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Bitcoin's Most Dangerous Rally is Happening Right Now! | Truth Block · Simply Bitcoin

• 0:00
  We have a node on the Bitcoin network right now.
• 0:03
  US leadership over the long term secures the primacy of the
• 0:07
  dollar as the reserve currency. The acceleration of war and the
• 0:10
  acceleration of financial profits go hand in hand.
• 0:13
  You can't vote to end this bank government Nexus.
• 0:17
  Bitcoin is rallying of a 50% drawdown and nobody can believe
• 0:21
  it. With funding rates flat to
• 0:22
  negative, bears are getting squeezed by spot buyers.
• 0:25
  Meanwhile, A4 star Admiral told Congress that Bitcoin is a power
• 0:29
  projection to and confirm the US military is running a node.
• 0:32
  The same week the Treasury Secretary demanded Congress pass
• 0:35
  legislation to protect the dollar.
• 0:37
  Welcome to the most dangerous rally in Bitcoin history.
• 0:40
  My goal today is to show you what this week actually revealed
• 0:43
  and why the real danger isn't in the price.
• 0:45
  It's in what happens when the most powerful institutions on
• 0:48
  earth realize they can't Co opt the one thing that was built to
• 0:51
  replace them. This is truth block.
• 0:53
  I'm Hurley. Let's mind truth.
• 1:02
  Let's start by talking about what's actually happening here
• 1:04
  with this Bitcoin rally, because the price move is a bit strange.
• 1:07
  When Bitcoin rallies on leverage, you see it in the
• 1:09
  funding rates. Longs pile in, funding goes
• 1:13
  positive, and the whole thing unwinds.
• 1:15
  The second sentiment shifts. We've all seen that movie, but
• 1:18
  this isn't it. Right now, funding is flat to
• 1:20
  negative. Shorts are paying longs, bears
• 1:24
  are actively betting against the move and getting squeezed by
• 1:27
  spot buyers who just don't care. As Checkmate put it, this is a
• 1:31
  setup we haven't really seen before and it gets more
• 1:33
  interesting when you zoom out. Since the start of the US Israel
• 1:36
  conflict with Iran, Bitcoin has been quietly outperforming gold.
• 1:40
  The Bitcoin to gold ratio just bounced off its lowest RSI
• 1:43
  reading in history. And every time that's happened
• 1:45
  before, it marked the start of a multi year bull run.
• 1:48
  So it sure looks like the bottom is in and this rally is real.
• 1:51
  But take a look at the world it's rallying into.
• 1:54
  The UAE told the Trump administration through the Wall
• 1:56
  Street Journal that if they don't get dollar swap lines,
• 1:59
  they'll start transacting oil in yuan.
• 2:02
  Now if you don't know what swap lines are, they're basically
• 2:04
  emergency credit lines where the Fed lends U.S. dollars to
• 2:07
  foreign central banks so those countries can keep settling
• 2:09
  trade in dollars. So when a country like the UAE
• 2:12
  says give us the swap lines or we trade in yuan, they're saying
• 2:16
  out loud, we have options. Now that's a direct shot at
• 2:19
  dollar hegemony. Meanwhile, head of the European
• 2:22
  Central Bank, Christine Lagarde, is warning about food rationing
• 2:25
  1/3 of the world's fertilizer ships through the Strait of
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  Hormuz, which is sitting in the middle of a conflict zone right
• 2:30
  now. And the US is on what Jeff Ross
• 2:32
  is calling wartime economic footing, which is spending like
• 2:35
  the economy depends on it because it does.
• 2:38
  OK, so that's the backdrop. Now, let me show you what
• 2:41
  happened in Washington. Treasury Secretary Scott Besson
• 2:43
  sat in front of the Senate Appropriations Committee this
• 2:45
  week and demanded that Congress pass the CLARITY Act.
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  Now, Congress already passed the GENIUS Act.
• 2:51
  That's the stable coin focus legislation.
• 2:53
  The CLARITY Act is broader. It's the full digital asset
• 2:56
  market structure framework. And Besson wants it done.
• 2:58
  But listen to how he frames it, not why digital assets matter,
• 3:02
  why they matter to the dollar. Can you talk about why it's so
• 3:05
  important that Congress pass digital asset legislation?
