If we look to the Past, the old mining days, there was a wealthy miner named George Hearst, who owned the highest producing mining operations in American History. However, in order to acquire those mines, he used tactics, that is, intimidation, and trickery to get people to sell their claims for pennies on the dollar. One of his best tactics was to buy the local newspaper to circulate unreal news to alter the view of the people. Hearst goal was to acquire claims on the cheap by scaring individuals into thinking the government was going to seize their land. In that sense, People would rather sell their claims at a deep discount to Hearst and let him take all the risk with the government versus taking a chance on losing everything. The problem was, the government was never really a threat as it was Hearst who started the rumors to begin with. The strategy worked and Hearst made a fortune.
The same situations seem to play themselves out over and over again, this time in world of cryptocurrency. For example. Jamie Dimon, the CEO JP Morgan created bad publicity for cryptocurrencies in the media while at the same time his London trading desk has been buying them up. so Why would he be doing that, maybe he is implementing the George Hearst strategy.
Shortly after the first decline of cryptocurrencies in 2018, The central bank of Poland was accused of hiring one of the countries most popular YouTubers to create bad publicity for this new asset class. it appears that they do not want to buy cryptocurrency when the price has already run up.
Investors (who wanted to remain anonymous) came in and did buy $400 million worth of bitcoin after the markets declined apparently their identity was a mystery because their actions did not match up with what they were saying in the press.
We need to ignore the rumors and look for the things that actually matter. For example,
– Facebook added Evan Cheng, the most senior director of engineering to its blockchain team.
– Goldman Sachs announces that it’s opening up a trading desk dedicated to cryptocurrencies.
– George Soros, is now buying up cryptocurrencies. Etc.
Thus, We should not fall for the George Hearst strategy, we should focus on what is important and what is actually happening, It is not advisable to sell your cryptocurrency for pennies on the dollar. Because, that is what the big Institutions want , so they can buy at a price that makes sense for them.