Central Bank, Central Government, Central Exchange. I’ve been stomping their foot in this column for a while now without any response. Of course, the centralized exchanges Bitstamp, BitFinex, BTC-e, BTC-China, Huobi, etc. won’t respond – they have no retort. They’re hoping no-one will notice, and suckers will just keep depositing bitcoins in their vulnerable, corruptible coffers. Proof-of-solvency. Proof-of-reserve. Proof-of-existence. Proof-of-brain-bamboozle.
Bit-namex, legitimate “Western business institution” shopfront, a girlie secretary, AML, a slap on the back of their local centralized bank, slick color-coded website… you know the deal. It’s properly described as “legit”, like when you walk in the high-street bank, obediently provide your government papers, and surrender your hard-earned fiat to a uniformed lady for a fee – just to open the account. Then they charge you monthly for the service. Nice. You’re the patsy, my sucker citizen.
BitFinex says they’re based in Hong Kong.The British in Hong Kong are respectable and responsible, right? Yet, BitFinex has no license to show for their operation in Hong Kong.
BTC-e. Exactly who is behind this exchange operating from Bulgaria without an address, email or public management structure? The Bitcoin Foundation members helped put DPR behind bars for smack and blow – nothing strange, incidentally, to Wall Street or Silicon Valley whom the Bitcoin Foundation are backside-licking for investment and regulation – yet, let’s ask the Bitcoin Foundation who exactly BTC-e is?
No answer because these centralized buccaneers talk respectable on the one hand but are riding the Bitcoin phenomenon as far as the public will allow them on the other. Put your bitcoins in an exchange, and you no longer control them. Buy and sell your bitcoins in the centralized public exchanges, and they’ll give you some pittance. Go buy and sell via Bitcoin OTC and you’ll be shocked what the exchanges and those in-the-know really get for their bitcoins.
The Bitcoin Foundation and centralized exchanges are a scam – useful as long as it benefits you, you figure. With a blockchain in place, it needn’t be. Especially if the exchanges’ price management renders the most powerful innovation of our time limp and caught in a downtrend lasting over ten months. That’s not Satoshi’s vision, nor the developers, it’s the exchanges – Bitcoin Foundation sanctioned, centralized, co-ordinated, internally arbitrated, in collusion with the biggest regulated institutional players and unable to provide a sustainable market even for the miners that decentralize and subsidize this fantastical innovation for everyone’s benefit. Why would the Bitcoin Foundation assist the FBI but fail to lobby NYDFS or its own member exchanges for mining sustainability? Think about it, and you smell the stank for what it is: they’re not pro-decentralization, but actively working to undermine it.
Look to the Bitcoin Foundation and the exchanges – not for answers to the above accusations, but for an imminent trajectory to the dustbin of history. They want to be somebodies? Decentralize yourselves and see if the majority still values you.
What do readers think? Please comment below.
Nikolaos Panigirtzoglou of JPMorgan on QE’s “wealth effect”:
The decline in asset yields especially during QE3 created large wealth effects. Since the Fed’s QE started at the end of 2008 the PE multiple of the S&P500 index (12-month forward) went up by five points, from 10.5 at the end of 2008 to 15.5 currently. This PE multiple expansion is responsible for around 650 index points or 32% of the current S&P500 index level. Extending that to the total stock of US corporate equities ($29tr currently), it implies an equity wealth boost of $9tr.
Also read: Bitcoin Price Correlation Post-QE
Time of analysis: 17h00 UTC
These are the price junctures where manipulation forced price in the opposite direction than that dictated by wave principle:
BTC-e Daily Chart
I’m not the first analyst to draw this conclusion, and I welcome any contribution for-or-against this Elliott Wave Principle based view.
Last modified: November 3, 2014 05:16 UTC