Bitcoin: The Empire strikes back with fake Bitcoin futures!
Bitcoin scares the Empire to death!
The Empire is suffering from global Bitcoin adoption, while the velocity of its own currency the USD, is at all-time lows. Since the disaster of 2008, the USD has been nothing but a glimpse of its former glory, yet it remains the most used currency globally, until Bitcoin... Bitcoin, of which 80% is mined in China, now poses a real threat to the global hegemony of the USD as it threatens to become the new global reserve currency. Country after country chooses Bitcoin and freedom, after having struggled under the USD suppression for decades!
Therefore it must be stopped.
How will the Empire try to stop Bitcoin?
One of the ways to stop Bitcoin's growing market cap is to use a set of tactics often used by the elites. Futures. Derivatives. Fake news.
With the futures market, one can sell non-existing bitcoins, like paper gold, which is fake gold because the issuer of the futures contract doesn't own the collateral. Yet, by this financial engineering, they can set the price of the underlying asset. They can even make gold look bad so we would have the impression that their USD is better.
They might also use fake news and try to scare us with their quantum computer threats.
How corrupt is Darth Vader's derivative contract?
Well, let's talk about Billy the baker and his old neighbor living down the street. He sells her one bread every day at 1,25 USD. Together, their market GDP is 547,5 USD per year. Across the street, there's a bank and the bank director sees their market and says, let's make some money on their backs: we will start selling bread too, not real bread, but paper bread contracts, derivatives.
We start selling 1,000,000 bread at 1,25USD, this results in a fake bread GDP of 1,250,000 USD. We will pack those into some kind of fund, so some sucker (there's a sucker born every minute) can invest in it. Let's say we charge 2.5% administrative costs and 0.05% fees. That's gives us a profit of 37,500 USD on nonexisting bread. Awesome, and legal.
So far this scam doesn't break the baker's economic model, but what happens when the banker sells the paper bread at 1,10 USD, and this does not allow the baker a profit margin? Right, the baking industry collapses. This has been done over and over with the gold industry.
So even though derivatives can balance prices, which might be good for the economy, they can also present a real danger to the viability of any industry. But what's more dangerous is that these leveraged fake products are bought by many financial institutions, who don't know what they bought, because in this case, they are the suckers. Take a look at Deutsche Bank, then you'll understand, why derivatives are referred to as weapons of mass destruction.
So one has to ask the question: are the BAKKT Bitcoin derivatives really backed by physical Bitcoin or does Wallstreet try to trick us again? Maybe they are backed, but you can be 100% confident that someone is going to abuse these products and not back its contracts by real Bitcoin and sell people non-existing Bitcoin. This is how the gold-derivatives-scam-boys make their money.
Bakkt: show us your Bitcoin!
Whatever the US anti-Bitcoin coalition throws at it, it won't matter, as we feel confident that China controls most of the Bitcoin supply. The ridiculous attempts to screw the bitcoin community with attacks using futures, backed or unbacked, are short-lived as prices will recover quickly. They will try just about anything, won't they? Next, they'll come out with something stupid like libra or a central bank cryptocurrency without a gold or bitcoin standard.