Bitcoin will enter The ‘And Then The Fight You’ Stage in 2023

This opinion editorial is by Mickey Koss (West Point graduate with an economics degree). After four years in the infantry, he moved to the Finance Corps. “First they ignore, then laugh at you. Then they fight you, and then you win.” -Attributed by Mahatma Gandhi. At the time of writing, the U.S. Senate had just presented the Digital Asset Anti-Money Laundering Act 2022. This bill has many dangerous aspects, including KYC laws for money-transmitter licensing and self-custody wallets. This bill comes on the heels the European Central Bank’s recent revelation that Bitcoin is an “artificially induced final gasp before the road towards irrelevance.” A week later, a bank official announced that it was considering a ban on Bitcoin and crypto to reduce environmental damage. As Europe’s energy crisis worsens, don’t think European regulators have more pressing matters to attend to, such as Germany’s increasing use of coal power. Maybe politicians and officials are beginning to understand Bitcoin and how it affects power. Maybe not, I think. Below is a thread from Level39 that depicts testimony from the recent Senate Banking Committee hearing. This is only the beginning of the “then you fight them stage”, and it will only get worse by 2023. Keep your eyes open this year. Although a ban and many of the regulations would prove difficult to enforce, they could be a significant speed bump towards widespread adoption. I would keep an ear to the ground (and probably to Bitcoin Twitter) to stay abreast of situations that could be influenced by a sea of calls to your governmentally-elected representatives, just like what happened with the infrastructure bill in 2021.The Debt Spiral… SpiralsLuckily, I think more and more people will begin to wake up from the matrix and realize just how bad the situation really is. It’s becoming increasingly difficult to see the truth. Top central bank balance sheetsThe chart above is my favorite. When people ask me about Bitcoin, I simply show them the graph. They quickly grasp the magnitude of money creation in the 2020 COVID-19 era. They don’t understand that this trend will continue and at increasing rates and intervals. The U.S. federal government already projects a $1 trillion deficit by 2023 (that’s 12 zeroes folks). Even if the U.S. government closed down the entire military and eliminated $800 billion of the Department of Defense budget, the budget would still be in the red for 2023. The real problem is that the deficit will be much higher than expected, which means that more debt will be issued. This would occur during a period of increasing Federal Reserve interest rates. Source: The Congressional Budget Office projects that negative growth in GDP is just as likely as lower-than anticipated positive growth. This is combined with an expected rise in unemployment and you have a fiscal double whammy. First, negative GDP growth and unemployment mean less tax receipts for the federal government. This means a potential larger deficit, i.e. more debt. Add to that the debt is being issued with a significantly higher interest rate and you have the ingredients for an ever-increasing debt spiral. Even if everything goes according to plan, a trillion dollar deficit is nothing to be proud of. I believe the numbers speak for themselves. People I know and work with are starting to notice and become more concerned about economics. A trillion dollars or more to the debt at 5% interest? It’s unlikely, I think. I bet interest rates won’t rise for too long. Quantitative easing three has ended. Long live quantitative easing infinity.Source: TBL SubstackCoincidentally, as I write this article, I received the above article in an email from the Bitcoin Layer. It seems they agree with me. Rate hikes cannot increase more than what they have already hiked. They are basically off the trail. Bitcoin Reignites the Pioneer Spirit. Once upon a time, people in America used to take responsibility for what they did and travel to the West to find adventure and opportunities. Named after the Oklahoma Land Rush of 1889 where almost 50,000 Americans gathered at the edge of the “Unassigned Lands” in a race to claim their stakes, the Oklahoma Sooners are named after the Oklahoma Sooners. Bitcoin is a team sport, much like homesteading in 19th century. It’s a race because if you don’t take responsibility for claiming your share in cyberspace before someone else you could miss the opportunity of a lifetime. It’s a team sport because successfully adopting Bitcoin to your life will likely require some help from others. How many BTC Sessions videos have you seen before you set up your first hardware wallet. How long did it take before you sent any UTXOs your self-custody account? How long did it take to even know what a UTXO was? Although the journey is not without its risks and pitfalls, the reward is something we will probably never see again in our lifetimes. Everybody gets bitcoin at the right price, but that doesn’t mean you can’t help them learn faster. Let’s make 2023 the year that we drain the exchanges and audit them for paper bitcoin by blunt force trauma. To help make this happen, I challenge you to embody the homesteading pioneer spirit and to help your family and friends understand this phenomenon. To help them to take control of their wealth and keep it secure. As a horseman, you can help lead it to water. While you can’t save everyone, you can help them see the future and stake their claim in cyberspace’s Wild West. This guest post is by Mickey Koss. These opinions are not necessarily those of BTC Inc.


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