Latest / Simply Bitcoin / Is Wall Street Trying to CAPTURE Bitcoin? | Simply SatoSHE

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Is Wall Street Trying to CAPTURE Bitcoin? | Simply SatoSHE · Simply Bitcoin

0:00
Wall Street spent 15 years building paper contracts on top
0:05
of gold, and they were able to prevent it, rallying between
0:08
2008 and 2024. Then gold recently broke free as
0:13
the world cheered on its rally to over $4000 an ounce.
0:19
Crossing 4000 for the first time.
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Ever. In this record-breaking 2025
0:25
rally, everything rallied alongside gold.
0:30
From tech stocks to the S&P 500, everything saw green except one
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asset, Bitcoin. I'm gonna have.
0:39
BF. Wait, hey.
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What's a BF? She's gonna have a fit.
0:44
Bitcoin is only 30% higher than it was in early 2021, and a lot
0:49
of people are now wondering, despite all of the positive
0:53
news, is the same thing that happened to gold happening to
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Bitcoin? Can Bitcoin stay free when Wall
1:00
Street wants in? I'm not sure.
1:03
And now Wall Street trying to do the same thing with Bitcoin.
1:07
Wrap it up, fractionate it, and call it exposure.
1:12
And welcome to Stratton Oakmont. Thanks man, I'm going to have a
1:15
beer, right? That's fun.
1:18
Take it easy, Kip. Bitcoin was built to end paper
1:21
promises, but somehow paper is back.
1:25
Ladies and gentlemen, meet the final boss of mass Bitcoin
1:29
adoption. The banks lost the revolution,
1:32
so now they want to own the revolutionaries.
1:35
Welcome back. This is simply bitcoins.
1:38
Satoshi. I'm your host, Sophie.
1:40
And today, we're breaking down how the Fiat system is sneaking
1:44
back into Bitcoin wearing a blockchain mask.
1:49
Let's go. Well, I'm a bank, Brian, and I
1:57
borrow money and I lend it out and I charge more of the people
2:00
I'm lending it to than I pay to the people from whom I'm
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borrowing it. Well, who do you borrow money
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from? Well, from, you know,
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depositors. Brian, have you got a dollar?
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Well, you know, I borrow your dollar and I'll give you, you
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know, there's your bank balance, one dollar, $1.00, Right.
2:13
OK. And you pay interest to me on
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that? I do, but I also charge your
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fees. Well, why do you charge me fees?
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Because, Brian, I'm looking after your money.
2:20
Your money is secure with me. I'm a bank.
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I mean, this is a very important amount of money.
2:24
This is probably your nest egg. It's safe with us.
2:26
And. And how much interest do you pay
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me? Approximately the same as I'm
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charging you in fees. Oh, good deal for me.
2:32
Well, your money's secure with us, Brian.
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And I then lend that money to businesses and those businesses
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generate income. This is how we build the
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economy. And they put that income into
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the bank. I do, of course, Brian, and that
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builds the savings pool and we can invest more money.
2:45
Well, who do you lend that to? All the people who need credit,
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Brian, You see, money creates more money.
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So if we can create money that creates more money.
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We're we're broadening the economy.
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We're expanding it all the time. Yeah, but shouldn't people just
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buy the thing? Afford.
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You don't need to afford the things you're buying, Brian.
3:00
You need to afford the interest on the money you need to borrow
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in order to buy them and you're charging higher rates for all
3:05
this. We do hop into them and we've
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been on the credit rate, Brian. We stick the hydraulics under
3:09
that because it's a slightly higher risk strategy.
3:11
Do people need to be buying these things that they obviously
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they think? So, Brian, I mean, these things
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are advertised to people as very necessary, very important, and
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deeply, deeply attractive. Well, who's advertising things
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that people don't need? The companies we're lending the
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money to. So, OK, then you bought into the
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US subprime housing. Well, Brian, so concerned are we
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to build a better Australia? You helped build a worse
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America. Yeah, Well, that was an
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accident, Brian. What we were doing was investing
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in the international investment market.
