The trajectory of Bitcoin's innovation and adoption will continue,
with or without the active participation or understanding of any single nation.
The question that remains is whether we will be leaders or laggards in this inevitable financial
evolution. Greetings and salutations, my fellow plebs. My name is Walker and this is the Bitcoin
Podcast. It's Wednesday, October 25th, 2023. The Bitcoin block height is 813823 and the value
of one Bitcoin is still one Bitcoin. Today's episode is a Bitcoin out loud read and I'm going
to read you a piece by Preston Pish that Bitcoin Magazine published just a few hours ago. As soon
as I read this piece, I knew I wanted to read it for you guys. Preston does a fantastic job of
synthesizing the ideals of Bitcoin as rebuttal to the totalitarian FinCEN proposal and absurdly
ill-informed letter to the White House led by Senator Warren regarding cryptocurrencies alleged
use in terrorist funding. I had Preston on the Bitcoin Podcast back in September and I highly
recommend checking out that episode for a deeper dive into Preston's perspectives after you finish
listening to this one today. It's called Parasites vs Producers and you can watch the Bitcoin
Podcast by searching for At Walker America on Rumble, YouTube or X or listen on Fountain.fm
or wherever you get your podcasts by simply searching for the Bitcoin Podcast. If you listen
to the Bitcoin Podcast on Fountain, consider giving the show a boost or creating a clip of
something you found interesting so more people can find the show. For those that have boosted this
show already or zapped me on Noster, thank you. If you haven't checked out Fountain yet, I highly
recommend it. You can send Bitcoin to your favorite podcasters and earn Bitcoin just for listening.
Okay, that's enough of that. Without further ado, let's get into this Bitcoin Out Loud Read.
Bitcoin Equals Anti-Totalitarianism How to Protect Financial Freedom in an Age of Market
Manipulation and Policy Overreach by Preston Pish. In the face of ongoing challenges to our
cherished freedoms, it is imperative to critically examine the forces at play that threaten the very
fabric of democracy. The ideals of freedom and open markets are at risk of being undermined by
influential political forces seeking to impose oppressive order and control in the name of security.
This article delves into the pressing need to fix our manipulated markets, protect Bitcoin,
and its inherent anti-totalitarian qualities and inform U.S. policymakers that democratic values
are what's at stake. The Erosion of Free Markets and Capitalism
People who think we currently have capitalism and free and open markets haven't been paying
attention. The American economic landscape, once a paragon of capitalism, has undergone a seismic
shift, particularly since the 2008 financial crisis when lawmakers selectively bailed out
bankers at the expense of the broader economy. The central banking system's pervasive influence
has led to a distortion of free markets, with quantitative easing, QE, being employed as a
tool to manipulate the bond market, artificially lowering the cost of capital, and thus distorting
the prices of everything. This manipulation has had far-reaching consequences, including the gutting
of the middle class and the concentration of wealth in the hands of a few. In the wake of the Silicon
Valley bank failure this March, the deployment of tools such as the bank term funding program,
BTFP, has further exacerbated these distortions, providing de facto yield curve control for banks,
while leaving ordinary citizens to grapple with soaring interest rates and inflation.
This divergence from naturally occurring economic markets and the suppression of a free and open
cost of capital has pushed us closer to an economic model reminiscent of, you name it,
communism regime, threatening the fundamental principles of capitalism and democracy.
The newest assault on financial freedom and bitcoin. In a recent letter from Senator Elizabeth Warren
and numerous congressional members, they leverage international crises to further their own political
agenda and curtail financial freedoms, armed with a freshly published Wall Street Journal article
that falsely suggests Hamas raised a significant sum of crypto funding to attack Israel. The truth
couldn't be more obscured. The irony of the claim is that the bitcoin blockchain provides evidence
that anyone can dispute, which is exactly what happened the day following the senator's letter
to the president. On October 18th, blockchain analysis firm Chainalysis clarified that while
some terrorist organizations, including Hamas, do leverage cryptocurrencies for funding,
the scale is extremely small relative to traditional fiat banking means. They emphasized
that the transparency of blockchain technology makes it a less suitable medium for illicit
activities, including terrorism financing. Additionally, Chainalysis pointed out that
government agencies and private sector organizations can collaborate using blockchain
analysis solutions to trace and disrupt the flow of funds to these terrorist groups.
