Attack On Crypto: What Biden’s White House Has To Say!

Last week the White House released its Economic report of the president for 2023 for the first time ever the report Contained a section about cryptocurrency And well it wasn't good the report made It clear that the Biden Administration Will continue cracking down on the Crypto industry and it seems to be Intended as a rallying cry for U.S Regulators to double down in their Efforts to this end Today I'm going to summarize the crypto Section of the economic report explain What it says and tell you what it could Mean for the crypto Market this is a Video you cannot afford to miss The section of the economic report I'll Be summarizing today is titled quote Digital assets relearning economic Principles now in case you're wondering Why we're not summarizing the whole Report well it's over 500 pages long you Can find a link to the full report in The description if you insist on reading The whole thing good luck and God bless Now the crypto chapter of the report Begins with a brief history of the panic Of 1907. this is when the original JP Morgan basically caused a bank run on One of his competitors which ultimately Caused the U.S banking system to Collapse JP Morgan bailed everyone out And a few years later the Federal Reserve was created

Now obviously the version of events the Authors give is very different they Claim that the Panic of 1907 occurred Because the banking system was too Decentralized and unregulated naturally The authors then claim that Cryptocurrency is the same as the Pre-fed financial system decentralized And unregulated the authors acknowledge That decentralized custody and control Of money are two of the benefits of Cryptocurrency but then claim that Cryptocurrency has not provided any Other benefits whatsoever Rather it has done damage to Consumers To the financial system and of course to The environment now if you watched our Video about the effects of Bitcoin Mining on the environment you'll know That this is BS Bitcoin mining uses just .05 percent of all Global energy and Accounts for just point zero eight Percent of all Global carbon emissions This is a very small price to pay for a Decentralized payment system and store a Value On that note the authors claim that Cryptocurrencies have quote no Fundamental value and can only go up in Price because of the way their economics Are designed What the authors fail to mention is that Most cryptos would go up in price Regardless of this purely because Fiat

Currencies are slowly losing value Regardless the authors then question What the role of regulators should be Given the supposed characteristics of Cryptocurrency they also seem to imply That blockchains built by private Companies and governments could be Beneficial without mentioning that this Setup eliminates decentralization Now the second section of the crypto Chapter is titled quote the perceived Appeal of crypto assets which reveals How biased this section will be The authors start by saying that the Term cryptocurrency is a crypto industry Term meant to give the impression that You're using an alternative payment System they also say that stablecoin is A crypto industry term meant to give the Impression that the coin or token in Question will maintain a stable value For context almost all these governments Reports refer to cryptocurrency as Crypto assets which I refuse to do Because it's incorrect for the most part Anyways what's funny is that the authors Take one sentence to talk about nfts and All it says is that they aren't relevant To this crypto chapter this is not Surprising given that nfts have been Consistently emitted from most crypto Regulations probably because they're Like Fine Art in any case the author Specify that the term crypto asset that

Is cryptocurrency means every digital Currency except digital currencies that Are issued by central banks They then present this Venn diagram Which is supposed to give the impression That Central Bank digital currencies are Like crypto but better now if you Watched our video comparing cbdc's to Cryptocurrencies you'll know this is Extremely dishonest in a cbdc system the Government can control how much you Spend what you can buy and even how much You can save in a crypto system you Alone have total control over your Assets and your transactions newsflash That is the definition of Financial Freedom and it is very very valuable Now the authors admit that crypto became Popular during the pandemic and then Claimed that the crypto bear Market was Caused by crypto projects and companies Going under in reality the crypto bear Market was largely caused by interest Rates going up which then caused these Crypto projects and companies to crash The authors then go on to applaud the Executive order about cryptocurrency Signed by Biden last March they revealed That various U.S Regulators have since Published nine reports about Cryptocurrency in accordance with that Executive order note that we've covered A few of these on the channel Oddly enough the authors then suddenly

Pivot to talking about Bitcoin and Acknowledge that it appears to have been Created in response to the 2008 Financial crisis they explain how Bitcoin works and that it inspired the Creation of tens of thousands of other Cryptocurrencies with similar economic Models The authors then list five benefits that Proponents claim cryptocurrencies have According to the authors that is now the First claim is that cryptocurrencies are Good Investments the authors highlight The fact that you can make quick returns In crypto compared to other asset Classes and potentially hedge against Inflation The second claim is that cryptocurrency Is an alternative to the traditional Financial system the authors highlight The fact that cryptocurrency Transactions are censorship resistant Meaning they can't be stopped they also Highlight the fact that cryptocurrencies Distribute fees among Network Participants The third claim is that cryptocurrencies Can be better payment systems than the Ones we have the authors highlight the Fact that stable coins could be used for Instant 24 7 transactions Unfortunately They don't highlight the fact that some Cryptocurrencies are faster than Centralized payment systems

