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Why Central Banks are TERRIFIED of Bitcoin! | Beyond Bitcoin · Simply Bitcoin

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  Bitcoin just had one of its worst weeks of the year.
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  Price down, confidence shaking, gold ripping while Bitcoin
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  stalls. But while markets were
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  panicking, something way more revealing happened at Davos this
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  week. Central bankers didn't argue
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  with Bitcoin. They laughed at it.
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  I think it's a healthy competition because.
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  And that laugh tells you everything.
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  Because powerful systems don't mock things that are irrelevant,
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  they mock things they don't understand.
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  Like, why am I shooting this in the back of a loading dock?
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  Banks say that Bitcoin is too volatile, it's too risky, too
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  unfit to compete with real money.
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  Oh, yeah? Then why are you so obsessed
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  with it? Sounds like someone's a little
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  scared. Sounds more like Bitcoin
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  threatens the one thing banks can't afford to lose, Emotions.
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  This is beyond Bitcoin. Let's go.
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  We're taught one story about the banks.
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  You deposit your money and they keep it safe in a safe locked
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  up. But come on, you ought to know
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  by now that that story's a bit inflated.
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  Get it inflated. This was no more apparent than
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  this past week at the World Economic Forum in Davos, when
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  the CEO of Coinbase, Brian Armstrong, debated with Francois
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  Villeroy de Gelha, a member of the Governing Council of the
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  European Central Bank and the current president of the Bank of
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  International Settlements. Yeah, this guy doesn't have any
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  reason to dislike Bitcoin. Take a look.
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  Governor, you have to address this.
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  Is the euro in danger from a Bitcoin standard?
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  No, I'm a bit skeptical, Brian, sorry to say it about this idea
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  of the Bitcoin standard. So we left the gold standard,
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  but the gold was only a technical mean.
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  What is important is what you say, but that monetary policy
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  and money is part of sovereignty and we live in democracies and I
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  think the public role is key. And if we lose that, we lose a
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  key function of democracy. That said, I always keep
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  repeating that money, as long as it exists, for centuries has
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  been a public private partnership.
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  You need a public anchor, whatever its form is.
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  Remember in silver and gold were sovereign assets, so it was on
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  the public side. And then you had banknotes and
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  you will have CBDC. But anyway, the most important
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  part of payments is in the private sphere, and this is a
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  development of tokenized private money.
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  But this tokenized private money must be regulated to inspire
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  trust, confidence. It's fascinating that you say
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  that, Brian. You mentioned a complementary
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  role that you could. Play.
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  So I think that crypto is very good for Fiat currencies.
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  It's very good. Bitcoin is like good as a check
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  and balance on deficit spending. Because when there is a lack of
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  trust or people, you know, from like in AUS context, if people
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  are worried about inflation or maybe in places like Argentina
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  or Turkey or Nigeria, they are going to flee to the thing that
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  they believe is going to store value more.
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  So I think in general, it's going to be very complimentary.
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  And like you said, I think it comes down to trust.
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  And so if, if Fiat currencies can maintain trust and not have,
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  you know, the money printer kind of debasing everybody, then
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  they'll survive. But if they countries that you
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  know have bad behaviour on that dimension, Bitcoin doesn't have
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  a money printer. The the supply is fixed and
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  people will go to it in times of uncertainty.
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  Kind of like they did with gold. The the guarantee for trust is
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  independence on central bank side and we have a common date
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  and we are accountable to that. But sorry to say that I trust
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  more independent central banks with a democratic mandate than
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  private issuers of of Bitcoin, which have a very useful role.
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  But. Bitcoin is a decentralized
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  protocol. There's actually no issuer of
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  it. So that's that's in the sense
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  that central banks have independence.
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  Bitcoin is even more independent.
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  There's no country or company or individual who controls it in
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  the world. And so anyway, I, I think it's a
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  healthy competition because, because if people can decide
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  which one they trust more and it, I think it's actually the
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  greatest accountability mechanism on deficit spending.
