The Bitcoin neighborhood is at the moment debating whether or not the U.S. authorities would possibly crack down on BTC much like the historic gold confiscation incident in 1933, an incident now ominously referred to as “6102” within the cryptocurrency neighborhood. BTC Media CEO David Bailey thrust the dialog into the highlight when he made a sequence of predictions on X (previously Twitter), suggesting that america might take comparable measures towards Bitcoin throughout the subsequent six years.
Bailey’s Bitcoin Prediction: Path to Gold Parity and Panic
Bailey’s theory Will depend on a sequence of financial and market developments beginning with Bitcoin reaching parity with gold. Bailey mentioned this milestone would see BTC’s market valuation soar to roughly $13 trillion. He believes that such an occasion wouldn’t solely affirm Bitcoin’s standing as a serious asset class, but in addition set off a domino impact within the international monetary system.
“Within the subsequent 6 years, Bitcoin will attain parity with gold (which I really assume we are going to surpass within the subsequent cycle).” Bailey asserted, outlining the idea for his speculation. He expects Bitcoin’s surge in worth to be a catalyst for widespread financial affect. “[It] moved by the financial system and capital markets by large credit score growth and accelerated shopper spending,” Bailey claimed.
Nevertheless, the important second got here with a market correction – the “75% retracement” that noticed greater than $8 trillion in collateral worth disappear. Bailey believes such catastrophic losses will set off a credit score crunch and widespread asset liquidations, echoing the devastating results of historic market crashes however on a scale beforehand unimaginable.
He additional predicted that the federal authorities’s response to the following monetary chaos can be to enact measures much like the 1933 gold confiscation order, however tailored for the digital age. Central to this course of is the nationalization of Bitcoin custodians akin to Coinbase, successfully changing privately held BTC into federal belongings.
Bailey defined:
As soon as they Bitcoinize, they nationalize central custodians like Coinbase and pay customers a hard and fast sum of money per Bitcoin. Coinbase’s Bitcoin will grow to be an asset held by the Federal Reserve in its digital equal at Fort Knox.
He believes that this transfer won’t solely deprive Bitcoin holders of their belongings, but in addition centralize the initially designed decentralized belongings with the help of a secure monetary system.
Penalties and Federal Authorities Response
Bailey foresees a federal narrative that casts Bitcoin and its meteoric rise because the wrongdoer behind monetary instability, justifying draconian measures. “They may say we brought on the collapse, which isn’t totally unsuitable … it is simply that we weren’t the trigger, we have been the results of their very own financial coverage,” he mentioned, highlighting what may be seen as an excuse of misattribution. Take complete regulatory motion.
In Bailey’s view, the results of such a crackdown won’t solely redefine the panorama of cryptocurrency possession and regulation, but in addition mark a important second within the battle between decentralized digital currencies and conventional fiat forex techniques. He believes that this battle is way from a easy energy battle, however a last-ditch effort by the federal government to keep up management of a monetary system threatened by the rise of BTC.
“That’s why that is actually over the road, and they’d solely do it if they’d no selection however to break down the system. Bailey claimed that an eventual collapse of confidence within the U.S. greenback can be vital for Bitcoin to be elevated to order standing.
He additional added:
To be clear, I feel Bitcoin 6102 may be very bullish. This can be a important second in Bitcoin’s journey to changing into humanity’s reserve worth system. This isn’t excellent news for many who have misplaced their Bitcoin. Do not be these individuals.
Bailey’s concept sparked reactions throughout the crypto neighborhood. Bitcoin OG Tuur Demeester echo A temper of warning and preparedness: “It’s vital to be ready for this situation. Tried bans by governments are the following frontier for Bitcoin.”
Samson Mow agrees with the urgency of the scenario, emphasize“That is all taking place sooner than we thought. Gold parity and making an attempt 6102. Most Ache Concept. No time to arrange”, indicating the inevitable confrontation between Bitcoin and regulatory forces.
criticism and rebuttal
The thought of an imminent Order 6102 on Bitcoin will not be with out its critics. Vijay Boyapati presents extra optimistic viewbased mostly on authorized precedent: “There are respectable considerations that the custody focus led to by Bitcoin ETFs will enhance the danger of the 6102 incident. It must be famous that the Fifth Modification of america offers some authorized safety for this.”
Boyapati additional clarified, “The confiscation of gold in 1933 circumvented this safety as a result of the U.S. greenback was thought-about equal to gold, so the U.S. authorities might take individuals’s gold and provides them a paper promise in return. This isn’t the case with Bitcoin. . ”
At press time, BTC was buying and selling at $51,869.
Featured picture created with DALL·E, chart from TradingView.com
