The One Reason Why the Crypto Crash Is Improvised, Zero Hedge

Cryptocurrency prices are tumbling merienda again overnight with Ripple getting smashed.

Bitcoin is back below $12,000 and Ethereum testing down towards $1000.

There are no clear catalysts but @IamJosephYoung notes that the South Korean government previously announced that under-aged investors and foreigners will be prohibited from trading cryptocurrency. Korbit is the very first one to obey with that policy. Bithumb and Coinone yet to comment on it. Date expected to be February 1, not confirmed yet. Kookmin Bankgebouw and some other banks will not provide support for exchanges. But, Shinhan Canap will. Soon, they’ll regret providing the entire market to their competitor.

And perhaps the pre-emptive influence of that speculative haber leaving the market is triggering thesis drops.

Additionally, headlines ter the SCMP suggest further pressures from China.

The People’s Bankgebouw of China has ordered financial institutions to zekering providing banking or funding to any activity related to cryptocurrencies, further tightening the noose since its shutdown of crypto exchanges last September sent digital currency enthusiasts fleeing overseas.

“Every bankgebouw and branch voorwaarde carry out self-inspection and rectification, embarking from today,” according to a document issued by the central canap on Wednesday. “Service for cryptocurrency trading is stringently prohibited. Effective measures should be adopted to prevent payment channels from being used for cryptocurrency settlement.”

The Chinese-language document, spil seen by the South China Morning Postbode, wasgoed distributed spil an internal document among banks, and not published on the central bank’s official webstek.

However, Government crackdowns, often meant to protect against excessive speculation, also end up dousing the fire of technological innovation, said Kay Van-Petersen, an analyst at Saxo Canap.

Decentralised systems like renta cannot be killed because “it will flow to where it is appreciated globally,” he said. “So you can choose to be part of that technological innovation or on the other side of the table.”

“Most of the trading is taking place via US dollar now, spil some big accounts active ter digital currency trading are already on China’s official observe list and payment channel already blocked,” said Zhao Dong, an individual bitcoin investor who spends most of his time ter Japan now.

“This stir by the PBOC is further pushing renta and innovation out of China.”

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However, spil Bonner & Playmate’s Bill Bonner notes, there’s one elementary reason why this latest crypto crash is improvised.

That’s the estimate for how many “ghost accounts” were created by banking giant Wells Fargo.

That’s about 1% of the total U.S. population. It’s also toughly the population of the state of Connecticut.

You’ve likely heard the story already, so I won’t go into all the details. But here’s the gist…

Wells Fargo created millions of fake accounts for its customers… to charge them fees for services that they never requested.

It wasgoed zometeen discovered that Wells Fargo wasgoed signing customers up for unwanted insurance policies spil well – again, to charge customers for services that they never requested. This wasgoed outright fraud.

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It’s for reasons like this that a fresh type of technology has burst onto the toneel. It enables secure, reliable, and semitransparent transactions… without the potential for manipulation by big financial institutions.

Spil an investor, this technology needs to be on your radar.

You Can’t Trust the “Trusted” Intermediaries

Recently, I wrote to you to give you an “inside look” at the world of cryptocurrencies. I told you that the crypto market would practice some pullbacks and high volatility. We’re eyeing that today. Bitcoin, the world’s very first cryptocurrency, dropped about 30% this week.

But despite thesis pullbacks, I’ve also told you that thesis fresh crypto assets still have a long way to run ter the years ahead. And the reason why can be summed up ter one word: blockchain.

You’ve likely heard the term “blockchain” associated with the popular cryptocurrency bitcoin. You may even know it spil the decentralized ledger technology underpinning cryptocurrencies.

But that’s only part of the story…

Blockchain technology is also known spil distributed ledger technology. Wij can think of a distributed ledger ter its simplest form spil a distributed database – distributed te the sense that there are finish copies of this database (or ledger) scattered around the world.

Historically, companies, governments, and individuals all keep their records ter one centralized database. Imagine a slagroom with racks of computers that store information.

But centralized databases can be manipulated… Records can be switched, hard drives can fail, gegevens can be lost, and the records represent only one party’s view of any given transaction.

Ter the world of blockchains and distributed ledger technology, the precies opposite is true. The transactions recorded on the ledger represent a transaction that takes place inbetween the parties involved and is confirmed by the blockchain network via a overeenstemming.

Merienda a transaction is written to the ledger, it is immutable. It cannot be switched.

The pic below gives you an idea of the difference inbetween thesis two network types.

The value and utility that a well-designed blockchain provides is remarkable. Immutability, secure transactions, privacy, transparency, the reduction or elimination of fraud…

That’s because te a centralized system, wij depend on “trusted” intermediaries (banks and other financial institutions) to conduct transactions.

But spil we’ve learned time and time again, thesis “trusted” intermediaries are not at all trustworthy.

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It wasn’t long ago when the LIBOR scandal uncovered that many of the most “trusted” financial institutions te the world were manipulating rente rates for their own benefit, and of course at the expense of others.

Banks like Barclays, Deutsche Bankgebouw, JPMorgan Pursue, UBS, Citigroup, Canap of America, and the Royal Handelsbank of Scotland were found to be right te the middle of thesis manipulations. And we’ve already discussed Wells Fargo…

The Fresh Internet

By vormgeving, blockchain technology eliminates the potential for manipulation to take place.

You can think of this spil a “new” internet. Today’s internet is how wij send pictures, stream movies and music, and send emails.

But blockchain networks are different. They are all about transferring value.

The internet of value will permit you to send money, fulfill wise contracts, confirm your identity without sending sensitive information, and so much more.

The way that value is transferred is typically through a blockchain’s own cryptocurrency. Each blockchain usually has a managed, finite supply of it by vormgeving.

For example, te the case of the bitcoin blockchain, bitcoin is its cryptocurrency… its means of transferring value and incentivizing network participants.

And the bitcoin supply is finite – only 21 million will everzwijn be produced.

Think about that… a blockchain has its own monetary policy written into its software.

It’s Not Too Late

That’s why I’m so excited about this technology.

It has the potential to rewrite our entire society the way the internet did more than 20 years ago. And the assets associated with this technology – cryptocurrency and digital tokens – will proceed to soar te value.

You may think that the cryptocurrency auge has already peaked. You may think you’re too late. But consider this…

I recently came back from a blockchain conference te Fresh York. One of the most remarkable comments made wasgoed that the “big money” (hedge funds and large money managers) isn’t truly te the cryptocurrency market yet.

The total cryptocurrency market sits at around $500 billion. But the institutional funds need the market to kasstuk $1 trillion before they can commence investing strenuously. And when that happens… most likely sometime this year… the crypto market will truly take off.

And the institutional money will very first waterput their dollars to work ter the cryptocurrencies that have the largest market capitalizations. That means investors should be looking closely at bitcoin, Ethereum, Ethereum Classic, and Bitcoin Contant, to commence.

There will certainly be some pullbacks and high volatility along the way, like we’re watching today. But I’m here to tell you… now’s the time to get te.

3 comments

  1. Maybe you think I am just telling this because I am not te the position or I am not on the verdadero situation but it is being practical and I think it is the best thing to do. You can’t determine the best when you are angry or lonely.

  2. If the both of them earned the bitcoin then they should split it ter two but if only one earned it why would they split it, it should only be kept by the one who earned it. If your wifey know about your crypto currency then it will be a long story but wij all have our secrets to hide and my bitcoin is one of them.

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