The Bitcoin group is presently hotly debating the potential for a US authorities crackdown on BTC akin to the historic 1933 gold confiscation, an occasion now ominously referenced in crypto circles as “6102.” David Bailey, CEO of BTC Media, has catapulted this dialog into the highlight with a collection of predictions on X (previously Twitter), suggesting that the US may enact related measures towards Bitcoin inside the subsequent six years.
Bailey’s Bitcoin Prediction: A Path To Gold Parity And Panic
Bailey’s concept hinges on a sequence of financial and market developments starting with Bitcoin attaining parity with gold. This milestone, in accordance with Bailey, will skyrocket BTC’s market valuation to an estimated $13 trillion. Such an occasion, he argues, wouldn’t solely affirm BTC’s standing as a premier asset class but additionally set off a domino impact throughout world monetary programs.
“Inside subsequent 6 years Bitcoin hits parity with gold (I really assume we transcend by subsequent cycle).” Bailey asserts, outlining the inspiration of his speculation. He envisages this surge in BTC’s worth as a catalyst for widespread financial ramifications. “[It] metastasizes by way of the financial system and capital markets through huge credit score enlargement and accelerated client spending,” Bailey claims.
The essential juncture, nonetheless, comes with a market correction — a “75% drawdown” that obliterates over $8 trillion in collateral worth. This catastrophic loss, Bailey posits, will precipitate a credit score crunch and widespread asset liquidation, echoing the devastating impacts of historic market crashes however on a beforehand unimaginable scale.
He additional predicts the federal authorities’s response to the following monetary chaos could be to enact measures akin to the gold confiscation order of 1933 however tailored for the digital age. Central to this course of could be the nationalization of Bitcoin custodians, akin to Coinbase, successfully changing privately held BTC right into a federal asset.
Bailey explains:
As soon as they 6102 the Bitcoin, they nationalize central custodians like Coinbase and payout customers some fastened quantity of cuck bucks per btc. Coinbase’s Bitcoin will change into an asset of the Federal Reserve held at a digital equal of Fort Knox.
This transfer, he suggests, wouldn’t solely strip BTC holders of their property but additionally centralize what was inherently designed to be a decentralized asset, below the auspices of stabilizing the monetary system.
The Fallout And The Federal Response
Bailey foresees the federal narrative framing Bitcoin and its meteoric rise because the culprits behind the monetary instability, thereby justifying the draconian measures. “They may say we triggered the collapse which wouldn’t be completely fallacious… besides we weren’t the trigger, we have been the results of their very own financial coverage,” he remarks, highlighting a perceived misattribution of blame that might function a pretext for sweeping regulatory motion.
In Bailey’s view, the aftermath of such a crackdown wouldn’t solely redefine the panorama of cryptocurrency possession and regulation but additionally mark a pivotal second within the battle between decentralized digital currencies and conventional fiat financial programs. He believes that the battle, removed from being a mere energy seize, could be a last-ditch effort by the federal government to keep up management over a monetary system threatened by BTC’s ascent.
“It’s why it’s the true crossing of the rubicon, they solely do it once they don’t have any different alternative however the collapse of their system. The ultimate collapse in greenback confidence is important for Bitcoins ascension to order standing,” Bailey claims.
He additional provides:
Simply to be clear, I believe bitcoin being 6102 is insanely bullish. It’s a essential juncture in Bitcoin’s journey to turning into humanity’s reserve worth system. Simply isn’t bullish for the people who lose their bitcoin. Don’t be these individuals.
Bailey’s concept has sparked reactions throughout the crypto group. Bitcoin OG Tuur Demeester echoes the sentiment of warning and preparedness: “Vital to arrange for eventualities like this. Tried authorities bans are the subsequent frontier for Bitcoin.”
Samson Mow, in settlement with the urgency of the state of affairs, highlights, “It’s all going to occur quicker than we predict. Gold parity and makes an attempt at 6102. Max Ache Idea. There isn’t any time to arrange,” suggesting an inevitable confrontation between Bitcoin and regulatory forces.
Critiques And Counter Arguments
The notion of an impending 6102 order for Bitcoin isn’t with out its detractors. Vijay Boyapati affords a extra optimistic view, grounded in authorized precedent: “There’s a reliable concern that the custodial focus led to by a Bitcoin ETF will increase the chance of a 6102 occasion. It ought to be famous there may be some authorized safety towards this with the US fifth modification.”
Boyapati additional clarifies, “The confiscation of gold in 1933 may get round this safety as a result of {dollars} have been thought-about equal to gold and so the US authorities may take individuals’s gold and provides them a paper promise in return. The identical can’t be mentioned of Bitcoin.”
At press time, BTC traded at $51,869.
Featured picture created with DALL·E, chart from TradingView.com
