While writing this post i kept having the same flashback to the scene from the movie-Gladiator.
The scene where Marcus Aurelius says "There once was a dream that was Rome.."
There once was a dream that was crypto...
The decentralised dream that we once had for crypto is nearly dead.
Crypto, most importantly Bitcoin is now becoming a tool for the richest and most powerful.
There is nothing decentralised about the plan they have for Bitcoin , itâs a means to an end.
If you want to know more then read on.
This post is long, it is 100% intended for the red pill gang.
The other day i linked an article in my post đ
https://unlimitedhangout.com/2024/07/investigative-reports/trump-embraces-the-bitcoin-dollar-stablecoins-to-entrench-us-financial-hegemony/
I am going to try and break down this article(and more) in a user friendly way.
Every part of this post leads back to Bitcoin
Key points,
Bitcoin is a store of value, in years to come this will continue to grow, this is by design and planning on a deep state level.
Bitcoin is a means to an end for the US government and the powerful people who control the narrative and will profit off it.
The plan for Bitcoin (on a deep state level) is to control the supply and demand and use that as a means of enforcing US dollar dominance globally through US denominated stable coins.
US denominated stable coins are mostly backed by US debt, the bigger the demand for US backed stable coins, the bigger the market for US treasuries (US debt).
The Petrodollar just ended, now starts the age of the Bitcoindollar.
Lets start,
The United States of America faces 2 large economic problems, supply and demand.
Global demand for US dollars, (Demand)
In recent years there has been a global movement to shift away from the demand for USD as the go to currency for global trading, this is shown by the end of the petrodollar and also a continued movement by Brics nations to create a Brics currency.
I will not go deep into how the petrodollar secured global dominance for the USD, most of you already know, basically any nation looking to buy oil had to convert their local currency to dollars to buy oil, any oil rich nation that did not comply quickly felt sanctions or the wrath of the US war machine.
For over 50 years this has enforced the demand for USD globally, now with the end of the petrodollar and global tensions and sanctions many nations are looking to change this.
US Government debt, (Supply)
Firstly it is important to note, US treasuries are US Debt.
These treasuries are backed by the US government and offer different rates of return depending on duration, supply and demand, interest rates, yield curve and many other economic factors.
I have explained treasuries in length in my previous posts, basically a US treasury is the US government selling its debt.
They can be sold in the short term, days-weeks (Known as T-Bills)
They can be sold over the long term, 10-30 years (known as treasury bonds)
The US government is currently in $35 Trillion worth of debt.
They need somebody to buy $35 Trillion worth of treasury bills and treasury bonds.
This is a list (In billions of USD) of the largest foreign holders of US treasuriesđ
For decades outside nations have been huge holders of US treasuries, in recent years China/Japan and other nations have been selling treasuries in the hundreds of Billions for economic or political reasons.
The US government is printing more money and is in more debt than ever before, many large nations who previously soaked up a large part of that debt are no longer customers.
The US government need another market for its ever increasing debt.
The above list is missing a VERY important player! (Actually a few)
USDT - Treasury bill holdings $95 Billion.
This places USDT above the likes of Mexico and Germany as non US debt holders, also if you include other stable coins like Circle/Paypal then the amount is over $150 Billion
With current estimates is it predicted that US denominated stable coins will be the largest (Non US) holder of US treasuries (debt) in the next 4 years.
For anyone who follows me you will know i share no love for USDT.
I have long had concerns about the unregulated way USDT has been run.
I feel my concerns about USDT over the last years have been justified, I just missed something that is now becoming more and more obvious.
USDT is now to big/important to fail
This is the rise in USDT market cap over the last 4 years đ(Monthly candles)
Lets look at some key points for USDT over the last 4 years.
USDT has gone from $10B-$115B Market cap.
Tether changed its wording, previously USDT was "backed 1-1 by USD", Now it is backed by Tether reserves, 81% of which is held in US debt.
Tether onboarded the US FBI and secret service into their platform.
Tether freezes funds held by US sanctioned wallets.
Tether onboards chainalysis monitoring.
Each and every point listed above has a VERY deep rabbit-hole that explains it, i will link 2 articles at the end of this post for people who want a deeper understanding.
4 years ago Tether was facing scrutiny and legal troubles in the United States, then that all went away.
I can only assume that around this time they were given 2 options,
Either face further scrutiny and legal troubles by the full force of the US government and its allies.
Become a proxy.
I have done deep research into this and it basically all leads to two things, information and dollar dominance
Information,
At the BTC conference Trump spoke about a central bank digital currency, also Jerome Powell was asked about it during the FOMC press conference.
Both echoed the same stance, no plans for a CBDC.
Why not?
Firstly you need to understand that your data is the most traded commodity in the world.
Most governments are not allowed to openly spy on their citizens, they donât need to, they just buy your information from data brokers.
Everything you touch or use is collecting data, every social media page you visit, your search engine, your phone, the list is endless, most of this is allowed because you accepted the terms of service.
