Bitcoin is now trading within the tight range (for Bitcoin) between $10,000 and $13,000, but the broader range extends towards $14,000. This can be seen by drawing trend lines on the Daily BTCUSD price chart.
Overall the underlying long trendline still shows Bitcoin to be trending up, which is a very positive sign, given the overly bearish stance of common folks and traders who follow the news.
And what is the news?
Well, for starters Bitcoin has come onto the political scene with the likes of Donald Trump, Theresa May (UK Prime Minister), and many other government and bank representatives claiming, almost all at once, that it needs to be regulated and controlled because it is used by criminals who utilize for illegal activities.
What they mean is that Bitcoin needs to be heavily taxed and controlled because too many people are getting rich without the governments being able to track and enforce 20-50% cut for their military spending and other selfish expenses, that they claim is for the common good.
And what is the truth?
The truth is that fiat currencies have been used for illegal activities since inception. The US dollar is the most manipulated currency of all and it has been used and it is still being used for illegal activities all over the world.
To learn more about this subject refer to Max Keiser’s blog.
My point is that any fiat currency can be used for illegal activities. If you buy something privately and pay in cash without registering the purchase, that is regarded as an illegal activity according by governments in most parts of the world. But does that make you a criminal?
Bitcoin is actually quite transparent as every transaction is written into the blockchain permanently and owners’ addresses can be traced quite easily online by anyone with an Internet connection.
There are many other cryptocurrencies that are completely anonymous, meaning that nobody can trace the owners or what they have purchased.
So I ask you this? Why would any serious criminal use Bitcoins if there are other cryptos which are more anonymous, cheaper in transaction fees and much faster in execution? Still more importantly, they remain under the radar.
So to bash Bitcoin as the currency for criminals is simply scare mongering of the common folks not to trust, buy and use Bitcoins.
Most people rely on the news to build their view of the world that surrounds them. If you hear such strong opposition by the world leaders you play safe and follow their advice.
When you hear their strong words, you immediately think that if you buy and use Bitcoins that will automatically make you a criminal in the eyes of the government.
However the main question remains why are the governments and banks are so keen on bashing Bitcoin and not focus on the cryptos that really do facilitate illegal activities.
The answer, I believe, is quite simple and it’s made of few parts.
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Bitcoin’s blockchain is the biggest of all and it poses an immediate threat to their entire establishment and their control of the money flow (control of the people and their earnings and spending).
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They simply don’t have the know-how, nor the facilities to halt the use and control the other fully anonymous crypto currencies
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They are afraid of the new Bitcoin millionaires and their libertarian ideas they bring into the new world infrastructure that can function without the control of banks and ‘their governments’
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They hope, and rightfully so, that by crashing the price of Bitcoin, other crypto currencies will follow, which would be a huge blow to this entire crypto community
However, Bitcoin is handling the resistance of the banks and governments quite well.
Yes, it has dropped in value from its heights of $20,000 but it is still much higher than a $100 or $1,000, when it was already claimed a bubble by most experts and bank representatives.
It seems that Futures trading has had quite an impact on Bitcoin as well and for the present time the BTCUSD price remains within the $10,000 – $14,000 range.
Once the price of Bitcoin breaks from that range, either down or up, it will be a defining moment.
Note. This post is for educational and entertainment use only and it is not an invitation to trade. Trading involves high risk to your capital.