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Bitcoin: Killing Satoshi Nakamoto

Updated on November 12, 2017
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If you are a cryptocurrency watcher, you know about the new-old Chinese angle. The fact that the Chinese have a power-house of Bitcoin Mining Operations. The fact that they trade the most Bitcoin on earth. The fact that, well, the PBOC just slammed the door on it.

Sneeze

When bitcoin sneezes the rest of the crypto-sphere catches a cold. Some coins end up with the flu. Others, the newbies or scam-coins, just shrivel up and die.

You can see some cryptocurrencies explode regularly, as investors are taken to the cleaners, repeatedly. Thousands, perhaps millions, sucked up in the vacuum of promise and pain.

Then there is China. Land of the Communist paradise.

According to McClellan Financial Publications, bitcoin is about to burst. The time for saving your arse is upon you. If this is correct, can we just blame China?

Inspection

The PBOC, i.e., the mouthpiece of the Communist Party in China, is in "Inspection" mode.

Please.

This is a simple money grab.

Will Beijing finally decide to put the squeeze on the big Bitcoin Exchanges? No. They will own them like they own everything else.

It seems only too obvious that the crackdown on OkCoin, Huobi and BTCC, couched as “inspections,” is merely one step of many, in the ongoing and concerted effort by the People’s Bank of China (PBOC) to shutter them completely. Perhaps to use them, unofficially. And this makes some of us wonder.

Mixed signals are also coming in as of March 7, 2017. The Coin Telegraph folks indicated that China will have a forgiving attitude toward the exchanges. Business Insider hints at a Bloomberg report advising that Bitcoin regulation in China was not temporary.

Then there was this: indefinite Bloomberg says. Really? As if we didn't already know. I mean, really, who are the communists fooling? Who is Xi Jinping fooling? He's the Chinese leader. Its dictator -- not president. We all know that he will confiscate all of the bitcoins in every exchange as soon as possible -- if he can. But, he will couch it like this: "for the good of all Chinese." As we build our Emdrive spaceships and take over the Solar System...

But wonder no more? Many bitcoin withdrawals are suspended (February 9, 2017) according to OkCoin and Huobi. Bitcoin is still taking a major hit -- again. Its parity to gold now a sunken treasure?

And this is just routine. China will continue to "regulate" the cryptocurrency exchanges and mines.

Ask yourself: if you could not sell your bitcoins, what would you do when you are allowed to do so by the PBOC -- the communist party dictatorship of China -- 30 days later? How about 60 days? How about never? You get the picture.

Ideally, knowing that bitcoin will devalue, you would convert into a harder currency, until (and if) the dust settles.

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People's Bank

In fact, that could be what Russia is doing currently, but I’ll get to that in a moment.

Now there are “closed door” meetings by the same alleged People’s Bank. A bank that essentially runs China’s Monetary Policy, not unlike the Federal Reserve in the United States. It is the “Government’s Bank” plain and simple. The second largest such fiat monopoly system on earth.

It is highly probable that fiat yuan is fleeing China in the form of bitcoin at an exponential rate. In the drive by the Chinese apparatchiks to halt this financial bleed, in a centrally planned and censored empire that hosts modern but nearly empty “ghost cities,” every yuan counts.

Solution: Deep Freeze. Shut off the spigot. And they have done it. Or should we say, they are trying.

Only thing is, we now see a major weakness. If one man, one PBOC, can control lots of bitcoin, that's a bad thing.

Think of it this way. If Xi Jinping -- I'm sorry -- if the PBOC wants to devalue bitcoin in a hurry, in order to prop up a failing economy, then they could offer to sell bitcoins at a low price. But wait, people just might buy. So, maybe there is another way.

Let me think. How about burning them? Just grab them all and throw away the "key."

"Naw," says Xi Jinping. "Let us just quietly sell them or better yet, extort the exchanges for the privilege of operating a Bitcoin business in the People's Republic.

"But wait! If we simply ask for a piece of the pie," says Xi Jinping, then we still allow the outflow of wealth from the "people!"

Xi Jinping then curses Satoshi Nakamoto (Bitcoin Creator). "Who is this mad genius? Why does he still breathe?"