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  What's so incredible about this clip isn't the fashionably
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  astute president's red spectacles, though quite
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  stylish, Mr. President. It's the fact that Brian
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  Armstrong strong armed this supposed expert of global
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  finance. This dude was getting schooled
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  like he just started attending his first class of Austrian Econ
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  one O 1. This clearly shows either a lack
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  of understanding about Bitcoin from the big banks, Oregon
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  denial of its power out of real fear.
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  Once we left the gold standard in 1971, democracies discovered
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  they could run permanent deficits through fractional
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  reserve banking, something that Armstrong clarified further.
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  Take a look. People think about our current
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  financial system as kind of sacrosanct, and it's the only
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  way to do it. But, you know, if you study the
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  history of money, really, it's got created in like 1971 when
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  Nixon went off the gold standard in the US.
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  And we currently have the system where most central banks don't
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  have any link to a hard commodity underneath.
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  I think Fiat currencies are going to continue to exist for a
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  long time, but we're also seeing the birth of a new monetary
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  system that I would call the Bitcoin standard instead of the
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  gold standard. And in the crypto space, that is
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  a return to, you know, sound money and something that is
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  inflation resistant because democracies around the world,
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  once we came off the gold standard, are struggling to
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  balance their budget. They're all running deficits.
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  And it's caused inflation in Fiat currencies.
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  And so there is a real segment of the population that is
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  looking for a new system based on hard money.
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  Well done Mr. Armstrong and though you Max is out there, you
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  might be looking at him like he's Bitcoin's Lex Luthor.
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  But we can't deny the fact that Armstrong is bringing well
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  needed attention to the problem we all face with Fiat money,
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  fractional reserve banking and the ever growing Leech on our
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  necks that is inflation just sucking away our blood.
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  Term after term, grocery visit after grocery visit.
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  If you needed a reminder, your money, that is the thing you
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  earn for working. It isn't sitting in some vault.
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  It's being loaned out repeatedly, and you don't see
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  any of that return. But the banks, they do.
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  So what's so scary about Bitcoin to the banks is that by using
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  Bitcoin, you're basically pulling their teeth out of your
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  neck. What are they going to feed on
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  them? That's why banks need bailouts.
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  That's why they need regulators. That's why bank runs happen.
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  Bitcoin does to banks what removing feral cats did to Macri
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  Island. You know Australia removed cats
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  to protect birds, but then rabbit population exploded and
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  the vegetation collapsed and destabilized the whole island.
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  And but here's a clip from Ray Dalio to distract you from my
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  bad analogy. Bitcoin is limited in supply and
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  its perception of money. It is a form of money.
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  It's perceived as money, as a store hold of wealth that is
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  unlikely to be significantly held by central banks and many
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  others because of a number of problems it has.
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  It can't. Transactions could all be
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  followed in Bitcoin. One can monitor what the
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  transactions are, governments can monitor what the
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  transactions are and governments can interfere with those
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  transactions, just like we talked about earlier when we
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  talked about, you know, gold is the only asset that you can have
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  that they can't mess with and control.
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  You've got it. OK.
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  That's not true of Bitcoin. And then there are other issues
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  in Bitcoin, like if we talked about the possibility, would
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  somebody make synthetic gold like they would make synthetic
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  diamonds as as a risk. Well, in terms of Bitcoin being
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  cracked, broken sorts of things and controlled, it has those
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  issues. OK, so that's how I look at bit.
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  So what you're telling me is that Bitcoin is too transparent
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  for central banks? Well, well, well, if that isn't
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  just a bit too weird, huh? Now, why would the central banks
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  be afraid of the ability to have their transactions monitored?
