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Posted on 07/07/2025 5:34:45 AM PDT by delta7
People continue to ask if Bitcoin will replace the dollar. They believe that the recent surge in Bitcoin indicates that it will topple the USD as the world’s reserve currency, but that is merely propaganda. You must understand that Bitcoin is simply a trading vehicle, not a currency. I cannot stress that point enough. My opinion has been unpopular, and clients have walked away due to my stance on crypto. That’s fine, as I am not in this for the money. I can only adequately inform my clients of the unbiased truth and hope that those willing to listen will heed the computer’s warnings.
To begin with, there is much speculation about the founder(s) — Satoshi Nakamoto – who created Bitcoin (BTC) on June 3, 2009. The mystery person or group (or government agency) has been MIA since 2011. Yet 1 million Bitcoins remain in their original account, untouched. His wallet is estimated to be worth over $81 billion at the time of this writing, and if this is indeed an individual, he or she is one of the top 15 richest people in the world. They have never moved a fraction of a BTC from their account. So, one wallet contains 5% of all mined bitcoin. Will this person or entity perpetually hold?
They expect us to believe some mysterious Japanese man created the blockchain technology and simply evaded all world governments. They claim Bitcoin is an anti-government vehicle, but it is a bureaucrat’s dream because it allows them to track where funds are coming from and going. In 1996, the US government released a white paper entitled, “How to make a mint: the cryptography of anonymous electronic cash.” Released by the National Security Agency Office of Information Security Research and Technology, this document explains how a government agency could create something like Bitcoin or another cryptocurrency. They had been attempting to create one for years and then magically Bitcoin came on the scene.
I encourage anyone interested in crypto to read my article regarding this study. Blockchain was created with surveillance at the top of mind.
HowtoMakeaMint2
Bitcoin’s price is akin to the problem that existed when the bubble burst in 1966 with mutual funds because they were listed back then. The value can change at a volatility rate of 10x that of the dollar, making it a highly dangerous instrument as a store of wealth. It is solely a trading vehicle until they weigh it and the value is changed.
In 1966, investors bid the mutual funds up beyond net asset value, so during the crash, people lost everything when they thought it was a secure investment. The net underlying assets may have dropped 20%, but they paid 20% over the net asset value and then sold at 50% of the net asset value. Many mutual funds crashed 70-90%, whereas the Dow drop was 26.5%. Ever since mutual funds have no longer been allowed to be listed. You go in and out at net asset value. Bitcoin must change its structure, or it will never become a valid currency with a stable store of value, which is supposed to be the whole point. It is just an asset class of high volatility.
I have not been bullish on digital currency, as it’s a trading vehicle no different than any other commodity or stock. Sure, a profit could be made, and many have had great success. We do include Bitcoin in our models, and those subscribed to Socrates will see that our arrays are picking up on Bitcoin next year.
Bitcoin is a trading vehicle that is no different from wheat or cattle. It is NOT a store of wealth, as it fluctuates like everything else. It rises and falls no different than any other trading instrument. It is not a “store” of value maintaining some constant value to park your money. We need to get realistic here. The concept of Bitcoin replacing the dollar fails to comprehend what makes something the world’s reserve currency. I will write a piece explaining that aspect since it is crucial to understand.
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I believe bitcoin has the power to unite people and create whole new communities that are hybrid.
Bitcoin’s value comes from the widespread trust in its security, scarcity, and predictability
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We are all free to invest in whatever we choose. That said, us older ones that have survived more than a few financial crisis don’t trust intangibles, words or promises….with good reason.
That said, I wish you luck.
Bitcoin has already been around for 15 years. And most of what the public “knows” about the tulip madness comes from a single account that was deeply flawed.
Bubbles happen. And bitcoin is certainly volatile. But it is becoming mainstream and its uses are being validated.
I would never suggest what someone should do with their money. But I find most people who turn their nose up at bitcoin quote inaccurate reasons. It’s mostly because they don’t understand currencies or how the banking system actually works. And there are a fair number of people who are frustrated because they think they’ve missed the boat. (They haven’t.)
The intrinsic value is in the network.
It is a “proof of work” transactional network. Banks make money by taking a little bit of every transaction. Bitcoin pays their “miners” in a similar way. It takes an investment of time and energy to process transactions and the miners are rewarded with a payment of bitcoin.
It’s a little tough to get your head around—but it’s pretty much the same way that the big banking companies make their money. It just transparent.
Trump can’t do anything to bitcoin. There is no “bitcoin” CEO or Board of Directors.
All the talk in Congress is about “stablecoins.” These are digital currencies that are tied directly to a dollar.
Stablecoins are NOT bitcoin. Nor is “Trump coin” which is a manufactured “alt coin.” Most “alt coins” are either very specific use cases or scams.
It’s easy for the media to lump all of this stuff together. It really muddies the water.
Blockchain the transaction record is immutable and sure can be shielded but certainly not efficiently. There is no getting around the money flows are in the block chain to be pulled out and figured out unless your willing to slow transaction rate to where cash is more efficient.
