TLDR: Banks tried fighting cryptocurrency, but have “mostly” lost. So instead of fighting, they purposely made BTC useless so they could have control over the new currency by way of the layer 2 Lightning solution. With an expensive BTC, banks help guarantee you won’t pull your real money out, and will instead use the layer 2 IOUs only. This helps them continue doing fractional reserve banking with crypto as well as fiat all the while without you having a clue that is what’s going on.
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The banking industry and many government agencies by and large have fought and tried to kill cryptocurrency ever since it started getting media attention. I have chosen not to cite my sources on this because I believe anyone even slightly knowledgeable with crypto already knows this has been the case for a long time.
Since its conception though, cryptocurrencies in general have pretty much just won the fight against big banks. This is mainly because no matter what regulations come about, or no matter how many powerful bankers or politicians go on record saying “crypto is bad”, they just can’t seem to stop it. Now, I’m not here to go into detail as to why cryptocurrencies can or cannot be stopped, coming to that conclusion is something you’ll have to do on your own. What I am going to explain here is why I believe Bitcoin Core (BTC) is now starting to get shilled by banks, politicians, governments, etc…
BTC for a very long time was feared by the banking industry because its technology made it so the average person no longer needed banks. This meant the banking industry would no longer have control over you if it BTC actually took flight and an entire industry would basically collapse. ← That may sound like a bad thing, but technology always has a way of making life in general better. As an example, look at trains vs cars. That was a long, drawn out fight, but in the end the massive railroad industry shrunk by 99% or so due to the better technology and experience that cars allowed. That was basically the same thing as crypto vs banks if you think about it because the railroad companies were the ones in power back then. You were reliant on them for anything travel wise and they fought the automotive industry tooth and nail because it put that technology into your hands instead of theirs…
Anyway, sorry for going off on a tangent there… Basically BTC was a threat to the banks several years ago, yet now for some reason it’s all over the news how they’re getting behind it and starting to allow investors to put their money into it. Isn’t it a little odd that this switch happened? Wouldn’t this impact the banking industry and governments in a negative way? Well, my thinking is no because BTC was purposely crippled just for this reason. As I’m sure you’re already tracking a bit before 2017, BTC starting fighting within its community over technological advancement. Ultimately the side that refused change won the fight, locked everyone who disagreed with them out and banned them from all public chat channels.
At this point, it is well known by anyone in the crypto realm that BTC is the slowest, most expensive, and generally the most useless blockchain in the world right now. However, the Lightning network solves those problems by instead of using the direct BTC blockchain, it uses just a database and an IOU system. By purposely forcing BTC to be useless, the banks can now force users onto the Lightning network and require them to identify themselves by whatever Know Your Customer (KYC) means the bank desires. i.e. Passports, drivers licenses, addresses, employment information, tax identifiers, etc…
That’s just a small part of it too… By ensuring BTC is insanely slow and expensive, the banks are able to guarantee you won’t be withdrawing your funds unless there is a dire need for it. So this actually helps them even more because they’ll utilize your real money to provide you with IOU Lightning money and then they will lend the rest out in exponential numbers by way of fractional reserve banking, just like they already do with fiat currencies. All the while here you are as an early adopter believing that you’re a trendy hipster that doesn’t even realize the rug has been pulled over your eyes.
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So now here I am left pondering what to do with this information that I believe to be true… What will I do you ask? Well, the answer is simple. Although I believe Bitcoin Cash (BCH) is far superior in every way to BTC, I am actually going to increase my BTC holdings. This is because as an adult, father, husband, and investor, I am in it to hopefully get rich and retire happily instead of rock the boat. Sometimes the truth hurts though, doesn’t it?
thanks for sharing