We are living on the cusp of financial history, a prospect exciting as it is terrifying. To wit, the next 12-18 months could represent the most politically, socially, and economically transformative period EVER.
In my case, it’s remarkable to think of the “front row” circumstance of my life - having been born in 1970, less than a year before (what remained of) the gold standard was dissolved; taken an interest in sound money in 2002, subsequently spending 15 years as a leading Precious Metals advocate. And, due to my position in that space, finding Bitcoin in 2016 - becoming not just a significant investor, but a leading advocate.
In other words, my life has coincided with the beginning of the end of fiat money; and now, potentially, the end. No one could have even imagined it could happen so quickly, but that’s the beauty of technological progress – as once something revolutionary is invented; like the internet - and now, Bitcoin; the revolution it inspires is often shortly behind.
Regarding money, it has been controlled by “men with guns” since the Stone Age; i.e., a small group of men deciding on what was money, how much was produced, and who should receive it.
Fiat currency, invented 1,000 years ago in China, was a major technological advancement – in that it made trade more efficient. However, it did not resolve the primary, age-old monetary problems. In other words, while the “guns” the powerful men wielded were less deadly, their power to control the money was equally so.
All fiat currencies ultimately collapse - as by definition, due to limitless supply, and incentive of those controlling it to hyperinflate - they are Ponzi schemes. However, the invention of the computer in the 1960s enabled THIS Ponzi scheme to last much longer than in the past, especially after the 1971 decision to abandon the gold standard. To wit, for the first time in history, ALL nations’ currencies were unbacked – with ONE nation, the United States, given the privilege of controlling EVERYTHING.
The subsequent five decades featured unparalleled global monetary abuse – so much so, the world is amidst its worst-ever inflationary spiral, featuring historic wealth inequality, capital misallocation, and political mistrust. Not only has monetary expansion put the world at the edge of financial ruin, but market manipulation – via computer algorithms in ALL financial markets - has enabled a handful of sociopaths to plunder trillions from “the 99%.”
To that end, I’ve spent the past 20 years very loudly vocalizing my belief that the system was on its last legs. I didn’t know HOW it would end, but it’s been very clear – particularly since the hyperinflationary response to the 2008 financial crisis (caused by the hyperinflationary response to the 2000 dotcom bubble crisis), that SOMETHING was going to catalyze its demise.
Until recently, the only “weapon” the system possessed to threaten fiat dominance – aside from its inevitable self-destruction – was the threat of a return to the gold standard. However, before Bitcoin was even conceived, gold’s usefulness as a monetary asset was declining, given its lack of actual monetary properties; general monetary disuse; and ultimately, lack of anti-fragility, exploited by limitless dilution in the “paper gold” market.
If Bitcoin hadn’t been invented, perhaps I’d have spent another 15 years tilting at Precious Metal windmills, hoping for the hyperinflationary breakdown that would “make me rich” at the expense of a dangerous, miserable world…which today, cretins like Peter Schiff are praying for with all their might.
However, the miracle of Bitcoin, one of the most complex and impactful technologies ever changes everything; as not only is the destruction of fiat currency, in a far weakened state than ever before, inevitable, it may well be imminent…as in, potentially, the next 1-2 years.
Even in my wildest dreams, when first investing in 2016 and writing of it daily – first, whilst still Marketing Director of Miles Franklin Precious Metals; and then, proprietor of CryptoGoldCentral.com, which launched in 2017; did I expect Bitcoin to spread so virally, so fast. However, it decidedly has, to the point that ALL FUD has been refuted - with billionaires, institutions, politicians, and even nation states joining the cause.
Which leads us to 2022 – when in my view, the “Final Battle” has commenced, of a war Bitcoin MUST, and WILL, win.
By the Final Battle, I mean that for all intents and purposes, all anti-Bitcoin combatants have been eliminated except the final, most deadly competitor…the U.S. government; i.e., possessor of for now, the “world’s reserve currency.”
First it was sh-tcoiners like Roger Ver and Faketoshi, attempting to create “better” versions of Bitcoin – with deep pocketed partners like Jihan Wu and Calvin Ayre doing the dirty work of manipulating markets as they spread their lies.