They also highlighted the importance of understanding the role of service providers
in these financial networks, and cautioned against overestimating the scale of terrorism
financing in cryptocurrency based on flawed analyses and misinterpretations, delving deeper
into the facts revealed by Chainalysis. It becomes increasingly evident how Senator Warren's letter
dramatically skewed the situation. The detailed analysis zeroes in on a specific address that
conducted over 1,300 deposits and 1,200 withdrawals within a mere 7.5 months, with a total inflow of
roughly $82 million in cryptocurrency. However, a mere fraction of this amount, approximately $450,000,
can be linked back to a wallet associated with the terrorist activities.
This represents a mere 0.3461% of the purported $130 million claimed in the letter, a staggering
discrepancy that lays bare the deceptive nature of the narrative being pushed to the White House.
Not only has Business Insider reported on October 21 that Hamas operates with an annual budget of
$300 million, but a significant portion of its funding also stems from taxing imports into Gaza,
as well as international connections with Iran, a country to which the US government recently,
and rather ambiguously, may have released $6 billion in fiat currency too in September,
just a month prior to the attack on Israel. Unlike Bitcoin, which offers a publicly accessible
audit trail, citizens are left in the dark about this substantial financial transaction.
The narrative on what was actually released depends heavily on the news outlet or political interest
one consults, often resulting in biased and self-serving points of view.
The irony, this stark contrast between politically manipulated numbers and the transparent reality
a public blockchain provides, underscores the urgent need for thorough factual analysis
and the adoption of publicly verifiable monetary units like Bitcoin.
Why is this so concerning?
Need-jerk policy reactions, based on false information and poor reporting, can have devastating
long-term impacts to the US's competitive economic position and more importantly,
the liberties and freedoms of the citizens in what appears to be a coordinated policy response
one day after Senator Warren's letter. The US Financial Crimes Enforcement Network, Finsen,
came out with a proposal for special measures regarding convertible virtual currency mixing
and labeled it a primary money laundering concern. Based on all the information contained in the
Finsen proposal, it opens the door for expansive policy to infringe on the rights of individuals.
For example, the increased surveillance and potential loss of privacy could subject individuals
running Bitcoin full nodes to unprecedented scrutiny. They might find themselves burdened with
regulatory requirements that are not only onerous but also infringe upon their personal privacy
and the privacy of users transacting through their nodes. The uncertainty and legal risks
associated with running a full node under these proposed measures could discourage individuals
from auditing their property, thus increasing their risk and reliance on bad actors. Bitcoin
holders that ran their own node and took custody of their property in 2022 were not impacted by
fraudulent centralized gatekeepers like Sam Bankman Freed and third-party custodians that
act maliciously. Additionally, a policy attack on node operators creates less financial freedom for
US citizens and an incentive for business in this new sector of finance to move offshore.
Developers might be discouraged from creating and implementing privacy-enhancing features,
limiting the potential and the very essence of American citizens and builders within this country.
What is the essence of a Bitcoin node and why is it important?
In the gold market, how would you know if someone gave you a pure bar of gold? Well,
you can own an XRF, X-ray fluorescence, device that emits energy waves into the metal to determine
the elemental composition based on the frequency of energy that comes back to the device.
In short, a purity audit ensures that you have purchased actual gold. Why is this device so
important? Because if you buy a million dollars of gold, you want to make sure that it's the real
stuff, right? In Bitcoin, that purity test is conducted by running a full node. The test can
be outsourced to a third party, or it can be conducted by the individual. This point is vital.
