Synths Response:
What’s happening now is you look at the number of international trade flow, the volume of money international trade being denoted in dollars versus other currencies. Five years ago close to 100 percent of the transactions were in U.S. Dollars, now it’s falling off the cliff! It’s very hard to get this data, but if you look at the data it will tell you how long it has.
So the US government prints up the US dollars, they build the military bases they have a global Navy, and they protect the trade routes, and they make the world safe for international trade. They promote international trade because the trade is denoted in the US dollar.
The international trade denoted the note in the US dollar creates liquidity for the dollar, so the dollar will have value as long as there’s liquidity. When there’s nothing to buy with the US dollar… No one will take it for payment, and you have to dump the US Dollar for something like the Singapore dollar or you have to dump the US Dollar for Yuan or to whatever local currency, then the US dollar will become less valuable.
So what’s happening in the U.S. Dollar is in the dominant position right now and will probably be for 30 years. But it’s declining as a reserves reserve status, and you have an international economy and a domestic economy.
They basically destroyed the US domestic economy to prop up the global system.
But anyways, before you said ‘this many grams of gold is this many dollars’ and then you have you know Brettan Woods System and the Gold Standard.
Then they switched off that, and did an international trade base, like a globalist standard. Now what’s happening is we’re having the development of regional economies, if you go and look at Saudi Arabia they have this thing called NEOM, they have the Arab Union the African Union and the European Union. You have the regional Asian power, you have the North American Union and then you have a confederation of states in South America.
So when the US dollar start declining and people start using regional currencies. When regional economies like North America start trading between Canada and Mexico instead of trading with China, right…
All the trade becomes denoted in a regional currency. These countries, they have massive, massive, unimaginable amounts of money and assets, that in the long term is gonna go somewhere.
Right now they’re gonna flee from the EU and the euro, and they go to the dollar because even though the U.S. Dollar is declining relative to where it was at the end of world war II, it’s still the most powerful currency and has no competitor.
When there’s a crisis in Singapore or there’s a crisis in Switzerland or there’s a crisis in the EU, the money will still flow into the US. But 10% of that money, some fraction of these trillions of dollars going back and forth, is gonna make its way into the crypto market.
This is a long-term trend! It’s not something like is Bitcoin gonna go up 100X in the next three months!? This thinking is long-term. Over the next 10 years, the minimal market cap of the crypto assets; I think will be at least 10 trillion dollars. I say 10 trillion just because that’s what the dotcom stock reached; the reality is I actually think it’ll be higher than that.
In the short term what’s happening is, you have an equity market and the equity market is under-performing… Well you only made 5% this year you know it’s not going up 20% year anymore it’s hit the peak, and we’re going over the peak then it’s going to start declining.
At the same time the equity markets declining we’re gonna see the approval of Bitcoin ETF, we’re gonna see Bitcoin futures which were necessary for the ETF, because there’s not actually enough Bitcoin for the equity investors, when they buy Bitcoin, they don’t go out to the exchange and buy Bitcoin. There’s not enough physical Bitcoin, instead, they’re gonna use futures and derivatives to basically hedge their positions.
Most of the Bitcoin being traded in the future is gonna be synthetic paper Bitcoin. Just like gold, most of the gold being trading is portfolios of gold mining stock and gold ETF, they don’t actually have a giant pile of gold. It’s all derivatives, futures and pieces of paper.
So we need a futures market in Bitcoin because these investors are gonna be moving a hundred billion dollars back and forth like a yo-yo. We saw with the Bitcoin market that if you sell even 50 million dollars of Bitcoin the whole market crashes! The whole market is set by 0.1% of trading.
In order to create the depth and liquidity necessary for the institutional investors, they have to create a Bitcoin futures and derivatives market.
Then they’re gonna approve Bitcoin ETFs. What that means is the institutional investors are going to be able to buy Bitcoin in their brokerage account without having to worry about the storage cost, and the Bitcoin being stolen; or dealing with Bitcoin exchanges.
They’re just going to use the futures and derivatives contracts. What this means is that Bitcoin will just become another assets, like gold or oil or silver. Meaning it can be traded back and forth. There’s gonna be no difference between Bitcoin and any other commodity asset once the Bitcoin ETF infrastructure is in place.