• 3:11
  Senator, when the United States leads in best practices, safety
• 3:16
  and soundness in the financial world, whether it's our banking
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  system, the our securities or now digital assets, it's
• 3:26
  important for the US to lead for several reasons.
• 3:29
  One US leadership over the long term secures the primacy of the
• 3:34
  dollar as the reserve currency. 2 The our best practices will
• 3:40
  emanate to the rest of the world because what had happened is did
• 3:44
  digital assets were in dark unregulated places and they will
• 3:50
  come into the US and we will be able to use our anti money
• 3:56
  laundering and the KYC and have a much better handle on digital
• 4:04
  assets the both for payments. And I think this is going to be
• 4:08
  a very important payment rail. And again the the US has to lead
• 4:13
  here. We are the technological leader
• 4:15
  in the world. We should be the payments leader
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  in the world. Did you catch it?
• 4:19
  US leadership secures the primacy of the dollar as the
• 4:22
  reserve currency. Not freedom, not sovereignty,
• 4:25
  not sound money. Dollar primacy.
• 4:28
  That's the whole game. Every move this administration
• 4:31
  has made on digital assets, the stable coin push, the regulatory
• 4:34
  framework, the Clarity Act, it all makes sense when you see it
• 4:37
  through that one lens. They're not adopting Bitcoin.
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  They're trying to build a regulatory Moat around the
• 4:42
  dollar in a world that's looking for exits.
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  The monetary order is changing. They know it.
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  And Besson just told you the plan.
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  But we need to slow down here because the question isn't just
• 4:51
  whether the dollar keeps its throne.
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  The question is what the monetary system has already done
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  to us, to our communities, to the things that used to hold
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  people together. Natalie Smolensky is an
• 5:00
  anthropologist, a software executive and the editor of the
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  Satoshi papers. And when Natalie Brunell asked
• 5:06
  her what happened, why America feels so different now, why
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  community has fallen apart, why it feels like nobody cares
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  anymore, Smolensky didn't start with politics.
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  She went somewhere deeper. I think there are a number of
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  factors. There's a sense in which there's
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  been a fundamental, I mean there have been fundamental
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  transformations and in the structure of the family in
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  religious practice. The third spaces, you know, that
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  people used to go to that weren't work or home have for
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  many people gone away or they've they've become a lot of
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  additional work, discretionary effort that they don't have the
• 5:47
  time to do. Financial procuritization, a
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  debt economy, a sense of institutions scaling up.
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  So like, let's say college, you know, universities, these are
• 6:03
  these are often when you raise children in the United States,
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  or at least this used to be the case.
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  Their trajectory was to go through, you know, education,
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  make it to college and then, you know, find a career.
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  These these institutions which you know, used to be much
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  smaller, have a lot less capital, were nevertheless able
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  to afford a kind of care of the soul of the children or the
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  young people coming there. That is no longer the case.
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  Now they're factories, they have customers, they're, you know,
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  hedge funds, maybe with educational institutions
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  attached to them. So I think that there's been a
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  financialization of everything and an erosion of local
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  communities and local power that together have created this
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  precarious dystopia. Notice what she names alongside
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  the financial factors? The decline of religious
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  worship. We don't talk about this enough
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  in Bitcoin circles because it makes people uncomfortable, But
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  she's naming something upstream of even the money.
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  When a society stops orienting itself around something
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  transcendent, the state fills that vacuum.
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  The government becomes the highest authority, the central
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  bank becomes the priest, and the money becomes the sacrament.
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  You worship what you trust, and when God leaves the picture, you
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  end up trusting Caesar. That's not a new observation.
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  That's as old as civilization. But it matters here because Fiat
• 7:33
  money doesn't just debase your savings, it debases the social
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  order that money was supposed to serve.
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  The community erosion Smolensky is talking about didn't happen
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  in a vacuum. It happened because we built a
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  system that financializes everything it touches, including
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  the things that used to hold us together.
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  So if spiritual and cultural erosion is the root, Smolensky
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  then connects it to the machine that drives it.