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And that's been a disaster. It frankly, famously hasn't been
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a huge success hitherto. Oh, So what are you going to do?
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Well, now you give me $700 billion immediately.
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Why? Well, because we need it, Brian.
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I mean, the system needs money. Imagine the economy is a body.
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It needs blood pumping around it.
3:53
Brian, you haven't got it. We haven't got any money.
3:54
No. Why not?
3:56
Well, we lost ours. I've just been explaining that.
3:58
Well, you're not having mine, Mom.
4:03
Brian won't let me play with his stuff.
4:05
That's the only money I've got. You are in for it.
4:08
These guys literally explained it better than I ever could.
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So you see, what you have in your account is not really your
4:17
money per se. What is this?
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What is this? Where's all the?
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Money that's as good as money. Sir, those are IOU's.
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It's more like numbers on a screen.
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Basically an IOU that depends on everyone else not asking for
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their money back at the same time.
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If everyone did hypothetically ask for their money back at the
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same time, however, the illusion breaks and there would probably
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be a bank run. Who said that?
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That's what fractional reserve banking means.
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It only works because you believe it does.
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Congratulations, you played yourself.
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But here's what gets even more interesting.
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This same story has played out before with gold, which is why I
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mentioned it in The Hook. When gold was the base layer of
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money, banks convinced people to store it with them for safety.
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They issued paper certificates, receipts, and eventually IOU's
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representing gold. Here's a little history lesson
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for those who don't know. In 1913, the Federal Reserve was
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created, taking centralized control over the nation's money
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supply. Then in 1933, Executive Order
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6102 made it illegal for Americans to own most forms of
5:33
gold, forcing citizens to turn it into the government.
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Finally, in 1971, the US fully abandoned the gold standard when
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Nixon closed the gold window, ending the dollars direct
5:47
convertibility to gold. I have directed Secretary Conley
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to suspend temporarily the convertibility of the dollar in
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the gold or other reserve assets, except in amounts and
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conditions determined. To be in the.
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Interest of monetary stability and in the best interest of the
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United States. Overtime, people stopped holding
6:05
metal altogether. The certificates became the
6:08
money, and the actual gold got locked away and rehypothecated.
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Sound familiar? What banks did to gold, turning
6:17
it into paper promises. They're now probably doing that
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to Bitcoin. It looks like it, honestly.
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They've perfected the art of paperizing hard money.
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We've never had the situation we have today where the entire
6:30
world is running on Fiat money and that means pyramiding of
6:34
debt and fraction reserve banking controlled by special
6:38
interests, bail out the rich and punish the poor.
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So there's a ton of debt, but there's a ton of malinvestment.
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And it's nice when it's going up and the bubble is being blown up
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and there seems to be prosperity, but it's all bar on
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borrowed money. It's all on inflated currency.
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So when confidence is lost, people lose confidence in the in
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the monetary system and they confidence in the dollar.
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Then you will see it prices going up much more rapidly than
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they are now, even though our government claims there's no
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inflation. So you'll have rapidly rising
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prices, higher interest rates will return.
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It will show in bankruptcy. I think it will lead to economic
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turmoil and leading to political turmoil.
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And that is when the real challenge will be for the
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American people to decide what kind of a government they want
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to live under, what the role of government ought to be.
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And that's why we have to ask that question, then also come up
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with an answer. And the founders had a good lead
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on this and it's too bad we haven't followed it.
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So when we ask how banks really work, it's simple.
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They tell stories about assets they barely hold.
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They use your deposits to build their empire.
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And then they convince you that your digits on a screen are just
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as good as the real thing. The joke writes itself.
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Wall Street's not a casino. Casinos actually have to back up
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their. Chips if you don't own actual
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base layer Bitcoin that you self custody in your own wallet, then
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you are you are you are you're exposed to this counterparty
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credit risk of your custodian not having the actual Bitcoin
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that they say they have. So then the next layer of of
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potential rehypothecators is just Wall Street firms.
