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BITCOIN BETRAYAL!! Did Coinbase Just KILL Crypto in America? | Beyond Bitcoin · Simply Bitcoin

• 0:00
  We may just have figured out the biggest secret Coinbase is
• 0:03
  hiding from us, and it might explain why Bitcoiners are
• 0:06
  losing out on massive gains. I want you to sit down.
• 0:08
  Oh, you're already sitting. OK, well, this is not good.
• 0:13
  I'm here to break it to you. If you're a Bitcoin holder,
• 0:16
  you're being texted differently than someone who holds Ethereum.
• 0:18
  That's not. An accident and there are
• 0:20
  reports that Coinbase and their leadership.
• 0:24
  Make sure of it. That's right.
• 0:25
  And don't forget that this is the same company that is
• 0:27
  currently engaged in a war with Wall Street and the White House.
• 0:30
  Over the Clarity Act. What is the Clarity Act?
• 0:33
  But wait, doesn't nearly every ETF and Bitcoin treasury company
• 0:36
  use Coinbase to custody their Bitcoin?
• 0:38
  Why yes, yes they do. There's even more to this
• 0:41
  Coinbase story than meets the eye.
• 0:43
  I'm Oceans. This is beyond Bitcoin.
• 0:45
  Let's dive in. All right, Bitcoin is sitting
• 0:52
  around $65,000 as of this recording, down from where we
• 0:56
  were before the Iran war started and up from where the mainstream
• 1:00
  press would prefer it and holding while gold drops, stocks
• 1:05
  drop, and the bond market has what my financial advisor would
• 1:09
  call concerns. That's if I had a financial
• 1:12
  advisor. Remember, past performance
• 1:14
  doesn't equal whatever that it doesn't equal.
• 1:17
  Now let's get to the Parity Act 'cause that's what I know you're
• 1:19
  all here for. That's the name of this bill
• 1:22
  with a capital P and capital A providing appropriate regulatory
• 1:26
  inflation treatment for you. They named it Parity.
• 1:29
  Here's what it does. It creates a de minimis tax
• 1:32
  exemption, meaning you can make small crypto purchases without
• 1:37
  triggering a capital gains event every time.
• 1:41
  That sounds great, and for stake and rewards it is.
• 1:45
  But here in Bitcoin, we don't stake.
• 1:48
  I mean, we stake, but we don't stake, am I right?
• 1:51
  Bitcoin mining still double taxed.
• 1:54
  You mine a Bitcoin, you pay income tax when you receive it,
• 1:57
  and then you sell it and you get capital gains tax.
• 2:01
  They're proposing to fix this for staking, you know, for the
• 2:04
  Ethereum ecosystem, but not for you.
• 2:07
  Wait, wait, wait, wait, wait. You pay income tax when you mine
• 2:10
  Bitcoin. How?
• 2:12
  This is real, folks. This is established IRS tax law.
• 2:15
  It's not just a claim in the script.
• 2:17
  So now before I tell you about the Coinbase part, there is a
• 2:21
  Coinbase part. By the way, I want you to
• 2:23
  understand what de minimis exemption actually does for you
• 2:28
  right now. If you spend Bitcoin on a cup of
• 2:29
  coffee, the IRS considers it a taxable event.
• 2:33
  You have to calculate the cost basis, the gain and file it
• 2:36
  every single time you use money as money.
• 2:40
  A de minimis exemption fixes that.
• 2:42
  Spend under a threshold, no capital gains event.
• 2:45
  Bitcoin functions like a currency instead of a commodity
• 2:48
  you have to account for at checkout.
• 2:50
  This is the thing that makes Bitcoin actually usable in daily
• 2:53
  life. But the crypto lobby told
• 2:55
  legislators that is important, that nobody uses Bitcoin for
• 3:00
  transactions, that it's a non issue.
• 3:02
  Here's Marty Bent and David Zell from the Bitcoin Policy
• 3:05
  Institute on what happened. You know, that that de minimis
• 3:08
  is sort of a waste of time, that it's like a non issue that
• 3:11
  nobody's using Bitcoin for transactions.
