Rothschild Will Try to Destroy Bitcoin, Warns Top Investor
Steve Chiavarone warns JP Morgan and Fed Reserve can't control cryptocurrency
Rothschild and the US Federal Reserve will attempt to destroy Bitcoin and other cryptocurrencies, according to a top investor.
Portfolio manager Steve Chiavarone has warned that banks and the Fed Reserve will try to shut down Bitcoin because it will not be part of US monetary policy.
Chiavarone says that the top banks such as JP Morgan will want to crack down on Bitcoin, but take advantage of the blockchain technology behind the cryptocurrency.
Bitcoin and other cryptos such as Etheruem, Stellar and Lite Coin are decentralized, meaning transactions take place from person to person.
This system is entirely different to the traditional banking system that has a bank as a "middleman."
What is sometimes overlooked with cryptocurrencies is the technology that runs them.
Blockchain technology is widely considered as the future of the internet as it can make servers obsolete, meaning people can store information without the security risks of hacking.
“The currency itself isn’t a great medium of exchange, it’s not a great store of value. It has a fixed amount so the Fed would try to kill it at some point because they wouldn’t be able to engage in monetary policy,” Chiavarone said in an interview with CNBC. “
"But blockchain behind it, we think is more real than people are giving it credit."
RT reports: Banks have admitted that blockchain can improve the efficiency of clearing and settlement, make cross-border payments faster and cheaper, significantly cut red tape and modernize customer identification systems.
According to Chiavarone, the cryptocurrency market is dominated by greed, and it is the first sign of greed since the economic crisis of 2008, dubbed the "Great Recession."
“Investors wanted to be on the roller coaster in the ‘90s. They wanted high returns. They didn’t mind volatility,” Chiavarone said.
“The Great Recession put the fear in a lot of folks and they wanted to go on the merry-go-round. Folks really want to get on that risk trade.”
Banks are trying to convince the public that Bitcoin could follow the fate of Pets.com – one of the biggest dotcoms to crash when the tech bubble burst in the early 2000s, Chiavarone said.
The cryptocurrency market was growing on Wednesday, with bitcoin trading above $11,000.
All digital currencies from Coinmarketcap’s top 20 and 87 out of the top 100 were gaining after two days of losses.
Bitcoin and other cryptocurrencies have fallen as much as 50 percent this year, as investors were scared off by news of crackdowns in China and South Korea.
Some analysts say investors just wanted to cash in after prices soared due to the mainstream success of cryptocurrencies.
See this: This dip will drive sellers into fiat - because all crypto is affected. If you don't see that fiat is the walking dead, then you've missed the power of crypto. No matter where crypto settles, it's value will increase. We all know this. Don't let fear make this worse.— John McAfee (@officialmcafee) January 17, 2018
As the value of all crypto has recently dropped, many doom-mongers have claimed that the "Bitcoin Bubble" has popped, but leading cryptocurrency analysts have proved that this same dip in value happens every January.
An explanation for the drop by user crypto expert eclipsegum made the front page of Reddit.
In a post titled “everybody relax,” the user noted a sell-off normally occurs around three weeks prior to Lunar New Year.
The event is the world’s largest human migration, and a number of traders may be selling to buy plane tickets and gifts.
The post stated:
People spend a TON of money on travel and presents during Lunar New Year. This is their Christmas. This is also the largest mass migration of people on the planet, occurring over two weeks. Projections are for $100 billion USD in spending.
Remember that the crypto market is antithetical to the stock market. Stocks boom when business is booming during the holidays. Crypto investors are retail investors, not Wall Street investors. Retail investors sell during holidays, thus the crypto market falls.
This selloff has happened exactly 3 weeks before Lunar New Year each of the last 4 years.
So, everybody chill out for a week, the bulls will be back by February. You can't fault these Chinese and Korean bros for taking major gains to buy some cool shit for their families. Hell, if you want to, buy up their cheap coins in the meantime.