Crypto Analyst Argues Banks, Not a Ban, Are ‘The Real Threat’ to Bitcoin

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As an analyst with over two decades of experience in the financial industry, I find Toby’s insights on the “Crypto Tips” episode particularly insightful and thought-provoking. His life experience, spanning both the traditional banking sector and the nascent world of cryptocurrencies, lends a unique perspective to his analysis.

In a recent episode of “Crypto Tips” on YouTube, co-host Toby shared his perspective on a potential risk to Bitcoin that often goes unnoticed. Unlike common discussions about regulations, bans, or government intervention, Toby pointed out that these aren’t the main hazards for Bitcoin. Instead, he raised concern over the growing influence of traditional banks in handling Bitcoin assets as the most significant threat.

Toby initiated his discussion by pointing out a tweet from Michael Saylor about rumors suggesting significant U.S. banks might move into Bitcoin storage services. This shift was further validated by BNY Mellon receiving SEC approval for providing Bitcoin custody services to institutions. As per Toby, this is merely the start, with more banks anticipated to join in, initially serving institutional clients and later extending their services to everyday customers.

Toby emphasized that although some may view this development as progress in mainstream Bitcoin acceptance, it conceals a hidden and significant threat. He elaborated that the real peril isn’t about potential Bitcoin restrictions, but rather the strategy by large banks to persuade individuals that they cannot manage their own Bitcoin securely. Toby contended that these banks intend to make it exceedingly effortless for people to store their Bitcoin with them, all while discouraging self-custody, a fundamental aspect of Bitcoin. He likened this tactic to manipulation, hinting that the same financial institutions were instrumental in past financial catastrophes, such as the 2008 financial collapse.

Considering the wider picture, Toby found similarities between the present circumstances and the underlying meaning in Satoshi Nakamoto’s Genesis block, which included a nod to government bailouts of banks. In his opinion, the irony resides in the fact that these same banks—whose downfall was one of the triggers for Bitcoin’s creation—are now in charge of people’s Bitcoins. Toby voiced his worries about the possibility of the common individual being lured by the ease provided by banks, thereby relinquishing control over their assets.

Toby pointed out that this issue has been a recurring topic of discussion on the Crypto Tips channel, where both he and his co-host, Heidi, have warned about the eventual bifurcation of the crypto community. In his opinion, there will be a split between those who embrace decentralized finance (DeFi) and self-custody and those who choose the path of centralized financial services offered by traditional banks. He also shared that this conversation came up during his visit to the Bitcoin Conference in Amsterdam the previous year, where he had expressed these concerns to the team at Trezor, a popular hardware wallet company. At the time, Toby predicted that most people would opt for the centralized route, preferring the ease and familiarity of traditional banking institutions over the complexities of managing their wallets.

Subsequently, Toby delved into the rising fascination among central banks towards gold. He highlighted that central banks were said to have bought a staggering 483 tons of gold during the first half of 2024, breaking records. However, Toby questioned the reliability of these reports, branding the quantities as “untruths” and expressing reservations about the true volume of gold being acquired. He posited that while the price of gold was soaring to unprecedented levels—peaking at $2,600—the focus should not be on gold alone. As per Toby’s perspective, Bitcoin is the investment that deserves attention, especially given its increasing value as well.

Toby wrapped up by delving into predictions about Bitcoin’s upcoming market trend. He pointed out a tweet from Tony The Bull, indicating that Bitcoin’s next bull market peak might take place in September 2025. However, Toby noted that the present market situation differs significantly from past cycles. Specifically, he highlighted that Bitcoin has already reached new highs before its halving – an eventuality that was unprecedented in previous cycles. He speculated that the current trend could progress at a faster pace, with Bitcoin possibly breaking out of its holding phase within the coming months and potentially touching $100,000. Maintaining a positive stance, Toby expressed confidence about Bitcoin’s near future, hinting at a substantial rally on the horizon.

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2024-09-24 11:23