Then They Fight YOU.

I think we are in the “they fight you stage” of Bitcoin adoption. State legislatures around the country are beginning to wake from being drunk on power and starting to notice the potential of Bitcoin and how it could endanger their cushy jobs of doling out cash to their favored groups.

This hostility to Bitcoin is playing out in state legislatures across the country. The North Carolina general assembly recently introduced a bill prohibiting payment to the state in Bitcoin.

New York is an extreme example of state legislatures targeting Bitcoin. In November, Governor Kathy Hochul signed a 2-year mining ban on cryptocurrency mining in the state. While mining operations connected to the grid can operate, this has deterred mining businesses from investing money in the state. Since Bitcoin is the largest cryptocurrency by market cap, this is a de-facto ban on new mining in the state.

This dynamic is also playing out in otherwise Bitcoin-friendly Texas, where the state lawmakers are targeting the Bitcoin mining industry under the guise of protecting the consumer.

The Government Doesn’t Want To Compete With Bitcoin

Why is this all happening now? I urge you to look at the broader context of their actions. They don’t want to lose power. The SEC is coming after major exchanges like Coinbase and Kraken. They both have received a Wells Notice from the SEC about their staking products. The SEC is alleging that the staking products are unregistered securities.

Offering an unregistered security is against SEC rules, and violators can face substantial fines. The rub is Coinbase and other crypto companies have asked the SEC for regulatory clarity so they can stay within the confines of the law, yet they have heard nothing from the regulators.

Coinbase had to file a petition in the U.S. Court of Appeals for the Third Circuit to force the SEC to clarify the law after asking nearly a year ago.

What the government is trying to do on the state and federal level is blatantly obvious. They want to make the regulatory environment so hostile to Bitcoin and the broader crypto market that companies either go offshore, close their doors, or submit to horrendous regulations that it gives de facto control to the government.

The federal government doesn’t want monetary competition for the CBDC that is slowly being rolled out. Once the wider public truly understands what life under a CBDC entails, they will not want to have anything to do with it and will look for alternatives. If there are no alternatives to flee to, the government wins. This is precisely what they want.

They can get away with this because 99.9 percent of the public doesn’t understand why we need cryptographically secured money. Most people still believe in the dollar system and dutifully put their hard-earned money in the bank or investing in their 401k every two weeks on payday. If they only knew that when you put money in the bank, it is no longer yours. It’s the banks, and they can do whatever they want with it.

Don’t Trust The Banks, Trust Bitcoin

The faith the majority of Americans put in the banking system is misplaced. Does anyone not remember 2008 and how they royally screwed everything up. What about today? They are doing the same thing all over again. Silicon Bank's collapse proves that bankers have learned nothing and will continue to pursue risky business strategies because they know the federal reserve will bail them out.

The banking system is so fragile now that it can handle the 16th largest bank going under without catastrophic consequences. Really think about that for a second.

The CBDC is their panacea to this problem, but I don’t see this going how they think it will. The rollout will be botched just like they did with the Obamacare website, leaving millions of people frustrated and unable to spend their airdropped tokens. I think a parallel economic system will be established with Bitcoin at the heart of it because it WORKS and is secure. In its 14 years of existence, it has never been hacked. You can’t say that about your bank, can you?

The two systems may co-exist for a time, but in the end, Bitcoin will win out because it will gain the TRUST of a wider group of consumers. The government is its worst enemy; we must stay out of the way as it thrashes around for survival and keep building the emergent monetary system. There are bright days for Bitcoin ahead!

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