The Crypto market is getting thrashed, here's why...
Curious why your favorite coins are getting taken to the woodshed the last few days?
Look no further than this guy:
(Source: https://www.c-span.org/video/?462270-1/federal-reserve-chair-jerome-powell-testifies-state-economy)
Bitcoin and the like took a major beating Wednesday and Thursday...
This is happening on the heels of some not so positive comments from the Chairman of the Federal Reserve that came out late Wednesday.
Yes, it appears crypto is now large enough that even the almighty chairmen feels the need to comment on them.
Specifically, he had some choice words to say about Facebook's Libra:
"Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability. These are concerns that should be thoroughly and publicly addressed.”
If he had just said that, it wouldn't be so terrible, but it is what came next that likely really sent markets in a tailspin...
Mr. Chairman wants Facebook to cease and desist...
He called for a halt to the project until regulators’ questions about Libra are addressed, saying that the project cannot move forward until questions are answered.
Oh goody!
Much of the recent rally was likely due to Facebook entering the game and investors speculating what that might mean for the entire crypto space...
Well, now it seems like Facebook's project is postponed for the foreseeable future.
I wish I could say I am surprised by this, but I am not.
Facebook has too much control and too far of a reach for this to just slide through without the government getting involved.
Hopefully they can get it approved sooner than later and we can all go back to dreaming of new highs on bitcoin again.
Stay informed my friends.
-Doc
ugh more problems
Donald Trump also felt the need to come out and say he doesn't like bitcoin or crypto either and that the dollar should be the only currency allowed/used in the US...
This battle is primarily between the existing banking system and the Libra Consortium whose wealth from silicon valley is rivaling the central banks. They applied for banking licenses in the last decade and now all these tech giants are coming for the established banks. Government is but a slave between these two powers and will do the bidding of whoever can buy out and capture the most lobbyists.
As Andreas Antonopoulos recently said, "just as AOL introduced us to the wrong kind of internet, Libra will introduce us to the wrong kind of crypto". I think it's only a matter of time before the army of lawyers on the silicon valley side win. As for looking for help from the US government, their net worth is actually negative and the annual budget is only 20% of what the Libra Consortium will have with full membership. Debtors such as the US government cannot be masters; they are slaves between two masters (the banking class and silicon valley).
Interesting take. So your take that it will eventually gain approval is similar to mine? Though, we may have to wait a while now...
It's a bit simplistic to say that the side that can come up with the most money will win, but that's not news. Politics has worked that way for millennia. The vote is a placebo for the public.
Haha, well said. I agree. Even if they are able to stop Facebook, I think eventually something similar backed by big companies will get through. It just may not happen by Q1 of 2020 like Facebook was planning to do...
My gut tells me to watch for big news in early 2020 regarding this (probably March).
Historical patterns say we should have a big move in bitcoin and the rest of the crypto markets in early 2020, perhaps this could be one of the catalysts as well.
I don’t think he can stop this freight train, he is scared ,the Federal Reserve is scared!
Banks are already onboard with Libra and money talks, it will happen.
The Federal Reserve wants to keep printing money with a target inflation of 2% per year to grease the wheels of business and to stuff money in there pockets.
They don’t want Libra because it will effect “ there bottom line.”
They want control.......
They want to be THE bank with the control.
Good luck with that .....the train is coming!!
Resteemed!!! Very good post!!!!
I think part of it is the ability to control an economy as well. They do that via interest rates, that won't change per say, but if everyone is their own bank it will. I think that is part of this as well. When they say they think it could be destabilizing, they are talking about the entire economy as well. They may lose some of their tools to keep the economy humming along in their targeted range, as you mentioned, and yes that is a bit scary.
Absolutely correct, one of the first things that gets mentioned is money laundering.
Anyone that has traded on a crypto exchange knows this isn’t true.
The exchange’s have all of my information including my bank info.
I have heard that a “criminal “ would be better off buying Amazon gift cards than trading on an exchange!🙃
It's certainly not like it once was... I think the P2P exchanges are the issue... no KYC there.
Very true there are always loopholes.....
I saw a CoinStar kiosk at the mall and to set up a hot wallet they want your drivers license for identification.
This is how the average "Joe " will buy BTC for now, even Blocktrades now requires ID.
This is probably just the cost of Crypto going mainstream.....
Yep. I am interested to see what comes of these P2P exchanges... I saw someone get nailed by the SEC for building one... The SEC claiming the guy was facilitating trading of securities by developing it...
I think the closer crypto gets to mainstream acceptance we will see more of this...... regulation and control.
Just take a look at Binance, I understand they are now setting up trading for US residents with a headquarters in the US.
Just to meet regulations.....
Yep. It's happening globally. Look at Blocktrades, you must KYC there now too. It seems there was some unreported regulations that were sent out to all exchanges/brokers to comply with... or else.
Facebook is not going to stop development.
Why would they?
These calls to halt development are laughable.
They would rather have a working product that isn't allowed to go to market until they straighten out regulations.
I view this whole situation as the central banks freaking out and trying to catch up with their own "cryptocurrency", which is also laughable.
Crypto is all about targeting community, so who are banks going to target? Their own customers that already have access to financial services? These idiots just need to fix their own system. Such dinosaurs. Much wow.
True, they may not, but they may not be able to actually launch it until later than they projected... possibly much later depending on how long this all takes...
Yeah but they can weasel there way into crypto-friendly countries and move out from there. It can't be stopped. There's too much money there. They can buy their way in.
That is the hope! ;)
👍🧐👍
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Great that bitcoin continues to mine blocks every 10 minutes and nothing can stop it!
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Except a global EMP. :)
It would take quite a big nuclear explosion to cause big enough EMP pulse to disable electronic devices planet wide... You can't make that big EMP pulse with just electronic components, because it would require so big components that turning the device on locally would be suicide mission. And where would you put such big device to also have electricity to power it.
Perhaps. Maybe a large enough nuclear explosion in space would do the trick... or several simultaneously.
I think multiple synchronous explosions spread across the continents would work the best... Single large explosion in space would only cause about 50-75% of the planet to go dark because the single pulse does travel in straight line and not reach the opposite side of the planet. The exact area it affects depends on wave length of the pulse but that is math beyond my skills...
Haha yes, same here.
That is a good point though. Not sure who would benefit from something like that though. Perhaps a terrorist group that got their hands on the technology with the only goal of sending humanity back to the stone age.
Anything for science... In some countries the electric grid is controlled by corrupt multinational companies... Killing their grid would make the country better place.
There is probably a lot of truth to that...