*This content is for educational purposes only and should not be considered financial advice*
“Bitcoin is evolving. The introduction of inscriptions has caused an explosion in innovation that’s created new use cases for Bitcoin that many thought it would never support.” (1) Without getting too technical, the new development makes it a direct competitor to Ethereum – a smart-contract crypto that can potentially automate (and lower the cost of) certain financial products and management functions (2). Its proof-of-work consensus mechanism ensures it remains the safest cryptocurrency and likely the most trusted by institutions as a store of value for large sums of capital. Coincidentally, the world’s largest asset manager, BlackRock, filed for a Bitcoin Spot Exchange Trade Funded, aka an ETF (3), which would facilitate investment from mutual funds, commercial banks, and other institutional investors, allowing them to gain exposure to Bitcoin without directly owning the underlying asset (which they are currently prevented from doing due to financial regulations).
Tuesday, June 20th, 2023, Investigative ‘Guerilla’ Journalist and American Hero, James O’Keefe of ‘O’Keefe Media Group’ (OMG), released his video of a BlackRock executive (Serge Varlay) who thought he was speaking off the record to a potential ‘love interest,’ admitting how it easy it is for their organization to control the American government through legalized bribery, citing the Ukraine War as one of their supported projects (4).
“Let me tell you, it’s not who the President is. It’s who’s controlling the wallet of the President… The hedge funds, BlackRock, the banks. These guys run the world… It doesn’t matter who wins. They’re in my pocket at this point… Ukraine is good for business. You know that right?” (4) – BlackRock Executive Serge Varlay – 6/8/2023.
The BlackRock Executive then goes on to explain how his company is profiting off the volatility (large fluctuations) in prices created by the US-Russia Proxy War in Ukraine, implying that they have likely used their massive influence over the US government to profit off starvation and hyperinflation. In addition to the financial benefits BlackRock is enjoying, BlackRock Executive Serge Varlay can be seen on camera discussing the war’s GeoPolitical benefits to BlackRock: “We don’t want the conflict to end… The longer this goes on, the weaker Russia is” (4). The American government’s otherwise inexplicable push to bring the world to the brink of nuclear war with Russia over a country where Russia always maintains ‘escalatory dominance’ (in the words of Obama (5)) demonstrates the power of big money over the government.
“BlackRock manages $20 Trillion. It’s incomprehensible numbers,” according to BlackRock Executive Serge Varlay (4). The previously established tremendous direct influence over the government means its ETF has the highest chance of approval of any attempt from the financial sector yet and the global macroeconomic situation makes this possibility even more likely. Its hypothetical market entry would allow other American legacy financial institutions to buy into Bitcoin (protecting themselves from hyperinflation) before the Bank for International Settlements (aka the BIS, or ‘bank of/for central banks’) rule takes effect on January 1st, 2025. This BIS rule taking effect in just over a year, allows central banks of every country on earth to invest up to 2% of their reserves in Bitcoin (6), meaning the floodgates will officially be opened and it will be a store of value at the national level, dramatically increasing the chance it will also become state-endorsed legal tender in many countries.
Considering BlackRock’s record of investing in companies whose products negatively impact public interest and centralize power, their filing of this ETF may raise the eyebrows of those distrustful of the establishment. However, a closer look at the situation reveals this is likely a case of “if you can’t beat ’em, join ’em.” The US dollar and current financial system give America (and, to a lesser extent, the UK) tremendous influence and power over the world through sanctions, transaction surveillance, and the ability to manipulate markets through centralized (and privatized) control over the money supply (which is managed by the Federal Reserve, a privately owned entity, despite its conspicuous name that suggests otherwise). Countries such as Nigeria, China, and others have tried banning Bitcoin outright, failing because a ban is virtually impossible to enforce, and outlawing it in America would end with the same embarrassing result.
Absolute power usually corrupts absolutely, and since the dollar attained its status as the world reserve currency after World War 2, America has abused that power by sanctioning and waging economic war on any country that doesn’t bow to the demands of the financial-military cartel running America. This trend has recently accelerated and started an international revolt of countries ditching the dollar for trade and storing their country’s reserves. This movement seems irreversible, given American and global economic conditions.
Every other country with a debt to GDP (aka the country’s income) ratio as high as America’s has experienced hyperinflation since the government has no way to pay back the debt except by printing money, which devalues the currency. The current proxy war America is waging against Russia using Ukraine and the saber-rattling it’s currently engaged in with China and Iran, which could lead to two more expensive wars, make it hard to imagine this cycle of never-ending debt reversing. In the short term, volatility may not yet be over because the Federal Reserve is not yet done raising interest rates (8), but this BlackRock ETF along with the previously described upgrades, makes Bitcoin’s long-term prospects even better than they previously were (as it was already well positioned to become the base of the world’s next financial system).
Adopting another country’s currency would put America at the mercy of another obscurely controlled, corrupt central bank. Adopting Bitcoin and finding ways to cope with the near-term volatility would allow Americans to retain their purchasing power and avoid the economic devastation that has plagued every country that’s experienced hyperinflation. Fiat currencies ultimately depend on people and institutions trusting corrupt centralized entities with private interests to manage the world’s money supply. At the same time, the independent, transparent Bitcoin protocol empowers secure, quick transactions, making it the logical evolution of money. For those worried about a completely digital world where cash is outlawed, creating physical Bitcoin notes is possible and a step I would enthusiastically encourage (7).
Sources
- “Bitcoin Is Growing Fast!! Ethereum Dominance Over!?” (6/18/2023) – Coin Bureau
https://www.youtube.com/watch?v=IyuwI5q7HwA - “Ordinals 2.0 Reduces Bloat, Brings Smart Contract-Like Functionality to Bitcoin” (6/13/2023) – Wright, Liam ‘Akiba’. CryptoSlate
https://cryptoslate.com/ordinals-2-0-reduces-bloat-brings-smart-contract-like-functionality-to-inscriptions/ - “BlackRock Bitcoin ETF Prospects Boost Institutional Investor Sentiment” (6/19/2023) – Beganski, Andre. DeCrypt
https://decrypt.co/145268/blackrock-bitcoin-etf-prospects-boost-institutional-investor-sentiment - “BlackRock Recruiter Who ‘Decides People’s Fate’ Spills Info on Company’s World Impact” ( 6/20/2023) @JamesOKeefeIII via Twitter.
https://twitter.com/JamesOKeefeIII/status/1671262303319392259 - “Obama Sees Ukraine as Putin’s Client State” (3/10/2016) – Goldberg, Jeffrey. The Atlantic.
https://www.atlanticcouncil.org/blogs/natosource/obama-sees-ukraine-as-putin-s-client-state/ - “Central banks to set standards on banks crypto exposure: BIS” (12/17/2022) – Pereira, Ana Paula. Cointelgraph.
https://cointelegraph.com/news/central-banks-to-set-standards-on-banks-crypto-exposure-bis - “Physical Bitcoin Notes Could Be Around The Corner” (3/11/2021) – Mollen, Felix. CryptoPotato.
https://cryptopotato.com/physical-bitcoin-noteworthy/ - “Federal Reserve expected to raise interest rates again this year: Powell” (6/23/2023) – Schmidt, Ann. Fox Business.
https://www.foxbusiness.com/personal-finance/fed-raise-interest-rates-again-2023-powell