• 3:13
  So, you know, let's just not prioritize this.
• 3:16
  Like the incentive structure for the crypto lobby is just very
• 3:19
  clear. Like you're running a, you know,
• 3:21
  meme coin casino. Like you want the meme coin
• 3:24
  casino laws to be written in your favor before you, you
• 3:28
  engage in sort of the, you know, what I'm sure some people look
• 3:31
  at is just like sort of the esoteric, like, you know, pro
• 3:34
  freedom stuff. But I, I, I, I do believe Brian
• 3:36
  when he says like, hey, I've told my team the SBR is
• 3:39
  important. I've told my team de minimis is
• 3:41
  important. What I haven't seen is any
• 3:45
  evidence of actually expending political capital to try to make
• 3:48
  these things a priority and get them done.
• 3:51
  The incentive structure for the crypto lobby.
• 3:53
  Let me translate that. Coinbase makes money when you
• 3:56
  trade. They also issue USDCA
• 3:58
  stablecoin. A de minimis exemption for
• 4:01
  Bitcoin means people start using Bitcoin for transactions instead
• 4:04
  of it sitting on their Coinbase accounts.
• 4:07
  That's not good for Coinbase. A de minimis exemption for
• 4:10
  stable coins means people use USDC, Coinbase's product for
• 4:15
  everyday purchases. That is good for Coinbase.
• 4:19
  So when Coinbase tells legislators that Bitcoin's de
• 4:22
  minimis exemption is a non issue, they're not wrong that
• 4:26
  it's a non issue. For them.
• 4:28
  It's a non issue because it doesn't benefit their staple
• 4:31
  coin business. Pierre Richard put it plainly on
• 4:34
  Friday. A Bitcoin tax exemption is the
• 4:36
  number one priority. Everything else should be
• 4:39
  grateful to exist. And he's right.
• 4:41
  And if you bought Bitcoin from Coinbase, like me, you know I
• 4:44
  bought Bitcoin from Coinbase. I'm starting to look at this
• 4:47
  like maybe I need to find somewhere else to buy my Bitcoin
• 4:51
  real quick. Self custody doesn't end at your
• 4:53
  wallet. What happens when the grid goes
• 4:55
  down? What happens when cell towers
• 4:57
  stop working? Or when you need to communicate
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  and the infrastructure you rely on?
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  and Faraday bags, portable power stations, everything you need to
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• 5:21
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• 5:24
  All right, so we're in day 30 of the Iran war, and Trump gave an
• 5:28
  interview to the Financial Times this weekend that I want to read
• 5:31
  to you directly because paraphrasing it would actually
• 5:35
  make it sound less extreme than it is.
• 5:37
  Quote, to be honest with you, my favorite thing is to take the
• 5:41
  oil in Iran. End Quote.
• 5:43
  He mentioned Karg Island by name.
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  If you don't know what Karg Island is, it's Iran's primary
• 5:49
  oil export terminal. 90% of Iran's oil exports flow through
• 5:54
  it. Iran sells roughly 500 million
• 5:57
  barrels of discounted crude to China every year.
• 6:00
  That's an inventory Trump is eyeing, he also said.
• 6:03
  And I want you to hear this one. I would only say that we're
• 6:07
  doing extremely well in that negotiation, but you never know
• 6:11
  with Iran because we negotiate with them and then we always
• 6:15
  have to blow them up, whether it's AB2 bombers or just
• 6:19
  terminating as an example, the Iran nuclear deal done by Barack
• 6:23
  Hussein Obama, probably the worst deal we've ever done as a
• 6:26
  country, one of the dumbest deals we've ever done.
• 6:29
  We negotiate with them, and then we always have to blow them up.
• 6:32
  That's a direct quote from the president of the United States
• 6:35
  to a major financial newspaper about a country with nuclear
• 6:39
  ambitions. The Pentagon, per The Washington
• 6:42
  Post, is preparing for ground operations in Iran that could
• 6:47
  last weeks. Thousands of American soldiers
• 6:50
  and Marines are arriving in the Middle East.
