Who Hates Bitcoin And Why?

As we have seen during the brief history of alternative currencies on the Internet, they often fail spectacularly. Governments have a monopoly on currency. Banks have a monopoly on storing, distributing, transferring, making loans, and exchanging currency.

Governments want to tax anything and everything. That is what they do best. Taxing transactions and people requires knowing who spends what and with whom. Any alternative currency that offers anonymity such as Bitcoin, presents governments with a hard challenge.

How can they track Bitcoins and the users to tax them?

If we set-up our Bitcoin accounts in a certain fashion, and do not bring Bitcoins back into our bank accounts, then governments have a hard time of accessing this information. Banks look at Bitcoin as an enemy stealing their wire fees, currency exchange fees, late fees, overdraft fees, and even their bank vault fees. Banks of all kinds, governments around the world, and the centuries old power structure of world banking families and institutions all hate Bitcoin.

While they may hate Bitcoin, we can also be sure they are involved.

Recently, an individual slammed the value of Bitcoin by selling a huge quantity in less than one hour. Mtgox.com, the major trading exchange for converting and trading Bitcoins, shut down for over 12 hours. This caused Bitcoin value to plummet because nobody could get their value in their national currency out of Bitcoin. Almost like a bank closure, termed a bank holiday, Bitcoin experienced a triple digit to almost zero value in less than a day.

Some theorized that this was a test run by banking and financial powers, backed with government approval, to see how they could ruin this new competitor. While a banking entity or government crashing Bitcoin is a possibility, a private individual can crush any currency in similar fashion. George Soros famously helped devalue the British pound in September 16, 1992. Soros sold British pounds aggressively which he had borrowed, and eventually forced the Bank of England to break it's peg to the European Exchange Rate Mechanism. Soros made over $1 billion in this trade.

Unfortunately for most Bitcoin users, they all lost money when the mega seller struck.

One of the main portions of this book will help readers avoid that waterfall plummet in value. Not losing money is the first rule of investing and trading.