Finally, Xi agrees with his own greatness. "I will need to quash bitcoin and kill Nakamoto. My decision is final. Begin the arrests of the exchange operators. Call them in for...cooperative ventures." He smiles. "Permanent ventures."

Bitcoin Opinion

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Conversion

So you’ve got to ask yourself, as a human -- as a Chinese serf -- what would you do with your hard won yuan or your renminbi, if your centrally planned economy was falling down around your ankles?

You’d convert it.

Well, not any more. Maybe not ever. A dream snuffed out like so many others.

Why hold something that you really don’t own? A piece of paper or a electronic credit in a bank, when you can do the same thing on your home computer, flash drive, smart phone or printer paper. If you can even “not” hold anything at all, but a code in your head or on your dog’s leash or in an encrypted email to yourself sent to a private address set to arrive six months from now?

What will happen now? Bitcoin will flee China -- if it can. It will sell cheap. And that is probably the goal. A few Chinese dissidents will continue to use it as the government works out the details. As XI hunts Satoshi. These few dissidents might regret it, but I hope they succeed.

More Conversions

Conversions of course, even in places like the United States, can be tricky. Converting your cryptocurrency “code” to gold or silver means you need a place to store (hide) it. Governments tend to take or tax physical things. Homes, land, cars, beer and all those sinful things humans want or need. Especially freedom.

This is one of the reasons bitcoin is so sought after. As of yet, it is damned hard for governments to confiscate or tax, but there are other ways to squeeze the serfs. Simply crack open the cryptocurrency exchanges and look inside, then freeze them.

Lesson? An old one many learned. Don't use centralized exchanges.

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Closed Doors

In China it is relatively easy to pry the money from the hands of the serfs. They just have a closed door meeting.

Not unlike the FED in the United States. Call in the Bitcoin CEO’s and then what? Make them disappear? Imprison them? Is the “closed door” constructed of steel bars?

How can we know in a system where they routinely murder serfs for protesting -- as is China today?

Now we are seeing -- have been watching -- as cryptocurrencies like Monero and DASH attempt to take center stage. Try to leverage the private against the public blockchains.

Cloakcoin and ShadowCash also come to mind. As of yet, they are still bit players vying for the prize.

Maybe, just maybe, these secondary crypto-coins are not experiencing a revival at all. Maybe they are release valves for Chinese bitcoins escaping the PBOC. Running from Xi.

Private or Public

Monero has recently undergone 51% attacks, and survived. If not attacked, it was certainly warned.

DASH has its own identity crisis and is headed by a confessed black-hatter or braggart of same.

Then there are the opposing forces. Aligned with governments. Joining them.

Ripple is one such company. They seek to play by the rules and are probably the sign of things to come. In other words, a way in which governments will ultimately control every “dime” in the official cashless economy. Soon to be Ripple.gov?

Is this why the money just flows in and just as quickly, flows out of these monetary instruments? I mean, except for the hardcore 'cult' members, of course. We know, they will hold until the whales squirt all over them.

The Right Thing

And there are so many options out there. So many 'cult classics' too.

Ethereum is yet another centralized animal of the crytpo-sphere. A company with a complex blockchain, already “DAO” cracked. But don't worry, there's already Ethereum Classic. Kind of reminds me of 'classic' burgers.

What other worries await the buyers of ethers, besides the unenforceable automated contracts proffered like cotton candy? Tweaks by the code dictators? Maybe they can take lesson from Xi Jinping.

Perhaps Monero. A gray market of sorts. These hackers are dead set against centralization and will, in my opinion, run proverbial cliché rings around the centralizers. Just like Edward Snowden ran circles around his minders, way back when.

But are their days numbered? Will coins like AEON come to the fore?

Or is it like this: if bitcoin’s bubble bursts, will not all cryptocurrencies suffer a trust crisis?

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This desire to do the right thing, albeit subdued and threatened with extinction since empires began, was certainly one of the forces behind bitcoin.

Further research by anonymous figures, not unlike Satoshi Nakamoto, to generate a more private-centric coin, is a testament to the continued fight against financial slavery. Against the centralization and control offered by the Far Left. Against Xi Jinping and he FED.

Again, Monero comes to mind. maybe AEON. Not DASH.

