THE GREAT “CRYPTO-CRASH OF ’22”
I'm not one to gloat and say "I told you so," but... I told you so, except I'm not gloating. If you've been following the crypto-currency phenomenon - or worse, if you had invested in them - then you'll be aware that there has been a massive meltdown in crypto-currencies, with an estimated $300 billion-plus in value literally wiped out. But I suspect there's "something" behind this wipe out, and that's the subject of today's high octane speculation.... or perhaps I should just call it a high octane bubble. We'll get back to that. Here's one version of the story that caught the eyes of many of you:
Now here's the story in a nutshell:
The price of Bitcoin plunged to its lowest point since 2020. Coinbase, the large cryptocurrency exchange, tanked in value. A cryptocurrency that promoted itself as a stable means of exchange collapsed. And more than $300 billion was wiped out by a crash in cryptocurrency prices since Monday.
The crypto world went into a full meltdown this week in a sell-off that graphically illustrated the risks of the experimental and unregulated digital currencies. Even as celebrities such as Kim Kardashian and tech moguls like Elon Musk have talked up crypto, the accelerating declines of virtual currencies like Bitcoin and Ether show that, in some cases, two years of financial gains can disappear overnight.The moment of panic amounted to the worst reset in cryptocurrencies since Bitcoin plummeted 80 percent in 2018. But this time, the falling prices have broader impact because more people and institutions hold the currencies. Critics said the collapse was long overdue, while some traders compared the alarm and fear to the start of the 2008 financial crisis.
“This is like the perfect storm,” said Dan Dolev, an analyst who covers crypto companies and financial technology at the Mizuho Group.
Now, when certain types of markets tumble so fast, and tumble faster than the rest of the market, or if only certain securities suddenly tumble while others on the same markets remain relatively stable in market value in comparison, I get suspicious. The latter, of course, can be "flash crashes" caused by computers trading in response to bad (or is it good, or intentional?) input. Crypto-currencies are all about computers, and as I opined many times, both on this website, and on various interviews with Catherine Austin Fitts, computer-run markets increasingly distance themselves from normal human market activities, and as Ms. Fitts never tires of reminding us, there simply is no such thing as a secure cyber-system.
So bear that in mind as you read the possible real point of "the crypto-crash of '22": the article continues by pointing out that investments in "cryptos" rose during the planscamdemic, with even major investment and banking houses not only investing, but apparently, going into debt to do so. Then we're told that the "crypto-crash of '22" happened because in the wake of the war in the Ukraine, people are selling off risky assets. Translation: Once again, it's the fault of those never-to-be-trusted-always-Byzantinely-scheming-Rooskies-and-their-eveil-super-criminal-genius-mastermind, Vladimir Putin, and his nefarious schemes to make everyone pay for their gas and oil in roubles, while backing the latter with gold, and not accepting cryptos as payment. Baaaddd Vladimir! Eeeevvil Vladimir!
But then we get the following sorts of statements interspersed throughout the article:
The volatility quickly drew attention in Washington, where stablecoins have been on regulators’ radar. Last fall, the Treasury Department issued a report calling on Congress to devise rules for the stablecoin ecosystem.
“We really need a regulatory framework,” Treasury Secretary Janet Yellen said at a congressional hearing on Thursday. “In the last couple of days, we’ve had a real-life demonstration of the risks.”
Stablecoins “present the same kinds of risks that we have known for centuries in connection with bank runs,” she added.
In other words, with market volatility like this, we need regulation, and when you say "regulation", that has a specific meaning if you speak Old High Centralbanksterese: it means giving central banksters yet another money monopoly to play with and influence through their dark pools, algorithmic trading, and so on. And one wonders if, indeed, there was not a certain amount of such algorithmic trading deliberately being done in order to bring about this "crypto-crash of '22".
There's an important lesson here, and the lesson is how quickly value can be wiped out in markets that have no integrity; and no cyber market has integrity. Perhaps this latest "flash crash" is a reason behind another phenomenon, but more on that Wednesday...
See you on the flip side...
Help the Community Grow
Please understand a donation is a gift and does not confer membership or license to audiobooks. To become a paid member, visit member registration.