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  It seems like the financialization of the world or
• 8:00
  the economy seems to be going hand in hand with an
• 8:03
  acceleration of warfare. And how are these things
• 8:06
  possibly connected? Well, I think one of the
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  intuitions that many Bitcoiners had, which has been proven out
• 8:14
  is that there's, there's something about the relationship
• 8:17
  between bank and state that isn't good for the people.
• 8:23
  And you know, the, the nature of that problem has been described
• 8:28
  in various ways. But I think at root the the
• 8:32
  issue is that once once banks historically consolidated as
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  protectors of commodities and facilitators of exchange, they
• 8:45
  were in a position to issue credit and bank credit.
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  Who's, you know, the biggest customer for bank credit
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  governments. And what do they use bank credit
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  for? Largely to wage war, which in
• 8:57
  turn the banks profit off of. And So what we've seen over the
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  last few 100 years is this kind of social ratchet effect where
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  you have these two institutions, banks which control the money,
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  governments which control violence.
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  And they're mutually in, in this like symbiotic relationship
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  where they're all profiting. And So what does that lead to?
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  It leads not only to war, but to the proliferation of credit,
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  asymmetric, asymmetrically of course, through the Canteon
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  effect. So that generates high
• 9:33
  inflation, makes saving impossible, and and also creates
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  volatility, high asset volatility, which in turn is an
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  opportunity for those with insider knowledge to profit.
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  And so the acceleration of war and the acceleration of
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  financial profits go hand in hand.
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  They are tied together. And the challenge that Americans
• 10:01
  have right now is that it's not possible to solve this problem
• 10:08
  by voting it away anywhere in the near term.
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  Like you can't vote to end this bank government Nexus.
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  The the most effective thing you can do is take back financial
• 10:24
  sovereignty and actually as an individual be your own bank
• 10:29
  without an intermediary. And that's why obviously
• 10:33
  governments don't don't like this because their entire model
• 10:36
  falls apart. Banks control the money,
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  governments control violence, and they're mutually in this
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  symbiotic relationship where they're all profiting.
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  That's not a conspiracy theory. That's just how the incentives
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  work. And the part that should land
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  hardest? You can't vote your way out of
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  it because this Nexus operates below the level that elections
• 10:54
  reach. The ratchet only turns One
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  Direction. More credit, more inflation,
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  more war, more concentration of power, and the cantelon effect.
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  Make sure that people closest to the money printer benefit first
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  while everyone else eats the cost.
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  That is the system Scott Besson is trying to preserve.
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  When he says dollar primacy, that's what he means when you
• 11:13
  follow it all the way down. But here's where the story takes
• 11:16
  an unexpected turn. In 2023, AUS Space Force officer
• 11:20
  named Jason Lowry submitted his master's thesis at MIT calling
• 11:24
  it soft war, and the argument was pretty radical.
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  In Lowry's eyes. Bitcoin is not primarily money,
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  it's a power projection technology.
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  Proof of work is the first system that imposes real
• 11:34
  physical cost in cyberspace. Energy that can't be faked,
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  can't be games, can't be overridden by some
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  administrator. In his view, that makes Bitcoin
• 11:43
  a strategic security system, not just a financial network.
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  The thesis was very controversial in the Bitcoin
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  space for obvious reasons. But then, mysteriously, Lowry
• 11:52
  went dark. The book was pulled from print
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  with no explanation. I'll let you draw your own
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  conclusions about what happens when a military officer argues
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  Bitcoin is a national security technology and then goes quiet.