If these investors look at the asset, and they say “Bitcoin went up 800 percent every year for ten years…” They’re gonna look at the curve, and they’re gonna say “Oh maybe Bitcoin only went up a hundred percent last year, but my equity portfolio only went up fifteen/eight/five percent”
So the pension funds, institutional investors, insurance companies…
The big money, unimaginable amounts of money! They’re gonna say “Okay Bitcoin went up 100 percent, so if we put 1 percent of our portfolio in Bitcoin, It would increase our portfolio return by thirty percent, look on all the fees we would make.
So these people are gonna start moving literally trillions of dollars of equity assets into the altcoin market, into Bitcoin. This is gonna be crazy, Bitcoin will definitely hit thirty thousand, it’ll hit a hundred thousand, and it’ll crash and go back up again.
That’s the floodgate, the infrastructure is currently being put in place to open up the floodgate and people say “Oh if I buy Bitcoins this month am I gonna get a Lambo, and I’m gonna be on the moon with Elon Musk, and buy a Tesla ,and a mansion if I put a thousand dollars in Bitcoin and wait three months.”
People it’s not gonna happen! I don’t know what’s gonna happen with short term but over the medium term firm the infrastructure is being put in place right now to basically cause one of the biggest asset bubbles in human history!
Once those floodgates are open they’re going to sovereign wealth funds, pension funds, institutional investors, family offices, and they’re all saying we want two percent of our portfolio crypto, we want ten percent of our portfolio crypto… The ctypto market is quite small, buy their assets that are going to be moving into the market are huge!
That’s really the second wave of Bitcoin, the second boom.
The third bubble is when you have all these regional economies, and they start putting in capital controls, and they say “oh you want to trade with Mexico you have to use the US dollar, you want to trade? We only take payment in US dollars our banks only take payment in this” etc.
If you look what happened just recently in Turkey, Venezuela, and Argentina. Turkey’s currency in one week goes down 80%, and then Argentina’s currency implodes and then Venezuela…
The traders on the desk look and say “okay which one’s next? Who’s gonna implode next?”and they’re trying to bet it, because if you bet on which currency will implode you could make hundred x on your derivatives or something like that.
We’re seeing country by country implosions of the value of the currency.
What happens is, maybe the currency wasn't going to implode, but the people see that turkey imploded and think “is the Euro going to implode next, is this Swiss Franc going to implode next, which one’s next?
The people that have their money in these countries start moving their money into other more stable currencies Bitcoin, US dollars etc. Those currencies become stronger and since people are rushing out of their currency to safety, that countries banking system which wasn’t gonna implode, implode anyways. Even though they had no problems, just because people aren’t sure.
If you have a whole country, you wake up one day and suddenly your currency is worth nothing… You had enough savings to buy a house and now your money’s worthless. All of that guy’s assets, his business etc.
He’s gonna start moving all his money into US dollars, gold and Bitcoin, whatever he can!
You have a whole country with 100 million people who have their bank account wiped out overnight, all those people next day are gonna be looking up “How do I buy Bitcoin, how do I buy Bitcoin” You look at the search results in Turkey for Bitcoin and it’s through the roof!
It’s because that’s one of the only stable stores of values that are available to someone on the street. That person on the street doesn’t have enough money to fly to the US and open a Delaware corporation, or even to take a vacation.
For that guy on the street the only easy thing for him is it’s not be the US dollar, it’s gonna be a Bitcoin or Tether and so on.
One of the things I know, is that Bitcoin basically went to a thousand dollars because of the US financial crisis in 2008, before the crisis people were pulling all their money out of the banks and they were putting their money to community banks and things like that.
They thought the banks might go under and they’d lose all their savings. That’s where the first lot of money in Bitcoin came from. Before the financial crisis Bitcoin was at a penny and by the end of it, it was at a thousand dollars.
What’s gonna propel Bitcoin is going to be the next crisis.
It’s not just gonna be Bitcoin though, we’re also gonna see community currencies. Because when you have a government and the currency goes down 50% in one day, all these people become unemployed the factories shut down. This spawns things like the Ithaca Dollar, and they start employing people to produce local food and do perma-culture.
You’re also gonna see mayor is issuing their own currencies and fighting the national government, you’re gonna see separatist movements like in Catalonia, It’s gonna be crazy! All of these things are sort of in the background.
Then people say “Is this is gonna happen it in the next three months and I’m Gonna in a Lambo!” NO! NO! What’s gonna happen in the next three months doesn’t really matter!
Thanks for reading!
I did my best with the transcript. Synth is a fast paced talker and it doesn’t really translate to literature very well haha.
There will be more to come so keep your eyes peeled.
Cheers,
MacSkyver.
