Conspiracy theories are for the birds, never ascribe to mendacity that which can be explained by incompetence, but they can be fun nonetheless.
Bitcoin is currently going through the mania phase of the classic chart of the bubble.
Articles about the cryptocurrency are everywhere on social media and, regardless of whichever Legacy Media ™ newspaper website you view, there will be a daily quotient of about three articles posted.
It’s the new big thing. If you bought some 5 years ago you’re minted, if you didn’t, there’s a thousand opinions on whether there’s still time.
This one, for example, written by the suspiciously 1930’s Film Noir named Spencer Bogart, in which he gives 3 reasons why the Bitcoin valuation is about right.
Strangely, none of his three reasons are “because people are hoping to sell it later for more than they bought it”.
As Warren Buffet may or may not have said, there are only two types of assets, those with an income stream and those that you hope like hell someone will buy off you later for more money.
Of course Bitcoin is a bubble.
The interesting question is not whether it’s a bubble but whether there was any intent or design behind the instigation of the bubble?
Is there a puppeteer pulling the strings or did this come about by the magic of human interaction at a speed never seen before.
Please note, the use of the word “magic” is not meant sarcastically there; humans trading in markets are responsible for wonderful things (you and I being alive and with a better chance of living longer than any of our ancestors, for example). This is a kind of magic.
But is Bitcoin multiplying by 25 times (or whatever it is currently) its value in a year a result of some effort to by an unknown party? If so, who, why, how?
In our investigation of this possible global conspiracy, let’s examine motive; who would most benefit from a bubble in the cryptocurrency?
Anyone holding it, obviously, but also anyone who wished to see it discredited. There are are only two things we know about bubbles; they crash and you can’t predict when. If you wished to discredit Bitcoin, instigating a bubble and the subsequent wringing of hands after the crash might work.
So who doesn’t want this cryptocurrency to work? Well, people invested in other cryptocurrencies and traditional currencies.
Ah, you’ve worked out where this conspiracy theory is going….
What if Central Banks such as the Federal Reserve instigated this bubble to prevent an alternate currency from destroying its stakeholders’ grip on the world’s economy? Would anyone doubt that they would if they could?
How then might this be achieved? Simply by buying the damn thing and watching the price increase!
The concept and the underpinning technology of Bitcoin seem sound, it’s just that there’s a wave of very basic human emotion riding it currently.
Whether or not there’s a Central Banker’s hand giving the surfboard a helpful shove or not we may never know. It’s not completely beyond the realms of possibility though.
In 2014 the World Bank produces a report with the conclusion that Bitcoin was not a deliberate Ponzi scheme. To misquote the words of the recently deceased Christine Keeler, “well they would say that, wouldn’t they?“.