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They have been prohibited by the Fed.
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Remember I said the Fed still blocking the big banks.
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The big Wall Street firms are all big banks, not all of them.
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Cantor Fitzgerald is not but, but most of them, you know,
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Goldman, Morgan City, JP Morgan, Bank of America, they are all
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Fed regulated and they can't hold Bitcoin on balance sheet
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yet. The moment they start to be able
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to hold Bitcoin on balance sheet, there's going to be a
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huge rehypothecation wave again. But then you asked me about the
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Bitcoin treasury companies. So far I have not seen that they
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are rehypothecating and and to be honest, in a lot of cases
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they're hardcore bitcoiners like us who understand that if you
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rehypothecate Bitcoin, all you're doing is recreating the
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problems of the existing system. And so they're they're not
9:05
playing three card Monte so far. I'm not saying that I can attest
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to that. So do your own research, go look
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at the filings for every one of these companies and see if they
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commit not to rehypothecating. If any of them does, frankly,
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please put it out on Twitter because that's what happened
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with Block Fi and Celsius. People just reported on that.
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They, you know, people who were looking at their customer
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agreements were saying that they were rehypothecating.
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It was there in black and white. And so, you know, some argue
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that customers were warned about this.
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I look at it and say a lot of people, if you ask some random
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person on the street, what does rehypothecation mean, they would
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have no idea. And so if they were reading the
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prospectus, if they were bothering to read the
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prospectus, they wouldn't, if they saw all that, understand
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what it really means. But when you tell them what it
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really means, everyone is, you know, would just recoil in
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horror and say, are you kidding me?
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I'm giving someone money and they're turning around and
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lending it and might not have it when I want to and when I have
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the right to redeem it. But yes, that's what's that's
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what. Happens.
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Now here's where things get scarier than last Halloween, and
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I'm not just saying that because October was a total disaster
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that same IOU, the one that made the 2008 financial crisis
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possible, is quietly being rebuilt inside of Bitcoin.
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And I'll be honest, at first, the ETFs, custodial products,
10:32
and Bitcoin exposure funds sounded like a great way to get
10:36
boomers and traditional finance Bros to get exposure to Bitcoin.
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But the reality is they're rebuilding the same middleman
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model Satoshi nuked. And I mean the real Satoshi, not
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like the name of the show. And this might be Bitcoin's
10:50
biggest weakness. In a world where the masses
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value convenience more and more each day, everyone wants
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exposure, but nobody wants the responsibility.
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As I said, not your keys, not your coins is always true and
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this some guy can off and buy an island and just disappear
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someday. Like that is just the
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possibility possibility of that ever happening sure stops me
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from buying into any of these things.
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And also the the the idea that they could go up forever faster
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than than the asset that they're built upon.
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That's also very weird and a very fiaty thing.
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If 100 people think they own the same Bitcoin, how many actually
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do? That's not really Bitcoin or
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even the idea of Bitcoin. That's Fiat with a blockchain
11:44
filter. It's literally not your keys
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2.0. Skeptical of crypto at one
11:50
point? You're still skeptical going
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away with no damage so far. Crypto is real.
11:54
If you mean blockchain stable coins, you have AJP Morgan
11:57
deposit coin, you can move stuff smart contracts.
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If you all that stuff is real, it will be used by all of us to
12:02
facilitate, you know better transactions and customer
12:05
service. Wall Street and the banking
12:07
class fought Bitcoin and lost. They couldn't stop it.
12:11
So now they're trying to contain it by holding it for you.
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Now they want you to buy their version, the paper version of
12:20
Bitcoin in exchange for Fiat returns.
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So now how do do you even know that you're truly exposed to
12:26
Bitcoin? It sounds like they're using
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your money to buy themselves the hardest money known to man while
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paying you back in the very thing that Bitcoin was built to
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escape the weakening dollar. Remember when these same people
12:39
called Bitcoin a scam? And so I regard the whole
12:42
business as. Antisocial.
