global wealth transfer from people who can’t understand the dynamics of decentralized crypto-currencies to those who do understand.

If you don’t follow what I’m saying here, then don’t buy bitcoins. You will only be led to the mathematical slaughter.

SOURCE - Infowars

[Cypher3927]

Because there's a war on for your mind...and if you read InfoWars then you've already lost it. :rolleyes:

[Ambrocious]

Because there's a war on for your mind...and if you read InfoWars then you've already lost it. :rolleyes:

What makes you say that?

[Cyn]

Because there's a war on for your mind...and if you read InfoWars then you've already lost it. :rolleyes:

What makes you say that?

He just got his booster shot of 30+ vaccines in one shot and instead of powdered sugar he uses the flouride powder because he wants more than is in the water. When he get's CPS'd or some other agency he still won't believe.

http://www.foxnews.com/us/2013/04/10/amish-gather-last-time-before-prison-terms-begin/

15 years for shaving a beard. 4 women and 1 man sentenced, in addition to 9 others that were already jailed. Also prosecutors wanted LIFE in prison. So REAL crooks, (Jon Corzine, other super embezzlers, drug dealers, rapists, murderers) get no or less time. These Amish are going to the big house. Oh one has a 700 acre farm.......bet that will be siezed a bit later.

Oh forgot to say, They came for the Amish and I said nothing, then they came for (insert other group) and I said nothing, then they came for me and there was no one to say anything.

[Ambrocious]

I tend to forget how many people are damaged and seemingly can't accept the truth about all that is happening. I mean, on the 5th of April 2013, Vice President Joe Biden called for a New World Order, so why the hell am I in the wrong for saying it as well Cypher3927?

Here it is, Joe Biden calling for a New World Order on April 5th, 2013:

[Cyn]

You sir are a crazy loon, next thing you'll be saying is water is wet, fire is hot. All those are conspiracy theories. Just like women giving birth.

[dcs18]

Because there's a war on for your mind...and if you read InfoWars then you've already lost it. :rolleyes:

You sir are a crazy loon, next thing you'll be saying is water is wet, fire is hot. All those are conspiracy theories. Just like women giving birth.

:rofl: :lmao:

[Ambrocious]

You sir are a crazy loon, next thing you'll be saying is water is wet, fire is hot. All those are conspiracy theories. Just like women giving birth.

Ya got me!

[Cypher3927]

Because there's a war on for your mind...and if you read InfoWars then you've already lost it. :rolleyes:

What makes you say that?

InfoWars makes a lot of alarmist claims that are not based in any kind of real evidence. They loosely connect certain world events and play on people's fears. Though I am not averse to the idea that there are certain elements at play that are ruling our lives I think that the world isn't as organized as people think. Most countries could barely balance a budget let alone be involved in some top secret society that is ruling every little event for all these years yet somehow nobody has ever discovered any concrete evidence of this. There was once this great quote I heard that I am really fond of: "There is no conspiracy, it's the headless blunder under the illusion of a master plan." This to me says that there are forces at play in the world with their own desires, ways of thinking and operating and they are simply mindlessly colliding off of each other. I think it is very easy to get caught up in an emotion but to find the truth in a matter is another story. To me it is absurd to think you will ever find any real kind of truth in a website or a YouTube video. We have to be vigilant in obtaining all the facts we can and make our own decisions. Don't just be willing to get locked in to a certain modality.

All of the main conspiracy theorists have at the very least a screw loose and it's very easy to feed into this.type of hysteria. David Icke talks about President Bush being a reptile...I mean come on. Alex Jones addresses the crowd just like a reverend from a pulpit and uses the same type of loose logic that religion enlists to justify itself. My biggest problem with sites like these is that they make us feel helpless when we should be empowered. Yes there are many worrying events happening in the United States right now. There is a global move to more censorship and systems of surveillance but it doesn't have to be as bleak as people make it seem. History is almost never the worst extreme that people believe at the time when the event is occurring (with some exceptions). It's just scary to be in the midst of all these forces and feel like we have no control. We live in a day and age with communication technologies our predecessors didn't have. We can educate ourselves, we can organize and we can pressure our government to correct those things that we see as unjust. However, in order to do so we really have to get our facts straight and we have to offer some kind of helpful solution. I'll give you a good example: People have become very anti-capitalist in sentiment lately but one thing I can never get from someone who subscribes to this ideology is an answer to the question: What economic system would you replace it with? It's easy to criticize but in reality a financial system is a topic of the utmost complexity to invent. Capitalism is simply the best we've come up with so far and is very much in agreement with human nature. It rewards people for their hard work and ingenuity. We know this because if you give a man all he could ever want without him having to work for it and he will become devious, spoiled and ungrateful. Also people criticize big companies but forget that they also create a lot of the jobs. It's very easy to gloss over other important considerations such as that most countries aren't strictly capitalist because they employ things such as social security which are communist in nature. So really it's a balance of the two ideologies. I'm getting a little off topic but I just wanted to show you how things aren't black and white but rather shades of grey. Don't get all your ideals from a website, a video or any one person. Go out into the world and read, discuss and be open to new ways of thinking. Only this way will you arrive at any kind of real truth and be empowered to make an informed decision.

