BTC #44: WAS SBF THE PROXY FOR MORGAN STANLEY'S CRYPTO TAKE OVER?

“You can kill a revolutionary but you can never kill the revolution.”

Bitcoin must remain the most secure decentralized system in the world. It is Bitcoin’s decentralization that makes its users totally resistant to government censorship. If the fruits of your labor are stored within the Bitcoin network, no one can tell you how to use them, or take them away from you for arbitrary reasons.

This is what all Bitcoin users are looking for above all else. BTC is the last bastion of the virus that infected our colonist Founding Fathers. The latest iteration of our government is an embarrassing shell of our Constitutional Republic.

As long as Bitcoin has the fundamental properties it has today, not even the banning of governments can prevent its adoption by the general public. We The People still have a chance to make a more perfect union and BTC is the wedding ring to seal that deal.

Once a popular currency revolution like bitcoin is underway, there is no way to stop it. The powerful at the helm of the current system will have to accept it and adapt, or risk being totally overtaken in the future by the Bitcoin revolution.

So with this all said, who stands benefit from recent events?

CZ of Binance sits on the Twitter board and Jack Dorsey is one of the largest shareholders in the private takeover by Elon Musk.  Musk has tried for 25 years to disintermediate banks via his work at Paypal. Dorsey has convinced Must the using Bitcoin and the Lightning Network on Twitter is the best way to finish the job PayPal began.  Musk also owns over a billion dollars of Bitcoin.  Dorsey owns more than ten times that amount.  Musk cobbled together fiat financing through a variety of sources, including his own money from selling Tesla shares via his private account at Morgan Stanley.  MS wants to sell and custody Bitcoin for its clients.  Clearing a comprised exchange from the pavement makes a lot of sense. Musk raised $12.5 billion from banks to buy Twitter, with Morgan Stanley, Bank of America and Barclays each committing to $2.5 billion.  Did you know that 7 days after taking Twitter private Musk applied for a money transfer license?  Musk is not interested in free speech, he is interested in how money is going to change soon.   

Most of us have been watching with rapt attention, but for those who missed the series of events, it went something like this:

• Over the last month, SBF aroused the ire of Crypto Twitter with its pronouncements on industry regulation.
• Last week, CoinDesk published an expose on SBF-aligned trading house Alameda that questioned its solvency.
• Over the weekend, on Sunday, CZ of Binance announced that Binance would be dumping FTT token based on those recent concerns.
• CZ’s comments initiated an exodus, as professional asset managers raced to get their assets off of FTX. SBF’s remarks on Monday that Binance was maliciously targeting FTX did nothing to stem the bleeding.
• The bank run at FTX led to more than $6B in withdrawals from FTX in 24 hours before they stopped being able to process them.
• By Tuesday midday, SBF shocked the non BTC "crypto world" by announcing that Binance had signed a non-binding LOI to acquire FTX.
• By Wednesday afternoon, CZ had backed out of the deal and the WSJ was reporting that the hole on FTX’s balance sheet was $8B.  How convenient.
• On Thursday, the Bahamas securities regulator – where the crypto exchange is officially headquartered – partially froze FTX’s assets and moved to appoint a liquidator for one of its affiliates.

The situation is still rapidly evolving, but the emotions being processed by the crypto industry are as immense as anything we’ve ever seen. Disbelief, shock, betrayal, apathy, disgust.

So ask yourself, who benefits from this SBF blowup?  Incentives determine outcomes. The answers are the 6 primary dealers who broker money/UST for the Federal Reserve stand to gain it a lot of regulatory power if SBF influence ends in Washington DC.  

SUMMARY

“You can kill a revolutionary but you can never kill the revolution.”

So governments have chosen to go after media/VC created cypto revolutionaries, but they can’t kill the Bitcoin revolution. It has grown far too big now.  So now they want to control it.  They want to control the on and off ramps.  I will be discussing this and many more macro idea on November 15th for clients.  I hope some of you join my tribe at info@Kruseatdestin.com

People cannot give up on Bitcoin, because it is already their best option in every way. Bitcoin makes it easy for them to make everyday payments while protecting their wealth. Exchanges now can be made via Telegram or WhatsApp like what has happened in Nigeria to avoid possible checks by the Central Bank of any country.

Payment in fiat currency is then made via a simple bank transfer so that no mention is made of the cryptocurrency transaction.

Consider the current situation in Nigeria. Merchants also see Bitcoin as an incredible tool for trading across borders while avoiding some exorbitant taxes. As the most populous country in Africa, Nigeria also has a strong diaspora around the world. Nigerians simply want to use the most convenient and advantageous system for their commercial or personal exchanges.

Bitcoin is the most convenient system right now and today's macro environment is highlighting BTC use to a government.

You can’t stop a revolution like Bitcoin that meets the expectations of an entire globe of people.

It is all the more difficult when the political powers in any country are not able to offer a real alternative to monetary failure.

Any attempt of the USA and its Wall Street bankers to control Bitcoin will only strengthen its existence and use. This is already happening elsewhere in the world when governments ban Bitcoin and tighten controls on its use.

This is a lesson for us all.

  
The events around FTX were always about control.  

Like anything in life, truth has its price. Are you willing to pay it for your health? Your wealth?  

The American public doesn't know that an economic reset has been set by the power brokers, and the taxpayer doesn't even know that they don't know.  But they do know this epic blow up of SBF has implications. The bankers have been focused on COVID for 2 years by those helping the Fed by design. COVID was a compliance test for the greatest wealth transfer in human history. SBF was just another part in the bankers plan that got executed this week.  They had to fracture the relationship of VCs to Gary Gensler and Congress.  SBF was the lever.  The Fed needs their Wall Street proxies in control of how Bitcoin becomes the people's money.  Be ready for the rest of the plan.  Fed banks will soon be custodian of BTC they sell to the masses. 

Just like FTX, when ETHER collapses it will be obvious that the signals were everywhere.   Convert to BTC while and if you can.

There is a reason EO 6102 was placed in the Genesis block. 

Remember, not your keys not your coins.