Bitcoin: The Exits Are Closing

Bitcoin: The Exits Are Closing

this is Matthew crder from Bitcoin University today I’m going to make yet another video about the exits closing for Bitcoin this is something that I’ve been talking about at nauseum on this channel but it’s very very important to get the message out as we continue to see this develop so closing the exits what do I mean by this I mean governments and institutions hurting people into the spot Bitcoin ETFs and governments like this because when you’re in a spot Bitcoin ETF it’s impossible for you to withdraw the Bitcoin from it or to self- custody it or to use it as a peer-to-peer medium of exchange also the spot Bitcoin ETFs create these honeypots like the great honey poot at coinbase custody that governments can later seize in a 6102 type attack and this is what they’ll say when this happens even in the US don’t worry we’ll pay you the full value of your Bitcoin stash at coinbase at the price that we determine to be fair and free from Speculator influence in other words you’re going to get paid $200,000 for your spot bit coin ETF Redemption as they take the ETF away from you and give you US dollar cbdcs or other form of Fiat you get paid $200,000 while the Bitcoin itself is trading in the fair market for $500,000 per coin and they’ll give you this haircut saying well that’s just Speculator influence speculators attacking the US dollar so we’re paying you the fair value the other problem with this is once you lose your Bitcoin or your Bitcoin ETF your future upside and your inflation hedge is capped because you’re now stuck holding Fiat while the government is holding real Bitcoin this is exactly what FDR did with gold in the US in 1933 for people say that it can’t happen here and the Supreme Court went along with it and the Congress went along with it as well so that’s the first part part of closing the exits hurting people into spot Bitcoin ETFs and other Bitcoin IUS in forms of paper Bitcoin the second one is regulating and encouraging people and institutions to hold us treasuries also Al known as toxic sludge in the industry so that’s that’s how you close the exits you get people into the garbage and you try to make sure that they don’t get into real Bitcoin now what’s boiling the Frog boiling the frog is keeping the yield on those government bonds below the true rate of inflation and this is something that the FED can do through its monetary policy through interest rates and also through buying and selling treasuries on the open market keeping the yield on government bonds below the rate of inflation it’s called Financial repression it’s what the US did in the 1940s the 1950s to try to dig our way out of the huge amount of debt acred during World War II so this is a very common Playbook and in it the treasury the US Treasury and the FED uh collude in order to make this happen this financial repression happen what they’re doing is they’re trying to erode holders purchasing power which effectively accrues to the government which issued the debt while bringing down debt to GDP levels because you basically have uh inflation raising the size of the overall economy GDP and so the debt looks much smaller relative to the overall economy that surfaces it governments do not want people to self- custody Bitcoin as we said since it helps people hedge this very Financial repression also makes it impossible to seize the Bitcoin whenever they want to are the exits fully closed in the US in Europe and elsewhere I would say not even close and I think we can learn a lot from what’s been happening in Nigeria Nigeria at one point back in late 2022 was actually very friendly to bitcoin and crypto even saying they’re going to establish a special economic zone for Bitcoin companies and then a little later in 2022 Nigeria looking to legalize Bitcoin usage so they’re very friendly to bitcoin and then what happened is their currency collapsed especially against the dollar we can see this beginning to happen in 2022 and then it really happened in uh the middle of 2023 and it’s been continuing so as this chart moves down that’s the US dollar appreciating against the Nigerian naira this caused obviously a lot of local inflation food prices doubling in many cases which is very tragic for a country that is already fairly poor so what does the government do do they order their Central Bank to stop printing money of course not instead what they do is they block access to bitcoin exchanges and a desperate bid to control the price of the plummeting currency the Nigerian Communications Commission the telecoms regulator late on Wednesday ordered telecom companies to restrict consumer access to the websites of companies like buying finance coinbase and Kraken so trying to control the internet here bio onaa a special adviser president ubu accused binance on social media of blatantly setting the exchange rate for Nigeria and hijacking the Central Bank of Nigeria’s role as the main currency rate Setter quote crypto should be banned in our country or else this bleeding of our currency will continue unabated so obviously blaming uh blaming the crypto and Bitcoin investors rather and actually blaming the central Bankers as they should be if you’re find this video helpful so far I just ask you to help to support the channel click that subscribe button that really helps out the channel leave a like leave a comment and share this video with a friend or family member so who’s actually to blame for the nairos plummeting against other currencies and against Real goods and services basically as we said the Nigerian Central Bank printed up too much money this diluted the purchasing