It is estimated that it took about 25 years from the invention of vehicles for humans to transition from horses to vehicles, particularly automobiles, as the main form of transportation. This transition took that long due to the high cost of making automobiles in the 19th century, making them a luxury item for the wealthy and enthusiasts. This parallels the beginning of cryptocurrency, which initially appealed to the wealthy and enthusiasts. Those who had invested in cryptocurrency in its early stages have reaped their rewards. In 2009, 1 Bitcoin was $0.0009, and as of April 2024, 1 Bitcoin is $64,615, representing about a 20,000% increase before the Bitcoin halving. Cryptocurrency is now at its 15-year mark.
The banking industry sees cryptocurrency as a disruptive force and has taken measures to stop, restrict, and block transactions related to cryptocurrency, continuing to do so but in a limited manner. Under the guise of trust and security, banks aim to protect their clients from the volatility of cryptocurrency, which they classify as alternative or high-risk assets. In the early stages, some banks went as far as to enforce account closures for customers engaging in cryptocurrency. Such actions are outrageous at best; the banking industry appears self-serving and self-preserving at the expense of technological progress, clearly not acting in the best interests of their clients.
The banking and financial executives whom I talked to always made the bold claim that cryptocurrency is backed by nothing, which is hilarious to me because fiat is backed by nothing but the confidence of the government that issued the currency, confidence essentially worth nothing. Confidence in governments is low, as low as the trust and confidence one gets from mainstream media funded by big pharma, the same mainstream media that reported the lie about two shots of COVID vaccines having a 95% efficacy, which was revealed by the US Congress to be false. The big pharma companies selling the vaccines did not even test for efficacy.
Cryptocurrency is not merely an asset; it is an ecosystem backed by computational power. This stands in contrast to the claims of banking and financial executives who classify it merely as an alternative or high-risk asset. Banks and current financial institutions have vested interests in portraying cryptocurrency as unstable or highly volatile. Due to the lack of regulation in the decentralized cryptocurrency ecosystem, it becomes a breeding ground for various forms of market manipulation. This is where I will argue that banks and financial institutions are the main culprits.
Firstly, traditional banking models persist in protecting themselves, despite the awareness that they have overstayed their welcome. They maintain a chokehold on the global ecosystem, with many less developed countries fully embracing the dollar milkshake theory through dollarization. Local currencies are only used in domestic transactions, with the USD being the preferred currency. It is very common for tourists to pay for goods and services in USD. While I support the USA, the banking and financial industry has overstayed its welcome through policy regulations, market manipulations, and misinformation. Banks have discouraged individuals and institutions from moving their funds away from the traditional banking system, thus protecting their existing business models and maintaining the monopoly of the US dollar.
The US dollar is widely utilized in global trades and transactions, serving as the primary reserve currency since the end of World War II. Its high global demand stems from its perception as a more stable and reliable currency for storing value compared to local currencies. Developing countries often face power struggles due to political instability arising from conflicts between political factions, foreign interference, and military conflicts. These three main destabilization factors perpetuate the cycle of US dollar dominance in developing countries.
It is in the interest of nations, banks, and financial institutions to hold onto US dollars, especially during a recession or periods of shifting power. Banks operate within a regulated environment, with regulations often influenced through lobbying efforts by banks and financial institutions themselves. These regulations are presented under the guise of risk management and consumer protection. However, certain entities view cryptocurrency as a competitive threat. It is reasonable to assume that the current regulations imposed on cryptocurrency are likely influenced by the same bad actors feeling threatened by it.
The downfall of the banking and financial industry is both inevitable and necessary for humanity's progress. They have demonstrated moral incomprehensibility and consistently failed to act in the best interests of humanity. The current state of the financial and banking industry reminds me of an era when horses were the primary mode of transport, leaving feces scattered across roads. They would bring in more horses to clear it, perpetuating the cycle with even more feces, unsustainable, filthy, and incorrigible.