This is the curious case of why BTC HODLers fight for the existence of precisely the type of derivative products in the bitcoin markets that all gold and silver holders would love to abolish, including a new bitcoin ETF. BTC HODLers lauded the new BTC futures market established at the end of 2017 without understand the grave risks it posed to future BTC price crashes, and now the same group of people constanty clamor for the establishment of the first BTC ETF in 2021. In 2017, BTC’s price spiked multiple times on the anticipation that a new bitcoin ETF was going to be approved, each time proving only to be unfounded rumors that never materialized. When BTC futures trading was approved at the end of 2017, this provided the impetus upon which BTC’s price spiked to $20,000, after which I issued a warning, after observing some squirrely behavior in BTC futures markets that I believed BTC had topped out in 2017 at $20,000 and was about to be slammed to $10,000.
And when that promptly happened in 2018, I again warned my patrons that BTC’s price would be cut in half to $5,000, especially since PM futures contracts were the primary mechanism by which bankers had artificially slammed gold and silver prices for years prior (a topic I had written about multiple times, including this May 2014 article published on my news site titled “Indisputable Proof of Paper Gold Price Manipulation”). And that prediction, too, came true. Last year, in 2020, to prove that I don’t have any agenda other than truth, and that I will also predict huge price movements higher in bitcoin if I believe there is a high probability that such an event will happen, I posted a very public prediction on 24 November 2020 that BTC’s then price of $20,000 was about to soar to $40,000 in 2021, which you can listen to by clicking here.
I promise you I have zero agenda in these predictions other than voicing my honest opinions, and if you are curious as to why I have posted so much free content consisting of thousands of articles on my news site and hundreds of videos on my youtube channel over a period of sixteen years, you may watch my video here that explains “Why I Do What I Do.”
It’s Difficult to Understand Why So Many BTC HODLers Are So Excited Over the Prospect of a New BTC ETF
If you recall, the impetus behind the excitement of a new BTC ETF is the anticipation that a new bitcoin ETF would allow big institutional money to flow into bitcoin in amount that have never before happened, an event that would drive prices much higher. And that is why I have to call out the ignorance of people that still call for a new bitcoin ETF to be established solely for the reason they believe that an ETF will create spikes in bitcoin price above its most recent highs of about $40,000 and closer to the 2021 $300,000 price predictions by massively followed Dutch cryptocurrency analyst PlanB among a sea of predictions this year for btc prices not just higher than $40,000, but multiple times higher than $40,000 established this year.
Mainstream Financial Media is on Board with These Insane Predictions
Bloomberg author Eric Balchunas stated that a US Securities and Exchange Commission, led by new Biden appointee Gary Gensler, will finally yield the long-anticipated approval of a new bitcoin ETF, an action that illustrates “that the U.S. not only understands cryptocurrencies but is looking to protect investors and put the country on a level playing field with the rest of the world.” Balchunas’s release of his article led to universal and unilateral praise on bitcoin and cryptocurrency online news sites that applauded mainstream media’s boarding of the bandwagon as a positive development for future bitcoin prices.
In my bitcoin related post dated 20 January 2021 (19 January in the US as I’m based in a region that is one-day ahead of the US) titled, “Soaring BTC prices greet 2021, and a discussion of ignored risks that accompany this bitcoin price surge”, I warned that derivative BTC markets, specifically BTC futures markets, might cause a downward BTC price spike shortly after the $40,000 price level was breached. At a time when BTC prices were still above $37,850, I warned and explained to my skwealthacademy patrons why the existence of BTC future markets posed a very real threat to continued higher BTC prices at that time, and warned that potential steep price drops, even if prices did indeed break higher in the long run later this year, were very realistic and credible in the short term. After I released this post, BTC promptly dropped from $37,850 to less than $28,800 in the next 24 hours of trading, proving my point. This accurate warning also applies should a BTC, or multiple BTC ETF’s be passed into existence. Every reason why gold and silver holders would rejoice if the silver and gold ETFS, the SLV and GLD, were permanently shuttered, seems to have complete escaped not all, but certainly what seems like the majority of bitcoin HODLers.