power of existing money the value of that money then Falls against other Fiat currencies that have slower money printers like the US dollar for example and then what central banks do is they seek to deflect the blame by blaming quote unquote speculators instead in this case blaming Bitcoin and crypto investors as well as exchanges like binance and Nigerian authorities went as far as actually issuing an arrest warrant uh for the local CEO of binance you often hear this in the Bitcoin space Bitcoin is just too complicated for the average person to ever adopt but what we’re seeing in Nigeria is something very diff different this is a country where the average years of schooling is only s years of schooling and yet this local currency crisis is fueling Bitcoin adoption and people are learning how to use Bitcoin because they really have no choice and there’s no better teacher than necessity so what is the Nigerian government do when it sees the people rushing for the exits into Bitcoin like this it then tries to close the exits even more tightly it already tried to close the exchanges but now it’s in the process of wanting to ban peer-to-peer exchange so we went from wanting to EST abl Lish a special economic zone for Bitcoin to trying to ban peer-to-peer Bitcoin uh sending transactions as a national security issue here’s the reality though you cannot ban the P2P exchange of anything whether it’s guns or pot or Bitcoin or anything else that people want and if it’s a purely digital good like Bitcoin it’s even more difficult to stop obviously you can make examples out of people you can throw people in jail you can attack individual bitcoiners but you cannot stop the peer-to-peer exchange of something that enough people want to exchange now as the US dollar continues to fail expect to see the exits be closed even more in the US I think Nigeria is just a few steps ahead of us down the path they obviously don’t have the same constitutional protections of private property that Americans have but in a real crisis as we saw in executive order 6102 in 1933 the Constitution gets thrown out the government steals your money in the Supreme Court does nothing to enforce constitutional rights so expect the exits to be closed even more in the US expect exchanges to limit the Fiat value of Bitcoin that you can withdraw over a period of time so let’s say a few months back you bought one Bitcoin for $30,000 fast forward a couple years it’s now worth a million dollars per coin thanks to the US dollar imploding as well as increased Global Bitcoin adoption what happens if under government pressure coinbase where you bought the Bitcoin and you just left it on coinbase because you didn’t follow the advice not your keys not your coins what happens if coinbase under government pressure lowers their monthly withdrawal limit to $5,000 it will now take you over 16 years to withdraw your Bitcoin to self- custody because it’s now worth a million dollars or maybe coinbase says that you can no longer send Bitcoin to yourself or any other unregistered person because you might be money laundering or doing something bad or because you’re a Speculator by doing that you’re launching an attack on the US dollar instead coinbase says that you can only spend your Bitcoin your coinbase Bitcoin at government approved online retailers like apple and Amazon so this is why it’s so important to take your Bitcoin into self- custody today while it’s still very easy to do so you can download the sparrow wallet for desktop or laptop I’ll link to this video in the description notes below and then you can use that to pair it with a hardware wallet like the cold card which is my favorite it’s a little bit more expensive or the blockstream Jade which is also a very good wallet a little less expensive it looks like the exits already beginning to close in terms of the travel rule in various parts of the world here’s a tweet from uh Adel Gary first time I’m seeing this I don’t like it at all get your Bitcoin off exchanges before they close the exits and what we can see here this is from bitfinex he says and they’re basically making you fill out this questionnaire before you will be allowed to send your own Bitcoin to yourself and you have to you have to tell them who the beneficiary is ETC so this is what’s coming it’s going to get worse and worse and worse at this at some point you may not even be able to withdraw to self custody this is something I talked about late last year in this video quote unquote bitcoiners caused the inflation and in that video I discussed a future scenario where governments and Central Bankers attempt to blame bitcoiners for the inflation exactly as they’re doing in Nigeria today blaming bitcoiners for the inflation and currency devaluation that was actually caused by the Central Bank monetizing government deficit spending I think we’re headed to a similar place to where Nigeria is today it’s going to take us a little bit longer to get there uh the US dollar is not quite a a ship coin as the Nigerian NAA it’s really the the least leaky ship among all the Leaky ships but we will get there and unfortunately the US dollar will hyperinflate at the end of its life as every fiat currency does so this is why it’s very important not just to own Bitcoin at coinbase or in the ETF but to actually self- custody it yourself on a hardware wallet if you enjoyed this video be sure to hit the subscribe subscribe and like buttons hit the notification Bell if you want to be notified when I publish my next video and let me know your questions and comments in the comment section below thanks all for watching and I’ll see you in the next video