It really reminds me of Pink Floyd's song Us And Them. I offer it here in case you haven't heard this masterpiece and hope you have a good day. Good luck in your search for truth:

http://www.youtube.com/watch?v=vcG47CpsU6c

Us and Them

And after all we're only ordinary men

Me, and you

God only knows it's not what we would choose to do

Forward he cried from the rear

And the front rank died

And the General sat, as the lines on the map

Moved from side to side

Black and Blue

And who knows which is which and who is who

Up and Down

And in the end it's only round and round and round

Haven't you heard it's a battle of words

The poster bearer cried

Listen son, said the man with the gun

There's room for you inside

Down and Out

It can't be helped but there's a lot of it about

With, without

And who'll deny that's what the fightings all about

Get out of the way, it's a busy day

And I've got things on my mind

For want of the price of tea and a slice

The old man died

[Ambrocious]

Because there's a war on for your mind...and if you read InfoWars then you've already lost it. :rolleyes:

What makes you say that?

InfoWars makes a lot of alarmist claims that are not based in any kind of real evidence. They loosely connect certain world events and play on people's fears. Though I am not averse to the idea that there are certain elements at play that are ruling our lives I think that the world isn't as organized as people think. Most countries could barely balance a budget let alone be involved in some top secret society that is ruling every little event for all these years yet somehow nobody has ever discovered any concrete evidence of this. There was once this great quote I heard that I am really fond of: "There is no conspiracy, it's the headless blunder under the illusion of a master plan." This to me says that there are forces at play in the world with their own desires, ways of thinking and operating and they are simply mindlessly colliding off of each other. I think it is very easy to get caught up in an emotion but to find the truth in a matter is another story. To me it is absurd to think you will ever find any real kind of truth in a website or a YouTube video. We have to be vigilant in obtaining all the facts we can and make our own decisions. Don't just be willing to get locked in to a certain modality.

All of the main conspiracy theorists have at the very least a screw loose and it's very easy to feed into this.type of hysteria. David Icke talks about President Bush being a reptile...I mean come on. Alex Jones addresses the crowd just like a reverend from a pulpit and uses the same type of loose logic that religion enlists to justify itself. My biggest problem with sites like these is that they make us feel helpless when we should be empowered. Yes there are many worrying events happening in the United States right now. There is a global move to more censorship and systems of surveillance but it doesn't have to be as bleak as people make it seem. History is almost never the worst extreme that people believe at the time when the event is occurring (with some exceptions). It's just scary to be in the midst of all these forces and feel like we have no control. We live in a day and age with communication technologies our predecessors didn't have. We can educate ourselves, we can organize and we can pressure our government to correct those things that we see as unjust. However, in order to do so we really have to get our facts straight and we have to offer some kind of helpful solution. I'll give you a good example: People have become very anti-capitalist in sentiment lately but one thing I can never get from someone who subscribes to this ideology is an answer to the question: What economic system would you replace it with? It's easy to criticize but in reality a financial system is a topic of the utmost complexity to invent. Capitalism is simply the best we've come up with so far and is very much in agreement with human nature. It rewards people for their hard work and ingenuity. We know this because if you give a man all he could ever want without him having to work for it and he will become devious, spoiled and ungrateful. Also people criticize big companies but forget that they also create a lot of the jobs. It's very easy to gloss over other important considerations such as that most countries aren't strictly capitalist because they employ things such as social security which are communist in nature. So really it's a balance of the two ideologies. I'm getting a little off topic but I just wanted to show you how things aren't black and white but rather shades of grey. Don't get all your ideals from a website, a video or any one person. Go out into the world and read, discuss and be open to new ways of thinking. Only this way will you arrive at any kind of real truth and be empowered to make an informed decision.

It really reminds me of Pink Floyd's song Us And Them. I offer it here in case you haven't heard this masterpiece and hope you have a good day. Good luck in your search for truth:

http://www.youtube.com/watch?v=vcG47CpsU6c

Us and Them

And after all we're only ordinary men

Me, and you

God only knows it's not what we would choose to do

Forward he cried from the rear

And the front rank died

And the General sat, as the lines on the map

Moved from side to side

Black and Blue

And who knows which is which and who is who

Up and Down

And in the end it's only round and round and round

Haven't you heard it's a battle of words

The poster bearer cried

Listen son, said the man with the gun

There's room for you inside

Down and Out

It can't be helped but there's a lot of it about

With, without

And who'll deny that's what the fightings all about

Get out of the way, it's a busy day

And I've got things on my mind

For want of the price of tea and a slice

The old man died

I urge you to research more that you have because you clearly don't see whats happening.

