Plus, allocating capital to Gold vs. Bitcoin: Why, and at what ratios.
How the mighty have fallen, this crooked phony. While he should be getting fitted for an orange jumpsuit, Sam Bankman-Fried (SBF) remains on a speaking tour supported by the NY Times.
The ‘man who will give billions to charity’ (admitting since the altruism was a ruse) stole customer funds to squander it on political donations, Bahamian real estate, marketing hype, and losing trades.
What’s most alarming is how well connected he was.
SBF was the 2nd biggest donor to the Democratic Party (giving to Republicans as well). His parents, attorneys, and Stanford professors, also fundraisers for the Dems. His ex-girlfriend, Caroline Ellison, who he made CEO of Alameda Research — her dad is Gary Gensler’s former boss at MIT (Gary is Chairman of the Securities and Exchange Commission). His Aunt Linda is with the World Economic Forum.
SBF was an insider to the insiders.
His persona was completely manufactured by the machine, right down to the Toyota Corolla, the cheap T shirts, dirty sneakers, white tube socks, messy hair, and effective altruism (i.e., bulls—).
What we know is, this was a giant fraud.
What we don’t know is whether it was orchestrated by the powerbase to (a) funnel more money into their own hands, and/or (b) takedown and capture the cryptocurrency ecosystem.
The US Dollar system is dying, and the beast is thrashing, exhibits 1 & 2 being the Nord Stream pipelines. Might FTX be exhibit 3, an attack vector on Bitcoin (a free-market, borderless escape hatch)?
The racket component (a) is more obvious than (b), which is less certain.
They pushed our tax dollars into Ukraine to funnel back through FTX and to the ruling elite and their pandemic pet projects. This level of moral decay, to use war to steal from the people, lie to the people, and implement more control, is disgusting (but par for the course, unfortunately).
I see demons in their faces as I picture them scheming around conference tables, shoveling down shrimp cocktail and making jokes about deplorables.
There are no morals anymore, no values, no right vs. wrong, only relativity, only political law. There’s no liberty nor justice for all. It’s a hall of mirrors, a world of elastic measure, with no True North.
Money is the social contract, and when money lost its anchor to gold in 1971, so began the great financialization, a two-tiered and crony hollowing of American values with debt.
When money is fraud, the social contract is null and void, and the system rots at its core.
As to whether it was an orchestrated takedown, I think it got away from them before they wanted it to. Changpeng Zhao (of Binance) saw fresh blood in his biggest competitor, went after it, causing a mad dash for the exits, eating SBF and Caroline Ellison alive like wolves feasting on babes in the woods.
The machine would have been happy funneling money by the billions right through the 2024 election.
However, never let a good crisis go to waste, right? Even if they didn’t take FTX down on purpose, they’ll still seize the opportunity to try to regulate Bitcoin into the stone age.
As for SBF, my suspicion is that he believed his own bullshit. They put him on a pedestal, and his pride did the rest. That doesn’t make him innocent of fraud – you can’t plead cluelessness – but perhaps he was a pawn in the game, like Greta Thunberg is to Climate Change, SBF was to Cryptocurrency.
I’m surprised FTX didn’t go to zero the minute he broadcast his ‘magic box’ podcast, telling the world it was all a giant pump-and-dump-Ponzi, failing himself to even see what was wrong with that.
The FTX debacle is more proof that you need alternative information sources you can trust. The mainstream media and their carefully curated narratives are not looking out for you-
In the end, this was run-of-the-mill fraud engineered by insiders and exposed by an old-fashioned bank run. Hmmm… What fixes that? How about Bitcoin, Blockchain, self-custody, and gold.
Yep, yep, yep, and yep.
FTX is the system.
Bitcoin did not give us SBF. SBF was brought to us by the same broken system that gave us fiat money, endless war, raging inflation, and markets convulsing wildly between bubble and bust.
Allocations to Gold (and silver) versus Bitcoin
First off, yes, I own Bitcoin, and no, I have not lost anything in any of the crypto collapses, the most recent FTX debacle just another crater on the landscape as the crypto winter continues.
The whole point of Bitcoin is to get out of the system – buy Bitcoin, and self-custody. Outside of Bitcoin, the rest of the crypto-universe is largely a cesspool of junk.
These are personal decisions, and this is not financial advice, but I’ve been asked how I allocate. While subject to change, I have traditionally allocated 10:1 precious metals (gold and silver) to Bitcoin.
At Bitcoin’s peak, the market values were 2:1, but I am not rebalancing between them.
Among precious metals, while gold is safer (and takes up less space), therefore should be the bulk of your carry, I do like using ratios to balance back and forth between them, allocating more heavily to silver when the gold to silver ratio is above 80, and rebalancing to gold when it’s under 50.
Gold is insurance with history on its side, while Bitcoin is still a speculation. Together they’re like Batman and Robin to the broken, crooked, debt-based fiat money system-
Note: Neither are ‘investments’, in that they won’t cashflow or create an income stream to reinvest. I own plenty of investments as well.
Am I buying Bitcoin today? I have a small monthly allocation, but am waiting for another big purchase.
It’s probable there is another leg down, more bodies to float to the surface. If I didn’t own any Bitcoin yet, I’d start buying and spread those purchases over 6-12 months. Since I do, I’ll wait for either-
- Tether to be exposed as another fraud and break it’s peg to the USD
- Binance to blow up like Celsius and FTX
- Michael Saylor and MicroStrategy are forced to sell
- Grayscale Bitcoin Trust blows up, reveals they do not own Bitcoin 1:1
When some or all of those happen, we could see the last great buying opportunity in Bitcoin. In the meantime, as always, #QuestionAuthority.
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