Anyone who knows the history of economics also knows that a certain plot always tends to repeat itself whenever a new field is discovered that is not yet regulated by official laws.
The plot envisages that when strong hands want to take over the field in question, they take advantage of the lack of rules to bring prices down by using unconventional methods, in order to buy the most convenient assets.
For example, in the mid-nineteenth century, George Hearst, the father of the publishing tycoon William Randolph Hearst, decided to take over the new – at the time – American gold mining sector, even by ordering murders, through bullying and spreading misinformation, in order to force people to sell their mines.
In South Dakota, agents hired by Hearst bought newspapers to influence the public opinion, thus beginning to spread rumors that the government wishes to confiscate all the mines in the area, putting their owners on the streets.
Most owners believed the rumors and sold their mines for a few cents to those same agents.
A television series (Deadwood, on HBO) recounts one of the biggest acquisitions Hearst and his cohorts made through this scheme: the Homestake Mine, that was bought for $70,000 ($1.7 million in today’s US dollars).
Homestake was to become the richest gold mine in the history of the United States, producing 44 million ounces of gold and 9 million ounces of silver between 1879 and 2002.
At current prices, it is a total of $ 56.5 billion of precious metals.
As mentioned, this script has been repeated countless times in the history of economics, even in recent times.
In the U.S., after the real estate crisis of 2010-2012, institutions (pension funds, hedge funds, etc.) began buying thousands of foreclosed properties, while individual investors could not even obtain a mortgage.
In 2003, after the collapse of dot-coms, those same funds began to buy cheap internet and technology stocks… while the media had not yet digested the burst of the bubble a couple of years earlier, and were still telling their audiences that it was too early to buy those very stocks.
The essential element for these obscure manoeuvres is the collusion of the media.
Without these powerful tools of persuasion, it would be impossible for the powers that be to influence the masses at will.
In the cryptocurrency market, for example, we can see for ourselves the plot of a new hidden persuasion program.
Every day, media spread sceptical views about the cryptos, released by some officials of the Securities and Exchange Commission (SEC).
Day in and day out, we have learned that the Commodity Futures Trading Commission (CFTC) is starting a new investigation into some exchanges.
Many central banks are involved in campaigns to frighten and alienate investors from cryptos, although so far only the Polish central bank has admitted to having done so in February 2018, commissioning a media company to “defame” the industry.
For a long time we have been besieged by rumours that threaten prohibitions and then deny them, with endless investigations.
And for the first time in history, the lion’s share of this campaign of mass disinformation is not in the hands of traditional media, but of social media.
Google and Facebook now have an enormous weight on public opinion, so it’s not surprising that they are at the forefront of this 2.0 scam.
Everyone knows that these two Internet giants have indiscriminately banned all advertisements that focus on cryptocurrencies or blockchain.
However, that was only the preliminary phase of their manipulation.
Few people are aware of the second part of the strategy, which is being unravelled with much less fuss these last few days.
Both Google and Facebook have issued notices to their users inviting them to fill in forms in order to obtain permission to advertise cryptocurrencies.
The forms also explicitly require you to upload any documents that prove that you have received certificates from financial regulatory bodies.
Basically, this form seems to be made for credit institutions or banks, certainly not for simple blogs.
In fact, according to this form, if you are not a trading platform, a financial consultant or an institution of some kind and you do not have a certification, your profile will not receive permission to post any advertising linked to cryptocurrencies.
The highlight of these modules is NOT the requirement for a certification.
It is that to fill in these forms you need to be a trading platform, a financial advisor or a financial institution.
Just to be very clear, if BlockchainTop, which is a simple news blog, would like to fill in these forms, it couldn’t fill in all its boxes.
In a nutshell, there is no form for blogs, only for trading platforms, bank advisors and financial institutions.
This way, the two media 2.0 giants, once they receive the forms filled in by users, can easily select only banks, platforms, credit institutions and financial consultants and give only to the above the permission to advertise.
What is the outcome?
It is that at the end of this “skimming process”, Google and Facebook will be set up so that those who sell products or financial instruments linked to cryptocurrencies will be able to increase their user base through advertising and then disseminate their non-independent information more effectively.
By contrast, blogs and sites that publish simple crypto news and do not sell financial platforms or packages will have fewer readers to distribute their independent articles to.
Thanks to the social networks set up in such a way, traditional finance will be able to spread information (misinformation!) more effectively than independent blogs.
The old trick used by Hearst to get speculators out of Homestake Mine with the complicity of local newspapers has been updated to modern times, and is working now as it did in the nineteenth century!
Today, however, it is increasingly difficult for traditional finance to hidden its acquisitions and currency movements, even when they happen away from the spotlight.
We know, therefore, that, respecting the usual script that has been in effect since the nineteenth century, in the face of this manipulation of the media and the spreading of news that discourage individual investors, traditional finance is already helping itself to the cryptos.
In the last 90 days, in fact, we have seen some of the world’s biggest investors flood into cryptocurrencies:
Wall Street’s investment bank, Goldman Sachs, has set up a desk dedicated to the acquisition of cryptocurrencies.
Susquehanna, the twelfth largest volume trading company in the world, has announced that it has also begun to trade cryptos and that it has created its own custodian bank for crypto deposits.
Millionaire investor George Soros, one of the biggest moneymakers in the world, gave the green light to his team to buy cryptos.
Coinbase, the world’s largest platform, has launched an index fund in the crypto market for large investors and institutions.
Financial services company State Street also reported that it is considering opening a bitcoin custody fund for institutional investors.
Wellington Capital, with over $1 trillion assets under management, has declared its intention to start trading in bitcoin.
The Rockefeller family venture capital company, Venrock, has announced the purchase of cryptocurrencies.
Any major lawyer in Switzerland, the United States, Israel or Malta involved in capital management will tell you they are overwhelmed by the cryptocurrency requests by their institutional clients.
This is only a small part of the news circulating in the media, which makes you understand how the finance that matters is trying to enter this market and has no intention of keeping away from it.
This fact, however, is not enough to reassure the average investor, who suffers much more from the charm of bad news, especially when they come from official government or para-governmental bodies.
That is why in the 21st century, just as in the nineteenth and twentieth centuries, history seems to repeat itself with impressive precision.
As always, thanks to misinformation, the powers that be are able to enter the new market at the cheapest prices, thus fooling the average investor.
At BlockchainTop News we do, as far as possible, our small part to try to restore the balance between real news and misinformation. But we know it’s an uneven trial.
Traditional finance has won so far, and is mocking investors, as always.
The Team at BlockchainTop News