By now, we should all know that the press often sells us deadly toxins packaged as gifts. While we all state “never trust the words delivered by a Goldman Sachs company man”, we simultaneously embrace the words of a company man, Gary Gensler, when this company man promotes an imminent bitcoin ETF, without anyone wondering why the snake is voluntarily offering a huge bite of his apple. We hated Gensler when he presided over the US CFTC and fed us lip service for five years over a half-hearted silver price manipulation investigation of JP Morgan bankers that was never going to yield any criminal charges and banker arrests from day one, yet laud this same man for the wonderful push he is seeking to make a BTC ETF a reality. Further damning of Gensler’s pathetic JP Morgan silver price manipulation “investigation” was the fact that a similar US Justice Department investigation discovered ample and clear evidence of criminal wrongdoing by JP Morgan bankers that led to the consequent arrest of multiple JP Morgan bankers for criminal manipulation of gold, silver, platinum and palladium prices in futures markets. Yet. this is the very man bitcoin HODLrs are depending upon to lead them into the promised land and the oft spoken pinnacle of a million dollar BTC price.
To this blind devotion, I provide a warning of caution. Instead, I see a man whose every word, promise, motivations, and publicly-issued statements must be questioned. Recall when JP Morgan CEO Jamie Dimon called bitcoin a “fraud” in September 2017, that this declaration alone served as a stamp of approval to buy more. And indeed, if one had been lucky enough to purchase more BTC back then, using Dimon’s very deliberate and publicly issued statement as confirmation that buying was a right decision, then one would have made enormous profits, as long as one had either sold at the top at the end of 2017 and not held into the crash to $3,000 in 2018. However, what was the purpose behind Dimon’s publicly issued statement labeling BTC as a fraud? If one simply assesses everything at face value, one will never arrive at truth. Every statement about financial assets issued by people like Jamie Dimon and his ilk should never be interpreted at face value. It is almost near guaranteed that such players are never playing checkers, and not even chess, but 3D chess, when issuing such statements obviously intended to exert enormous influence over the short-term price of assets.
The same should be considered when analyzing the motives of Gensler’s public support of a bitcoin ETF. Is the end game of issuance of BTC ETF so that the big players on Wall Street can eventually exert complete control over the price of BTC and cause enormous price spikes not just higher, but also lower very quickly for their own personal benefit, as they have repeatedly done not only in gold and silver futures markets, but also in aluminum futures markets, oil futures markets, and many more derivatives markets? Initially, if a BTC ETF is legislated into existence, do I expect an upward knee-jerk reaction in BTC prices? Yes, I do. This will almost definitely be a “buy the news” event. However, could a deadly drop in prices, similar to what happened after the BTC futures contracts started trading at the end of 2017 then follow? Absolutely.
In conclusion, we all need to be careful of who we willingly invite into our homes, as a bitcoin ETF will not only give access to big Wall Street players to invest in bitcoin, but also will serve as an open invitation for them to gain complete control over its future price. Be warned of rotting fish heads packaged as nice, neat gifts tied with red ribbons. Products sold to us as for the benefit of current holders rarely are what they appear to be. Recall, we live in the Age of Deception, and virtually nothing is ever as it first appears to be.
Remember History Repeats Itself NOT Because Man Has Not Learned from History, But Precisely Because Man Has Learned From History
Just as BTC prices soared several thousand dollars higher upon the introduction of BTC futures trading, BTC ETFs will also likely eventually give power to the big whales to collude in manipulating BTC prices extensively in the future, and yes, that includes price manipulation maneuvers not just to the upside, but also to the downside. It’s almost comical how the media engages the same deceptive “experts” in discussions of cryptocurrencies year after year, just as they do in providing panel discussions of precious metals price behavior. For nearly a decade, the media paraded a self-described “visionary”, Harry Dent, that offered predictions of a gold crash to $700, and every year when he was wildly and spectacularly wrong, the same media members brought him back the next year and provided him with the same platform to make the same absurdly wrong prediction. These shenanigans literally continued for at least six consecutive years, and I’m not even positive that they did not continue for longer.