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  Now Fast forward to this week. An Admiral Samuel Pappero, 4
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  star commander of US Indo Pacific Command, testified
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  before the Senate that Bitcoin shows incredible potential as a
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  tool for national security. Sounds a lot like Lowry, doesn't
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  it? The next day he sat down in
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  front of the House Armed Services Committee and he went
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  even further. Admiral Papparo, yesterday you
• 12:24
  testified that Bitcoin held potential as a tool for national
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  security. Recent research from the Bitcoin
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  Policy Institute estimates China has approximately 194,000
• 12:36
  bitcoins, while the United States has approximately 328,000
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  bitcoins. In this era of digital
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  competition, would it be to our strategic advantage to maintain
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  a lead in this regard as we do with other strategic resources
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  like gold and oil? Sir, our interest in Bitcoin is
• 12:54
  as a tool of cryptography, a blockchain and reusable proof of
• 12:58
  work, as an additional tool to secure networks and to project
• 13:03
  power. And so I am, I think this
• 13:06
  protocol is here to stay. I think the computer science of
• 13:10
  it has direct implications for the projection of power, not
• 13:15
  financial, but from a computer science standpoints, from the
• 13:19
  securing of networks. And so I am supportive of those
• 13:23
  applications. All instruments of national
• 13:26
  power are important, but from the military application
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  standpoint, my interest in Bitcoin is as a computer science
• 13:32
  tool as projection of power. I appreciate that I agree with
• 13:36
  you, and I'd also like to hear your thoughts on monetary
• 13:38
  competition over the coming decades.
• 13:41
  What role does Bitcoin play in spreading digital property
• 13:44
  rights? Well, I, I, you know, people use
• 13:47
  Bitcoin today, right now to protect their own intellectual
• 13:51
  property. And that's the reusable proof of
• 13:54
  work protocol that's combined with blockchain for
• 13:57
  accountability and cryptography for security.
• 14:01
  And so that's the role that I see for it.
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  I see direct national security implications.
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  And then I'm supportive for anything that maintains our own
• 14:11
  dollar dominance worldwide. I appreciate that.
• 14:15
  Do you think we're adequate, adequately prepared to counter
• 14:18
  China's strategic direction regarding digital assets?
• 14:22
  I think that our recent act with the Genius Act is a great step
• 14:26
  forward that moves us in that direction and I'll.
• 14:29
  Lastly, I'll ask you, as we continue to craft the NDAA, what
• 14:32
  authorities and resources does Indo Paycom need to address as
• 14:37
  respects the national security dimensions of digital assets?
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  Presently we're in experimentation, so I'll give
• 14:43
  you a deeper look into that. Presently we have a node on the
• 14:47
  Bitcoin network. Right now we're not mining
• 14:50
  Bitcoin, we're using it to monitor and we're going to,
• 14:52
  we're doing a number of operational tests to to secure
• 14:56
  and protect networks using the Big Call Bitcoin protocol.
• 15:00
  I appreciate that, Admiral. Thank you.
• 15:02
  I yield back, Mr. Chairman. The United States military is
• 15:04
  running a Bitcoin node. Let that sink in.
• 15:07
  They're not studying it, not running a report.
• 15:10
  They're running the software, performing operational tests,
• 15:13
  using the Bitcoin protocol to secure and protect networks.
• 15:16
  The software thesis just walked into the Congressional Record in
• 15:19
  military uniform. And the coolest thing?
• 15:22
  The node the US military is running is identical to yours
• 15:25
  and mine, or the one some kid is running out of his mom's
• 15:27
  basement right now. Same software, same rules, same
• 15:30
  transactions being verified. It doesn't matter if you're a
• 15:33
  four-star Admiral running the largest military command on
• 15:35
  earth or you're stacking stats from your living room, Your node
• 15:39
  has the same power as theirs. Nobody gets a special version.
• 15:42
  That's Bitcoin. Now let's think about the game
• 15:44
  theory here. If the US military is running a
• 15:47
  node, who else is? China's central think tank
• 15:49
  already published research on Bitcoin as a strategic asset.
• 15:52
  This pressure is not theoretical anymore.
• 15:55
  Nation state adoption isn't coming from the financial system
• 15:57
  down. It's coming from the military
• 15:59
  up. So the game theory is real.
• 16:02
  The military sees it. The treasury sees it.
• 16:04
  But here's the complication. And this is where you need to
• 16:07
  listen carefully, because what they're building may not be what
• 16:10
  you think it is. Stable coins are they're
• 16:12
  interesting. I mean, they're they can be
• 16:15
  likened to different types of like commercial money bank, it
• 16:22
  bank created money, bank issued money.
• 16:25
  You know, they've been called crypto dollars by some to liken
• 16:30
  them to the euro dollar, for example.
• 16:33
  They're a source of demand for U.S.