The fourth claim is that cryptocurrency Can lead to more financial inclusion or As every crypto project founder used to Say Bank the unbanked they highlight the Fact that the self-custody of assets Means that there's no Bank to charge you Fees which is apparently why many Americans refuse to be banked The fifth claim is that cryptocurrency Can improve the financial infrastructure Of the United States the authors Highlight the fact that all crypto Transactions are publicly viewable and There's no need to trust Network Participants they also highlight the Potential for smart contracts to replace Intermediaries This ties into the third section of the Crypto chapter which is titled quote the Reality of crypto assets as if it's the US government that determines what's Real and what's not the first reality is That cryptocurrencies are not good Investments because they are too Volatile due to having no actual value The authors then scold Fidelity for Allowing its clients to invest in BTC Through their retirement plans they Claim that BTC isn't an inflation hedge Because its value has come down while Inflation has gone up the authors fail To mention that BTC is a hedge against Money creation not supply-side price Shocks the second supposed reality is

That cryptocurrency does not perform the Functions of money for those unfamiliar The three functions of money are as a Unit of account a medium of exchange and A store of value the authors go on to Detail why it is that crypto doesn't Meet these criteria and why the US Dollar is better what they fail to Mention is that even though Cryptocurrency doesn't perform the Function of money today it doesn't mean That it won't tomorrow consider that El Salvador made BTC legal tender and that Iran is reportedly using BTC for Cross-border trade they are the first of Many many countries to come now the Third reality is that stable coins can Be subject to bank runs in case you Didn't know most stable coins in Circulation are backed by U.S bonds AKA Government dead not actual US dollars If the value of these U.S bonds goes Down to much stablecoin issuers may not Be able to honor all withdrawals as such It's possible that a stablecoin could Lose its Peg if everyone rushes to Redeem their stable coins for USD The authors claim that there is a Precedent for this run risk with money Market funds which are analogous to Stable coins money market funds Experienced runs in 2008 and in 2020. After trashing terror's UST the authors Make a good point and that's that most

Retail crypto holders in the USA can't Redeem their stable coins for USD as Such it's possible that retail investors Won't be able to sell their stable coins But this is unlikely as institutions Will buy from them because they can Redeem this is essentially what happened When usdc depict you can learn more About what happened there using the link In the description I digress Now the fourth so-called reality is that Cryptocurrencies can be harmful to Consumers and investors the authors say This is because crypto companies and Projects aren't compliant with existing Regulations They fail to mention that clear crypto Regulation in the United States is Lacking and Regulators are out for blood They also take issue with the so-called Vertical integration of products and Services offered by cryptocurrency Exchanges In plain English cryptocurrency Exchanges play multiple roles all at Once this is illegal in the traditional Financial system and the authors claim That this results in FTX type scenarios They fail to mention that FTX co-founder Sam bankman freed was meeting regularly With U.S regulators and members of the Biden Administration heck he was one of The largest donors to the Biden campaign In 2020 and was planning on spending

Billions more he was literally their guy Anyhow the fifth reality is that Distributed Ledger Technologies like Blockchain have had limited economic Benefits the authors invoke an expert Who claims that blockchains are neither Decentralized nor trustless and even Invoke criticisms by signal founder Moxie Merlin Spike which is a bit scary Note that signal is a privacy focused Messaging app sounds like the Biden Administration of fans The authors also conceded that Blockchain is appropriate for supply Chain tracking and even gave a shout out To helium a crypto project building a Peer-to-peer internet this shout out Wasn't all sunshine and rainbows though They noted Alameda research's investment In the project and its lack of usage Funnily enough the authors go on to talk About the risks of financial Innovation And claim that the crypto Market is just A big old bubble waiting to burst They also explain that systemic Financial crises are a great way of Introducing stricter regulations which Is which is seriously concerning given The circumstances That said the authors believe that a Systemic financial crisis hasn't Occurred because of crypto yet they say This is because the crypto industry Isn't fully integrated with the

Traditional Financial system the Author's call on U.S politicians to make Sure strict regulations are rolled out Before this happens the authors then Provide a laundry list of other risks Associated with cryptocurrency including Leveraged trading price volatility Illicit Financial activity and Ransomware in other words essentially The same risks that regular currencies Have There are only a few things worth noting From this section the authors say that Defy should be subject to the same Regulations as Banks they say that Banks Should not be allowed to custody Cryptocurrencies they say that all Crypto transactions should be connected To your personal identity they also seem To claim that crypto is causing Ransomware attacks This all relates to the next section of The crypto chapter which is titled quote Investing in the nation's digital Financial infrastructure the authors Reiterate that crypto hasn't delivered On its promises but the FED is here to Deliver with its fed now payment system And eventually with its own digital Dollar now if you watched our video About the takedown of Signature Bank You'll know it appears that U.S Regulators have been explicitly Targeting crypto companies and projects

