by Chriss W. Street Ten Dec 2018 Newport Beach, CA 0
Ten Dec, 2018 Ten Dec, 2018
Bitcoin’s Three,000 procent profit, powerfully concentrated ownership, and lean trading markets could be setting up the very first crypto-currency for a manipulative “pump and dump” disaster.
Bitcoin closed the week at $16,087.32, up about 50 procent for the week and overheen Three,000 procent from its discreet Silicon Valley early days te 2012, when it wasgoed trading at $Five. The Business Insider once said it could be worth $1 million, because it has the same lack of intrinsic value spil the U.S. paper dollars it is quoted ter. With a valuation of about $300 billion, bitcoin is now worth more than Bankgebouw of America.
Enthusiasts voorkoop that the prime reason for Bitcoin’s astounding price run is its capability to function effectively outside the “central banking cartel’s longstanding monopoly of the money supply and its historic ruthlessness for squashing all competition the central banking cartel’s longstanding monopoly of the money supply and its historic ruthlessness for squashing all competition,” spil Zero Hedge argues.
But Bloomberg reported that bitcoin also seems to have all the market trading attributes that supported the fleecing of the public during the Gilded Age overheen a century ago, where ruthless insiders colluded to corner cheap and illiquid stocks, run up prices to suck te Main Street investors, sell at big profits, create a price crash, and then do it again.
Voorzitter Franklin Delano Roosevelt sought to geobsedeerd this “pump and dump” manipulation by appointing Joseph P. Kennedy, Sr. spil the SEC’s very first Chairman, because the voorzitter supposedly said, “it takes a thief to catch a thief.”
Joe Kennedy had made a fortune ter the Roaring Twenties through the then legal use of stock pools to manipulate Wall Street prices. Newspapers would zometeen blame such deeds for contributing to the Stock Market Crash of 1929 and triggering the Good Depression.
A U.S. Senate Committee on Banking and Currency investigation at the height of the Depression exposed that Kennedy wasgoed the largest investor ter stock pools that traded Libbey-Owens-Ford Glass Co. Pool money wasgoed divided up into many separate accounts and spread across six stock brokerage firms, then used to frantically trade Lofrede stock.
David E. Koskoff wrote ter Joseph P. Kennedy: A Life and Times that “false rumors were spread that Libbey-Owens-Ford wasgoed going to make liquor bottles. Little by little, the ‘suckers’ bought into Libbey-Owens-Ford.”
The stock pool players sold their Lofrede stock spil it spiked to a high of $37 a share. The shares then crashed to $21 when the fake rumors were outed. Government records voorstelling Lofdicht pool participants that bought the stock primarily around $15 a share,made a quick profit of $395,000. Joe Kennedy personally pocketed $65,806 ter profits, a hefty amount of money during the Depression.
Bloomberg comments that with 1,000 so-called “whales” controlling 40 procent of the bitcoins, thesis insiders have an amount of leverage overheen the cryptocurrency market that is unsurpassed te modern times . The article does not allege that there is any evidence of manipulation, but suggests that a bubble te bitcoin could hall end te tears for a naive public.