Bank runs have happened in Cyprus, Russia, The Czech Republic, Argentina, Ireland, Venezuala, China, Lebanon, Nigeria, UK, and possibly the US in 2023. Bank runs are hard to get information about. We know there are others not listed. The bottom line is, the FDIC has $9 Trillion in bank balances to insure. Yet, FDIC assets total up to $125 Billion, that is 1.2%. Bail-Ins are when banks use depositors money to bail out the bank. This could happen here, in the US. Bank of America has had this issue in January 2023! Wells Fargo, and Chase Bank have had this problem in January as well.
Don’t believe us? Here is a January FDIC meeting where they aired their own concerns about bank runs, and how the FDIC has no intention to insure deposits, click here to read more.
Meanwhile, Bitcoin doubles in value every year, averaged over each 4 year cycles between miner reward halvings:
Based on the above chart, when this bull run completes in 2025, it will be using this trend line as support. If the support holds up as it has in every other bull run, Bitcoin will at least be this high. However, it could go much, much higher if the USD is hyperinflating! As in 2024 through 2025. If inflation is much worse than it is today, in those years. What will that do to the price of Bitcoin? What did it do to the price of Bitcoin in Cyprus, or Lebanon?
Thanks to Morgan Rockwell for this:
“Thiers' law states that good money will drive out bad money. Thiers' law is the inverse of Gresham's law, “bad money drives out the good”. Thiers' law is most applicable when a currency loses so much value that it is no longer accepted as a means of payment by merchants.”
Here is more information from 2013, when Cyprus bail ins happened, and what that did to the price of Bitcoin:
The Federal Reserve assets exceed their liabilities by $41.8 Billion, with $27 Billion in deferred assets (negative liabilities) on the treasury general account. These deferred assets are a placeholder, they will get paid back once the Fed is in the black again. Right now, and since September 2022, due to higher interest rates, the Fed is losing money so fast, that they cannot pay back the treasury. Janet Yellen announced recently that if the June deadline to raise the debt ceiling is not met. The US will default on it’s debt. This will kick off the sovereign debt crisis we have brought up this past year on our blogs. This debt ceiling should not be raised, yet it has been 22 of the last 24 years. National debt is over $31.4 Trillion and the Fed cannot pay back the Treasury, because the debt service payment is now $1 Trillion per month. Either the sovereign debt bubble is popped, or the US will print, and quantitatively ease while pausing rate hikes. This means the US will either inflate away it’s currency longterm, or see a massive deflationary crash this year. We will know by late June which way the US will go. Bitcoin is the ONLY anecdote to this money printing! We expect the debt ceiling to be raised, but who knows what will happen? This next chart shows how, through recessions (vertical pink columns) the US economy has always capitulated, and then the Fed printed more money. Usually, rates are lowered after recessions, brought on by tightening monetary policy from the Fed. This recession, ongoing since mid last year, will go in the history books as ending when or if the Fed lowers rates again. Here is the chart showing how these booms and busts, end up hollowing out the buying power of the US dollar:
We have blogged about CBDC, we have blogged about the BRICS reserve currency. Now Russia is subsidizing Bitcoin mining in Siberia. We already know the BRICS reserve currency is using Bitcoin for international settlements, and more will come out about that in the future, click here to read more.
As we have said in previous blogs, this financial war comes down to BRICS, CBDC, and Bitcoin. We would just assume skip CBDC. However, there may be an attempt to roll that out in the US. Time will tell, it sure looks that way. The problem is centralizing our monetary and financial system, eliminating banks, and having the central bank control all spending through a CBDC. That goes against every ideal the US was founded on. WE CANNOT LET THAT HAPPEN! Bitcoin is decentralized, because the protocol on the blockchain, controlled by the developers, node operators, miners is global, and not controlled by a small group. It is a public ledger. It is proof of work, that is how decentralization works. So, unplug from all central banks with Bitcoin. We hope BRICS comes before CBDC. But either way, this all ends up with Bitcoin. We are not financial advisors and this is not financial advise. Store Bitcoin OFFLINE. Use these companies to protect your investment!
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