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My Thoughts on Last Night’s BTC Crash and a Guest Post on “Why Bitcoin Will Succeed”

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I haven’t seen action in Bitcoin like we saw last night since earlier this year in the spring when the price went from $10 in January to $260 in April, and then crashed down to $50 before stabilizing in the $80-$120 range for months before beginning the latest parabolic move. I was so taken by the action in BTC China last night that I wasn’t able to sleep until 5am Rocky Mountain time, trying to buy what I could at the best prices possible. I saw every single tick. It was a crazy evening.

Yesterday I posted that while I thought BTC was at the lower end of the range at $650, there was the potential for some near-term headline risk. I thought that it might come from the U.S. banking system, but instead it came from China when they banned new renminbi deposits into the leading global exchange BTC China. While I am not saying that the price will now quickly launch to new highs, there was complete and total panic in the air last night. No question about that. In addition I tweeted that:

Now I think we have a much more positive setup going forward, although a similar period of consolidation such as we saw earlier in this year is likely. The news out of China cannot get any worse, and BTC China as far as an exchange and price discovery mechanism is basically dead. The big risk now is that other nations take similar actions, but the sentiment is now sufficiently bad and people expect bad news. Last night represented the most BTC I have bought since the spring crash.

In light of all this, a reader of my blog going by the handle Anon Wibble posted an excellent comment and I have decided to republish it here. Would love to get reader feedback as well. Enjoy!

Bitcoin will prevail. This isn’t just another e-currency, this is an entire framework for communicating information and money unlike no other ever before. This is the biggest revolution since linux and the more you use bitcoin the better and more complex you realise it is.

Look at the following things:

1) bitcoin can do everything a bank can do

2) while it’s true that unlike credit cards, btc has no way to chargeback claims, also consider that in the past chargeback scams have defrauded business through payers likes paypal etc. Chargeback doesn’t prevent fraud at all, it moves the person being defrauded from one person to another. Also consider that escrow services do chargeback for far cheaper than credit cards do.

3) bitcoin isn’t just a currency it’s a protocol that can be used to exchange information, nowhere in the headlines is this even mentioned files and information can be exchanged through bitcoin nobody has even looked at this yet

4) JPMorgan wouldn’t have tried to patent their own version of bitcoin 170 times, if they didn’t think crypto currency wasn’t the future

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Official at the NSA States: “I Have Some Reforms for the First Amendment”

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Here’s an article by Daniel Drezner, a professor of international politics at Tufts University and a contributing editor to Foreign Policy. He recently spent a day at the NSA’s headquarters in Fort Meade, Maryland. As you might expect, some interesting tidbits came from the mouths of some of these control-freak statists. One truly unenlightened official seemed … Read more

Has Chase Begun a Covert War on Bitcoin?

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The past several days have seen considerable weakness in the price of bitcoin. The selling was sparked by the revelation that the Chinese government had essentially instructed its financial system to avoid it. Then yesterday it was revealed that China had banned third-party payment companies from doing business with bitcoin exchanges. As far as price is concerned, I have stated repeatedly via Twitter that I think the China news caps the upside in the near-term (baring other material news of course) and that we are in a new range of $650-$1050 per BTC. At roughly $700 where we are now, I think at least 75% of the “China premium” is now out of the price. This sets up a solid risk/reward profile. However, there is one thing in the U.S. that people should be aware of and represents some headline risk if true.

Recently, a friend of mine noted that Chase has threatened to shutdown his business account due to his use of Coinbase (remember Coinbase recently received the largest VC investment in Bitcoin to-date). Apparently, the problem hasn’t been when money moves out of U.S. banking deposits and into the Bitcoin ecosystem, but rather when the currency is converted back to dollars and then deposited back into the Chase accounts. With this already being in my mind, I read the following Reddit post this morning:

Hi everyone,

A few weeks ago, I posted that Chase decided to terminate my account, and they never notified me as to why they would do this. However, I believed it to be Bitcoin-related.

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Manhattan Apartment Rental Rates Drop for Third Month in a Row

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Now this is interesting. Investors looking at real estate should be aware of two main things at the moment. Those two things relate to what is really driving this centrally planned, manufactured rebound in U.S. real estate. It’s really a tale of two distinct trends. In formerly hurting markets such as Arizona, Nevada and Florida, private equity investors have flooded into what is a now gigantically crowded to “buy-to-rent” trade. Meanwhile, in the prime markets such as New York City and San Francisco, we have seen the “money laundering trade,” where rich oligarchs move their often ill-gotten gains into trophy real estate assets abroad.

