Bitcoin has reached over one billion Thaler in total value this week and is expected to continue to rise. It’s all over the mainstream press, soon even the brain dead BBC will have to admit that it exists.
But there was a flash crash in the price of Bitcoin a couple of days ago, caused by a denial of service attack on a Japanese exchange site.
It is widely believed that this was the result of a market manipulation whereby a group of investors sold their Bitcoin at the market high, crashed the exchange which led to panic and a sell off, and then re-bought at the new lower price.
So the next step is screamingly obvious.
‘Bitcoin is a great idea!’ the cry will go up.
‘But how can we guarantee the system against manipulation?’ carefully selected pundits will plaintively ask.
‘Why. the only possible answer is that a major financial institution will issue the digital currency’ comes back the chorus.
‘Introducing New Corporate BitCoin..’ etc blah blah
and the trap is sprung.
Dummy Max Keiser and all the Bitcoin minions will realise that they have simply provided a Trojan Horse for corporations to produce privately issued currency.
Of course they will continue to bullshit for the next couple of years that it is a battle between the plucky individualist capitalists and the mighty corporations but this is simply to cover their embarrassment that they are again outfoxed by their moral intellectual superiors in the capitalist world.
There is more chance of the Trojan horse jumping over a six foot fence than a citizen democratised currency taking off.
You bunch of suckers.