With 3 banks down already, and Credit Suisse on the brink, worried depositors are perhaps opting for the relative safety of an asset outside of the banking system, which is Bitcoin.
Why are regulators so obsessed with crypto?
Financial agencies, especially those in the U.S., have been spending their energies on trying to bring down the crypto sector, instead of keeping an eye on a banking industry which is breaking apart in front of them.
Crypto is an industry of just over $1 trillion in market cap. This is in comparison to the banking industry that has around $7 trillion in total value.
With so much attention paid to crypto and its supposed widespread illegal activity, as constantly put out by mainstream media, why is it that the banks are crashing, while at the same time there appears to be a flight into Bitcoin?
Why Bitcoin?
For a “pet rock”, which is how JP Morgan CEO Jamie Dimon describes Bitcoin, to have held up so well, while banks are losing their depositors hand over fist, it must be wondered what is the attraction?
The attraction could possibly be that Bitcoin is an asset that is outside of all the carnage in the banking system. It cannot be manipulated by government or their agencies (if you discount that SEC Chairman Gensler approved a Bitcoin Futures ETF that to all intents and purposes just enables institutional money to short the asset), and such things as bail-ins and bail-outs just don’t exist in the Bitcoin network.
Who knows how the fiat currency system works?
Henry Ford knew what was going on in the banking system, when he said:
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
It is certainly true that people do not understand the banking system. How can they if it is not taught at schools, colleges, or universities? How many people would know that this system runs on debt, and must create more and more of it in order to survive?
Education is essential
Bitcoin will quite possibly go back down to test the lows, and shake out the last of the weak hands. However, once the bull market starts in earnest it has the potential to go much higher.
Fiat currency on the other hand can only go down. This is the system we are in. Most people have no idea that this is the case. It would behove anyone who seeks to protect their wealth to educate themselves on Bitcoin and the banking system. Their future prosperity depends on it.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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