This data is then sold globally, including to governments and government agencies.
Why change that with digital currencies?
Stable coins like Tether already offer all the power without any of the messy regulation, why create a government regulated and scrutinized digital currency when you have a proxy that will already serve the same purpose.
Dollar Dominance
You can go very deep down the rabbit-hole to see how this whole system has been created, Bitcoin is the commodity, the value, the end game is to convert that value into holders of US backed stable coins globally.
If you look deep enough you will find connections in all the big players who are helping to spread US backed stable coins globally.
Most of these large companies can all be traced back to Venture capital firms or powerful people who control the power and wealth in Silicon Valley, California.
If you look deep enough you will find the people behind companies like Xapo, PayPal, Paxos, Coinbase, USDT, USDC, Mercado libre , many bitcoin mining companies, Black Rock and other large US bitcoin ETF funds, even spy satellite companies and social media companies are all linked.
The list and the web is endless, from Latin America to the Middle East and Africa.
All of these companies directly or indirectly trace back to the same rich and powerful people and large organisations founded or based out of Silicon Valley, California.
The goal is simple, make the US dollar the global currency through US backed stable coins.
This is already happening globally as more and more people in Countries that suffer from hyperinflation are turning to USDT or US backed stable coins as a means to save money or to transact (Argentina, Venezuela, many African countries, war torn countries)
If you look deep enough you will find that many of the success stories in these 3rd world countries or struggling economies can be traced back to global players like Endeavor.
Endeavor is an American run âphilanthropyâ network that stretches the globe, through its finance and power it has created a global network and ecosystem by empowering people and businesses who are selected to be a part of the endeavor ecosystem, most of this focus has been in the global South.
Endeavor were the force behind Xapo bank and Latin American e-commerce giant Mercado Libre.
A few other Endeavor success stories.đ (Many offering an online payment platform)
For a struggling business in Latin America, Africa, Asia or the Middle East a lifeline from Endeavor and access to their global network is a sure fire way to success, if they select you, but remember you have to pay it forward.
Xapo and Mercado Libre/Livre are 2 of their huge success stories, also both offer global payments in US backed stable coins.
Mercado Libređ ( These examples just shows Brazil and Chile, they are used across South America, including payments in US stable coins)
Xapođ
This is an American run, global movement to put the right people in the right places and ensure there is a global demand and market for US stable coins for decades to come.
Higher global demand for US backed stable coins means higher demand for US government debt, by converting your local currency into USDT/USDC/PYUSD (ripple soon) you are basically converting your currency into US debt.
As mentioned before this is not all you are doing, you are also now leaving an easy to trace digital footprint , the data of how much money you have, what you spend it on, who you send it to, everything will be available.
This effect is not only felt in struggling economies, around the world most crypto traders are trading crypto is USDT pairs, the liquidity in the market is mostly in USDT or other US backed stable coins.
There are also laws, Basel 3 and others, which will require large US funds who offer investment into Bitcoin to hold a reserve of US treasuries to protect against Bitcoin price volatility, another dump for US government debt.
Welcome to the age of the Bitcoindollar , the sinkhole for $35 Trillion in US government debt.
Final thoughts for this section,
Below you will find a lot of the source material i studied multiple times to further enlighten myself , it is amazing work by Mark Goodwin and Whitney Webb.
I dont know them or have any affiliation to them.
Their research and articles are very deep and very dark, i found them hard to read but i also want a deeper understanding.
Their research is absolutely amazing and deserves widespread praise, it is the uncensored journalism that the world desperately needs, especially Crypto.
For most of you it will be a rabbit-hole to deep.
I will try summarise and hugely oversimplify these articles in a more user friendly and to the point way,
What you will find if you read these articles is that many of the big companies and the powerful people who run them are mostly connected or have been placed in positions of power, many are part of the deep state movement to monitor and have power and influence over what we see, what we do, what we believe, our privacy, our financial freedom and much more.
The PsyOp (Psychological operation) is real, including in Crypto.
Many of the people who are shaping and/or manipulating Crypto today were doing the same over 20 years ago in the Dotcom boom.
Many of the powerful people who control a huge part of the crypto market today have been profiting off predatory practises for over 20 years, they have profited off insider trading, market manipulations, having close ties to powerful people inside and outside of government, they made fortunes off the financial crash in 2008 and even the covid pandemic.
If you trace back the connections they mostly lead back to the same rich and powerful people or Venture capital giants or companies that were founded and/or run out of Silicon Valley, California.
Many companies have been groomed or incorporated into the deep state web as the digital age grows, crypto is no different.
By using Bitcoin as the commodity they aim to create a global demand for dollars and a surveillance network around the world.