In this sense then, bitcoin was a middle of the road cryptocurrency. It was not Leftist, because if was not centrally controlled -- in the beginning. It was not Right, since it was transparent to all, hence it was a type of publicly verified fiat money. Its transparency is a weakness and a strength. A strength because of the idea. Now we must privatize it. Make it opaque.

It’s Left/Right mixture.

More Power

Adding to the problems of bitcoin is its appetite for ever increasing amounts electricity to feed its hungry processors. Barring new technology that will lower costs and increase performance, finding and perhaps destroying bitcoin mining operations, has become a government pastime.

Bitcoin mining operations cannot hide and are not secure from government intrusion. Intervention in the name of regulation and counter terrorism is already disrupting the bitcoin ecosystem.

We must make cryptocurrency energy efficient. It must live in the background noise. Not even Monero or Aeon does this.

Fooling the Fools

Would a government like to control bitcoin? If so, would it not seek to eradicate the other coins in this space, ones that they cannot investigate? Such as Monero or DASH? Enter 51% attack? Enter pump and dump and pump and dump -- until most see that the investment strategy is difficult if not useless.

Cryptocurrency must be inoculated against all attacks. Always improved. Vigilant.

Will investors flock to the alleged best coin? Say bitcoin when, Brexit looms and the European disunion continues? If the time is ripe, say if the United States begins to fall into recession as is constantly warned, will that create the demand for better assets -- and lead to a massive bitcoin buying spurt? A bitcoin ETF that will crush investors and require yet another bailout?

Under the current Chinese effort to destroy it? Think again.

The most likely candidate for a bitcoin takeover would be China, with two basic outcomes. Profit for them and and destruction for the enemy. But recent moves by the PBOC telegraphs a more ominous plot. Like I have stated.

If the Chinese Government absorbed bitcoin, installed operators in each of the world’s largest mining sites, without publicizing these facts, they could for a time, reap the profits from their own serfs. Then slowly, by degrees, disengage the serf money inflows while continuing to accept the monies from abroad. But given their style, like bulldog with a bone, they use the brute force approach. And say it's just sweet love. Hard sweet love -- in the... You get the position.

The PBOC could have been smarter. They could have used bitcoin as a weapon. They could have offered their bitcoin on other exchanges worldwide via simple transfers. Opened other exchanges out-of-country, to decrease suspicion and make sales. All the while, report false numbers, just like their central planners do now. Just like MtGox did before, but on an international scale. Feed into the desire and dreams of the people. Give them financial nightmares in return.

Instead they just bent their serfs over -- again. At least in America, the Federales take their time. Slow mo. Build up the pressure until people "off" themselves for the insurance money. It's the American Way.

And it's not just MtGox. More and more exchanges are folding with over a million dollars worth of bitcoin lost.

Take Bitcurex for example. An exchange in Poland that was allegedly hacked in October of 2016. By comparison, however, MtGox lost hundreds of millions of dollars.

Bitfinex, yet another exchange lost tens of millions. All hacker related? Or China related?

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End Game

The end game, if China had used bitcoin as a financial weapon?

Profits and financial vacuums. If they could have pulled it off. If there were no Chinese “Snowdens” willing to risk it all, they would have needed to create the “mother of all pumps” to really get things rolling. Now that's in the drink or is it?

Make bitcoin red hot. How? Lie. Cheat. Steal.

Oh wait, didn't bitcoin recently pump to new levels? Yes it did. It passed gold, looked back and dropped.

The Winklevoss Twins, could stand to profit from such a surge, no doubt. In the scheme of things however, would it matter? If the twins do own about one percent of all the bitcoins and the price did surge to $40,000 a coin, what do you think they would do?

They would sell -- at least a portion of their holdings. Take in a cool six billion and call it a day. Give us the Winkelvoss wink goodbye. But not any more. Now the twins might lose a bit of jack.

All the Chinese Government had to do would have been to falsely report a slowly growing and unhampered bitcoin operation in China. They would need to entice investors the world over and slowly unload their holdings, while showing the exact opposite. Showing accumulation instead. Dummies? Or did they actually just do that?

Maybe someone should actually "audit" their exchanges. In fact, I recommend Coinbase. Have them send over a group of auditors. Get a read.