• 16:35
  Treasuries. So some some people like them
• 16:39
  for that reason. But they, I mean, they're
• 16:44
  ultimately still connected in with the central banking system
• 16:51
  that is a part of this ratchet effect of war and inflation.
• 16:57
  And so they can only do so much. They're they're not a self
• 17:01
  sovereign technology. They don't promise the same kind
• 17:04
  of individual empowerment that let's say a Bitcoin does.
• 17:10
  And they are a path to CBDC's for, for many countries,
• 17:15
  including in the United States, the same, the same technologies
• 17:18
  you use to implement stable coins can and likely will be
• 17:22
  used to create a CBDC. And so there's no there's no
• 17:28
  expecting bank and state to police themselves to limit their
• 17:33
  own power. Whatever they can do, they will
• 17:36
  do. And so the individual now has
• 17:38
  the responsibility. Whatever they can do, they must
• 17:43
  do. I know most of you already know
• 17:45
  this, but stable coins are not sovereignty, they're dollar
• 17:48
  hegemony with a blockchain wrapper.
• 17:50
  As Smolensky makes clear, the same technologies used to build
• 17:52
  stable coins can and will be used to build the CBDC.
• 17:55
  Besson already told you the goal Dollar primacy, not your
• 17:59
  freedom. And Brian Armstrong, the CEO of
• 18:01
  Coinbase, is still out there calling stablecoins the best
• 18:04
  form of money while knowing full well that Bitcoin solves the
• 18:07
  problem stablecoins are pretending to solve.
• 18:09
  But stablecoins make Coinbase money.
• 18:12
  Bitcoin in cold storage doesn't. So what are we actually looking
• 18:15
  at here? The monetary order that's held
• 18:17
  since Bretton Woods is breaking down.
• 18:19
  The UAE is threatening to price oil in yuan. the US military is
• 18:22
  quietly running Bitcoin, notes the Treasury Secretary just told
• 18:25
  Congress. The quiet part out loud in the
• 18:27
  cultural decay that people feel every day.
• 18:30
  The loss of community, the financialization of everything.
• 18:34
  The wars nobody voted for. Smolensky showed us that none of
• 18:37
  that is random. It's downstream of a monetary
• 18:39
  system that turns everything it touches into a financial
• 18:42
  product, including the things that used to hold us together.
• 18:45
  And in the middle of all that, Bitcoin just rallied 35% off its
• 18:48
  lows on nothing but spot demand. This is the most hated rally in
• 18:52
  Bitcoin history. So what does this tell you?
• 18:54
  It tells you that the vote is already happening.
• 18:56
  Not at the ballot box, but on chain.
• 18:59
  People are slowly choosing to exit 1 SAT at a time.
• 19:02
  But here's the part that's not mentioned enough.
• 19:04
  Buying Bitcoin is not the whole answer.
• 19:07
  Smolensky named something real when she talked about the
• 19:09
  erosion of community. The monetary system broke the
• 19:11
  social fabric. Fixing the money doesn't
• 19:13
  automatically stitch it back together again.
• 19:15
  That part's on us. It's local, it's face to face.
• 19:19
  It's showing up for your neighbors, your church, your
• 19:22
  community. The unglamorous actual work of
• 19:24
  rebuilding trust from the ground up, peer-to-peer, the way
• 19:27
  Bitcoin does it, the way we used to do it.
• 19:29
  The most dangerous rally in Bitcoin history isn't dangerous
• 19:32
  because of the price. It's dangerous because it's real
• 19:35
  and real things. Real money, real community, real
• 19:38
  conviction. That's what the current system
• 19:40
  can't survive. But now I want to hear from you.
• 19:44
  What's the most important thing you've done to build community
• 19:47
  outside of Bitcoin? Did the Admiral Paparo testimony
• 19:50
  change how you think about Bitcoin's role?
• 19:52
  Leave your thoughts in the comments below.
• 19:53
  And if you're still here, don't forget to like the video and
• 19:56
  share it with someone whose news feed doesn't give them the full
• 19:58
  picture. And if you haven't already,
• 20:00
  subscribe to the Simply Bitcoin channel so you don't miss the
• 20:03
  next one. Have a great weekend everyone,
• 20:05
  and I'll catch you on Monday.