Join the private Bitcoin forum:
https://www.bitcoinuniversity.com/bitcoin-forum

In this video, I discuss how the Nigerian government and central bank have increasingly sought to prevent Nigerians from escaping from the naira into Bitcoin.

In addition to blaming “speculators” and “crypto investors” for the naira’s collapse (which can be attributed rather to Nigerian central bank money printing), the Nigerian government is now seeking to prevent p2p Bitcoin transactions, which is clearly impossible.

We can expect something similar to happen in the US, as the US dollar continues to lose purchasing power and people seek to exit the fiat system into Bitcoin.

Holding a spot Bitcoin ETF or leaving your BTC on an exchange will not provide the same protections against monetary debasement and confiscation.

For this reason, it is very important to buy real BTC and hold it on a hardware wallet.

Learn to use the tools today, before the exits have been completely closed.

Not investment advice! Consult a financial advisor.

Nigeria used to be more pro-BTC:
https://bitcoinmagazine.com/business/nigeria-binance-partner-for-economic-zone-in-west-africa
https://bitcoinmagazine.com/legal/nigeria-looking-to-legalize-bitcoin

Food price inflation in Nigeria:
https://www.bloomberg.com/news/articles/2024-02-27/nigeria-s-top-rice-dish-doubles-in-cost-as-inflation-hits-home

Nigeria Blocks Access to Bitcoin Exchanges:
https://www.nobsbitcoin.com/nigeria-blocks-access-to-bitcoin-exchanges-in-attempt-to-save-plummeting-national-currency/

Nigerian Authorities Blame Binance for 70% Naira Devaluation, Move to Issue Arrest Warrant Against CEO:
https://www.nobsbitcoin.com/nigeria-binance-p2p-standoff/

The Naira Crisis Is Fueling Bitcoin Adoption In Nigeria:
https://www.nobsbitcoin.com/the-naira-crisis-is-fueling-bitcoin-adoption/

P2P crypto ban imminent as Nigeria calls crypto a national security issue:

Exclusive: P2P crypto ban imminent as Nigeria calls crypto a national security issue

My Favorite Bitcoin Desktop Software (Sparrow Wallet):

Coldcard hardware wallet:
https://coldcard.com/

Blockstream Jade hardware wallet:
https://blockstream.com/jade/

The exits are closing:

First time I'm seeing this. I don't like it at all.

Get your bitcoin off exchanges before they close the exits. pic.twitter.com/b8m18sVLCP

— Adelgary (@Adelgary) May 3, 2024

“Bitcoiners Caused The Inflation”:

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos. My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#Bitcoin
#Nigeria

Disclaimer
Neither Bitcoin University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisors, registered investment advisors, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video, on this YouTube channel, or at www.Trader.University or www.BitcoinUniversity.com (henceforth, “the Sites”) should be construed as such by you. This video, channel, and the Sites should be used as educational tools only and are not replacements for professional investment advice. Trading or investing in new and volatile assets like Bitcoin can be risky.