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  They are the central banks of our government, looking out for
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  our interests, right? This is exactly what banks fear
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  the most. A system where your money is
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  actually there, there is full transparency, and there's no way
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  to make more of it. It's much faster than $150
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  million was transferred today using Bitcoin for a fraction of
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  a of a cost that no firm, including Jeremy's would ever,
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  ever approach. So this is a real genuine threat
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  to that industry, number one. Number two, you talked about the
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  counterfeiting. You can't counterfeit Bitcoin.
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  That's a real problem with the the British pound or the
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  American dollar is that they're being printed Willy nilly to
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  solve lots of problems that politicians can't seem to solve.
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  So they simply print money. People are panicked, panicked by
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  what's happening in the banking, in the central banks, and
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  they're moving into something that they perceive as having a
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  store of value. Risks of.
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  Them, well, they're always talked up.
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  The Bitcoin is always talked up by people who own it because
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  they're speculating everyone. Talks their own book.
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  People use it every single day to transfer money all over the
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  world. It has a primary purpose as a
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  means of transferring money #1 #2 it's also a currency.
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  That's why it's it has huge value in this economy.
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  What is interesting is the fact that people have chosen
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  something that they think bypasses governments and
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  bypasses regulation that says something about.
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  The socioeconomic movement which we're going through at the
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  moment, and every time you have a socioeconomic movement, you
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  have to have a money behind it, a currency behind that, Be that
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  golden. At the moment, this seems to be
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  Bitcoin. I'm happy with that.
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  What? Do you mean what do you mean
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  it's a socio economic movement? It's a libertarian movement.
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  It's a by the people for the people.
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  Get away from big government, get away from big industry, get
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  away from the people polluting the seas and and the Internet
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  and the global financial crisis. They want.
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  They want to. Be the library part.
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  The forex scandals, the the scandals in HSBC laundering
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  money. They talk about Silk Road and
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  the drugs association. What about HSBC?
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  Billions of dollars of money laundering right there.
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  The current scandal with Cohen. What people are?
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  Scared by the banking in this country and around.
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  The world but. You but you heard that.
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  You heard the point the commentator made there that
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  people think it's a post government currency.
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  It's not because the government can step on it or stamp it out
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  if they want. To that's false.
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  Why? Because it's completely outside.
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  It's like P2P file swapping and hit the music industry.
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  This is the P2P file swapping of money.
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  And so the banking system and the current regulatory
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  environment, it will be as effective at stopping that as
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  the music. As new environment.
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  Governments. Have already seized governments
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  have already seized bitcoins and if.
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  They couldn't hack into it the bit points that were.
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  If they see it as a threat, they will take it off the people.
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  We all know that and I don't see.
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  How do they do that then? I mean, how do they how do they
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  take it off people if the. Confiscate.
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  It's just like I've got cash in my wallet now.
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  There's no way of insuring your bitcoins against loss.
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  It's one of the big fears about it.
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  They can simply take it off you. They can get it off your
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  computer. And if they feel it as a.
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  Threat, Emily. This is what's happening in this
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  industry, the regulatory environment in the US and the UK
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  versus the rest of the world, in China, India, around the world.
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  Bitcoin is now the unbanked of the world, 6 billion people.
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  They don't really have access to banking infrastructure as such,
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  are now using these currencies, are using it with their mobile
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  technologies and they are going to lead this market.
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  The number one market for Bitcoin right now is in China.
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  And if the US and the UK don't want to compete, if they don't,
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  if they don't want to compete in this market, then they can go
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  home. The real threat is competition.
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  When you're a bank that's too big to fail, or even a central
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  bank, you own a monopoly on the system of money, the thing we
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  all use everyday. Bitcoin lives outside of that
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  system. It can be transferred eertoeer
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  with no intermediary. Its transactions are
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  irreversible, immutable, and by golly, I'll go so far to say, is
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  invincible. There's nothing like Bitcoin in
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  our current system, which is why it's such an upset for the
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  financial elite. Now, if you're beginning to
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  understand why banks are afraid of Bitcoin, you'll also
• 12:01
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• 12:03
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• 12:06
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• 12:28
  importance of staying sovereign outside of our failing financial
• 12:31
  system. And with sat123.com, you can
• 12:33
  stay sovereign outside of your network as well.
