Good Morning Everyone,
Tesla announced yesterday they sold 75% of their bitcoin holdings to improve their cash position, while still holding 25% of the original position. However today’s letter is not about Tesla, and it’s not about Elon; It’s simply to highlight the use of such information by media and attention predators, who wish to tell vulnerable minds nursery rhymes like they’re still three years old to set the frame of their thinking.
The simple truth is that bitcoin is the first globally public money we’ve ever had. A money anyone can use and send to anyone and receive from anyone, from anywhere on the planet.. and potentially beyond. A boundless monetary substrate for humanity if you like.
The fact it continues to get mixed in with the broader “crypto“ or digital asset space continues to highlight most people simply aren’t getting it. Most still fail to see why it is so important, and the broader implications of a world with bitcoin in it, just as they did with the internet. Let me cast your mind back to the early nineties to remind you what that was like.. check the clip below for a walk down memory lane.
“What is internet?“. Think about just a few of the implications of the internet some twenty odd years after the above clip was recorded. It’s difficult to really grasp how different the world is today as a result. Video stores no longer exist, the mobile device (even calling it a phone barely seems appropriate given its capabilities) has replaced your alarm clock, your diary, your maps, your notebook, your music devices like CD players, your video and movie players, and as a result your TV, many around the world are no longer connected to legacy information channels like mainstream news (if you can even call it that) and others, it has replaced books, cameras and obviously it has replaced your landline phone. These are just a small handful of the things that have been distilled from many devices into one, and this is in a relatively short period of time. Imagine in 100 years - 5x more.
It has removed entire industries, and created many new ones. It has completely reshaped global society in a few short years, and that trend is unlikely to reverse. The genie is out of the bottle. And many of these changes aren’t even getting close to touching the real significance of what the birth of the internet changes and enables.
Without the internet Jullian Assange would never have been able to bring US war crimes in Iraq into the light, and that act, the murder of more than 12 innocent people, would have been able to go completely unnoticed, as no doubt many many atrocities have gone unnoticed prior. The internet changes absolutely everything.
To confuse bitcoin with some centralised crypto company is to confuse the internet with an AM/FM radio transmitter. The two are simply not comparable.
Below is a clip of former Jaw Boner extraordinaire Fed Chair Ben Bernanke from 2010 explaining to congress his expectations to reduce the fed balance sheet which he states would be back below a trillion dollars. Jan 21st 2010 the balance sheet was 2.25T. Did he really convince anyone they would more than halve it?
The current US Fed balance sheet is just shy of nine Trillion, with a T. Not only did it never go back down anywhere near levels prior to 2008, 14 years later it has increased by more than 9x.
Benanke’s comments sound familiar though, don’t they? Remember the clip of Christine Lagarde in May explaining how the ECB’s balance sheet will come down? Linked below if you missed it. It’s a doozy.
As Rudy Harvenstein beautifully points out, economics must be the only profession on earth where you can make predictions and be consistently wrong and still get promotions and be trusted, believed and even celebrated.
While this was true in a pre bitcoin world, it will not be true for much longer. Bitcoin as Luke Gromen describes it, is the last functioning smoke alarm and it has been sounding loudly for 13 years. Imagine ignoring a smoke alarm that’s sole purpose is to let you know the building you are in is on fire for thirteen years.
Well this is where we’re at. Elon buying or selling doesn’t matter. What the current thing is does not matter. It will only be used as a lever to influence you. If i were you, i’d be curious as to why that is. QE is never going to end. Just like Bernanke in 2010, and Lagarde in 2022, no matter what these people say, the balance sheets will continue to expand. This is the design of the system, and these people know it. A system that is completely out of control and acts against your best interests and those of your friends and families. A system that simply serves to keep you contained.
Bitcoin is not a get rich quick scheme, it’s a get free scheme, and like the internet, it is not going to go away. Quite the opposite. It is the signal amongst the noise and offers us an alternative to listening to the 3 amigos above. An alternative grounded in verifiable truth. The jawboners above will continue to jaw bone, while economies around the world continue to collapse as the the US based fiat ponzi does the same. The actions of these people have dramatic social implications and we’re seeing them all over the world. As central banks continue to expand their balance sheets, the wealth divide accelerates and social cohesion accelerates to the downside.
It’s never been more important to get educated and to be aware of what is happening. We are living within a pivotal moment in time. A historic pivot. The 4th turning. The great awakening. The end of the long term debt cycle. Whatever you want to call it. Like the seasons, we’re going into the depths of winter, and thanks to bitcoin we can be assured, that while it will still be cold, winter will not last forever. Spring will follow, and it will be glorious. Opt-out of a a system built upon lies and deception and opt-in to the the peaceful resistance that is bitcoin.
Hope you have a great day.
AK
#125 Elon & Tesla Capitulate