America has relied on a strong dollar since the 1970s when the US and Saudi Arabia struck a deal. All payments for oil were made in dollars. This is how the petrodollar appeared.
This peg perfectly kept the dollar afloat all this time. Allowing you to spend more and more. Getting into debt.
But the modern world has changed. These are not the best times.
In 2024, the Saudis refused to renew the agreement. Preferring to pay countries in national currencies.
Relations with China began to deteriorate. A trade war has begun. Forcing to reduce investment in the American economy.
The crisis in Ukraine and the sanctions policy that the United States is pursuing against Russia is forcing the world to abandon the dollar and switch to payments in national currencies.
The US national debt has exceeded $35 billion. And it continues to grow. $460.26 billion is spent on debt servicing alone.
In a recent speech, Fed Chairman Powell said:
The level of US national debt is unacceptable, something needs to be done.
Yes, but how to solve this problem?
Perhaps the government is preparing a plan.
And Bitcoin will help them with this.
The capitalization of the entire crypto market is now 2.338 trillion. This is a small value compared to the same stock market - 40.245 trillion.
But unlike the stock market, where companies are assessed based on fundamentals. The crypto market and the price of Bitcoin are not tied to anything. Bitcoin can grow to any value. There would be demand.
In April, at the Token 2049 conference, Tether CEO Paolo Ardoin announced that he is the largest holder of US government debt. With a capitalization of 107 billion dollars. And he continues to increase the production of coins.
Not long ago, Binance received permission from the regulator. In which he was allowed to spend clients’ money, which was kept on the balance sheet, to purchase bonds, i.e. US debts.
Binance is the largest holder of Bitcoins with 363,774 thousand on its balance. And judging by the high-profile case against former CEO Changpeng Zhao, CZ is under American jurisdiction.
This way, the government will be able to sell its debts onto the balance sheet of exchanges and stablecoin issuers. Increasing the cryptocurrency market capitalization and minting more USDT and USDC.
Let's see who holds the most bitcoins on their balance sheets?
Large funds BlackRock, MicroStrategy and the US government itself amount to about 607,000 bitcoins. Add Binance here and we get almost 1,000,000 units.
No single player controls so many bitcoins at the same time.
A couple of months ago they accepted the spot Bitcoin ETF.
And on July 26, news came out that the Michigan Pension Fund purchased the ARKB Bitcoin ETF for $6.6 million. First call. Other funds will follow.
The flow of money from the stock market to the crypto market has already begun.
All that remains is to wait for the price to start rising and then the instinct of greed will kick in, as has happened more than once, and the crowd will run to buy an expensive cue ball.
And as you know, there is no limit to human greed.
Whether the price will be 100,000 or 200,000 or 1,000,000 I don’t know, but I’m sure.
There will come a time when all the mice are in the trap, there will be another Covid-19, a declaration of war or the assassination of a major politician.
This will trigger a sell-off of government-controlled Bitcoins. The price will drop 10 times.
And the happy owners of expensive Bitcoins will remain eternal HODLers.
What will I do in this case?
I'll transfer to another boat before it's too late.
There are coins more honest than Bitcoin. Where the government does not control large emissions.
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