We have seen many signs all year that the first key pillar to the manufactured rise in housing was becoming strained, as rents continued to rise while incomes continued to fall. It doesn’t take a genius to realize that this can only last so long, and many of the early investors in “buy-to-rent” have already gotten out or are trying to.

As far as the second pillar, well at some point the oligarchs will have purchased enough homes in London and Manhattan and then what? Interestingly, the seemingly unstoppable rental market in Manhattan is showing signs of cracking. What this ultimately means is unknown, but it’s an interesting data point nonetheless.

From Bloomberg:

Manhattan apartment rents fell for a third month in November and the vacancy rate reached the highest in at least seven years, signs the market is weakening amid a spike in homebuying and the lure of leasing in Brooklyn.

The median monthly rent in Manhattan dropped 3 percent from a year earlier to $3,100, according to a report today by appraiserMiller Samuel Inc. and brokerageDouglas Elliman Real Estate. The vacancy rate climbed to 2.8 percent, the highest since the firms began tracking the data in August 2006.

“With the scare about rising mortgage rates, it poached a lot of demand from the rental market,”Jonathan Miller, president of New York-based Miller Samuel, said in an interview. “On top of that, what else is poaching demand from the Manhattan rental market is Brooklyn.”

Manhattan landlords agreed to offer concessions, such as a month’s free rent, on 7.2 percent of all new leases in November, up from 4.2 percent a year earlier.

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How an ObamaCare Website in Washington State is Randomly Debiting Bank Accounts

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The disaster that is ObamaCare just doesn’t ever seem to let up. It wasn’t enough that the woman who was touted as an ObamaCare success story during a Rose Garden speech was subsequently kicked off the program days later. In the latest piece of news, we discover that some people who used the Washington state … Read more

New Interview with Future Money Trends – Bitcoin, Real Estate and More!

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Last week, I once again sat down with my friend Dan Ameduri of Future Money Trends to discuss, well, future money trends. It should come as no surprise that Bitcoin was the focal point of discussion given the recent price rise, increased adoption, capital investment as well as media attention. I have to give Dan … Read more

Introducing “Venture Scanner” – The One-Stop Website for All Things Bitcoin

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A friend of mine sent this to me yesterday and it simply blew my mind. This is just the latest of many websites to have emerged as of late to help both the initiated and the uninitiated stay up to speed on the always dynamic world of Bitcoin. While Venture Scanner itself is not a … Read more

Retail Big Brother – Mannequins Are Now Using Facial Recognition Technology

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Back in August, we learned about how certain trash cans in London are using ORB technology that allows them to spy on people’s habits through their smartphones. It appears that the spying trends just continue to get worse, and in most cases the users of the technology recognize that the people being spied on might not appreciate … Read more

Police Say Teen Shot Self in Head…While Handcuffed Behind Back

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Only in a nation of brain-dead sheep could police departments be getting away with such nonsense. Remember the forced anal probes that recently happened in New Mexico in an attempt to find non-existent drugs? You have to read this to believe it. Anyone got a borrow on The Onion? Permanent short. From Salon: A strange … Read more

How the U.S. Government Lobotomized 2,000 Veterans During and After World War II

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I’m sure if you informed people that the Veterans Administration (VA) had lobotomized thousands of decorated World War II vets you’d quickly be labeled a quack, or even worse, some crazy conspiracy theorist. Unfortunately, it’s just another hard-to-believe but true fact about how government operates. How they always have and always will. Global connectivity but political decentralization is one of the main ways out of the mess we are in.

From the Army Times:

The U.S. government lobotomized roughly 2,000 mentally ill veterans — and likely hundreds more — during and after World War II, according to a cache of forgotten memos, letters and government reports unearthed by The Wall Street Journal.

“They got the notion they were going to come to give me a lobotomy,” Roman Tritz, a World War II bomber pilot, told the newspaper in a report published Wednesday. “To hell with them.”

Tritz said the orderlies at the veterans hospital pinned him to the floor, and he initially fought them off. A few weeks later, just before his 30th birthday, he was lobotomized.

Tritz by the way flew a B-17 Flying Fortress on 34 combat missions over Germany and Nazi-occupied Europe. That’s how we thanked him for his service.

The VA’s use of lobotomy, in which doctors severed connections between parts of the brain then thought to control emotions, was known in medical circles in the late 1940s and early 1950s, and is occasionally cited in medical texts. But the VA’s practice, never widely publicized, long ago slipped from public view. Even the U.S. Department of Veterans Affairs says it possesses no records detailing the creation and breadth of its lobotomy program.

Guess they went down the Memory Hole.

The Wall Street Journal’s reporting series began with Wednesday’s Forgotten Soldiers and included a documentary, archived photos, maps and medical records.

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