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Stupid. Immoral.
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Five years ago. Right here in these.
12:50
Chairs on Fox Business, you called it.
12:52
Rat poison, but. That was.
12:54
When it was. About $150.00.
12:56
Today it's 9000. It had hit 19. 1000.
12:59
So it's more expensive rat poison.
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Yikes. That sounds like mass
13:04
absorption. And just as that was happening,
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we got the worst price action since 2016.
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Long term holders, the ones who swore they'd never sell,
13:13
offloaded over 33 billion in Bitcoin in a single month.
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That's more than a billion dollars a day.
13:21
But let's ask the real question, Where did it go?
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Who's taking custody now? Is it plebs securing
13:28
generational wealth? Or is it institutions offering
13:32
Bitcoin exposure while holding your keys for you?
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You know what's interesting these days?
13:44
Bitcoin. Look for Bitwise my friends.
13:50
This doesn't look like a crash, it looks like it might have been
13:54
a power transfer. Honestly, hell yeah.
13:56
Got about two. $100 hundred bucks.
13:58
I got about $200. Red October might be remembered
14:04
as the moment Bitcoin changed hands, not from weak to strong,
14:09
but from sovereign to an oligarchic synthetic system.
14:14
The real sell off wasn't in price, it was in control.
14:18
And that's the tell Wall Street isn't here for your freedom.
14:22
They're here to keep the status quo.
14:24
So one of these that, you know, I, I wrote, I've been writing
14:28
about for a few years is the whole idea of natural assets,
14:32
what they call nature's economy. As an asset manager, you know,
14:36
BlackRock having being able to unlock and take control of as
14:40
many natural assets as as possible that aren't currently
14:43
part of the financial system is obviously a way for them to
14:47
perpetuate what they do and, and, and deepen and expand their
14:50
control over not just, you know, people in the existing financial
14:56
system, but really over the natural world as well.
14:59
And essentially turn everything alive into a tradable Wall
15:03
Street financial product. And the goal, as as Fink has
15:07
stated, is to have all of this on a, on a universal Ledger, on
15:11
blockchain, presumably, and have it be, you know, trackable and
15:15
surveillable. By having it all surveillable
15:17
and and you know, automated in a sense, you know, he's able to
15:21
have his risk management AI thing, you know, Aladdin, you
15:25
know, sort of exercise control over it in unprecedented ways, I
15:29
think. And you know, we've been talking
15:31
about sovereignty, owning your money, your keys, your future.
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Now let's get back to the show. Here's the plot twist.
17:49
The final threat to Bitcoin isn't the Fed or some
17:53
congressional ban. It's convenience, or the lack
17:57
thereof. If we recreate the Fiat system
18:00
inside Bitcoin, IO, U's, ETFs, custodial wallets, then scarcity
18:06
becomes an illusion. We'll have infinite Bitcoin
18:10
exposure and 0. Sovereignty.
18:12
That means self custody isn't a radical act anymore, it's a
18:16
survival skill. As Balaji warned, if they can't
18:20
ban it, they'll bury it under wrappers.
18:23
And that's exactly what's happening.
18:25
Bitcoin is being buried under paper promises and slick ETFs.
18:29
Why do you need institutional involvement in the protection of
18:33
your money? They claim it's for your
18:34
convenience. So the idea here is that it's a
18:37
multi safe. So it's great.
18:39
You own 2 keys, they own one key.
18:41
If you lose one of your keys, you can call them up, they will
18:44
sign for you no problem. Everything is cool, great.
18:49
What they don't tell you is that most of them, not all of them,
18:52
but most of them one, will KYC you.
18:55
For those that don't know what that means, it's know your
18:57
customer. Meaning you have to upload
19:00
everything about you to them before they even open an
19:02
account. Your ID, your passport, the
19:04
color of your underwear, whatever it is that they ask
19:06
you, you have to send it to them so they know everything about
19:09
you. That's one.
