We are witnessing the end of an epic period. The days of bitcoin, at least according to the original values, are over. This is what happens when the wolf enters the henhouse.
It is something that started in 2017 and has only grown. Some feel it is a good thing because it will send price upward. However, if you believe in the value espoused by the Cypherpunks and Satoshi Nakamoto, it is a time of reckoning.
Bitcoin is being hijacked and there is nothing anyone can do about it. The end is near in terms of the concept of freedom, sovereignty, and accessibility. Instead, we are left with more of the same.
Wall Street is now in the game and it is now over. This is what happens when the big fish come to play.
It is a statement I made a number of years ago and received some pushback. Fast forward 3 or so years, and it is crystal clear.
There is nothing surprising about what is taking place. We has a basic fact that most advocates overlook:
Historically, fixed money always pools.
Read that again. Fixed money always pools.
This means that the few end up holding the bulk of the money. Without the ability to expand, the flow of capital is always to those who are operating in excess.
Bitcoin is fixed money. Some think this an advantage, a point I consistently pushed back upon. Looking at what took place throughout the centuries shows how this is going to turn out.
Mind you, those HODLing some will likely end up seeing massive gains. Bitcoin can be acquired in two ways: mining or by purchase.
This means those with the resources are able to get into the game. Who has more of that than Wall Street? Their ability to scoop up large amounts means that it is rapidly moving away from the tenets espoused so long ago.
It is something that is just getting started.
This guy is a hero to many Bitcoin Maxis. The problem is that he is an example of what is taking place.
Again, most love him because his buying provides the opportunity for the price to move higher. It does not, however, promote the ideas of freedom.
According to a [Coindesk article], Microstrategy is now holding 152,333 BTC. That is .7% of the total supply that will ever exist. The numbers get worse if we believe that 4M-5M bitcoin were lost. This could move his holdings up to .95%.
Here is where the real problem comes in: Michael Saylor is a small fish. When it comes to money, he is in the minor leagues.
Blackrock got a lot of attention with its application for a spot ETF. Here is where we see the massive players starting to take an interest. Saylor's holding of $4.5 billion is peanuts to a financial institution that has over $10 trillion in assets under management.
Just quick math, 1% is $100 billion, or roughly 25x what Saylor has in BTC.
Have you noticed how warm Wall Street CEOs are suddenly becoming? Did you notice the supportive words Larry Fink of Blackrock had for bitcoin? This is a warning.
Wall Street is coming in a massive way. This means they will be bringing lot of dollars with them to buy up what is on the market. This is how they assume control.
We already know that many Wall Street banks are setting up custodian services for cryptocurrency. That means they are going to be putting their clients into it.
All of these funds that are being proposed, if they are settled with the asset, means that they will be buying even more. A Blackrock ETF could quickly grow into tens of billions of dollars.
Again, this is great for price but not so much for the ideals of Satoshi.
Handing these coins over to Wall Street is playing right into their hands. Long time cryptocurrency advocates understand the not your keys, not your crypto. Sadly, the general public is not going to operate from this premise. They will simply do what is easy which is buying these assets their JP Morgan or Goldman Sachs.
Once again, we see massive counterparty risk entering the equation.
If Wall Street isn't bad enough, what happens if the biggest fish of them all get involved?
By this we mean central banks and sovereign wealth funds. Here we see some numbers that get mind blowing. Many theorize that, at some point, central banks might hold bitcoin on their balance sheets. This would not be surprising.
We also are likely to see wealth funds like the Saudis buying some BTC, if they aren't doing so already. When it comes to playing in this game, these entities have insane capital being generated on a monthly basis.
In the end, they might not be able to control the network but that is of little concern. The coin distribution is what they seek. Between your major financial institutions, central banks, and sovereign wealth funds, we are dealing with tens of trillions in capital.
Framed in that way, 1 million bitcoin at $100K is $100 billion, a small number in aggregate to these entities.
This is how bitcoin is being hijacked. The big players will end up taking over.
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