If a person is not allowed to run their own node and audit delivery, it would be the same as saying
a person accepting the delivery of a billion dollars in gold is banned from conducting their own
personal audit. Since Bitcoin is a digital commodity, this right to audit delivery is essential
to protect their liberties against foul play. Suggesting such a device be banned is a vote
for autocratic control by government handlers at the expense of the individual's rights to protect
themselves from thieves. While we are on this important subject, Bitcoin is the only blockchain
that has a code base small enough to allow for everyday citizens to afford and operate their
own node and provide independent audits on their property, ensuring its legitimacy and overall
security. In short, Bitcoin is different. Bitcoin promotes individual freedoms, sovereignty,
and liberties at the individual level, an idea consistent with our Declaration of Independence,
endowed by their creator with certain unalienable rights, that to secure these rights, governments
are instituted among men, deriving their just powers from the consent of the governed.
A call to action. So what do totalitarian governments embrace? They embrace control.
Such a control is often established through small and incremental changes that mask a deeper
trend and direction that citizens don't notice. This progression ultimately leads to absolute
control. Now, what is the paramount lever to pull if a government was interested in absolute control?
That's right, the money. Because money is the energy that fuels every action and desire of the
individual citizen. Therefore, let me be very clear. You will not be the totalitarian government
by becoming more totalitarian. America was founded on the principle of individual rights
and freedoms. Those freedoms in turn create the strongest economy and most powerful nation on the
planet. It is those very freedoms that are at risk with knee-jerk policy decisions to remove
your individual rights in the name of security. In the face of the unstoppable tide that is Bitcoin
and decentralized finance, it is paramount that we, as a society and particularly as citizens of
the United States, recognize the critical crossroads we find ourselves. The trajectory of Bitcoin's
innovation and adoption will continue with or without the active participation or understanding
of any single nation. The question that remains is whether we will be leaders or laggards in this
inevitable financial evolution. Our cherished ideals of liberty and open markets are at stake.
We must urgently commit ourselves to a deep and nuanced understanding of Bitcoin's potential
to secure financial freedom in an increasingly digital future. By actively choosing to educate
ourselves, our communities, and engaging in meaningful dialogue with our elected representatives,
we are taking essential steps toward protecting our position as a global financial leader.
This is not just about maintaining economic dominance. It is about safeguarding the very
liberties and freedoms that define us. The false sense of security provided by manipulated markets
and snap policy decisions has eroded the foundation of capitalism, a system that, in its true form,
no longer exists. We must recognize this distortion, challenge it, and champion the cause of financial
freedom through Bitcoin. Supporting organizations dedicated to digital rights and financial freedom
becomes not just a choice, but a duty. By contributing our time, resources, and voices,
we are making a stand against the forces that seek to centralize control and diminish our economic
sovereignty. On an individual level, embracing the tools that ensure our financial freedom,
such as setting up Bitcoin wallets, running full Bitcoin nodes, and educating ourselves on the
secure use of Bitcoin, is a powerful act of promoting freedom. We are fortifying the network,
protecting our assets, and affirming our commitment to a future where financial freedom is accessible
to all. The challenge is formidable, but the stakes are too high to remain passive. The United
States has a choice. Adapt and embrace the decentralized future of money, securing our
liberties and financial leadership, or risk being left behind, tethered to the outdated systems
and eroding freedoms. The power of informed, engaged, and proactive citizens is our greatest
asset in this pivotal moment. Together, we can shape a future that upholds the principles of freedom,
innovation, and financial sovereignty. Those who would give up essential liberty to purchase a
little temporary safety deserve neither liberty nor safety. Benjamin Franklin.
And that's a wrap on this Bitcoin Out Loud episode of The Bitcoin Podcast. If you are a
Bitcoin-only company interested in sponsoring another fucking Bitcoin podcast, head to
BitcoinPodcast, head to BitcoinPodcast.net, or hit me up on social media. You can find me on
Noster by going to Primal.net slash Walker, and I'm at Walker America and at TITCOIN podcast on
Twitter. You can also watch the video versions of the show on X or at YouTube.com slash At Walker
America and At Walker America on Rumble. Bitcoin is scarce. There will only ever be 21 million,
but Bitcoin podcasts are abundant. So thank you for spending your scarce time to listen to
another fucking Bitcoin podcast. Until next time, stay free.