Next, it was the European Union, BIS, and all other supposedly “rich and powerful” financial institutions – aided by propaganda from well-known cantillionaires like Warren Buffett and Jamie Dimon…which initially impacted the public’s perception of Bitcoin, before ultimately falling on deaf ears.
Next, the seemingly invincible Chinese government – which, having already banned crypto trading, took the draconian (and ultimately, suicidal) step of banning Bitcoin mining - sending 50% of the network’s hash rate abroad which, within a few months’ time, inspired a new ATH price AND hash rate.
Which leads us to the U.S. government – which, for several decades now, has operated as pettily, irresponsibly, selfishly, and vindictively as any in the world. Wrought with corruption, self-dealing, and stupidity, a seemingly unending stream of bad policy decisions has brought its status as “superpower” to the brink…and with it, its soon-to-be-hyperinflating “reserve currency.”
To that end, I strongly disagree with those who believe Bitcoin and the dollar can peacefully co-exist. Money has ALWAYS been a winner-take-all game, and to believe something as perfect as Bitcoin won’t completely usurp the cancerous dollar is in my view a sad attempt at sugar coating reality. This is why the U.S. government will fight Bitcoin to the death.
First, it was “pot shots” like denying ETF applications – which devolved into actually approving the “futures ETFs” that are being used, like the GLD gold ETF, to suppress price. The only difference being, that whilst the amount of gold underlying GLD can never be audited, on-chain analytics show us that indeed, few are selling ACTUAL Bitcoin, as opposed to fake derivative products.
However, now that inflation is raging out of control (and JUST GETTING STARTED); with Bitcoin’s hash rate having blown by the pre-China ban ATH; as billionaires, institutions, and even American politicians have taken strong pro-Bitcoin stances; the time has come when the Biden Administration will empty its chambers.
I don’t think the fight will last long, as it has no viable weapons. Nothing can stop Bitcoin, and the blowback from within America itself will be too strong – starting with states like Texas, Wyoming, and Florida (with others like Colorado, New Hampshire, and Illinois joining the ranks this week alone). To that end, the fight may not last through 2022 – and certainly not 2023, when hype from the approaching 1Q 2024 halving alone could propel the Bitcoin price to unfathomably high levels.
What I do expect, however (for what it’s worth), is that the algorithms that have been used to suppress Bitcoin since AT LEAST August 2020, when I first discovered them, will be utilized as powerfully as ever. I have written of them ad nauseum since, and all you have to do is watch how ETH controls BTC’s every price movement to realize they are REAL, and OMNIPRESENT.
(1) Andy Hoffman🇸🇻 on Twitter: "MY LATEST, MUST READ ARTICLE - "The Giant Pink Elephant The Room That ALL Ignore – The “ETH Cartel” Algorithms That Have Destroyed #BTC Price Discovery Since 2020, and WILL Ultimately Be Overcome"... https://t.co/2E7DuSQ8NA" / Twitter
Their fatal flaw, of course, is that there is no logical reason for ETH to control BTC’s price – and thus, when Bitcoin adoption has the MAJOR stair-step higher I believe to be inevitable, trading volumes will expand so dramatically; whilst supply declines so sharply; they will become impossible to maintain. At which point, true price discovery will return – as unlike paper gold, the entire world will be aware that very little Bitcoin supply is actually available for sale.
Beyond this, all that’s left are draconian attempts which, at best, will buy precious little more time – like, for example, freezing cryptocurrency accounts at brokerages, which is why you should NOT hold Bitcoin anywhere but in your own custody; at least, until it has destroyed the dollar, and taken over as world’s reserve currency.
Should the U.S. government attempt such lunacy, it COULD cause a temporary slide in BTC’s price…but more likely, would yield a parabolic rise, as the entire world flees the “second world” U.S. monetary system.
