Prices manipulated? No, there are still people who firmly believe that Bitcoin is the most honest

Is the price of Bitcoin manipulated? This is something everyone from digital currency maximalists to blockchain skeptics agree on. There is always such a voice in the digital currency market: Bitcoin lacks supervision, and a large part of its price surge or plummet is due to price manipulation.

Take the views of Nouriel Roubini, the representative of Bitcoin critics and "Doctor Doom", as an example. He believes that a 10% surge in just half an hour without any news must be due to price manipulation. The digital currency market is the most manipulated financial market in human history, and therefore points to digital currencies as worthless "shitcoins".

However, Omid Malekan, the author of "The Story of the Blockchain", recently wrote that as long as the digital trading platform can be improved, Bitcoin will be the most "honest and trustworthy" asset in the world, firstly because it can be transferred extremely quickly, and secondly because there is no inside information in this market.

First of all, Malekan mentioned that the Bitcoin market has global characteristics, which determines that it is difficult to have price manipulation in Bitcoin transactions, and at most it can only bring some arbitrage opportunities.

Malekan mentioned that Bitcoin may be the first investable asset so far where the same unit can be quickly bought or sold almost anywhere. This ability does not exist in assets such as stocks or bonds (which are usually traded in different markets); assets that appear to be traded globally, such as gold and fiat currencies, are not easily moved from one market to another - you can buy US dollars in New York and sell US dollars in Hong Kong, but the two US dollars are not the same. With Bitcoin, you can quickly buy and sell the same currency around the world.

Some skeptics will continue to ask: "What if someone tried to buy large amounts of Bitcoin everywhere to manipulate the price?" In response, Malekan retorted that according to this assumption, central banks around the world would also print a large amount of money. Is this a way to "manipulate" the country's currency? Also, when listed companies buy back their own shares, is this a way to manipulate stock prices? This assumption is true for any other market, not just Bitcoin.

The second point Malekan mentioned is that there is no insider trading in Bitcoin. Firstly, it is decentralized and secondly, the total amount is fixed. These two characteristics mean that there is no insider information in the Bitcoin market.

Markets lacking integrity are often rife with insider trading, a scourge that financial regulators have been trying to combat. For example, in the stock and bond markets, there is the possibility of inside information in corporate financial reports, mergers and reorganizations and other corporate transactions; and in the commodity market, oil transportation problems and oil giant production problems may also give insiders an unfair advantage.

Malekan mentioned that the only information asymmetry in the Bitcoin market may be the investment plans of large investors. But this asymmetry exists in every market.

Since reaching a record high of nearly $20,000 in December 2017, Bitcoin has been falling all the way last year, falling by more than 70% throughout the year. The bear market has lasted for 15 months. Since the beginning of this year, the price of Bitcoin has not fluctuated much, basically hovering below $4,000.

(Source: Wall Street News)