Bitcoin headed to zero as NSA plan plays out

Bitcoin in USD is down to 7,000 which is really a huge number when you think about it, but HODLrs who got in at more than 10,000 are feeling the pain, those who got in with leverage above that are freaking out, many wiped out.  And the thing about Bitcoin although there are hundreds of better alternatives, Bitcoin remains 40%+ of the market cap of the entire crypto currency universe.  As we explained in our groundbreaking book on this topic Splitting Bits, and on Zero Hedge in an exclusive article, we believe the only possible creator of Bitcoin is the US Government itself, specifically the NSA.  Because of the size of the Bitcoin market now, and the new paradigm created, the creator of Bitcoin is relevant.  People are borrowing against their 401k to invest in Bitcoin or start their own crypto, and we don't even know the identity of the creator of this phenomenon?  We know, it's the NSA - but the NSA is an organization.  Saying it's the NSA is a bit like saying it was the CIA that killed JFK.  Well the CIA certainly couldn't possibly kill anyone because it's an entity, people use guns and guns kill people, not entities.  It would be interesting indeed to unmask the real creators of Bitcoin, if they haven't been retired or disappeared on their GS-15 package.  Perhaps they are living it up with the witsec family, or have changed their face and are pursuing their hobbies whatever they may be.  Whoever it is, it is likely a dead a buried secret.  Who knows how the market would react if the real creator came forward and ultimately liquidated the millions of bitcoin on the market.  (For those of you who don't know, there are 42,000 zombie addresses of Bitcoin meaning they are not used but storing Bitcoin which can be seen publicly on the network, see here.)  Wait a minute - 42 is the meaning to life, according to an AI computer that was built to answer the age old question 'What is the meaning of life?' 

Could it be that what Adams really means is that 42,000 Bitcoin is the meaning of life?  Now we're getting somewhere.  42 Million is the meaning of life.  Where are all the numerology nutjobs when you need them?  3/30/2018 / 42 = 78,619.

Bitcoin is genius, perhaps the most intelligent creation of the digital age.  It served several purposes:  it's a perfect marketing engine (it allowed small investors to potentially earn a big return, the only asset to do so although many have claimed this), it created a new paradigm of digital currency, it changed the way the entire world looks at banking and trading, it has caused the entire tech sector to reshift it's business, all at a cost of likely a few million dollars.  If you follow the thinking that Bitcoin was in fact a child of an NSA lab, you have to continue the thought that the US Government and more specifically the military is the first real form of Artificial Intelligence.  Billions of dollars are invested every year and we all complain about waste, and there is waste - but there is also Bitcoin.  And unlike many successes of the intelligence apparatus, they will never be acknowledged, there will never be a statue in DC with the creator, never a parade.. But such is the life of a spook.  They signed up for it.  But the monetary rewards and the real intellectual pleasure of watching this game play out are so rewarding well it cannot be bought with money.  Some things in government service are priceless, this is one - thank you Mr. Mathematician!  You are the real hero, and heroes (likely it was a team effort).  There are some names on their 1996 paper but anything that is visible electronically in reference to the NSA can be assumed to be inaccurate, misleading, an intentional disinformation, or in any case a dead lead.  But it's worth having a look - click here to read it.

Certainly no one is going to find out anything by searching Google!

So more to the point, Bitcoin going lower before it goes higher, if it ever does.  Real price of BTC/USD could be $100 or $200 - maybe $500.  In a market where money is chasing any higher returns than offered by the traditional markets - bubble psychology took off and fueled a historical hockey stick that will never repeat in crypto.  It can only repeat in some other format - like Quantum computing or if Elon Musk finds Helium 3 on the moon for example.  Something really value-shifting.  Aliens admit that 90% of valley technology came from them.  Bitcoin isn't going to $1 Million, at least it's not likely, but then again we have been shocked by the race to $10,000 and $20,000.  Remember investors that the only thing that drives the price of any asset higher is buyers.  The buyers have stalled and there have been waves of big sellers.  Bitcoin isn't going to be used as a replacement of the US Dollar any time soon.  It may be the dream of some Elite Globalists as a one world currency but it's not happening.  Bitcoin is flawed, slow, and only secure if you use it properly which no one does of course except maybe a few hackers.