(~~~ embed:1494462097161220104?t=8rt7wKZuFW7I_UZML3W_pg&s=03) twitter metadata:amVzcG93fHxodHRwczovL3R3aXR0ZXIuY29tL2plc3Bvdy9zdGF0dXMvMTQ5NDQ2MjA5NzE2MTIyMDEwNHw= ~~~
Moreover, if they dared try to ban Bitcoin mining, they would likely face secession from numerous States; particularly Texas - on its own a major economic power, which has had an increasingly vocal secession movement for years. And again, this too could catalyze a parabolic BTC price rise, for the very same reason.
That said, the one area where they could, and are desperately trying to, cause near-term damage is in El Salvador – whose “Volcano Bonds” are scheduled to price around March 15th-21st. The proposed size is $1 billion, but rumor has it that if demand is there, it could be upsized to as much as $5 billion. Which, if it occurred, would not only bring $2.5 billion of fresh BTC buying to the market, but enable El Salvador to roll over its debt and dramatically expand the growth of its Bitcoin economy.
In my view, this could be the most dramatic event in financial history – potentially, launching a global, unstoppable adoption wave that could topple nation states and currencies before the next halving.
Andy Hoffman🇸🇻 on Twitter: "El Salvador's proposed Volcano Bond issuance represents a potential turning point in history. If successful, the world will become a better place. If not, I will lose all faith in humanity. @nayibbukele @maxkeiser @stacyherbert @SimonDixonTwitt @Excellion" / Twitter
Andy Hoffman🇸🇻 on Twitter: "The global financial community has NO IDEA what is about to hit them. If you think a U.S. #Bitcoin ETF listing will be a big deal, wait until NEXT MONTH, you see the reaction when the El Salvador #BTC Volcano Bond is launched, to MASSIVE OVERSUBSCRIPTION. https://t.co/1RGqDWyLMU" / Twitter
This is precisely why the U.S. government – no doubt, in partnership with lesser financial hitmen like the ECB and BOJ – will do ANYTHING to prevent it from occurring…or, at the least, being highly successful. In other words, a heavily oversubscribed offering is likely viewed, rightfully so, as a major “National Security Issue,” given what might ensue GLOBALLY in such an event.
To that end, Congress just proposed the “Accountability for Cryptocurrency in El Salvador” Act, or “ACES” - unfathomably, ADMITTING so much. Yes, the Big Bad USA is actually SCARED of little old El Salvador!
“El Salvador’s adoption of Bitcoin as legal tender raises significant concerns about the economic stability and financial integrity of a vulnerable U.S. trading partner in Central America.”
“This new policy has the potential to weaken U.S. sanctions policy, empowering malign actors like China and organized criminal organizations. Our bipartisan legislation seeks greater clarity on El Salvador’s policy and requires the administration to mitigate potential risk to the U.S. financial system.”
“El Salvador recognizing Bitcoin as official currency opens the door for money laundering cartels and undermines U.S. interests.”
“If the United States wishes to combat money laundering and preserve the role of the dollar as a reserve currency of the world, we must tackle this issue head on.”
To which, the George Washington of our time, Nayib Bukele, responded in a manner few would even dream of to his primary creditor (via its control of the IMF). The reason being, he KNOWS Bitcoin will defeat the dollar, it’s just a matter of time.
Nayib Bukele 🇸🇻 on Twitter: "OK boomers… You have 0 jurisdiction on a sovereign and independent nation. We are not your colony, your back yard or your front yard. Stay out of our internal affairs. Don’t try to control something you can’t control 😉 https://t.co/pkejw6dtYn" / Twitter
As I have said for years, I don’t just believe, but KNOW Bitcoin will be the next global reserve currency – the only question being, WHEN.
Given the incredible pace of its growth, adoption, and catalysts, it could actually occur as soon as THIS YEAR, in my view. However, if the El Salvador Volcano Bond issuance is NOT a major success, it could push the timetable off another year or two – which, in a world SUFFERING from accelerating inflation and tyranny, is just not acceptable.
So, to the entire global financial community – from billionaires, to institutions, governments and small retail investors – I IMPLORE you to unite in the common goal of making this the most successful bond issuance of all time. If this occurs, you will not only hold the likely best performing bond of all time, but help the world be a MUCH better place, MUCH sooner than anyone could have imagined!