[Cypher3927]

Because there's a war on for your mind...and if you read InfoWars then you've already lost it. :rolleyes:

What makes you say that?

InfoWars makes a lot of alarmist claims that are not based in any kind of real evidence. They loosely connect certain world events and play on people's fears. Though I am not averse to the idea that there are certain elements at play that are ruling our lives I think that the world isn't as organized as people think. Most countries could barely balance a budget let alone be involved in some top secret society that is ruling every little event for all these years yet somehow nobody has ever discovered any concrete evidence of this. There was once this great quote I heard that I am really fond of: "There is no conspiracy, it's the headless blunder under the illusion of a master plan." This to me says that there are forces at play in the world with their own desires, ways of thinking and operating and they are simply mindlessly colliding off of each other. I think it is very easy to get caught up in an emotion but to find the truth in a matter is another story. To me it is absurd to think you will ever find any real kind of truth in a website or a YouTube video. We have to be vigilant in obtaining all the facts we can and make our own decisions. Don't just be willing to get locked in to a certain modality.

All of the main conspiracy theorists have at the very least a screw loose and it's very easy to feed into this.type of hysteria. David Icke talks about President Bush being a reptile...I mean come on. Alex Jones addresses the crowd just like a reverend from a pulpit and uses the same type of loose logic that religion enlists to justify itself. My biggest problem with sites like these is that they make us feel helpless when we should be empowered. Yes there are many worrying events happening in the United States right now. There is a global move to more censorship and systems of surveillance but it doesn't have to be as bleak as people make it seem. History is almost never the worst extreme that people believe at the time when the event is occurring (with some exceptions). It's just scary to be in the midst of all these forces and feel like we have no control. We live in a day and age with communication technologies our predecessors didn't have. We can educate ourselves, we can organize and we can pressure our government to correct those things that we see as unjust. However, in order to do so we really have to get our facts straight and we have to offer some kind of helpful solution. I'll give you a good example: People have become very anti-capitalist in sentiment lately but one thing I can never get from someone who subscribes to this ideology is an answer to the question: What economic system would you replace it with? It's easy to criticize but in reality a financial system is a topic of the utmost complexity to invent. Capitalism is simply the best we've come up with so far and is very much in agreement with human nature. It rewards people for their hard work and ingenuity. We know this because if you give a man all he could ever want without him having to work for it and he will become devious, spoiled and ungrateful. Also people criticize big companies but forget that they also create a lot of the jobs. It's very easy to gloss over other important considerations such as that most countries aren't strictly capitalist because they employ things such as social security which are communist in nature. So really it's a balance of the two ideologies. I'm getting a little off topic but I just wanted to show you how things aren't black and white but rather shades of grey. Don't get all your ideals from a website, a video or any one person. Go out into the world and read, discuss and be open to new ways of thinking. Only this way will you arrive at any kind of real truth and be empowered to make an informed decision.

It really reminds me of Pink Floyd's song Us And Them. I offer it here in case you haven't heard this masterpiece and hope you have a good day. Good luck in your search for truth:

http://www.youtube.com/watch?v=vcG47CpsU6c

Us and Them

And after all we're only ordinary men

Me, and you

God only knows it's not what we would choose to do

Forward he cried from the rear

And the front rank died

And the General sat, as the lines on the map

Moved from side to side

Black and Blue

And who knows which is which and who is who

Up and Down

And in the end it's only round and round and round

Haven't you heard it's a battle of words

The poster bearer cried

Listen son, said the man with the gun

There's room for you inside

Down and Out

It can't be helped but there's a lot of it about

With, without

And who'll deny that's what the fightings all about

Get out of the way, it's a busy day

And I've got things on my mind

For want of the price of tea and a slice

The old man died

I urge you to research more that you have because you clearly don't see whats happening.

I have been researching this for a long long time and I have studied history very closely. Don't assume that because I don't agree with InfoWars that I am somehow an ignorant mook or that I think the situation in the United States is an ideal picture of democracy. I admitted that there are some worrying problems on the horizon not least of which is the realization of Total Information Awareness with the Bluffdale spy center that should be complete by fall. That's some pretty unsettling stuff and I'm sure Orwell is turning in his grave. However, all I am saying is that just because there are some worrying things on the horizon doesn't mean that every single conspiracy theory is true or that life is hopeless. I simply urge you to keep an open mind that not everything that Alex Jones says is backed by evidence. I know because I have watched, read and reasearched. I can tell you one thing for sure: tuning into a website isn't going to change the world.