Bitcoin - The Ugly Truth About Crypto and Unregulated Markets
First, I would like to say that I am a believer in Bitcoin. A quick summary of my belief, Bitcoin is like the English language. Not perfect and has many flaws, and I'm sure anyone can create a better language if given enough time, but Bitcoin is the language everyone in Crypto talks and it will be hard to dethrone the king. Bitcoin is enough, even if the cost to transfer it goes to $100+, it still serves the main purpose of crypto which is the ability to transfer medium/large sums of money without borders or regulation to anyone that accepts Bitcoin. No one can tell you no. It is not ideal for small purchases such as coffee, but fiat is all anyone needs for small purchases and there is absolutely no point for small shops to accept crypto currency as a form of payment. Sorry BCH believers, you have a better coin, a better language, but it's not enough reason to switch.
However, it's the Bitcoin / Crypto markets that are corrupt. They are not regulated, which many see as a good thing, but it is absolutely the worst thing that can happen to crypto. Unregulated exchanges mean unlimited supply of Bitcoin. Exchanges, depending on their jurisdiction, are allowed to sell Bitcoin they don't even have. For American and other common wealth country based exchanges, this is still fraud and illegal, but in countries like Hong Kong and small safe haven islands, it's completely legal and no one can do anything about it.
On top of that, exchanges like Bitmex don't even claim to have Bitcoin, they let people buy and sell contracts on their exchange that are not backed by Bitcoin. Future contracts are the same, they are not settled in Bitcoin, they are settled in fiat.
So with an unlimited supply of Bitcoin on the market, every exchange in a safe haven jurisdiction is like the federal reserve in America, they can print paper Bitcoin whenever they want and on one knows how much fake un-backed Bitcoin is being traded.
Something to take into consideration when trading Bitcoin and betting long term on the price.
However, it's the Bitcoin / Crypto markets that are corrupt. They are not regulated, which many see as a good thing, but it is absolutely the worst thing that can happen to crypto. Unregulated exchanges mean unlimited supply of Bitcoin. Exchanges, depending on their jurisdiction, are allowed to sell Bitcoin they don't even have. For American and other common wealth country based exchanges, this is still fraud and illegal, but in countries like Hong Kong and small safe haven islands, it's completely legal and no one can do anything about it.
On top of that, exchanges like Bitmex don't even claim to have Bitcoin, they let people buy and sell contracts on their exchange that are not backed by Bitcoin. Future contracts are the same, they are not settled in Bitcoin, they are settled in fiat.
So with an unlimited supply of Bitcoin on the market, every exchange in a safe haven jurisdiction is like the federal reserve in America, they can print paper Bitcoin whenever they want and on one knows how much fake un-backed Bitcoin is being traded.
Something to take into consideration when trading Bitcoin and betting long term on the price.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.