Raiders Attack: Who Will Benefit From Bitcoin Crash

A few days ago, the head of the IMF, Christine LAGARDE, on the official page of the fund, announced the enormous potential of new financial technologies: “The blockchain will help financial markets function more efficiently, and self-completing smart contracts can eliminate the need for some intermediaries.” And cryptocurrencies, in her opinion, "will lead to a diversification of the financial landscape. This will improve the balance between centralized and decentralized service providers in the financial ecosystem, which will become more efficient and reliable in threats countermeasures." Before one had a chance to surprise how the paradigm would change, as four days later, the rate of the main virtual currencies dropped on the spot although everything should have happened just the other way around.

As early as a month ago, Christine LAGARDE called the same cryptocurrencies to be almost the main threat to the stability of the financial system. Moreover, she predicted almost a great depression from their excessive use. What made the official of this level turn from an opponent of decentralized digital currencies into almost a crypto-enthusiast? In any words of a major official or politician, not only the text matters but also the context, that is, the time and place where they were said. And it happened after the Singaporean ASEAN summit, which was preceded by the largest FinTech festival in the history, held under the Ripple sign. The fact that this company is affiliated with Washington is no news for anyone anymore. Just look at the team involved in this project.

Moreover, the CEO of Ripple Brad GARLINGHOUSE makes no secret of his plans: in particular, he said that while the representatives of SWIFT were denying the use of the blockchain for international interbank transfers, the financial operator was establishing cooperation with 100 banks and was planning to lay hands on SWIFT in the future. “The best use of a cryptocurrency is cross-border payments,” GARLINGHOUSE said. “I'm not sure that we will pay Bitcoins for coffee or XRP in the nearest future, fiat money works great here.”

Undoubtedly, the company controlling interbank transfers and being under the jurisdiction of the United States could bring more value to the dollar financial system than SWIFT, which is subject to Belgian law. It is quite possible that Christine LAGARDE has stopped denying the benefits of the “correct blockchain” under pressure from Washington, and is making the semblance of accepting the new economy by the global financial institutions and is legitimizing it in the eyes of the world's business elites.

The second step in capturing the digital market would be its collapse, which would lower unnecessary decentralized, “junk” from the US point of view, assets such as Bitcoin or Ethereum, and raise the needed ones. This is the conventional market tactics of institutional investors, and, no matter who is behind them: big money or big politics. The BitcoinCASH hardfork story, which is now being presented as the reason for the sharp fall in the exchange rate of cryptocurrencies, is, most likely, just a smoke screen for another, more meaningful, dealing for a fall.

The third step could be pumping liquidity into the asset of the company supported by the US government. Washington aims to secure its status on the world stage in every way and, therefore, must control risks. The digital market poses a serious threat to the existing dollar system, as its potential alternative, at the same time, provided not by military-political power but by social capital.

If we take off the table the psychological effect of the fall of the main cryptocurrencies, the new economy objectively grows. The number of successful startups is gradually increasing; lawmakers in many countries are already seriously engaged in the preparation of the regulatory framework for the legal turnover of virtual assets. The rate and prices fall only if you evaluate crypto-assets in fiat currencies but the market's useful mass remains constant.

“We need to stop measuring cryptocurrency in dollars,” says our expert, the investor and the founder of the blockchain company, Vladimir POPOV. – “The dollar is a sunset story. Most countries in the world want to withdraw from the classical monetary system. Japan, the countries of South America, and Russia – all of them are unhappy with the status quo. However, the largest holder of the US currency today is China, all major bonds are owned by China, and all debts are registered to China. Therefore, America does not “fall” so quickly, while the Celestial Empire supports it. But it will end sooner or later.”

In fact, the United States has no choice: either it will capture the digital market, or the digital market will one day (and, perhaps, very soon) crash the dollar. And today, we are witnessing the traditional scheme of raider takeover: at first, they collapse the cost, and then pump up the necessary assets with money and gain control. This seems to be happening before our eyes today.

And in confirmation of these words, there is the information from one of the largest operator of digital assets, the Grayscale Company: as of Tuesday evening, it recorded losses in all of its crypto-assets, except one - XRP (Ripple).