TL;DR
MicroStrategy, holding massive Bitcoin, could trigger a market crash by quietly selling and shorting, mirroring past financial crises. Many investors could lose everything.
Story
The whispers are getting louder: is Bitcoin about to implode, taking everyone with it? One theory paints a grim picture, centered around MicroStrategy and its massive Bitcoin holdings.
Imagine a company hoarding nearly half a million Bitcoin. Now imagine them quietly selling it off, piece by piece, through over-the-counter (OTC) trades‣ OTC trades: Private deals outside public exchanges. This avoids spooking the market, keeping the price artificially high.
Meanwhile, they’re secretly betting against Bitcoin using leverage‣ Leverage: Borrowing money to amplify bets. This is like doubling down on disaster, hoping to profit from the crash they’re engineering.
Once the price starts to wobble, they pull the rug, dumping their remaining Bitcoin. This triggers a cascade of forced liquidations‣ Liquidations: When borrowed money gets called back. It’s like a house of cards collapsing—one wrong move and everything comes tumbling down.
This scenario isn’t new. It echoes the 2008 mortgage crisis and the dot-com bubble burst. Greed, fueled by opaque markets and complex schemes, leads to inevitable ruin.
The “Egg Man” analogy illustrates the trap. Like a trader hoarding millions of egg futures with no real buyer, MicroStrategy’s Bitcoin stockpile becomes a ticking time bomb. When the music stops, who’s left holding the bag?
Michael Saylor, MicroStrategy’s CEO, has a history. His company’s accounting scandal in 2001, during the dot-com crash, raises red flags. Is history repeating itself?
The human impact? Countless investors, lured by the promise of quick riches, lose their life savings. The dream of a decentralized future turns into a nightmare of manipulation and deceit.
Advice
Don’t invest in anything you don’t understand. If something sounds too good to be true, it probably is. The crypto market is volatile and unregulated—proceed with extreme caution.
Source
https://www.reddit.com/r/wallstreetbets/comments/1jeis5p/will_bitcoin_burn_everyone_this_time/