Crazy, or a genius? Manipulation, or the biggest gambling whale since bearwhale? And he’s on Twitter?!
Who is this Joe double o seven, and why is he longing with circa 20,000 bitcoin? Perhaps more importantly, why is he taunting bears?
So last week we reported bitcoin longs had reached all time high. Since then, they have gone higher still.
Price however has gone down recently, led by eth where their confidence is a bit shaken, yet it hasn’t gone down that much for bitcoin.
On the 24th of November when these longs started bull-running, bitcoin’s price was at around current levels, circa $6,800.
Still the bullwhale saw a paper loss of circa $25 million at some point earlier today as bitcoin’s price neared $6,500, with it recovering a bit to now “only” $20 million in red.
That means this presumably man is playing with huge sums, maybe $100 million worth of bitcoin or so, and he is playing on Bitfinex.
How do we begin making sense of this? Well, let’s start with the price:
Bitcoin’s price is at Iron support. For bears to go below, they need a vast army, and this may in fact be a war between two mighty armies.
Wall Street vs some geeks. The show has perhaps began and there may be fireworks, with the line so perhaps drawn here.
Here because miners have perhaps raised their barricades to defend from fake futures and they might perhaps now even be going on the attack.
We know nothing and all this is complete speculation, but Wall Street’s game is simple. Buy bitcoin slowly, then short on CME and market sell.
The miners’ game is even more simple. If price reaches below or near cost, just don’t sell. Try survive on filthy fiat.
Withdrawing all that supply, some $12 million a day, is some fairly big war chest of $100 million a month. Gambling that $100 million for the chance of bankrupting Wall Street manipulators could be… well, our fantasy.
How? – that fiat is already longed. Well, the war is being played with bitcoin not fiat. Bankers need bitcoin to have any say on its price which is set on spot exchanges like Coinbase rather than on CME.
They can produce as much fiat as they like, but unless they use that fiat to buy bitcoin, they can’t do nuffing.
It so happens that the bankers this time are actually the miners. They the ones that print bitcoin out of the protocol rules. They the ones that sell to the bankers for their printed out of nothing fiat. They the ones that might just not sell, or in this case, might multiply their printed bitcoin by borrowing fiat from the market through margin longing based on bitcoin collateral.
Since we are speculating and creating our own fantasy which is in no way based on reality, with it a full product of imagination, we also have to consider the matter of information.
This space is obviously not quite any space. It is in many ways at the forefront of the tech revolution. Extremely skilled coders are playing with zk-snarks and things that blow the mind of Google’s co-founder, Sergey Brin.
Tapping into the fiat accounts of bankers is a capability demonstrated. Since everything is online, hackers can know what bankers are doing, not least because their ledgers are far more transparent than bitcoin to those that can access them.
Messing with a space where hackers hack hackers is obviously not wise. So it may well be bitcoiners are just fighting back.
Obviously it may also be something completely different. This very rich man, who presumably is smart, maybe just got drunk on hopium or who knows.
Maybe he got bored of being rich and wants to see what poor looks like. Or… yeh well choose your own theory. We prefer the one above.