The latest laugher on Bitcoin comes from the Bank of England. I’m going to print two excerpts first, then comment.
“The market capitalisation of crypto assets has grown tenfold since early 2020 to about $2.6tn, representing about 1% of global financial assets. About 0.1% of UK households’ wealth is in Bitcoin and similar crypto assets, such as Ethereum and Binance coin. As many as 2.3 million people hold crypto assets, at an average amount of about £300 each.”
And …
“The Bank of England has said that Bitcoin could be “worthless” and people investing in the digital currency should be prepared to lose everything.”
In a related article …
“A senior Bank of England policymaker has warned that digital currencies such as Bitcoin could trigger a financial meltdown unless governments step forward with tough regulations.
Likening the growth of cryptocurrencies to the spiralling value of US sub-prime mortgages before the 2008 financial crash, the deputy governor Sir Jon Cunliffe said there was danger financial markets could be rocked in a few years by an event of similar magnitude.”
Let me see if I can get this straight. I’m a pretty stupid guy, so I might struggle.
You’re telling me that a currency, like Bitcoin, that represents only 1% of total global financial assets and only .1% of UK household wealth is going to upend the system? Then you have the guts to equate it to the subprime crisis that you, the powers that be, created?
How does that happen? If Bitcoin is so inherently worthless, how come so many people cannot see that? And how does a currency that represents only .1% of the UK’s wealth upend the system?
0.1%?
That doesn’t sound like a gold rush to me.
It doesn’t sound to me like people are trying to get something for nothing.
Bitcoin has hardly been an explosively profitable investment, not when you consider the amount of time that people hold on to these cryptocurrencies.
The value of Bitcoin is roughly at the same level if not lower than when I purchased it over a year ago.
That is principally because the friends of the Bank of England, people like Charles Munger and Warren Buffett, have been chopping Bitcoin’s value down by trashing it; and because quants that the Bank of England befriends have been engaging in high frequency trading through their high speed networks in order to buy and sell Bitcoin quickly.
I’m not buying Bitcoin to get rich quick, although I do hope it goes up in value.
I like many others purchased it because our elites are printing money like crazy. I hope to use this principally as a hedge against inflation. I think many others do as well.
If I can make a little extra, fine, but I don’t expect to make a fortune.
The only thing holding me back from investing more is the uncertainty that the Bank of England and other scaremongers engender.
I suppose it’s worthwhile pointing out again that Bitcoin is nothing more than a ledger that keeps track of everyone’s investment.
Think of it as a giant QuickBooks accounting program.
You invest money into the system, and the ledger keeps track of that investment.
The value of the investment will only go up and down depending upon how many people desire to use this giant ledger.
Theoretically, as more people use the ledger and decide to believe that it is a good thing, the more valuable Bitcoin will be.
If no one believes in the ledger, and if they decide to believe that it is a bad thing, the less valuable Bitcoin will be.
Bitcoin’s value depends solely on whether people choose to believe that it is a good thing.
In that respect, Bitcoin is no different than gold.
The price of gold is dependent upon how valuable people choose to believe that it is.
If one day, people choose not to use gold as jewelry, the price of gold will drop.
Gold has very few uses other than jewelry. Silver is the far more useful metal in industry.
The value of these elements rise and fall depending upon how much utility they have for people.
Bitcoin is a little different in that it is not used in chemical reactions, nor is it used to wear around one’s neck, wrist, or fingers.
Bitcoin’s principal reason for being at this point time is as a store of value. We haven’t reached the stage where people are commonly using Bitcoin as a currency to purchase things.
It is not even necessary for people to use Bitcoin in that manner.
That Bitcoin has no ornamental value, or industrial value, does not make it weaker, but stronger.
Bitcoin is no different than a promissory note from a legitimate bank that agrees to pay you money based upon your deposits.
So why is the Bank of England terrified?
On the surface, there is no reason for the Bank of England to be terrified. They should be investing in Bitcoin as well.
Well, maybe they are, and they’re just not saying anything about it.
As a student of the powers that be, I have an idea why the Bank of England is terrified and why they are scaring you the regular person away from it.
Throughout history, the Bank of England couldn’t have cared less about regular people.
The saying goes that the sun never set on the British empire. This is true, it is also true that the sun never rose on the slums of London.
You can thank the Bank of England for that.
The Bank of England works for the powerful elite in the United Kingdom.
They work with the crooks ( the Harvard cabal) in the United States to impoverish people.
If it’s one thing the elites cannot stand, it’s when you the regular person are not being impoverished into a state of serfdom by them.
They don’t want you to get financially stronger; they want you to become weaker.
Yachts, boats, beach houses, Gucci clothes, fine jewelry, great vacations, fast cars, Broadway plays: those are for them, not you.
That regular people could go to Broadway plays and enjoy vacation spots just like the elites tore their guts up.
What they have been engaging in with their nonstop wars over the past 50 to 75 years is to inflate the currency and give themselves a disproportionate share.
In this manner their share of the world’s wealth goes up. Your share goes down.
Bitcoin is a threat to that.
Thus the Bank of England’s response.
Fuck you, Bank of England.
Fuck your filthy monarchy, and your filthy peerage.
Do the world of favor: take your Kings and Queens, your peerage, your Oxford and Harvard henchmen, and go away.
Put on a harlequin outfit and dance like a fool in the corner of the room.
You’re pretty good at telling jokes anyway.
Sincerely,
Archer Crosley
Copyright 2021 Archer Crosley All Rights Reserved
Cowboy Archer 