Most people currently following me know little of my background - in terms of the career, and investment path that brought me to Bitcoin. In cryptocurrency years, my age, 47, makes me an elder statesman; as well as my nearly 2½ years of HODLing - in a world dominated by millennials, where the average investor didn’t enter the space until 2017.
My career dates back to 1989 – in which, I worked as a compliance analyst; bond trader (at Cantor Fitzgerald, on the 105th floor of the World Trade Center); hedge fund trader, and sell-side equity analyst…the final six years, as an oilfield service analyst at Salomon Smith Barney. Investment-wise, I lost interest in stocks after the dotcom crash – finding Precious Metals in 2002, and going all in…on an exhausting, mostly miserable journey that lasted 15 years.
Early on, I realized the gold and silver markets were being artificially suppressed – and by 2003, was regularly contributing to what was, and still is, the leading website devoted to Precious Metal price manipulation…gata.org. Those who have followed me – in Precious Metals; and now, Bitcoin; know I’ll fight to the death for what I believe in – particularly if I’m heavily invested personally…as I was in Precious Metals; and now, Bitcoin.
When I left Salomon in 2005, I was so bullish about Precious Metals, I shifted my career focus to the space. Thus, while writing regularly about the topic – particularly, the government-led price suppression that was setting the stage, so I thought, for massive future gains – I worked for six years for public mining companies, and another six in the bullion industry. By the time I left the latter in mid-2017 to launch CryptoGoldCentral.com, I was one of the world’s leading Precious Metal commentators – particularly regarding the “taboo” topic of price manipulation…which, though few wanted to admit it, was so obvious, it’s difficult to believe anyone could objectively view the situation and claim otherwise.
Even last summer, I still believed the “Gold Cartel” would one day be defeated – when inevitably, today’s increasingly unstable fiat currency regime experiences its inevitable crisis moment. However, I have since changed my view, given my belief that Bitcoin is slowly but surely usurping Precious Metals’ historical safe-haven and store of value roles; a trend which, when the Millennials and Gen Z’s inevitably dominate the world’s wealth distribution, should dramatically accelerate.
Moreover, I believe the “paper gold and silver” markets have grown so large relative to the actual amount of physical metal; in a world where physical metal ownership is rapidly dying; it’s difficult to envision a scenario in which the Cartel is overwhelmed…barring a catastrophic financial crisis, that is. Consequently, I sold all my silver last summer – which was already losing its monetary status, based on the all-time low silver/gold ratio; and my gold this winter.
In my view, the Gold Cartel effectively destroyed the gold and silver markets over a two-plus decade period; and now that Bitcoin has emerged as a such a powerful competitor, the potential they once had - of being “grand slam” investments, with the ability to change monetary paradigms - is dying, if not dead. Which brings me to the question of whether a government-led “Cartel” is possible in Bitcoin – whose goal, like the Gold Cartel, would be to suppress Bitcoin prices…and thus, interest in the “competing money” it represents. A topic, I might add, that I have tried to avoid thus far - but given the extremely suspect things I have recently observed, is making it increasingly difficult to avoid.
The catalyst for writing of it now is the recent, well thought out article by @Super_Crypto – which, though it doesn’t PROVE anything; even in the author’s mind; certainly suggests the possibility of “official” foul play.
Regarding this topic, I first need to warn you about perpetual conspiracy theorists – who in most cases are completely out of touch with reality. Trust me, I know them well – having been accused of being one myself, simply for writing about the FACTS of Precious Metal, stock, bond, currency, and commodity manipulation. To the contrary, this group fixates on THEORIES of a “world order” of beaurocrats, bankers, and billionaires – like “the Rothschilds” – with the power, ability, and motive to manipulate anything and everything, for their own personal benefit.
True, global wealth distribution has never been more inequitable – in large part due to Central banking policies, by unelected officials, with little incentive to help “the 99%.” However, that doesn’t mean “the Rothschilds” are attempting to control the world - but instead, that fiat currency regimes concentrate too much power into the government’s hands, with little incentive for it to be used for the benefit of the majority.
As for Bitcoin, the Cartel manipulation theories surfaced the second the CME futures contracts were approved this Fall – for good reason, given that the futures markets; principally, the New York COMEX; has been the principal source of Precious Metal suppression activities since the day it was launched in 1974…“coincidentally,” one day before gold and silver ownership was made legal for the first time since FDR’s confiscation decree of 1933.
My initial thought was that the Bitcoin blockchain would make it far more difficult to manipulate than Precious Metals; as all Bitcoin transactions are visible, compared to the unfathomably opaque gold and silver markets – where it is nearly impossible to know who owns what, where, and how. To that end, consider that the U.S. gold reserves haven’t been audited for 70 years – and likely, never will.
Moreover, Bitcoin’s decentralized nature – which will only become more so, as less and less is traded on “exchanges” over time – lends to making it more difficult to suppress. Thirdly, no Central bank owns a material amount of Bitcoin to dishoard – overtly, or covertly. And finally, there is little, if any, chance that the majority of the world’s financial leaders “agree” that Bitcoin is dangerous – and thus, must be stopped; with the perfect example being - besides the myriad third world nations who would clearly benefit from a strong Bitcoin market – a massively indebted nation like Japan.
That said, there is no doubt that in observing the Bitcoin market each day, there are some very alarming circumstances that are very hard to ignore. Not that they PROVE anything, of course. However, watching algorithmic trading that with increasing regularity resembles the hideously manipulated Precious Metal paper markets – particularly, that of ETFs like GLD and SLV - it’s difficult to not consider the possibility.
Perhaps, it’s just my “conspiracy gene” kicking in, given how I’ve watched the legacy markets manipulated for so many years – including stocks, bonds, Precious Metals, commodities, and currencies; as much covertly, as overtly. And perhaps it’s just the machinations a run-of-the-mill crypto bear market – even if it makes little sense that in such a scenario, Bitcoin dominance would not be rising faster than the snail’s pace it currently is growing it.
For the time being, I’m going to go with my instinct that Bitcoin is not being artificially suppressed - as I find it difficult to fathom who would have the ability to maintain such a scheme; how they would do it; and what game theory would enable it to occur, in a world where so many entities have such different views about Bitcoin’s potential future role. However, you can be sure I’ll be watching for clues – which hopefully, the Bitcoin community at large will actively seek to expose.