The crypto and banking industries seem to be going wild because Silvergate went under. Here are a few words of caution.
This is the beginning. The first move a wise warrior makes is to take out his or her opponents’ infrastructure, reputations, and turns the law in favor of the planned replacements. Note: The vast majority of all Central Banks / Nations are working on CBDCs.
Second, Silvergate had to sell short term treasury notes below market value. That means the “most secure” asset on earth was a liability when the bank run started. No one is talking about that. It seems the Fed is operating at a loss right now. Dangerous stuff.
If you are an owner of Bitcoin (BTC), you should know that +93% of all Bitcoin has been mined. Given that less than 3% of the world owns BTC you are the “new” suppliers now, not the miners!
One more time. You are the new suppliers of BTC. Exchanges and banks have started to fail. BTC transactional fees were always meant to replace miner’s block rewards, but it isn't happening yet. The exchanges liquidity will dry up if the “HODL” mentality continues. The thought leaders, developers, and miners need to change course in a hurry.
If you HODL all of your BTC during this transitional phase, BTC will get reduced to a footnote as central bank digital currencies (CBDC) take the place of most of the crypto market. The level of control will be unprecedented.
Silvergate’s collapse wasn't the worst of this banking situation. The loss of the SEN network is the worst part. It enabled trading 24/7 and was the bridge to TradeFi. The SEN is likely to become an acquisition by a member bank of the US Fed which sets conditions for the entire crypto community market to get hijacked (for lack of better expression).
- The ability to trade crypto 24/7 is in question.
- The ability to make a profit staking, yield farming etc. is now in question.
- DeFi will continue on after the best developers and companies get poached.
- The IBS, IMF, and Feds of the world have laid out their intent in my opinion.
Hopefully, no one believed traditional banks were going to stand by and watch trillions of dollars in business melt away. I didn't, not by a long shot.
In fact, well played. While everyone is screaming second largest bank failure ever and HODL, they missed the fact that short-term treasuries were held in reserve and had to be sold below market value (from what I understand). BIG RED FLAG.
Read this carefully. Bitcoin must proliferate to survive. The ecosystem must grow or it will be reduced to almost nothing.
This is my 11ish year waiting with peanuts and popcorn to see what happens. There is no doubt that Fiat currencies are failing. The question is, “which currency will replace it” and does anyone believe they can sit back and do nothing with active and intelligent opponents on both sides?”
Change the mentality HODLers. Collaborate and win big.
Good day