• 6:52
  Here's where this connects to your money.
• 6:53
  Adam Kobayasi from the Kobayasi letter posted Friday afternoon.
• 6:57
  Trump has 50 free hours to contain the bond market before
• 7:01
  futures open Sunday. If not, things will get very
• 7:04
  ugly very fast. That's not a doom account.
• 7:08
  That's a macro analyst who watches Treasury auctions for a
• 7:12
  living. the US government needs to refinance $10 trillion in
• 7:16
  debt this year. The Iran war has added hundreds
• 7:19
  of billions in new spending. The 10 year Treasury yield has
• 7:23
  been climbing since the war started and every basis point up
• 7:27
  cost the government 10s of billions in annual interest. the
• 7:31
  Fed meanwhile held rates at its March meeting revised inflation
• 7:36
  upward to 2.7%. Core CPI running at 3.1
• 7:41
  annually. the Fed has two options.
• 7:44
  Cut rates, inflation explodes, especially with the oil near
• 7:48
  $120.00. Hold rates, the debt load
• 7:52
  becomes unpayable. They know this, We know this.
• 7:57
  Bitcoin knows this. Arthur Hayes, the Bitmex
• 8:00
  founder, the man who has been right about macro and Bitcoin
• 8:04
  longer than most, recorded this in early March.
• 8:07
  He called it them. Maybe the Obama years, but even
• 8:09
  then crypto was kind of in its own somewhat infancy compared to
• 8:13
  now. And then in the the Bush, the
• 8:14
  two, the double Bush years, there was no crypto.
• 8:16
  So how does how do you foresee crypto reacting in in either
• 8:20
  scenario? So either crypto looks forward
• 8:24
  and says the longer this war goes on, the more money is
• 8:28
  printed and rallies even if equities fall, or crypto gets
• 8:33
  spanked like equities, US equities particular as people
• 8:37
  degrow their entire portfolio. It's like, OK, war is bad.
• 8:40
  I don't know what's going to happen.
• 8:42
  Obviously this is going on longer than they told me it was,
• 8:46
  so let me just sell everything and sit in cash.
• 8:49
  You may have seen the Bitcoin drop below $65,000 on day 30.
• 8:54
  The headlines read this as a Bitcoin story.
• 8:55
  It's not. It's a market story.
• 8:58
  Everything dropped. Stocks hit their lowest close in
• 9:01
  2026. Gold dropped 11% this week.
• 9:04
  Bitcoin held. That's the story.
• 9:07
  CNBC ran this headline. Now, CNBC is the network that's
• 9:11
  been writing Bitcoin's obituaries since 2013.
• 9:14
  They say a flight to safety is happening.
• 9:17
  Bitcoin is decoupling. You see where this is going
• 9:20
  right now. I'm going to pause right here
• 9:22
  for a second. This one is for anyone who's
• 9:24
  been thinking about getting serious about their Bitcoin
• 9:26
  setup. The Bitcoin way will walk you
• 9:28
  through self custody the right way, with the right hardware
• 9:31
  wallet, with your own node, with full transaction verification.
• 9:35
  They'll also help you set up your phone so it's not a
• 9:38
  surveillance device. And for anyone thinking about a
• 9:41
  Plan B, they guide you through residency in Panama.
• 9:45
  Can you believe it? All the way in Panama.
• 9:48
  Book a free 30 minute consultation by going to the
• 9:50
  bitcoinway.com/beyond Bitcoin. That's the bitcoinway.com/beyond
• 9:55
  Bitcoin for your free 30 minute consultation this morning.
• 9:59
  Not last week. This morning.
• 10:01
  Square auto enabled Bitcoin Lightning payments for 4 million
• 10:05
  US merchants. Wow.
• 10:07
  Not an opt in, not a test. Auto enabled.
• 10:10
  Your local coffee shop, The hardware store around the
• 10:13
  corner, The food truck outside your office.
