Its Official: Bitcoin Trading is a Manipulated Scam

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Proof that Bitcoin and all cryptocurrencies are fraudulent scams was revealed with recent findings performed by economists Neil Gandal, JT Hamrick, Tyler Moore, and Tali Oberman are showing that one person made Bitcoin surge from $150 to $1,000 in two months during 2013. This was the trigger that led to Bitcoins impressive rally and started a cryptocurrency craze around the world.

Cryptocurrency is easily manipulated since it is neither a currency nor regulated. It is a privately traded asset with no value and no security backing it. First introduced in 2009 as Bitcoin on a Blockchain platform, it was considered a curio at first. However, since it answered a number of key security issues of the software world, and since it is a public sharing platform, it became an instant hit leading to further developments.

Up until 2014, most cryptocurrencies were traded infraction of dollar trades; the most expensive was Bitcoin and derivatives, followed by the evolutionary Ethereum. Since the surge, when there were only around 80 different CC’s, there are now over a thousand cryptocurrencies being traded globally.
The economists wrote in their paper “Our paper identifies and analyses the impact of the suspicious trading activity on the Mt Gox Bitcoin currency exchange, in which approximately 600,000 bitcoins (BTC) valued at $188million (£136million) were fraudulently acquired.”

The economists continued to state that “During both periods, the USD-BTC exchange rate rose by an average of four percent on days when suspicious trades took place, compared to a slight decline on days without suspicious activity. Based on rigorous analysis with extensive robustness checks, the paper demonstrates that the suspicious trading activity likely caused the unprecedented spike in the USD-BTC exchange rate in late 2013, when the rate jumped from around $150 to more than $1,000 in two months.”

The economists have managed to locate the bot that was responsible for the market manipulation, these bots are called “Markus” and “Willy” and were performing trades without actually having in any bitcoin in their supply. Which means that the rise in Bitcoin was a fake rise, created by a virtual manipulation of the market by automatic algorithms. Proving that the cryptocurrency market is really based on nothing but lies and deceit.

Another important fact is that these trades were performed on the infamous Mt Gox, as the paper states “The publicly reported trading volume at Mt Gox included the fraudulent transactions, thereby signaling to the market that heavy trading activity was taking place.” This caused a massive demand in the market, leading to an immediate response where speculators rallied to buy the coin as its value escalated.

Mt Gox closed in 2014 after filing for liquidation after it reported that 850,000 bitcoins went missing and their owners were left without their assets. As one source states: Mt. Gox announced that approximately 850,000 bitcoins belonging to customers and the company were missing and likely stolen, an amount valued at more than $450 million at the time. Although 200,000 bitcoins have since been “found,” the reason(s) for the disappearance—theft, fraud, mismanagement, or a combination of these—were initially unclear. New evidence presented in April 2015 by Tokyo security company WizSec led them to conclude that “most or all of the missing bitcoins were stolen straight out of the Mt. Gox hot wallet over time, beginning in late 2011.”