Kevin Bambrough Founder of Sprott Resources. On Why he believes Bitcoin is Really Sh*tcoin
When The Lights Go off Your Bitcoin Disappears. Meanwhile Your Gold and Silver Shine Bright in the Candlelight.
We have repeatedly warned our readers about the dangers of crypto, especially Bitcoin. Why?
Understanding the various forms of warfare is crucial in comprehending the potential risks associated with Bitcoin. There are generally six types of wars, each with its unique characteristics and implications for the cryptocurrency ecosystem.
First, there are conventional ground wars (kinetic). These types involve foot soldiers, tanks, heavy artillery, fighter jets, bombs, shells, and missiles, as well as the Army, Navy, Air Force, and Marines. Now we are seeing a transition away from kinetic wars to more use of drones (we are calling The Low altitude economy)
There are information wars in which various interest groups try to sway public opinion using press releases, social media, and propaganda. A great book on this subject is Crystallizing Public Opinion by Edward Bernays.
There are economic wars. We are seeing this play out right now as BRICS is set to meet in October 2024 in Russia to formalize the UNIT currency, an apolitical exchange that does not include the US dollar. This economic war hinges on Sergey Glazyvev's gram of gold for a barrel of oil playbook and has garnered the interest of 159 countries that want to live in a world that can be protected from US sanctions.
The rest of the world has witnessed what happened in 2022. The US froze Russia's assets; no one wants to go through that. The United States has employed a wide array of sanctions against countries like Russia, North Korea, Iran, Venezuela, and Libya as tools of economic pressure. These sanctions have included asset freezes, trade restrictions, and financial sector targeting.
The removal of select Russian banks from SWIFT in 2022 marked a significant escalation, effectively cutting off their access to international markets and hampering cross-border transactions.
Similarly, freezing central bank reserves, as done with Russia, severely limits a country's ability to stabilize its currency and economy. These measures and broader sanctions constitute a form of economic warfare designed to isolate target countries from the global financial system and pressure their governments to conform to the US dollar.
This is a coercive system, and the US uses its military to prop up the US dollar that lost its Saudi backing.There is biological warfare. Biological warfare involves deliberately using pathogens, toxins, or other biological agents to cause disease or harm in humans, animals, or plants. This can include viruses, bacteria, or other microorganisms. Chemical warfare, while distinct, often gets grouped with biological weapons due to similar delivery methods and effects.
Both are considered weapons of mass destruction. We have speculated about alleged bioweapons labs in Ukraine. Historical examples of biological/chemical warfare include Agent Orange use in Vietnam, which had devastating long-term health and environmental impacts. More recently, some have characterized gain-of-function research at the Wuhan Institute of Virology as biological warfare preparation.Nuclear War. The first nuclear weapon test codenamed Trinity, took place in New Mexico on July 16, 1945. This was followed by the atomic bombings of Hiroshima and Nagasaki in August 1945, which killed over 200,000 people and caused devastating long-term health effects. Between 1946 and 1958, the United States conducted 67 nuclear tests in the Marshall Islands, with a combined explosive yield of 108.5 megatons. These tests exposed Marshallese people to high levels of radiation, leading to increased rates of cancer, congenital disabilities, and other health issues that persist to this day. The nuclear fallout from these tests contaminated the environment, affecting soil, water, and food sources. Displaced communities still cannot return to their ancestral lands due to lingering radiation. The legacy of nuclear testing continues to impact the Marshall Islands, straining its relationship with the United States and raising ongoing concerns about health and environmental consequences.
Cyber warfare involves state-sponsored attacks on other nations' critical infrastructure and digital systems. These attacks can have devastating consequences, potentially crippling a country's essential services and economy.
One notable example is the 2015 attack on Ukraine's power grid, attributed toRussianhackers, which left over 230,000 residents without electricity.
Similarly, in 2021, hackers targeted a water treatment plant in Florida, attempting to increase sodium hydroxide levels to dangerous concentrations.
Banking systems are also vulnerable. In 2016, hackers stole $81 million from Bangladesh's central bank through the SWIFT network.
More recently, North Korean hackers have been accused of targeting cryptocurrency exchanges to fund their regime.
These incidents highlight the growing threat of cyber warfare and the need for robust cybersecurity measures to protect critical infrastructure and financial systems.
Bitcoin seizures by law enforcement have become increasingly common in recent years. In 2021, the IRS seized $3.36 billion worth of Bitcoin from Silk Road hacker James Zhong.
Similarly, authorities recovered over 94,000 Bitcoin stolen from Bitfinex in 2016. Cryptocurrency exchanges have faced significant security challenges. Mt. Gox, once the largest Bitcoin exchange, collapsed in 2014 after losing 850,000 Bitcoin to hackers.
More recently, FTX's spectacular implosion in 2022 resulted in billions of dollars in customer losses. Celsius Network, a crypto lending platform, filed for bankruptcy in 2022, freezing customer withdrawals and leaving many users unable to access their funds. These incidents highlight the ongoing risks and vulnerabilities in the cryptocurrency ecosystem, underscoring the need for improved security measures and regulatory oversight.
Silver Academy's problems with Crypto / Bitcoin
Imagine a world where the lights go off, and with them, your access to money. This scenario is not as far-fetched as it may seem. Power grid failures are becoming increasingly common, and their potential impact on financial systems is a cause for concern in our future.
Unlike Bitcoin, which has never weathered a single recession, gold and silver have endured countless depressions, famines, recessions, revolutions, and technological shifts. Their resilience over the centuries provides a reassuring contrast to the volatility of cryptocurrencies.
It's a fact that all technology, including cryptocurrencies, has a built-in expiration date. This inherent obsolescence should serve as a cautionary reminder to investors and users alike.
EMP (electromagnetic pulse) knocks computers offline.
Bitcoin is not decentralized; the ledger can be tracked
Quantum computing could make blockchain insecure.
Who is Kevin Bambrough?
Answer: Retired Asset Manager, Resource Private Equity Specialist & Author. Founder of Sprott Resources & Sprott Consulting … according to his Twitter Bio
Kevin Bambrough wrote on the contentious Bitcoin topic:
What bitcoin gives its creators is ownership of some unique digits. To acquire ownership one must waste huge amounts of electricity.
Future owners don’t get access to the electricity that was wasted. It’s destroyed and gone forever. All they get is ownership of a digital certificate declaring that some idiot decided to waste electricity to earn a coin.
It’s the most ridiculous why to pretend to create wealth. The sector literally wastes energy and proudly argues that they’ve created something of value then looks for a greater fool to sell it to. It’s a giant bubble.
All non asset backed coins are pure moron coins. People in this space are either delusional or crooks playing a greaterfool game dependent on suckering in the public that doesn’t even understand the actual history of money.
Money should relate directly to hard work and assets. The problem with our money is the banking sector via fractional reserves and the money multiplier effect can create money.
Also governments and the central banks can create it and spend it at will.
Bitcoin or other non-asset backed digital tokens don’t solve this problem. It makes it worse.
They destroy energy and there’s not need to own them. Fiat must be earned to pay taxes. Scarcity of a shitcoin is irrelevant. So tell me what I don’t understand!