Secretary of the Treasury Scott Bessent (portrait pic below) was asked the other day by a congressman if crypto was going to be bailed out, and it ended in a shouting match. The biggest bitcoin booster, Michael Saylor, is now deep underwater, as the crypto industry has been loaned hundreds of billions of dollars which they clearly won’t be able to repay. The issue has always been– will crypto be eligible for a taxpayer bailout when doomsday comes?
Here it is spilling out in the public arena after being discussed intensely behind closed doors. Since I last published, bitcoin has crashed & “recovered”– again. Banks have kept loaning to crypto up to this point, but it’s getting tougher to justify. This is the crisis which now imperils the entire capitalist set-up.
Bitcoin has “stabilized” again, let me explain how & why. First, peruse the reader comments to financial articles that discuss Scott Bessent and a possible taxpayer crypto bailout. They’re all negative– no bailout. These are people with money commenting, and none of them have an appetite for crypto. But bitcoin “bounced” again, so obviously the banks have quietly loaned Michael Saylor, etc, more money in another foolish attempt to re-inflate the bubble.
The music is still playing, but for how long? Trump tariffs & crypto are killing the US dollar with inflation. Tariffs make goods more expensive, while crypto (fake money) dilutes the dollar’s value when it is extensively invested-in by the US financial system. Warren Buffet said crypto is “rat poison,” and this is how it works.
Here’s an interesting post from an industry expert who has researched the latest bitcoin crash. In short, analysts now say derivatives are setting the bitcoin price. As liquidations pile up, questions are growing over how much Wall Street is manipulating bitcoin’s price. Recall that bitcoin was originally hyped by Libertarian money-nerds as “deregulated finance,” outside of government & Wall Street control. Today, all the premises underlying bitcoin (including finite supply) have been dispelled by capitalist machinations. For the original Kool-Aid drinkers, the crypto pitcher has run dry, and all that remains for them is a nasty hangover.
Of the $2.6B liquidated in the latest bitcoin crash, $2.1B came from liquidated long bets. “Long” means you bet the market would go up. Derivative short-sellers have been cleaning-up since 10-10-25, which was four months ago when Trump announced 100% tariffs on Chinese exports. Bitcoin started crashing from its $126,000 all-time high. Trump was forced to walk back that threat, but bitcoin kept falling and currently is at ~ $69K, after falling to $60K just two days ago. That cleaned-out all the long-bet suckers (again) down to $60K, and now it has been pumped up a bit and rests at just under $70K. It’s amazing how these crypto price levels magically hold & fluctuate.
Hypothetical question: What are the futures for an “asset” that has no legitimate use value?
Bitcoin is useless in the legitimate market because it is valued in dollars or some other fiat. You may as well just pay for what you need with a dollar, instead of crypto. Most legitimate institutions don’t take crypto because they have no good reason to. ANY illegitimate & criminal organization with any ambition deals in crypto– from the CIA/MI5 & Al Qaeda/ISIS to online scammers & wrench hack kidnappers.
The high profile kidnapping of Nancy Guthrie, mother of Today show host Savannah Guthrie, reveals the actual use value of bitcoin. Apparently, the kidnappers are demanding payment in bitcoin, because it is online anonymous & virtually untraceable. The image below of the ransom demand sent to a local news station is blurry, just like everything else bitcoin is involved in.
Large bitcoin holders are targets for abduction, as they are often tortured into revealing the key codes to their virtual wallets. This is known as a “wrench hack,” because all that is needed is a wrench to beat the victim into submission. Bitcoin/crypto is intimately linked with these forms of criminal activity, and this is being under-reported in the mass media concerning Nancy Guthrie’s abduction.
We now learn from released documents that Jeffery Epstein was all over crypto from the start. Crypto links this entire corrupt nexus. The US government is now crypto fascist by definition. It’s how it operates behind-the-scenes, as crypto fascist is what the Trump administration intends to become in permanence.
What we can see from all this is that bitcoin has enabled a layer of crypto-criminals. Their activity ranges from online theft & kidnapping to Trump’s exploits in World Liberty Financial– his proprietary crypto exchange (founded in 2024) where he mints worthless Trump tokens and trades them for most established crypto such as bitcoin, along with any cash people will pay for his junk.
The consequences are to be paid by all of us who must endure higher prices with a dollar that is being devalued by crypto. Bitcoin does this by sucking-up money that could be better invested elsewhere, while undermining the value of fiat currency. Wall Street loans the money to crypto companies, then wins all its manipulated derivatives bets. That’s called getting paid on both ends, with the US taxpayers eventually being made to pay the bond holders & banks for all their losses on bad crypto loans.
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