The Smartest Investor is One that Carefully Considers Views that Diverge From One’s Own
In any event, rare is the gold and silver investor that ever considers an opinion that diverges from one’s own, even when it is supremely wise to do so. The same applies to cryptocurreny HODLers. That does not mean that such introspective intellectual investors do not exist. They do, but from my experience, they are just rare. The common denominator among those that will be able to understand the negatives introduced into BTC price fluctuations through the introduction of a BTC ETF will be those that have studied gold and silver ETFs and understand how the banking/financial industry has used these ETFs to detrimentally and artificially manipulate gold and silver prices. This past week, an online cryptocurrency website conducted an interview with a cryptocurrency “expert” that remarked since it is well known that silver prices face constant price suppression and manipulation from bankers, that no sane person should ever want to invest in silver over bitcoin, a statement that exposed his complete lack of understanding of the price mechanisms that influence BTC prices. When I read the headlines that conveyed this sentiment, I thought to myself, this analyst must be a precocious two-year old baby, because apparently this analyst was born after 2018, and missed the entire year bankers conducted one of the greatest manipulations of an asset price ever, when they artificially forced bitcoin prices from $20,000 to $3,000 in less than a year.
This “expert” was a perfect example of an analyst that discards all facts that do not fit into the narrative he is selling. The best perspective is always to remain emotionally detached from one’s investments, a perspective, of course, much easier said than accomplished. In the past, there have always been those that have never understand my message and have always painted me as an anti-cryptocurrency analyst because of some of the predictions I’ve made in the past of Bitcoins steep price reversals. Thus, by this unintellectual perspective, given the link above in which I publicly stated my prediction that bitcoin would double in price from $20,000 in November 2020 to $40,000 in 2021, such a prediction would make me a champion of bitcoin. Of course, neither perspective is correct. In the past, I’ve argued that bitcoin still lacks some essential qualities necessary to serve as sound money, and some have misinterpreted that argument to mean that I wish for bitcoin to be abolished, a dismissive false claim, given repeated times I have clearly stated that I am a proponent for free and open monetary competition.
Hopefully, people understand that through the last two decades in which I’ve been voicing my opinion about financial and monetary topics, my only loyalty is towards the re-establishment of truth in financial reporting and in returning the global monetary system to sound money that firmly re-establishes power in the hands of not the oligarchs that vastly distort capital asset prices, but in the hands of we, the people (the description of market bubbles by financial media is more often than not a complete disservice to reality as market “bubbles” should be more accurately described as artificially and deliberately created unsustainable massive asset price distortions by Central Bankers. Such an accurate description would then destroy the narrative of “unexpected, unforeseen crashes” that dominate financial rag headlines as massive asset price distortions implies that future crashes are forseeable and inevitable.) For example, even though another absurd short squeeze in US stock markets just pushed the S&P 500 index off of the low of a developing crash in yesterday’s (25 January 2020) markets, a future massive crash of that index is inevitable. Such a correction of perception would further destroy the public’s obedience to Central Bankers when Central Bankers swoop in on the tails of an asset crash to play the role of the “savior”, when in reality, Central Bankers have artificially created every single great asset crash in history, with the exception of a few that developed after natural disasters and terrorist attacks.
To learn more about why I’ve chosen to keep writing articles to educate people for sixteen consecutive years on my website here, you can follow this link that explains “Why I Do What I Do.” In addition, as I’ve created hundreds of videos on my YouTube channels over the years that have garnered tens of millions of views but earned me total revenues of less than $5 (as a video based upon the topic contained in this article will never be monetized by the big social media content owners), if you wish to support my continuing efforts in producing articles such as this please consider donating to my cause through patreon here, or by helping my launch my online academy in 2021 here. One thing I can promise you is that I have never had a hidden agenda in anything I’ve ever written or published online in regards to financial and educational matters other than a hope to free people’s minds and help drive the world to a return to a sound monetary system and a radically better academic system that emphasizes critical thought development, intellect, and leaving a positive social imprint at the local and global levels in the pursuit of business. To read a fact sheet about my coming online academy, click here.
Other recent skwealthacademy content:
Why I Do What I Do (an explanation of my 16-year journey of free online-content creation)
skwealthacademy podcast #172: Is Privacy a Right of the Past?
skwealthacademy podcast #169: Answering this Question Correctly is Critical to Having a Good Financial Year