RTL Z has delivered another gem. They commented today on a controversial study (which has already been debunked) that the 2017 bull run came from a single party and not from thousands of investors.
The title of the video: Bitcoin is a hype and the value is manipulated. Sigh.
Bullrun comes through only one party
In the video, RTL Z cites an investigation by two Americans. Professors John Griffin and Amin Shams looked at buying and selling trends of the bull run in 2017. They say:
“Our results suggest that instead of thousands of investors being responsible for the rising bitcoin price, it is only one very big one. Years later, people will be surprised to hear that investors have transferred billions to people they didn’t know and who had little supervision. ”
With that big party they mean Tether.
“You always thought so”
This is a real quote from interviewer Roland Koopman:
“Bitcoin is a hype and the value of the crypto currency is also manipulated. Yes, you always thought so but now there would be clear indications that it is. “
He therefore assumes that all viewers assume that the value of bitcoin is being manipulated. The tone is set by Koopman. He talks about this with the cryptospecialist from ING bank Teunis Brosens and with Jacob Schoenmaker, one of the regular faces at RTL Z.
That one party used tether
Brosens reiterates that one party used tether, or as he says, tetter, to manipulate the course. He also calls tether the reserve currency of the bitcoin world.
“The research shows that tethers are simply printed, out of thin air. Bitcoin is bought from this and sold again at a higher price. ”Hey, that sounds familiar. Does that remind you of something?
“Bitcoin is one big pyramid scheme and not a science”
Shoemaker acknowledges that the research is just as “transparent” as the trade in bitcoin itself. Interviewer Koopman responds with a small smile to his face that this implies that bitcoin is one big pyramid scheme.
Bitcoin is more religion than science, says Schoenmaker. “This makes it even more difficult for economists to comment on it.” With this he refers to the active community that defends bitcoin with hand and tooth and implies that economists apparently conduct science.
Brosens comes with another fine piece of logic. He says that the fact that this research cannot be trusted should be a reason to be reluctant to invest in bitcoin.
Yet Brosens does address another good point, it is good to look critically at tether and how they create their coins.
Shoemaker looks up from the recovery of the bitcoin course. But he can’t help but compare the price of bitcoin with that of gold. According to him, gold has done much better. Yes, that is not surprising if you start the graph at the height of the bitcoin rate.
Brosens says that investing in bitcoin should not be something for the long term, but is only interesting for day traders.
I don’t understand bitcoin, so I don’t have a bitcoin, says Schoenmaker. That is fair and that attitude can be praised. It is important that you conduct your own research and know what you are investing in.
And the investigation?
We must also comment on the research on which this entire video segment is based. Bitfinex, the owner and publisher of tether, denies having manipulated the market. They say that the market can be manipulated, but not on such a large scale. Bitfinex and Tether have been under fire for years. We have written a lot about it.
But saying that one party is responsible for the entire bull run is far too far-fetched. As an example, exchanges and brokers were extremely busy and even had trouble approving new account requests. We, BTC Direct, helped hundreds of new customers every day. In 2017 we had enough drops on our foreheads to prove that it wasn’t just one party.
Every day new crypto companies were added or there was a new ICO. You can also see that the search volume on Google for bitcoin and cryptocurrency was unbelievably high at the time. This indicates that the interest in investing in bitcoin came from all sides.
It is also easy to explain why the trade volume of tether was so high at the time. First, there were not many other stablecoins. And secondly, on the Asian market it is much harder to exchange fiat money for cryptocurrency. Tether was the bridge between this fiat and crypto for almost the entire Asian market. That is also the conclusion from Jeremy Allaire, the CEO of Circle.