The Wolf in Sheep's Clothing - BTC compromised by banks while Chinese miners prepare to crash the markets

This is an overview of what has happened to Bitcoin in the last few years with some conspiratorial insight into what the near future might hold for this King of Coins.

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Yesterday I had a long chat with a man I refer to as Angel of Crypto. He has dedicated his life to understanding this arena and focused his attention exclusively on Bitcoin recently. I cannot reveal his identity so you're just going to have to trust me when I tell you he is an extremely intelligent & intuitive human being and I feel it to be my duty now to share with you what he told me.

To cut a long story short, the future of Bitcoin looks bleak. Worst than that, it appears to be fast turning into a ponzi scheme controlled by the banking system and will ultimately be replaced... potentially sooner & not in the way you might imagine.

Old technology struggling to keep up

Many of you will understand this already but for the benefit of those who are learning about the scalability issue for the first time I will expand on this a little.

Blockchains are built using 'blocks' of information. A permanent record of all transactions facilitated by the miners whose computational power provides the calculations required to run the network. Bitcoin's blocks are just 1MB and this size can only allow for a few transactions per second. With the growing number of Bitcoin users the network is slowing down and transaction fees are rising. Transactions which should only be a few cents are now as high as $20. Please note that a transaction fee in this situation is not based on the amount of money you are sending but the amount of data you are using on the block.

Sidechains

Sidechains are extensions to existing blockchains designed to enhance their functionality.

The Lightning Network represents a potential sidechain. A soft fork of the Bitcoin blockchain was implemented to allow for segregated witness, a change which permits sidechains to be implemented more easily. This sidechain is presented to us as the solution to the scalability issue. Please note however that we appear to be a few years away from any kind of implementation.

Hardforks & softforks

I mentioned above that the Lightning Network is a softfork which means it is still connected to original the Bitcoin blockchain as a sidechain and 2nd layer.

A hardfork is the creation of a whole new blockchain whilst retaining the principles of the original coin.

Bitcoin Cash

In August Bitcoin Cash was born when the Bitcoin blockchain hardforked. The fork came about because two schools of thought created a divide in the Bitcoin camp. There were those who supported the Lightning Network and those who supported the creation of a new blockchain with the ability to increase the size of its blocks over time, permitting an increase in users without affecting transaction times or fees.

The wolf in sheep's clothing

Bitcoin was born in 2009 and has been putting banks under an increasing amount of pressure since then. With more money than the rest of us put together the answer was obvious. Find a way to 'own' Bitcoin. But do it in such a way that the mainstream population have no idea what has happened.

The Lightning Network is not decentralised

It has been slowly taken over by Blockstream, founded in 2014.

The too-big-to-fail insurance giant AXA is one of the main owners of Blockstream - and they're throwing around millions of dollars to any dev / troll / censor who opposes Satoshi's simple and safe roadmap for on-chain scaling
source

Henri de Castries, CEO of Blockstream's parent company is also chairman of the Bilderberg group. He has part ownership of American Express, Chase, Goldman Sachs, JP Morgan and other banks.

A conflict of interest perhaps? We all know the ultimate goal of the banks can be summed up in one word: CONTROL

And don't you think Blockstream is a curious choice of name given that what it is ultimately doing is blocking the stream of transactions?

The replacement of Bitcoin

The Lightning Network is in fact designed to become Bitcoin's replacement and will not work as the sidechain it is promised to be.

To put it in simple terms, your Bitcoins will be held by them while some kind of token which can only be exchanged on the Lightning Network will be issued in their place. Sound familiar? That's right. Just like the Federal Reserve Bank issuing little green pieces of paper.

However, with the rising price of transfer fees it will slowly become more and more expensive to withdraw your Bitcoin and with the growing realisation that Bitcoin is permanently flawed as a viable method of exchange for all, fewer and fewer people will be interested in accepting it, giving the lower quantity Bitcoin holders no choice but to return their coins to the Lightning Network where they will at least have some kind of perceived value.

It will become an investment for the rich only and not the fast, low transaction fee 'bank killing' system it was born to be.

Bitcoin Cash is the ORIGINAL Bitcoin

We have been led to believe that our Bitcoin holdings are in line with the original thinking of the group behind the creation of Bitcoin. But this is not the case. In fact, Bitcoin Cash is the currency which has stayed true to this system of thinking by building a new blockchain which permits the block size to increase naturally whilst remaining decentralised.

It is only a question of time before the world wakes up to this and Bitcoin Cash will eventually replace Bitcoin as the leading method of crypto exchange.

Media Manipulation

Have you noticed how the media have gone from telling us Bitcoin is for criminals to reporting on the massive amounts of money being made by respectable people?

The $10,000 price was widely anticipated early this year by the mainstream media and there are now many articles predicting the price to hit $1M by 2020.

This would explain why we are seeing an unprecedented rise in Bitcoin value at this time. It is currently sitting around the $11,000 mark.

But these first time crypto investors understand little of the story I am telling you and some might argue they are playing a very dangerous game right now.

The experienced traders amongst you will know this line does not represent a good investment. A bull market is not a bull market forever and Bitcoin is due for a massive adjustment.

Angel of Crypto believes this will be happening very soon but not for the expected reason.