If you follow the breadcrumbs you will see why Trump winning this election is more important than most could imagine for this Bitcoindollar plan.
https://unlimitedhangout.com/2024/07/investigative-series/the-chain-of-custody-the-mafia-holding-the-elites-bitcoin/
https://unlimitedhangout.com/2024/08/investigative-series/the-chain-of-issuance-the-people-and-patents-that-built-the-financial-surveillance-network/
Some research i was working on that ties into this narrative.
I was going to post about this seperately but it ties into this post so well.
The imagine below shows the leaders in Venture capital deals in Crypto over the last year.đ (You can find this list on DefiLlama)
This image shows the top 10 venture capital firms that have been responsible for the most new investment (by deals) into crypto projects over the last year.
If you look at the funding of most projects (especially in DEFI) that have been launched on major exchanges in the last 1-2 years you will find the above names will show up a lot.
So lets break down this list, i will split this into 2 parts, including central exchanges and without.
Of the top 10 there are 2 central exchanges on the list Binance and OKX.
Note this is the venture capital part of exchanges, they fall under the same umbrella and are still the same company in essence.
You will clearly notice from the image that they have a median investment amount of $0.00, a median amount is just the average investment made, or in the case of Central exchanges the amount disclosed.
Most large central exchanges donât share their investments into crypto projects, they say this is because it is disclosing their competitive edge...
I need to choose my words wisely as you are not allowed to speak badly about the powers that be here.
Binance labs have been the clear leaders in deals over the last year, yes it is the largest Crypto exchange in the world but you need to question why central exchanges donât share what they pay, or if they pay, to be invested in the tokens that they launch.
These tokens, especially in the case of Binance, gain a huge amount of hype and advertising around token launches, it is also where the launch price is determined in many cases.
This list below is from over a month ago but shows clearly how tokens launched on binance have performed in the months following launch, these projects are all extremely over valued on launch and offer no fair investment for retail, most importantly they donât allow for price discovery which is what determined crypto price in the past.
In past cycles tokens had price discovery, retail and large whales were able to buy at the same prices from token infancy, that is now gone, that whole token cycle is now controlled by the VCs and central exchanges, this includes all the profits.
The days of finding a new token that will 20x(sustained)are very rare, all the 20-50x gains are already made by the VCs and central exchanges(Before launch), once launched retail are paying 20-50x more than what the VCs paid to seed the project 1-2 years prior.
All the profits that were made by retail investors in previous cycles are now going to the Venture capital firms and central exchanges, those were the profits that were re-invested in previous cycles and itâs what supported ALT seasons, now that profit is gone.
There is an ALT season happening, it has been happening all year, just not for retail investors.
Lets look at this list again, we have noted that 2/10 are central exchangesđ
Lets focus on the remaining 8(non exchange) venture capital funds on this list.
*Remember crypto is decentralised , that is its selling point*
Of these 8 Venture capital firms, how many would you say were started in America?
Wait America is huge, lets try narrow this down.
Of the 8 remaining Venture capital firms, how many would you say were founded and/or run out of California?
The answer is 7 (Framework is run out of Toronto Canada)
I donât think you need much convincing to see where this is headed.
There is very little decentralization in crypto anymore, least of all in the new projects that are VC funded and launched on large exchanges.
The same web that is behind the global push/demand for US backed stable coins are also the same group who are funding many of the new projects that are launched on large exchanges.
If you just looked on the surface or took crypto at face value it would be easy to miss, as soon as you start to connect the dots the connections and the centralisation it leads back to is impossible to ignore.
If it looks like a duck, walks like a duck and quacks like a duck, then its probably a duck.đ€
Most of these projects are absolute garbage, some are "worth" hundreds of millions-Billions FDV on launch and serve little/no real world usage, they are mostly made for the sole reason of transferring wealth from the uninformed poor/middle class retail crypto traders -> Rich VC funds and exchanges.
These are the "get rich quick" projects, the projects that "offer" retail investors the dreams of turning their $100 into a Lamborghini.
Binance square is a perfect case study for this (And they know it)
The next time the crypto market has a correction just look what the posts on square are about, the rage posts about "liquidation" or "scam projects".
You will find most of the posts relate to the VC funded, trash projects that have been hyped and basically force fed to uninformed retail traders over the last years.
Itâs all predatory and itâs all planned.
Final thoughts,
It is never too late to buy Bitcoin, this Bitcoindollar system/plan is in its infancy.
Companies like Xapo/Coinbase (And many more) are spending Billions on security measures to secure Bitcoin keys, this is for a reason. (They even want to send BTC keys into space for security)đ
In my opinion it makes no sense to have anything less than 60-70% of your long term spot portfolio in Bitcoin.
Once you buy Bitcoin donât sell, it could be the most valuable commodity in the world in the years to come.
Keep your Bitcoin safe, holding long term on a central exchanges is not safe, have self-custody.
When the market has a large correction buy more Bitcoin, only buy what you can afford to, this is not a get rich quick scheme.
You can either be a smart investor in Crypto or a gambler, both paths are available to you, the only person who can decide which path you take is you.
Knowledge and patience is power.
Peace.