Feeding a small scale money launder 1,000,000 dollars in twenties is the way to find their banks, the fronts, their lawyers, their cleaning people, who sells the boxes to keep all the cash in, their cook and their associates.
As long as it can be traded for labor worldwide it is reserve currency. As Americans are in US denominated debt, and paying that every month is the driver for 50% of the US labor, the greenback is secure. That you owe a banker for the next 26.5 years makes him look out for your well being.
Just saying Bitcoin is backed by NOTHING ,LOL
Blockchain the transaction record is immutable and sure can be shielded
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Us older folks don’t consider electronic “ money” as money. It depends on electricity ( and other weak links), when that fails, e money fails.
The hurricane in Florida ( and grid down in Europe) illustrates exactly how worthless e money is during electricity failure. The only thing accepted then is cash, a tangible that is held in your hands. Due note Spain and other areas locked up tight, no buying, no selling until electricity was restored, about three days.
This is simple. The US government will never give up its monopoly on money no matter what form it takes.
So, your comment isn't about the article but about the people who will actually comment about the article. Interesting.The people didn't comment as he predicted.
Trump can’t do anything to bitcoin. There is no “bitcoin” CEO or Board of Directors.
All the talk in Congress is about “stablecoins.” These are digital currencies that are tied directly to a dollar.
Stablecoins are NOT bitcoin. Nor is “Trump coin” which is a manufactured “alt coin.” Most “alt coins” are either very specific use cases or scams.
It’s easy for the media to lump all of this stuff together. It really muddies the water.
The electricity argument?
95% of dollar based transactions are electronic.
If the power goes out—most people are not buying. And…if the power goes out, across the nation for any amount of time we will have much bigger concerns than bitcoin or dollars.
There are lots of arguments to be made about cryptocurrencies….but a power outage isn’t one of them.
There are lots of arguments to be made about cryptocurrencies….but a power outage isn’t one of them.
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Not to you, but It was in the Florida hurricane and EU grid shutdown. Cash only, no CC, no E monies,…..the NC flood wiped out electricity for months in affected areas.
No thanks to E monies, which seem to be springing up like mushrooms in the spring, after a hard rain…..” since the creation of bitcoin in 2009, the number of new cryptocurrencies has expanded rapidly. [1] The UK’s Financial Conduct Authority estimated there were over 20,000 different cryptocurrencies by the start of 2023, although although many of these were no longer traded and would never grow to a significant size.[2]…”
That statement alone says much.
Biblical prophecy. One world currency. What do you think that is? Bitcoin.
And that’s why I believe it will replace the dollar and other currencies. The ability to mask, hide and avoid govt involvement will drive this.
It’s possible those legacy currencies may still be used, such as th EU does, but the official currency will become digital.
“There are many reasons to suspect Bitcoin is not what the herd thinks it is. Armstrong haters hate due to his not so good forecasts for Bitcoin. Watch the replies……”
In 2018 when Bitcoin was less than $5 you issued a get-out-bitcoin warning.
Same a few months ago with bitcoin about $85k.
You are a laughing stock on bitcoin forums.
“We are all free to invest in whatever we choose. That said, us older ones that have survived more than a few financial crisis don’t trust intangibles, words or promises….with good reason.”
And hide those tangible in your mother’s basement!
Cult economist jailed for hiding rare coins says the coins are his now
https://www.latimes.com/business/la-fi-coins-martin-armstrong-20190613-story.html
If you are arguing that bitcoin will be used for day to day transactions, I would argue that is a wrong supposition.
I think it is best to think of it like gold bullion in this narrow/specific way: It will be used in high end financial transactions. But for the day to day user, they will convert it to the local currency to use.
I used bitcoin gains to pay off my mortgage and buy a truck. I did not transfer the bitcoin to the bank or the car dealer. I converted it to dollars and transferred those. And I paid huge taxes—something one doesn’t have to do with withdrawing cash from a bank.
In a hurricane or blizzard where power and communications are knocked out that is when your cash reserves come into play. (We all have cash reserves in the house…right? LOL). But those outages last days or maybe a week or two. And you would be able to move to a location where you can access power, gas, food, etc.
Very local and temporary disruptions should not be used to argue against a worldwide case for digital currencies such as bitcoin.
I have been involved in the crypto space since 2011.
People need to understand that there is Bitcoin. And there is everything else. Of the 20,000 “alt coins”, most of them are referred to as “sh!t-coins” because they are not useful, not limited in terms of numbers mined, and they are insanely speculative.
And example was the “Trump coin” that was issued right before the inauguration. I guess you could use them to buy stuff at the Trump store—but a huge number (north of 75%) of people who own them are deeply under water. Of course, the Trump boys made millions—which they have converted mostly into stable coins and bitcoin…and dollars.
A decent education on cryptos should be required before anyone spends a dime on them. There is a lot garbage information and assumptions about what they are and what they do. I used to tell people who asked me about this stuff—and how they could invest to become millionaires—to stand by a window and throw out $100 bills…one at a time. When it begins to hurt—that is how much they should invest in cryptos. It can be THAT volatile.
But as one who dipped their toe into the water early…and just held on, its paid off pretty well.
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