Other new Cryptos which are designed better, have more appropriate designs which can empower their niche to flourish have much better chances for long term survival.  But as many know, this is nothing new or innovative, in the United States during the Wildcat currency period there were thousands of active currencies in the United States.  

Bear in mind the real value of Bitcoin is only what investors decide, just as they decided to drive it higher they can drive it to zero.  There is no intrinsic value in Bitcoin itself, as Roubini candidly pointed out recently.  

As some have pointed out, the real value with Blockchain can be building a specific use-case for your business or solving an economic problem, which many Crypto are aiming to do.  So it will be an interesting paradigm shift, and it's only beginning.  But Bitcoin will likely sink a lot lower before it goes higher.  In the meantime, you can checkout Splitting Bits, our short guide to make you a Crypto Genius!  Or for a full Currency History of the USA and beyond checkout Splitting Pennies.  

Comments

house biscuit globalintelhub Sat, 03/31/2018 - 12:36 Permalink

First of all, it's no great insight that crypto is a controlled Op. So don't strain your arm patting yourself on the back with yesterday's news, professor.....I'll give you some credit for not going full-on doom at the end...

Second of all, there's plenty of FUD merchants looking to promote dumping for their own purposes.....not to mention all the girly bois whose panties twist at the sight of bear.....

For the rest of you ladies, hold on b/c more losses are likely. And if you can't lose it with dignity, you shouldn't have played to start with.....

And when it rebounds, which is more likely than not, come take you FUD home with you before you FOAD...

 

In reply to by globalintelhub

SafelyGraze house biscuit Sat, 03/31/2018 - 12:50 Permalink

bitcoin cannot go to zero, because bitcoin is a store of value and since the value is not zero, bitcoin cannot go to zero

bitcoin's value derives from the distributed ledger of encrypted block-chain storage of value that derives from the proof of work that is vouchsafed in github

all of these attributes have value and that is why bitcoin will always be a store of value

hugs,
jill and betty satoshi

In reply to by house biscuit

Luc X. Ifer samiam6 Sat, 03/31/2018 - 15:21 Permalink

Because whales. They force drag the price down so that they can buy later at the best possible price. 2018 it is expected to be the year of the crypto taking off especially because the scam ICOs are or will go belly up soon so the field will clean of trash - so, way more attractive for strategic investment. Also Litecoin will become officially the payment channel for at least one major player. Don't be a fool and fall in the trap, you'll be so sorry later this year.

In reply to by samiam6

Stackers IH8OBAMA Sat, 03/31/2018 - 18:46 Permalink

GlobalIntelHub's ZH biography

"Elite E Services advises clients on the Forex and Global markets. EES provides clients algorithmic trading strategies, global macro analysis, and strategies to protect and grow your portfolio "

Now let me think where to file anything they write ..... hmmmm

"Dont invest in this scam .... we've got a much more "legit" scam for you to invest in over here"

All these death to the HODL'ers artcl's that talk about people who bought at $10,000 on leverage seem to forget the flood of us that bought in at $500 (or less) .... oh the horror, I'm only up 1000+% now. YAWN ... speculated from day one that it was going to be an all or nothing speculation. Not like ZH didn't give everyone tons of time to invest some miniscule amount of your total wealth and realize massive returns or at worst suffer a stubbed toe to your wealth

In reply to by IH8OBAMA

Tarzan globalintelhub Sun, 04/01/2018 - 07:28 Permalink

...on ZH you are mostly a bunch of pikers, no offense.

If you weren't looking for clients, you wouldn't be paying to advertise here.  And insulting potential clients is a pathetic marketing plan.  You should stick to your charts and let a professional handle marketing.

By the way, I mostly agree with your take on Bitcoin risk.  I can't get past the fact that flipping the web kill switch, or just as effective, shutting down the electric grid, would make bitcoin an illiquid "asset" at best, when you would need it most.

In reply to by globalintelhub

WhosJohnGalt Luc X. Ifer Sat, 03/31/2018 - 17:08 Permalink

LOL -- Litecoin is shit.

It's literally a copy 'n paste of the Bitcoin codebase with a handful of tweaks made.

