Authored by Omid Malekan via Medium.com,
Is the price of Bitcoin manipulated?
That the answer to that question must be yes is one of the few things that most people, from crypto maximalists to blockchain skeptics, agree on. And not just the typical kinds of market irregularities that one expects from a young asset class, but manipulation that has a material impact on price for more than a fleeting second – and makes one question the integrity of the whole shebang. Here is famous crypto critic Nouriel Roubini:
4800 Pump & Dump schemes! Crypto is THE most manipulated financial market in ALL human history & manipulation of “assets” that are all shitcoins & worth ZERO. It makes the Wolf of Wall Street look like a naive amateur. And in spite of this sleaze shitcoins lost 95% this year! https://t.co/iqfuWiOHfz
— Nouriel Roubini (@Nouriel) December 21, 2018
As a general rule thumb, any declaration that something is the most [insert adjective] of all time is not very credible. Is crypto really more manipulated than 14th Century Wampum money? or 21st century Venezuelan? (The repeated use of ALL CAPS, by anyone other than a teenage Instagram influencer, is also suspect). Since Mr Roubini is a favorite foil of mine, I’m going to take up the opposite side of this argument, and attempt to show that once the digital asset trading ecosystem is built out a bit more, Bitcoin will be one of the highest integrity assets on the planet, for two reasons: fast-fungibility on a global basis, and the relative lack of insider information.
Here’s something fascinating: Bitcoin might be the first investable asset that you can quickly buy or sell the same distinct unit of almost anywhere. This ability doesn’t exist for assets like stocks or bonds, which often trade in a few (if not just one) siloed markets. Even things that seem to trade globally, like gold or fiat currency, are not easily fungible from one market to the next. You can buy dollars in New York and immediately sell dollars in Hong Kong, but not the same exact ones. With Bitcoin however you can buy or sell the same coin across the globe as quickly as the next few block confirmations.
Couple that unique feature with the growing list of global markets where BTC trades against different kinds of fiat money as well as other cryptocoins, not …read more