That were building payments networks Which could become competitors too fed Now which will be fully operational by July the author's flaunt fednow's Ability to settle payments instantly 24 7 and calculate that it will save Americans seven billion dollars in Banking fees that result from payment Delays via other methods they also Reveal that the FED has been working With banks to make fed now interoperable With other methods and not only that but The authors reveal that fed now quote Addresses the issues that some have Raised about the need for a cbdc as per A Fed official this is consistent with Comments from the bank for international Settlements or bis which said fast Payment systems like fed now are Analogous to cbdc's speaking of which The final part of the crypto section is About cbdc's The authors claimed that a cbdc system Consists of three things the cbdc itself The public and private sector entities That are involved in its issuance and Transfer and the laws and regulations Which allow for such a cbdc system to Operate As some of you will know there are two Types of cbdcs wholesale cbdcs which Will be used by select individuals and Institutions and Retail cbdcs which will Be used by US plebs

What's crazy is that the authors note There will be overlap between retail and Wholesale functionality as per the U.S Treasury Department this is crazy Because the cbdc reports we've Summarized on the channel have long Suggested that wholesale cbdcs will be Used by the elites and Retail cbdcs will Be used by everyone else the comments From the U.S treasury Department Underscore the likelihood of this Outcome The authors also reveal that the Upcoming digital dollar will not be Based on any kind of blockchain Technology it will be completely and Centrally controlled by the Fed They go as far as to claim that the Digital dollar will be permissionless to Use which is ridiculous and almost Certainly false Following a short discussion of the pros And cons of cbdc's the authors applaud The Biden administration's cbdc policy Objectives which were published last September and they conclude the crypto Chapter by saying that crypto brings Risks whereas fed now and cbdc's bring Opportunities they also claim that Crypto does not require specific Regulation and just needs to come into Compliance with agencies like the SEC And finally they say quote Parts of the crypto asset space require

Coordination by various agencies and Deliberation about how to address the Risks they pose in other words get to it All of which brings me to the big Question and that's what all of this Means for the crypto Market well the Answer is as clear as day the current Administration is not a fan of Cryptocurrency whatsoever and wants to Ensure it remains isolated from the Traditional Financial system hence Operation choke point two If you watched our video about operation Choke point 2 you'll note that it Consists of cutting off the crypto Industries access to the U.S banking System you'll know that it's being Orchestrated by Democrat politicians and Could therefore last until after the Next election assuming of course a Republican victory in 2024 given that The current Administration sees the Crypto industry as a competitor to Payment systems like fednow and cbdc's It's safe to assume that the worst of The crypto Crackdown will come before Fed now is rolled out in July So far it's been crypto companies and Crypto Banks all that's left are crypto Projects stable coins are likely at the Top of The Hit List given that they are De facto digital dollars it's possible That smart contract cryptocurrencies Which support these stable coins will be

Caught in the crossfire considering that They are de facto Payment Systems now I Can't say which ones because I don't Know For what it's worth though in the Conclusion to the crypto chapter the Authors note that quote some crypto Assets appear to be here to stay this Suggests that the US government is aware That it can't kill every single crypto Project and some will be allowed to live BTC is the most likely to live given its Size and admittedly volatile price for Everything below Bitcoin Things become a Bit more uncertain whether a crypto Project can survive a regulatory Crackdown ultimately depends on how Decentralized it is Even though cryptocurrencies like Ethereum are decentralized at the Blockchain layer elements of their Infrastructure are centralized the Elephants in the room here are the node Hosting services like infuria which have A history of blocking users from certain Regions to comply with regulations Usually sanctions thankfully there are Alternatives to services like infuria And the applications which leverage them At least for ethereum even so I could See a scenario where Regulators apply Pressure to these centralized services To achieve compliance from the otherwise Decentralized elements of the crypto

Industry now the Silver Lining to this Would be that it would force Cryptocurrencies to decentralize from Top to bottom which is very important Make no mistake without top to bottom Decentralization there is no Financial Freedom that's because if even just some Of a cryptocurrency's infrastructure is Centralized it makes it possible for a Third party to do things like block Transactions this puts such a Cryptocurrency on the same Spectrum as a Cbdc The truth is that most cryptocurrencies Have more in common with cbdc's than BTC And that's something which needs to Change ideally this would happen without A regulatory Crackdown but maybe that's What's needed to reverse the concerning Trend towards centralization in crypto Otherwise we could end up with a crypto Industry that looks no different from Cbdc's the only difference will be that These systems are controlled by Ideological investors instead of Ideological politicians neither of these Two is ideal and my dream is that crypto Will eventually replace them both it all Starts with understanding what Decentralization is and making sure that It's achieved in every single crypto Project and protocol you can learn more About that using the link in the Description

And that is all for today folks so if You enjoyed the video please do take a Second to smash that like button Subscribe to the channel and ping that Notification Bell so you don't miss the Next one If you thought the info in today's video Was important consider sharing it with Someone who you think should see it and If you want to support the channel while Saving money check out the coin Bureau Deals page to get discounts on Hardware Wallets thousands of dollars of trading Incentives on the top cryptocurrency Exchanges and stylish crypto merch made By the coin Bureau link will of course Be in the description thank you all so Much for watching and I will see you Next time Adiosen au revoir goodbye [Music]

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