19:10
That's the first red flag. You don't know how they're going
19:12
to protect this data if they get hacked and sooner or later, if
19:16
the honeypot is big enough and can and will be targeted, when
19:19
that happens, your name is on the database.
19:21
Now that belongs to someone who's first of all very
19:23
intelligent and two is after a very specific thing because they
19:27
know its value. They know who you are, they know
19:30
what you where you live, you know how much of it you own.
19:32
How are you going to deal with that possible potential problem?
19:35
That's one. The other thing that they don't
19:38
tell you is that you have 0 privacy.
19:41
When you engage in a collaborative custody, someone
19:45
in that company has full eyes on your wallet 24/7, no matter what
19:50
you do, how much you make, how much you put in it, where you
19:53
send it, how much all of it is there.
19:55
So do you want that? Maybe you don't care because the
19:58
price is not high enough. But I can assure you of one
20:00
thing. When Bitcoin becomes worth 10s
20:02
of millions of dollars, you're not going to necessarily want to
20:05
have somebody you know over your shoulder knowing everything that
20:09
you do with your money, right? So that's true.
20:12
The third thing they don't tell you is that the idea is that if
20:16
you lose one of your keys, you call them.
20:17
Life is peachy great. What if one day?
20:22
You lose one of your keys, but the government threatens them or
20:25
prevents them or coerces them not to sign, and you've lost one
20:29
of your keys. Then what happens?
20:31
Then you're completely fucked and kept out of your money.
20:34
That's what happens. That's the part they don't tell
20:36
you these three things. Why don't they tell you?
20:39
In my opinion, it's because they assume this will never happen
20:42
here. In my experience, that is
20:45
precisely what happens when things get bad enough, whereas
20:49
you can learn the skills yourself, do not need anyone,
20:53
master them. They're very easy, they're not
20:55
that complicated. And then you take that knowledge
20:58
and you pass it on to your loved ones and hopefully they pass it
21:01
on, you know, to their loved ones.
21:03
And that ripple effect carries on forever.
21:06
That is the essence of Bitcoin, personal responsibility.
21:12
Not I still need him or her or them to protect my money.
21:17
It is complete and utter nonsense in my opinion.
21:22
Some people may still feel better doing it, but if you're
21:25
going to do it, at least be aware of the trade-offs.
21:28
If you're aware of them and you're still comfortable letting
21:32
somebody else manage your money, then do it.
21:35
Because when the day comes that it blows up in your face, you're
21:39
going to have to just look in the mirror and blame the person
21:43
looking back at you for that intelligent decision.
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22:23
story? Don't be the person owning the
22:26
ETF thinking you own Bitcoin while in reality you just own an
22:30
IOU. And when the music stops, IOU's
22:34
don't sing a cappella, they simply.
22:38
Bitcoin is no ones I owe you. It is if you own the on chain
22:42
Bitcoin. It is not issued by anyone.
22:45
It is something that that organically arose between people
22:50
and there's no issuer, unlike Fiat currency where there's an
22:53
issuer, every dollar is actually an IOU.
22:56
Go look at the at the piece of paper in your wallet.
22:59
If you still carry physical cash, it says it's an IOU.
23:02
It's paid to the order of from the Federal Reserve Bank.
23:05
It is an IOU. And what's backing that IOU?
23:08
It's turtles all the way down, so to speak.
23:10
Don't let your revolution end Inconvenience.
23:13
Take control away from the banks and exchanges.
23:16
Hold your keys and send this to someone who still thinks Bitcoin
23:20
exposure is enough because exposure isn't ownership.
23:24
As always, thank you guys so much for watching Simply Bitcoin
23:28
Satoshi. Make sure to smash the like
23:30
button, subscribe, and turn on the notifications.
23:33
Until next time, stack, slay and stay bullish baby.