• 10:16
  If they use Square, they now accept Bitcoin.
• 10:18
  Lightning. They didn't do anything to make
• 10:20
  that happen. Jack Dorsey just turned it on.
• 10:23
  There are about 33 million small businesses in America.
• 10:27
  Square processes payments for roughly about third of them.
• 10:31
  Jack Dorsey just enabled Bitcoin for 12% of all US businesses on
• 10:36
  a Monday morning, while Congress is arguing about whether you
• 10:39
  should get a tax break when you buy a coffee with Bitcoin.
• 10:43
  Jack Mallers, the CEO of Strike, the man who's been building
• 10:46
  Bitcoin payments infrastructure since before most people knew
• 10:49
  what Lightning even was, said something last year that I keep
• 10:52
  coming back to. Yeah, well, get the announcement
• 10:55
  out of the way. We're launching a product that
• 10:57
  allows you to pay bills with Bitcoin, which was a missing
• 11:02
  piece for me, which I'll explain.
• 11:03
  But the products available to everyone in America and it works
• 11:07
  effectively. It's like a Bitcoin checking
• 11:10
  account. You get an account routing
• 11:11
  number, you can get your direct deposit to it, and you can pay
• 11:14
  bills from it. And so it functions and works
• 11:18
  exactly like you'd expect. But instead of holding your
• 11:21
  capital and your money in a currency that's actively debased
• 11:25
  and being inflated, you get to hold your capital and money in a
• 11:29
  currency that's actively appreciating 60 some odd percent
• 11:33
  year over year for the last decade.
• 11:35
  And then there's this. While Coinbase is in Washington
• 11:37
  lobbying against your tax exemption, Morgan Stanley just
• 11:40
  got nicey listing approval for its own Bitcoin ETF ticker MSBT.
• 11:45
  And the fee is 14 basis points. And that is the lowest fee in
• 11:49
  the Bitcoin ETF market right now, lower than Blackrock's I
• 11:52
  bit lower than Fidelity, lower than everyone who got there
• 11:55
  first. Eric Volkunis, the Bloomberg ETF
• 11:58
  analyst, said something about this that I want you to think
• 12:00
  about. Quote, this bank happens to have
• 12:03
  16,000 advisors managing $6 trillion in assets.
• 12:08
  They are the ultimate gatekeepers of rich boomer
• 12:11
  money. 16,000 advisors, $6 trillion in assets.
• 12:16
  These people are not Bitcoin influencers.
• 12:18
  They're not on X. They do not have laser eyes.
• 12:22
  They call their clients on Tuesday afternoons and say
• 12:24
  things like we're looking at modest allocation to alternative
• 12:29
  assets and starting very soon that call is going to include we
• 12:35
  have a Bitcoin ETF. The fee is the lowest in the
• 12:39
  class. Preston Pitch has been
• 12:41
  explaining why Wall Street's move into Bitcoin isn't a trend,
• 12:44
  it's a structural shift. You have to have a deep
• 12:47
  understanding that the fixed income market, it has been bid
• 12:52
  for 40 years and it's started and it's finally starting to
• 12:56
  unravel since 2020. So from like the 1980s until
• 13:01
  2020, if you were a fixed income investor, it always went up.
• 13:06
  It was literally in a bull market for 40 years straight.
• 13:09
  And so when a person's looking at MicroStrategy and they're
• 13:12
  saying, OK, so he's like securitizing Bitcoin, he's
• 13:15
  issuing fixed income. They're like, that's not going
• 13:17
  to last forever. The 40 year bond bull market is
• 13:20
  unwinding the assets that were safe for decades.
• 13:24
  Treasury's fixed income. The stuff your parents were told
• 13:27
  to hold are no longer behaving the way they're supposed to.
• 13:31
  Morgan Stanley's 16,000 advisors know this.
• 13:34
  Their clients are starting to ask questions and the answers
• 13:37
  that they're about to give is here's a Bitcoin ETF at 14 basis
• 13:42
  points. Bitcoin adoption doesn't wait
• 13:44
  for permission from Congress. It's happening at the retail
• 13:46
  level, Square 4 million merchants.