"Not happening" says Xi Jinping.

Then how do we know there is actually digital gold in their vaults?

No doubt, other exchanges around the world would have priced bitcoin to match the Chinese offerings -- and they did. It as a maddening, but ultimately, a self defeating cycle.

Now? Now all bitcoin hell is breaking loose. Smart investors should have run for the doors yesterday, last week -- maybe. And China-coin will see to that.

Can't you see it? China is bitcoin. Once the PBOC cronies grow a set, they will castrate cryptocurrencies worldwide.

The only question is: Can the eunuchs run?

Gold, Silver, Land

The Chinese government could have converted the billions scammed from their exchanges into hard currency. Gold. Silver. Land. Secured their holdings and of course, declined to report their actions. Not a problem in a closed society. After all, things are real, bitcoin is not.

Now the long con is over. Enabled by Satoshi Nakamoto, who just might be a from China, might be China itself, bitcoin could have been used as a destabilizing wedge against those who just made a killing.

Imagine for a moment, the in-feeding which would commence, if the Winklevoss Twins for example, profited by a Chinese Digital Scam? If overnight, thousands of bitcoin related companies cashed out to fiat and gold, internationally?

Who is left holding the bag? All of us. Duped in the largest con game of all: bitcoin.

Maybe we should consider using Goldmoney.com or OZcoinGold.

Rubles

As a side note, Russia. I mentioned it above.

If old Vladimir Putin will allow cryptocurrency trading in the Crimea -- a country they have invaded -- why are they still avoiding adoption in their own country? Talk about mixed signals.

Even Dmitry Marinichev, Russian Internet ombudsman, supports this Crimea cryptocurrency experiment. Past action in the Russian Federation appears to lean in the opposite direction, however.

The short answer to this Crimea question is that allowing cryptocurrency will help create a powerhouse, an economic free trade zone. A free trade area to attract investors, to pull the battered Ukrainians to the Russian side. It will be profitable as well, but not for the citizen-slaves.

A bait and switch? In the long run, once Russia uses this cryptocurrency angle to further loosen the grip of local autonomy, force the Ukrainians to submit, they will more than likely just shut the party down. No more crypto. Another, sugar-coated arsenic-laced crypto-joke.

Rubles anyone?

History

Naturally, I’m so far off the the mark, most readers will scoff. The Chinese would do no such thing, they say. We would see it coming, they say. We won’t be Goxed again, no way.

A sucker is born every microsecond. This could be the fastest bubble burst in world history. One for the books. A lesson our children will read about in Economics 101.

They will ask the tough questions too. Like, "Dad, what were you thinking when you put all of your retirement money in that BTC ETF?"

And,"Okay, dad, you and mom can live in the basement."

Maybe it is all well and good that bitcoin dies now, rather than later.

And one more consequence, if such a disaster plays out. Aside from the utter destruction of all cryptocurrencies as a result and the reaction by governments the world over to immediately curtail the use thereof, the big players would undoubtedly share the blame and the fines.

The IRS would be inundated with income reports from the exchanges in America. Think Coinbase, but exposed. Your name in the news. Audits up your backside. Do you have a life insurance policy?

This would never happen. Not in America. Really? Read a little history. When a flock of birds is ingested by the jet engine, even Sully would ditch that plane.

© 2017 Jack Shorebird

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    • jgshorebird profile image
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      Jack Shorebird 9 months ago from Southeastern U.S.

      Thanks zaton. It try to give a different perspective. Not saying I'm right, but so much bitcoin info out there seems cloned.

    • zaton profile image

      Zaton-Taran 9 months ago from California

      Good stuff. I was interested in Bitcoin for awhile - I even set up a workstation dedicated to mining Bitcoin and converting it to credit via certain Polish-based servers. It cost a bit more money to run my system than the Bitcoin I actually got, so I had to suspend operations.

    • jgshorebird profile image
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      Jack Shorebird 9 months ago from Southeastern U.S.

      Thanks LR. The subject continues to intrigue me.

    • Larry Rankin profile image

      Larry Rankin 9 months ago from Oklahoma

      I've been following your articles on Bitcoin for a while. I find them interesting, but I still don't know exactly how I feel it about it yet.

      Great read!