Operation Dragonslayer

The Bitcoin network is run by miners and over 70% of them are Chinese. They have spent years investing huge sums to position themselves firmly at the top of this system, reaping the rewards of Bitcoin mining from massive warehouses full of computers buzzing away constantly, processing our transactions.

The problem for them is that due to the restricted block size there is a gradual increase in difficulty rate. Crudely put, as the difficulty rate increases their ability to make money decreases. And without the scaling solution fixed there is very little incentive for them to continue mining Bitcoin on such a huge scale. The original Bitcoin, now called Bitcoin Cash is what Angel of Crypto believes they have their sights set on as the alternative.

But in order to ensure the success of Bitcoin Cash against Bitcoin they have to play the game carefully. Don't forget Bitcoin is now propped up by the US banks and timing here is key.

Operation Dragonslayer is a said to be a plan by the Chinese miners to crash Bitcoin and milk the situation to the max, increasing their overall holdings and position of control.

How will this be done?

Various insider documents have been circulating on Twitter & Reddit suggesting that the Chinese group controlling Operation Dragonslayer now own 1 million Bitcoins. At the current price that's worth around $11 billion.

If this is true they are in a very good position to strategically sell huge sums, causing people to panic and creating a crash like never before which will affect the entire crypto market.

Where will they move their Bitcoin when they pull out of BTC?

If only I knew the answer to this question! There are those who do claim to know but are charging lots of money for the information. What Angel of Crypto believes is that once they are done pumping & dumping the coins of their choice, they are intending to bring down Tether.

For those of you who don't know, Tether is a cryptocurrency designed to be perfectly pegged to the dollar. Despite rumours of US gov involvement reaching all the way to the popular exchange Bitfinex, for the most part it has worked very well in its functionality. Traders use it as a place to hide in bear markets. It is easy to make money on a downward market by selling to Tether at the start of a crash and buying back in when it hits the floor.

If they are somehow able to crash Bitcoin, the alt coins and Tether simultaneously there will be nowhere to hide. The whole market will be crashing and unable to sell, Bitcoin holders will simply have to wait and see what happens.

What does experience tell us?

When the price of Bitcoin is dropping fast and everyone is trying to pull out at the same time, the price of your transaction will sky-rocket. If indeed you are able to make the transaction at all. Many have noted that in the main exchanges it is simply not possible to sell your Bitcoin when it is crashing.

Check out this Exodus wallet notification captured during the last mini-crash of Bitcoin

This time Bitcoin will be more than just dumped

The best time to crash Bitcoin, assuming you want to badly damage it's value and public perception, is just after the difficulty rate adjusts. The hash rate would not have time to recover before the next difficulty adjustment meaning that Bitcoin would most likely be rendered unusable for a prolonged period of time. Potentially months.

Naturally this would shatter public perception and when Bitcoin Cash grows from the ashes as the new fast mover, with all the familiarity of Bitcoin and scaling issues resolved, it will be accepted as the replacement, leaving the Chinese miners in a formidable position of power over this new & improved network.

When will this happen?

The next difficulty rate adjustment is currently set to be approximately 5 days from now. The estimated time of adjustment can be seen in a countdown clock underneath this chart.

Angel of Crypto did acknowledge that he believed Operation Dragonslayer to be set for the previous difficulty rate adjustment, but turned out to be wrong.

I scoured the internet this morning looking for anything which might validate his story and discovered many such confirmations amongst which was a Slovakian group whose warning on their website could not have been clearer.

Upon further research I found this site to be connected to a user on Steemit. You may be interested to read what is proposed to be a segment of his personal conversation with a Hong Kong Investment Banker, published here two days ago.

It relates specifically to Operation Dragonslayer but leaves certain words out as not to give too much away. Angel of Crypto was able to fill in some of these blanks (stated in this article) but what struck me as particularly odd was the 1,343 eyeballs on this post with only 4 votes. One of them being mine.

Those who have access to this kind of knowledge don't tend share it willingly with others. Not for free anyway! So, it would seem to me that this post was intentionally kept off the Steemit radar by those who read it.

In Conclusion

I am not a financial adviser, I've only been trading for six months and my personal knowledge of this subject is sketchy. So I'm not suggesting you listen to one word I have said. I cannot list too many sources in this article because it mostly came directly from the mouth of a man who prefers to remain anonymous. I felt instinctively drawn to repeat his words for my fellow Steemians here on the off-chance that he is right.

If he is, you have four days to prepare yourself for this event in order to make the most of it.

Personally I will not be holding any crypto at the moment the difficulty rate is adjusted. I will be holding it in my hands as paper money, ready to buy back into Bitcoin Cash at the moment I believe the floor has been reached.

Perhaps I will be laughing at my actions a few years from now? Though I prefer to focus on the other possibility. And I will be laughing for a different reason, from the deck of my luxury yacht.

Image Source 1, 2, 3, 4, 5

Who is @samstonehill?

He was a London based filmmaker until he sold everything and set out on a barefoot journey around the world.

Currently based in Bali he travels with his partner & two children. With no bank account he has been living on STEEM & crypto for over six months.

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The Bali Volcano Crisis

If you have a moment please check out the @charitysteemit account where you will find up-to-date films, photos and information on the erupting volcano & evacuee status.

Mount Agung erupted a 2nd time with force on the 25th November, sending an ash cloud 1,500m into the sky and we will be watching it closely over the next few weeks.

This is what it currently looks like.

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