It's ancient by today's crypto standards and has zero innovation going for it.

It sounds like you must be carrying heavy bags of that shit.

In reply to by Luc X. Ifer

Global Douche WhosJohnGalt Sat, 03/31/2018 - 19:59 Permalink

Oh really? 4x transaction block speed. Recently, the fees were extremely cheap when compared to Bitcoin, although both have evened out for now. LTC won't surpass BTC in price terms, but usage-wise, it has a far, far stronger case. Lightning Network will in due course be implemented with Litecoin.

Sorry that you choose to remain ignorant. Visit Reddit's Litecoin sub sometime when we're in port. We promise not to fart and chase you off if you don't piss us off.

In reply to by WhosJohnGalt

ProstoDoZiemi HungryPorkChop Sun, 04/01/2018 - 03:23 Permalink

Bingo and that's why I used the McDonalds analogy, I"m not hating crypto by any means, I'm just relaying what I'm seeing, a slow freight train wreck in slow motion.
 

For instance who can afford a contract of BTC Futures, even using todays rate of 7,000 that means you have to throw down 35,000 plus whatever margin requirement they have. This alone tell you who the actors are in the game.  Average Michael and Joanna have this money in the cushions of their couch.... egh not so much, the people here on ZH know what's happening.

In reply to by HungryPorkChop

thisandthat HungryPorkChop Sun, 04/01/2018 - 13:11 Permalink

Actually, it's the other way around; if you go to localbitcoins, your options are banks or... banks, one way or the other.

No one will sell you anything other than anecdotic amounts for cash (unless you send it through mail, which is beyond crazy — and illegal, around here), and then they still ask you for more personal info than you should be willing to give even to non total strangers. And the margins would shock even the most crooked banker.

 

In reply to by HungryPorkChop

Justin Case ProstoDoZiemi Sat, 03/31/2018 - 22:58 Permalink

Since Dec. last year klepto-currency’ bubble lost some value. Those that got taken in to buy at 10k are bleeding. It's not proven to be a store of value, it's as equal to a store of value worse than fiat paper money.

Delusions are often viewed as reflecting some deficiency in reasoning ability. The risk of thinking about delusions in this way is that it encourages the belief that logical, intelligent people are incapable of delusion. An examination of the history of financial markets suggests a different view. Specifically, faced with unusual or extraordinary price advances, there is a natural tendency (particularly in the presence of crowds, feedback loops, and potential rewards) to look for explanations. The problem isn’t that logic or reason has failed, but that the inputs have been distorted, and in the attempt to justify the advance amid the speculative excitement, careful data-gathering is replaced by a tendency to confuse temporary factors for fundamental underpinnings.

In reply to by ProstoDoZiemi

jin187 Justin Case Sun, 04/01/2018 - 12:55 Permalink

Thinking that gold is anything but a stable place to store value during wild economic swings is foolish.  Gold has never once increased in value, it merely maintains it.  People are, at times, willing to pay more or less fiat for gold, but there's never been a time in history where someone could use a gold coin buy a horse, and the next day, or even the next decade, use the same coin to buy two horses, or five horses.  As a matter of fact, gold has been subject to inflation just like fiat if you go back 4000 years.  Back when gold was much harder to mine, a peasant could go their entire life without even seeing it.  Now the average peasant can go down to the pawn shop, and buy a troy ounce of gold for a couple weeks salary.  A thoroughbred horse on the other hand, would cost the average peasant 2-4 years worth of salary.  The same goes for real estate, and other finite, or difficult to produce commodities.

In reply to by Justin Case

PT house biscuit Sat, 03/31/2018 - 12:57 Permalink

Crypto-currency VS the money printers.  I wonder who will win?

Crypto VS the Force Monopoly.  I wonder who will win.

Last-ditch How to shake down a population and steal everything of value:  Starve them.

Gold-price manipulation:  Is it due purely to the paper-trades and derivatives or is it just as much due to the fact that most of the gold is not actually used (eg electronics, jewellery) but instead just sits in vaults doing nothing?  How do you manipulate prices DOWN if there are REAL shortages???

Crypto:  Can it's price be manipulated via ETFs and the like?  And what of the money printers?

 

In reply to by house biscuit