A simple Google search of the term “gold market manipulation” will show a large number of charges that the gold market is manipulated (including government probes about the same). After all, fiat money based wealth came into existence by the printing press and, so, the creators can buy anything they want (including all the gold). It has been charged by many that that is exactly what has happened.
It would make sense, therefore, for those with the controls of the printing press to insure their power if/when they ever lost their god-like ability to create wealth out of thin air. So whether the world continues down its current fiat money fiasco or returned to a gold standard it would make no difference to them as they own both.
Perhaps the recent Bitcoin Crash is the result of such an attempt by the money printers at similar manipulation. I don’t have any evidence that such as happened but only the long history of the allegations in the gold market to suspect that. I would be more surprised if they never attempted to manipulate Bitcoin.
The recent speculation (or manipulation) has resulted in MILLIONS of dollars worth of FREE advertising of the Bitcoin system. If that is the result of manipulation all those that held on to Bitcoin should say “Thank you very much” to the manipulators. One of the biggest problems of Open Source software is advertising and “getting the word out”.
Perhaps the biggest Open Source success story is the Linux operating system. While Microsoft Windows has been able to maintain its dominance in the home PC market (where its historical lead can be leveraged with advertising and marketing) it has not been able to dominate the more technical savvy web server market. Linux is much more widely used on the Internet by web hosting companies. So in situations where results rather than advertising have a bigger impact, the Open Source software can compete very effectively.
So while some may look at the crash as a bad thing, the huge amount of advertising will, in the long run, be very beneficial to Bitcoin. It helped to remind myself that business cycles are to be expected. And also expected is a wider cycle for Bitcoin because it is so revolutionary. It’s impossible to separate what portion of the price spike was the result of speculation (i.e. total ignorance of the strengths of the system and the software) and how much was invested by those that understood the technology, banking, fiat money, politics etc that are all integral to our current money system. Perhaps a simple survey asking how many Bitcoin users know what “fiat money” is would be insightful in that regard. A second question, perhaps, is if they know what Open Source software is?
I am a firm believer in and supporter of the Open Source software movement. Over the years its existence has helped me to get experience in computers and the web that I might otherwise have not gotten (so I give a sincere ‘thank you’ to the developers of WordPress, for example, for this WordPress blogging software that enables me to publish these articles).
The importance of the initial decision of the developer of the Bitcoin software to release it Open Source goes largely unnoticed and is poorly understood by most of the writers I’ve encountered during this price spike. Yet the decision he made to release it open source set the path for so many other important business related issues that, to ignore it makes me believe that all this attention will result in people educating themselves about these issues. As they do, I believe they will start investing in Bitcoin again, and for the long haul,as quasi- venture capitalist who will be less unnerved by market moves than the current batch of speculators we (the Bitcoin loyalists) have just encountered.