Larry Fink has changed his tune on crypto, saying suddenly it could “revolutionize finance,” endorsing an industry he once viewed with skepticism. Of course, as a board member of Scwab’s WEF, the crypto zealots cheered. Still, they think that Bitcoin can replace the dollar and end inflation, which they think is the result of paper money. That only reveals their own ignorance of what money is and the role it has played since the dawn of civilization.
Worse still, they are telling people Bitcoin is going to be $60,000+ and fail to comprehend that even assuming that the dollar was replaced with Bitcoin, a rally then in the currency would subject the country to a Depression as took place during the 1930s.
What made the depression so great was that private assets collapsed, and there was a flight to quality being cash. If Bitcoin replaced the dollar, the country would collapse, the debt would be unpayable or serviced, and private assets would decline, including gold. Democrats would no longer be able to run for office, for they could not promise gifts if you vote for them in the spirit of Marx.
This is far more complicated than simply replacing the dollar. Even the people constantly calling for the collapse in the dollar do not comprehend that you are really talking about the collapse of the entire government, its debt, and the political system that would most likely fuel the divorce between the Blue & Red States. It was the dramatic rise in the dollar in 1931 that compelled FDR to confiscate gold and devalue the dollar. It was the high price of the dollar that resulted in protectionism because the politicians did not understand the currency.
The crypto zealots seem oblivious to the fact that the coming Central Bank Digital Currency in the USA would be unconstitutional, and the Federal Reserve will NOT issue one. Instead, the top banks are all moving to create their own and pitch for their version that will be programmable and traceable. The rumor is Fink would love to take over Bitcoin. WHY? Because all the tracing and reporting will be done by the private sector and under CURRENT law, banks MUST report suspicious behavior. So it is the COVID Model where the private sector did the censoring of free speech that the First Amendment ONLY restricts the government – not Facebook, YouTube, et al.
The Bitcoin zealots seem to overlook that the very nature of Fink’s ETF is at odds with the original fantasy ideals of Bitcoin. ETFs are an investment vehicle that’s categorically different from the original ideals of digital assets and will push the industry in the wrong direction into the ultimate way the government can trace everything you do and ensure they tax everything.
