Introduction
The EU is working fast and furiously to introduce their new digital Euro (see here). I have maintained since 2019 (see here) that the elites’ plan has always been to introduce a digital currency. Control of money is powerful, and issuing a centralised digital currency worldwide would take their power to a whole new level. With a centralised digital currency, it would be possible to confiscate digital money from people immediately. Imagine it aligned with a social credit score similar to that available in China; one wrong move, and whoops, account deleted!

Will they tell you about their ultimate strategy on day one, though? Oh no, no, no, of course they won’t! The powers that be will quietly introduce a digital currency as the solution to all of our problems, but the moment we are comfortable with it, things will change. If you watch history, you will notice this time and time again. To highlight this, I focus heavily on history in my newsletters. Understanding history allows us to see where we have been and analyse our mistakes. With this knowledge, hopefully, we can avoid similar pitfalls in the future.
Bitcoin vs the Legacy Financial System
In his white paper, Satoshi Nakamoto stated that he initially designed Bitcoin as a new form of digital cash. By being decentralised, Bitcoin has the potential to disrupt the elites’ centralised plans. I explain more about this in my book – Truth Decay – How Bitcoin Fixes This.
However, much of the current discussion involves using Bitcoin as a digital gold in the US strategic reserve to ‘back’ the dollar. As I will explain in this newsletter, this is unlikely to work and will likely backfire spectacularly.
Many champion the use of gold as the best form of money because people have used it as such for 3000 years. However, gold has not been the only source of money. In the 1600s and 1700s, silver was the primary currency in Europe, and part of the British Empire’s legacy was to change this from silver to gold. Indeed, as I have outlined in my previous newsletters, this strategy played a significant role in the British Empire obtaining its power.
Banking Networks
Groups of businessmen established banking networks during the 1800s, and trade became more efficient using paper contracts and banknotes. People learned to trust banks to store their wealth in gold and silver and use banknotes to trade. It took a long time for people to fully trust that their money was safe with the banks, though, so this was a gradual process. It took time to reassure the population that they wouldn’t lose their money by trusting the banks.

Nevertheless, some banking failures were inevitable. Bank failures devastated those who had stored their money with the banks, and this has been an ongoing political issue ever since.
In these circumstances, many turn to the government for justice. They want them to rectify the situation, as was observed most powerfully in the recent past with the 2008 financial crisis.
Bank Failures
During the 1800s, the British government formalised legislation concerning joint stock companies, which were the forerunners of our modern corporations (See Bitcoin and the Joint Stock Company). These laws made companies independent entities in their own right and created a structure whereby their owners were somewhat protected from liability if the individual companies failed. So, what identity did most of these banks have?

You guessed it, they were companies granted limited liability through these laws. Banking failures destroyed many livelihoods during this period, while their owners lived on relatively unscathed to try again another day.
Centralising the Banks
Nevertheless, the fallout from banking failures wounded a bank’s reputation, so it was best to avoid them if possible. To prevent this, banks increasingly cooperated, providing collateral behind the scenes when others were in trouble. This process was formalised by America when they introduced the Federal Reserve Act in 1913.
This cooperation of the banks made it easier for them to manipulate the money supply (number of banknotes in circulation) relative to the amount of gold held in the banks.
The strategy of manipulating the number of banknotes in circulation relative to the amount of gold in the bank had a successful historical precedent. Britain craftily won the Napoleonic Wars under the British Empire by manipulating the British pound against its gold holdings (see Bitcoin and inflation).

This newly formalised cooperation had a direct consequence when the First World War broke out. During the War, those who remembered how Britain succeeded in the Napoleonic Wars rapidly abandoned their gold standards to fund the Great War. A war with an unlimited budget led to profound devastation and huge problems with Europe’s currencies once the war was over.
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The Gold Standard and its Legacy
Traditionally, in the past, when countries won a war, the loser paid an indemnity to the winner. In the case of the First World War, though, this indemnity was so large that Germany, the loser, had no hope of repaying it. As they had also abandoned their gold standard to fight the war, they continued to attempt to manipulate their currency to pay their debt, leading to the Weimar Hyperinflation.
At this time, Britain was still the chief administrator of the world’s currency, thanks to the legacy of the British Empire; this meant that the Weimar Hyperinflation was likely to become a problem for them if they didn’t act. In 1925, Winston Churchill was the Chancellor of the Exchequer in Britain, and in this role, he introduced the Gold Exchange Act. With this Act, he revalued the British Pound to the same level as before the Great War, even though there was still a massive excess of currency units (banknotes) in the economy. To overcome this and to prevent people from recognising the disparity in their daily lives and sparking a rush of people running to the banks to exchange their pound notes for real gold. He also withdrew gold coins from circulation, stating that only countries should exchange gold bullion with each other.

