It is Going to be a Bloodbath

There was a time when I scoffed at bitcoin and some of the lofty price predictions people threw around. No longer.

Central bank debasement has forced financial asset prices to ridiculous extremes and destroyed fiat currency's legitimacy. This is creating multiple effects that will continue for years:

1) Silicon Valley cannot ignore the magnitude of the financial markets. In rough numbers, the tech world believes they now have the tools in bitcoin and crypto to go after markets that dwarf anything they have ever seen. Perhaps as much as $10 trillion in negative yielding bonds, $8 trillion in gold, $20 trillion in fiat paper and as much as $50-70 trillion in M2. They will never go away, they will not flag and they will not tire in pursuit of such monumental sums. The current financial system has a giant bullseye painted on it courtesy of irresponsible central bank debasement.

2) The existing financial system made a deal with the devil and is now destined to lose to Silicon Valley. They bet everything on government. They trusted central banks who, via an out of control policy of debasement, forced the existing financial system to make poor decisions regarding deployment of their capital. Bubbles followed by massive losses culminating in a soft government takeover of the financial system followed by more bubbles were the result. They are hamstrung and must now play the game against far more entrepreneurial and motivated players from the West Coast. It is the existing financial system run by the government vs. ASICS, bitcoin, bandwidth, crypto and programming talent....It is going to be a bloodbath.

The financial establishment will beg the government for help via more regulations on bitcoin, on that there can be little doubt. It won't matter because the existing players made their deal with the devil. They must play the game with the coin of the realm, fiat. There will be no escaping that. It is also their death warrant. Debasement is now permanent, the cost of operating in the fiat realm will now always increase. This will weaken the financial establishment while bitcoin's army from Silicon Valley will grow stronger by the day. Time is on bitcoin's side.

Disclaimer: Nothing here should be construed as investment advice. These are nothing but my rambling thoughts. I do own gold and bitcoin, but do not recommend these assets for others. You have to do your own homework and know what you are getting into. Governments hate these two assets and will try to make sure no one who owns these things wins. You have been warned to stay away!