Was Bitcoin Manipulated?

I recently described cryptocurrencies like bitcoin as “an unsolved jigsaw puzzle with the pieces scattered across the floor.” Today, cryptocurrency expert and former hedge fund manager Teeka Tiwari attempts to piece together part of that puzzle.

Recent reports from the mainstream financial press claim that bitcoin’s meteoric rise in 2017 was partly due to manipulation. Today, Teeka reveals the key detail that the newspapers missed...


At first blush, Wall Street Journal technology writer Andy Kessler makes a compelling case for why bitcoin’s 2017 meteoric 1,368% rise was not “real.”

In an article published on Sunday, July 1, Kessler cites a University of Texas study that argues manipulation was behind half of bitcoin’s 2017 move upwards. The study pins the blame on a crypto coin called Tether (USDT-X).

Tether is a fixed-value, or “stable” coin. It supposedly backs each coin with one U.S. dollar. To be clear, I have never been a fan of Tether because it requires you to trust that there is $1 backing each coin.

In the January 2018 issue of my Palm Beach Confidential newsletter, I wrote:

[Tether] claims that for every Tether in the market, it has an actual dollar bill in a vault somewhere.

Let me be clear: I HAVE NEVER BELIEVED THAT CLAIM. That’s why I never recommended the token.

To date, I still haven’t seen proof of Tether’s reserves.

Many people share my misgivings about Tether… But that hasn’t stopped it from issuing more than $2.5 billion worth of coins. Does Tether have $2.5 billion in cash reserves to back that up? Or is it just printing its own money at will?

Nobody knows.

Trustless System

The decentralized revolution is about getting rid of “trusted” third parties. Ultimately, coins like Tether will fail if they can’t find a way to become “trustless.”

(With trustless technology, you don’t have to know or trust the person you’re doing business with. The blockchain records and verifies every transaction transparently. So the system builds trust by default.)

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Vivian Lewis 7 months ago Contributor's comment

dear Bill

you haven't proven that there was no manipulation.l You are letting your taste for anarchism get in the way of your recognition of pattens. what is an Echo Show?

all best, vivian