The 1925 Gold Exchange Act was a hugely impactful and treacherous decision for the population because gold circulating as a currency allowed people to see how gold was changing value in the economy. Before 1925, it was still possible to take banknotes to a bank and have them exchanged for gold, even though people rarely did this. The Gold Exchange Act changed all that.
Gold as a Currency
Currency is the money we use to trade with each other, and for trade to be fair, our currency needs to be honest. When we used to trade gold and silver coins, the value exchanged could be verified by the quality of the coins. The disadvantage of gold, though, is that it is heavy. Ultimately, this led to people storing their gold and silver in banks, where the banks verified the precious metals they held using paper banknotes.
Government Borrowing
The problem today is that these banknotes have become corrupted. Since Winston Churchill removed gold from circulation in the everyday economy, banks and governments have been able to ‘manage’ the value of their currencies. Often, the value of a currency depends on how much money a government borrows and how well it can pay it back. So, these days, our banknotes are essentially vouchers issued by the government that we use to buy and sell to each other. Due to the amount of debt owed by multiple governments worldwide, there is now hardly anything substantial behind them.

Today, as we exchange pound notes or dollars daily, their ultimate value consistently changes behind the scenes based on how much our government borrows. Our existing debt bubble is a problem because it reflects how our money has become devalued. For every banknote currently in circulation, multiples of debts are secured on that banknote. Economists may argue that this structure allows us to pay for our welfare systems and ensure that no one loses out due to a bank failure or, more recently, the harmful effects of the pandemic outbreak. Still, in reality, all of these benefits are paid for by stealing value from the bank notes in circulation.
The Case for Bitcoin
While many propose using Bitcoin to protect the dollar in the strategic reserve, the two forms of money could not be more different. The dollar currently derives its value from the amount of debt it supports, while Bitcoin is a currency whose supply cannot be changed. Its properties make it virtually impossible to manipulate in and of itself, although it is possible to manipulate its price in the current financial market through speculative trading.
Companies are now using debt secured against the success of their companies to buy Bitcoin, inspired by Michael Saylor, the owner of the company Microstrategy, and this debt contributes to the debt bubble that is currently destroying the dollar.
Bitcoin & Poverty
I have spoken on the relationship of Bitcoin to poverty before; see the video below. The way our current financial system operates, elaborate market mechanisms that use debt and derivatives create a two-tier society where those who understand how to use it can make a killing—still, those who do not descend into ever greater poverty levels without ever understanding why.
The importance of gold in our financial system is that it is meant to keep our money honest, but derivatives of gold now also contribute to our debt problem and will continue to do so. It is difficult for people to reclaim their gold and hold it in their own possession, so very few people do so, allowing the currency games to continue. On the other hand, Bitcoin is much easier to hold in their possession as long as they don’t rely on keeping it in the new exchange-traded funds. Much depends on people’s understanding and willingness to do this, however.
Conclusion
Gold is a poor form of currency because it is impractical to exchange daily. It is heavy, difficult to divide into ever-smaller pieces, and can be combined with other metals, so it is hard for the average businessperson to verify as real gold. Bitcoin is different because it is light and held on computer devices. Bitcoin can divide infinitely and be verified immediately during the exchange. These properties are game-changers regarding Bitcoin’s potential as a valuable currency.
In addition, no individual can change the cap on the number of Bitcoins created. Bitcoin’s features give it economic properties similar to gold. It is impossible to manipulate as technology and relatively easy for the average person to store, immediately limiting the craziness of our current financial system. It also limits the power of governments (see Bitcoin & Politics) because the superior properties of Bitcoin will ultimately supersede the dollar and return the power of money to the people, giving the average person the opportunity to become prosperous again.
Until next time, enthusiasts!
Victoria
Bitcoin for Corporations
With my latest appearance on the World Crypto Network, we discuss companies buying Bitcoin to add to their balance sheets as a Strategic Reserve.
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