Yellen rescued the market, Satoshi Nakamoto's genesis prophecy was retested, and Bitcoin rebounded strongly
Bitcoin rebounded sharply overnight, quickly rising from 20,000 knives by nearly 10 points, and returning to the line above 22k.
Eight Words "Buy the dip".
Buy ruthlessly when the crowd is FUD.
U.S. Treasury Secretary Yellen came to the rescue.
The U.S. Treasury Department’s Office of Public Affairs issued a joint statement from the Treasury, the Federal Reserve, and the FDIC[1]:
"Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer."
20230313-01 Figure: Joint statement
14 years ago, when Satoshi Nakamoto launched the Bitcoin network, he wrote the creation prophecy in the genesis block with a time stamp of January 3, 2009. This prophecy will last forever with Bitcoin:
"Chancellor on brink of second bailout for banks."
14 years later, on March 13, 2023, Treasury Secretary Yellen rescued the market, perfectly re-testing Satoshi Nakamoto's prophecy.
Note the key adjective in the creation prophecy: "second"!
Satoshi Nakamoto's prophecy did not come true once or twice, but again and again, again and again, until the dollar building collapsed.
This is a must-win for Bitcoin as traditional finance deleverages.
If the market is not rescued, the traditional market building will collapse. The painful lessons let people understand that Bitcoin is the safest currency that they own and never default.
Changing people's minds is a long-term win for Bitcoin.
Rescuing the market necessarily means injecting excess liquidity into the market. The entire market has risen, and among those who had a false alarm, there must be some people who have come to their senses and spread their risks quickly, exchanging the salvaged dollars for some bitcoins.
Absorbing excess liquidity is an instant win for Bitcoin.
And Satoshi Nakamoto has already seen through it, "rescuing the market" is always the best choice.
Bet that they will continue to pour more currency and save the market.
This is the century-old gamble between Satoshi Nakamoto and the old world.
This century-old gamble, from the beginning of the century gamble in 2008-2009, the outcome is already doomed.
For any individual, even those who work for the old world, from a rational point of view, they will inevitably choose to side with Satoshi Nakamoto.
This is the Nash equilibrium in game theory:
A: Choose to side with Satoshi Nakamoto. Bet won, bitcoin success, personal financial freedom. If the bet is lost, the Bitcoin will return to zero, and the individual will lose the investment principal at most.
B: Choose to side with the old world. If you win the bet, the vested interests in the old world are still vested interests, Buffett is still Buffett, Powell is still Powell, you are still nothing, and you are still a hard-working worker with three mountains on your back. Lost the bet, missed the century opportunity of bitcoin success, and spent the rest of my life in regret.
I believe that as long as you are not a person with water in your brain, you will know that you should definitely choose A.
The only difference is just a question of how much to bet, not which side to bet on.
Those who go all out, bet all their wealth, and live and die with Satoshi Nakamoto's vision. This is called a Bitcoin maximalist.
People who rationally control risks, according to the balance between their own investment expectations and risk tolerance, bet on an appropriate asset ratio to obtain an asymmetric return. This is called a smart investor.
Bitcoin never makes excessive demands on anyone.
One of the most humorous lines in the rescue joint statement: "No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer."
It is understood that it is planning to embezzle money from the foreign exchange stabilization fund to bail out.
Any economics will tell us that the government sector itself cannot create wealth. Any penny of government departments must ultimately come from taxpayers.
If the medium of "money" is penetrated, all wealth and value must ultimately be created by tens of thousands of working people.
Regardless of whether you name the money to the people or not, it must in essence overdraw the value created by the people, and therefore must be borne by all the people.
And because the U.S. dollar is the world currency, the "people" here includes not only American nationals, but also people from all over the world. In other words, every dear reader, we have all been forced to pay a little price for others because of Yellen's bailout.
How much hypocrisy is revealed in such a sentence in the bailout statement!
There is no doubt that every bailout is a process of making wealth more concentrated.
Just imagine, if there is a contract player, it can open various leverages at will, and whenever it is about to blow up its position, a "system administrator" will come out to prevent it from liquidation. Is this player only making money but not losing money, just getting bigger and bigger?
But there is only so much wealth in this world. Its cheating player always increases leverage to make a lot of money, but whose money is it taking away? Definitely not "sysadmin".
The only ones who get plucked are ordinary players who are not under the special care of the "system administrator".
As an ordinary player, how can I not be robbed by these cheating players?
Although it has been fourteen or fifteen years since Satoshi Nakamoto's creation prophecy, most people still haven't understood it!
From this perspective, is the development of the crypto industry in the early or middle stage, immature stage or mature stage?
From the author's point of view, it is obviously still very immature in the early stage.
Because most of the players here are still kindergarten children, and they have no knowledge of the big bad wolf, let alone guard against it.
Finance is a battlefield without gunpowder, and it is essentially a battle of minds.
The evolution of the mind is very, very slow.
The political games of thousands of years ago are still not easily mastered by elementary school students today.
For the understanding of Bitcoin, it will take several generations to complete the disruption of the old financial cognition.
Therefore, the halving release time designed by Satoshi Nakamoto for Bitcoin exceeds the length of two Kondratiev waves! (One Kondratiev wave is about 60 years, and two are about 120 years. The release time of Bitcoin halving is about 2140 - 2009 = 131 years)
Perhaps in Satoshi Nakamoto's view, human society may need to go through nearly a century and a half of honing and learning before it is possible to finally generally establish a correct understanding of Bitcoin.
The lesson is painful, the tuition is expensive, but the human memory is like a fish, and the pain is forgotten when the scar is healed.
Explosions and losses again and again cannot make a person wake up.
The sea of bitterness is boundless.
All living beings are still like moths to the flame.
The Buddhas can't cross the undesinied people, so how can you and I cross them?
Could Satoshi Nakamoto have said, everyone can cross the river by themselves.
When everyone crosses by himself, everyone can become a Buddha.
References:
Extra: The full book of "History of Bitcoin" has been released on leanpub https://leanpub.com/history-of-bitcoin
nostr: npub1dlwqsauewd56dekrnuxh8xukvg7pgeelwp39qah8ts5x28tmf7pqp5tcp3 twitter: @liujiaolian https://twitter.com/liujiaolian
(Disclaimer: The content of this article does not constitute any investment advice. Cryptocurrency is a very high-risk product, and there is a risk of going zero at any time. Please participate carefully and be responsible for yourself.)