• 12:36
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• 12:38
  step. Self custody of your Bitcoin.
• 12:40
  The bitcoinway.com teaches you how to hold your own Bitcoin
• 12:43
  safely, without fear, without confusion, and without trusting
• 12:47
  a third party. Because the biggest risk in
• 12:49
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• 12:52
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• 12:56
  consultation and take control of your money the way Bitcoin was
• 13:00
  designed. And we're going.
• 13:01
  To make it so simple that every corporation around the world
• 13:04
  wants Bitcoin on their balance sheet.
• 13:05
  And it's so simple that every investor around the world can
• 13:08
  get Bitcoin exposure with a single click without even a
• 13:11
  single click. They're just the indexes they're
• 13:13
  already in. Yeah, I.
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  Was going. To say passive.
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  Flows are going to be directed into Bitcoin.
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  Like. So it's just like we're.
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  Hijacking the financial. System.
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  Yeah, we're just hijacking the financial system.
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  First, we hijack people's attention.
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  Second, we hijacked the the industry like then we hijacked
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  investor capital. Now we're hijacking the capital
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  markets. And next we're going to hijack
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  the central banks, and we're going all the way until every
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  central bank and every government and every corporation
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  on this entire effing planet owns Bitcoin.
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  Simple as that. Bitcoin doesn't vote.
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  Bitcoin doesn't lobby. Bitcoin doesn't print.
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  Bitcoin hijacks the system by operating outside of it.
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  That makes it extremely dangerous, not to people, but to
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  banks and governments that rely on debasement and dependents.
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  Governments can regulate companies.
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  They can regulate on ramps, but they cannot erase a protocol
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  once millions of people rely on it.
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  And the smarter banks, they are starting to realize that if you
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  can't beat it, you got to join it.
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  The the other major inflection point is all of the large banks
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  in the United States have gone from not banking Bitcoin 12
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  months ago to in the past six months.
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  I have I have noted and been approached by BNY Mellon, by
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  Wells Fargo, by Bank of America, by Charles Schwab, by JP Morgan,
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  by city. They are all starting to issue
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  credit against either Bitcoin or against Bitcoin derivatives like
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  I bit. And so there's a sea change
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  here. Wells Fargo and city of both
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  announced intent to allow the custody of Bitcoin within the
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  banks. And the year 2026, they'll start
• 14:49
  to extend credit. And so Wall Street, the banking,
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  the banking establishment and the regulators have all endorsed
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  Bitcoin as digital capital. Bitcoin isn't anti government,
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  it's post trust and banks are starting to understand this.
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  They also understand that once people understand this, there's
• 15:09
  no going back. Bitcoin isn't just about the
• 15:11
  money, it's also about the people.
• 15:13
  Club Orange, formerly the Orange Pill app, is where bitcoiners
• 15:17
  actually talk, learn, and share ideas without the noise.
• 15:21
  There's no shadow bands, just signal.
• 15:24
  Download the app or visit cluborange.org today and if you
• 15:27
  want to reach me there directly, you can DM me.
• 15:29
  I'm there at Oceans OSHINSI read all of my messages.
• 15:34
  Thank you for watching these videos and connecting with me on
• 15:37
  Club Orange. Banks aren't afraid of Bitcoin
• 15:39
  because it's unstable. They're afraid because it's
• 15:42
  honest. And once people see that truth,
• 15:45
  they don't Unsee it. Thank you so much for watching
• 15:47
  this video. If you like what you see and you
• 15:48
  want to see more, make sure you hit that like button below or
• 15:51
  you can just leave us a comment if you like.
• 15:53
  Also, you can subscribe to the simply Bitcoin channel for more
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  single day of the week and do not forget to hit that
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  notification bell. I'm oceans.
• 16:02
  This is beyond Bitcoin. Until next time.