• 13:49
  It's happening at the institutional level.
• 13:52
  Morgan Stanley's 6 trillion in assets.
• 13:54
  It's happening at the nation state level.
• 13:56
  El Salvador bought more Bitcoin last week.
• 14:00
  Shocker. And meanwhile, the Parity Act
• 14:03
  leaves you double taxed on mining.
• 14:06
  You see these two tracks, right? The political class is fighting
• 14:10
  over who gets the carve out. The market is deciding who gets
• 14:13
  the Bitcoin. Here's my take on all this.
• 14:16
  The Parity Act is bad for Bitcoin.
• 14:18
  The crypto lobby puts its interests above yours.
• 14:20
  That's not shocking. That's how lobbies work.
• 14:22
  But it's worth naming. Clearly Bitcoin tax treatment is
• 14:26
  the number one priority, and every other token in its space
• 14:29
  should be bowing down. And be grateful that Bitcoin
• 14:32
  paved the road that they're riding on.
• 14:34
  The Iran war is riding the macro case for Bitcoin in real time.
• 14:38
  Trump wants to seize an entire oil island and the bond market
• 14:42
  needed containment over a weekend. the Fed has no good
• 14:45
  options. This is exactly the environment
• 14:47
  Bitcoin was built for, and the adoption is happening anyway.
• 14:51
  Square, Morgan Stanley. El Salvador Sailor put his laser
• 14:55
  eyes back on this weekend, which if you know sailor is not a
• 15:00
  casual gesture. You don't get to choose the
• 15:02
  timeline you choose whether you were positioned before the
• 15:06
  timeline becomes obvious. And Bitcoin is that answer to
• 15:10
  choose. Duh.
• 15:11
  Last break of the day, Club Orange formerly known as the
• 15:14
  orange pill app. This is the premier Bitcoin
• 15:17
  community app 19,000 members across 71 countries.
• 15:20
  You can find bitcoiners near you, discover meet ups and
• 15:23
  events. They have a merchant map, a
• 15:25
  built in lightning wallet, and a community that paid $40 a year
• 15:28
  to be there, which is just enough friction to keep out the
• 15:32
  bots and the influencers. You can find me on there too.
• 15:34
  I'm at oceans OSHINS. Come say hi.
• 15:38
  Come tell me what you thought of the show.
• 15:39
  Leave me a comment, whatever you want to do That's Club
• 15:43
  orange.org. Here's my final thoughts.
• 15:45
  There is a version of the story where Bitcoin is the villain and
• 15:48
  the Bitcoin community is the victims, but that's not really
• 15:51
  quite the whole narrative right there.
• 15:53
  Coinbase is a company. It has shareholders and a
• 15:56
  stablecoin business and lobbyists in Washington.
• 15:59
  It's going to optimize for itself.
• 16:01
  That's what most companies do. The question isn't whether
• 16:04
  Coinbase will put Bitcoin first. It won't, obviously.
• 16:08
  The question is whether you're going to wait for the political
• 16:11
  process to give you permission to use sound money.
• 16:15
  Square didn't wait. Morgan Stanley didn't wait.
• 16:17
  El Salvador didn't wait. The infrastructure is being
• 16:21
  built regardless of what happens in a committee room.
• 16:24
  Bitcoin is a long game. The question is, do you want to
• 16:27
  play checkers or chess? I'd say go for chess and study
• 16:31
  some Bitcoin. Thank you so much for watching
• 16:34
  this video. If you like what you see and you
• 16:35
  want to see more, make sure you hit that like button below.
• 16:37
  You can subscribe to the Simply Bitcoin channel for more content
• 16:40
  like this. We're coming out with that every
• 16:42
  single day of the week. Also, do not forget to hit that
• 16:44
  notification bell. If you want to reach out to me
• 16:46
  directly, I'm run dance Bitcoin on X otherwise I'm oceans.
• 16:51
  This is beyond Bitcoin. Until next time.