The bitcoin buzz

As of this year in 2024 there has been much excitement and optimistic naivety relating to the creation of the new bitcoin ETFS that so many retail investors want to get in on. Investing directly into a bitcoin ETF defeats the whole concept of bitcoin ownership. Moving funds into an ETF totally exposes the investor to counter party risk.

The main concern here is that buying into the crypto space in this fashion gives the banks and other financial institutions access and control. The synthetic instruments that have been developed to track the price of bitcoin can and most likely be used to manipulate the price, as they already do with precious metals. Short selling will likely be the main form of manipulation.

Between 2008 and 2016 JPMorgan bank were accused of intentionally manipulating precious metals prices by investors. U.S government investigators found that the bank were participating in a form of illegal trading, the form I’m talking about here is known as spoofing. Spoofing is where traders place orders that they very much intend to cancel, predicting that they soon after will be able to benefit greatly from their positions. In the year of 2020 JPMorgan found themselves paying out another large sum of money due to a repeat of bad financial practices. In short, the large banks and financial institutions do not play fair and are only involved within certain spaces to benefit themselves- they are not to be trusted.

Overall the concept of bitcoin is good and plenty of people think so. Institutions and governments have always been in the business of transferring wealth and power away form individuals, some say bitcoin fixes this cruel, vulgar behaviour. With the ability to transact as one wishes without bureaucratic interference, sovereignty is fully embraced. Unfortunately as of late, it has become blatantly obvious that in western societies things like freedom of association, principles of law and basic rights have become ignored and smashed apart by political forces, without shame. Taking and controlling in such a manner that the despots of the medieval past would’ve been proud. With all that being said, holding bitcoin on a secure cold wallet facilities keeping wealth outside of the system. The only way to secure your wealth in a safe way is through the use of a trusted, secure cold wallet. I recommend using Ledger Nano S Plus.