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No Crying In The Casino!

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by Coinbits
Friday, Oct 31, 2025 - 14:48

"Every fiat currency in history has failed, causing a total loss of purchasing power. This is a mathematical certainty woven into the design," writes Erik Prince in a powerful essay released this week.

Prince, the founder of Blackwater, delivers a scathing indictment of America's "fiat expert" class, the 80,000 health bureaucrats, 23,000 Fed economists, and legions of credentialed professionals who have presided over $38 trillion in debt accumulation since Nixon severed the dollar's link to gold in 1971.

The essay chronicles what most bitcoiners already know: removing sound money constraints created a permanent bureaucracy insulated from consequences.

Failed pandemic policies earned promotions. Lost wars expanded Pentagon budgets. Economic crises justified Fed expansion.

Meanwhile, foreign central banks now hold more gold than U.S. Treasuries for the first time in 30 years.

Prince's conclusion is unambiguous: the currency crisis isn't a question of if, but when. As the mathematical impossibility of sustaining unlimited fiat money printing becomes undeniable, bitcoin emerges as the only credible alternative.

Bitcoin is money for those who are ready to reckon with the failure of the expert class.

S&P rates Strategy, marks watershed moment for corporate bitcoin reserves

S&P Global Ratings assigned a stable 'B-' rating to bitcoin-focused Strategy Inc., making it the first-ever rating of a bitcoin treasury company by a major credit rating agency. The company, which holds approximately $70 billion in bitcoin financed through $8 billion in convertible debt, continues its aggressive accumulation with founder Michael Saylor purchasing 390 coins this week for approximately $43.4 million.

Bitcoin treasuries investable at scale

S&P's rating legitimizes bitcoin as a corporate treasury asset class. As Strategy and others accumulate bitcoin at scale, corporate balance sheets become vehicles for bitcoin appreciation, while bitcoin itself emerges as collateral for a new financial infrastructure built on sound money.

Lava and Arch launch new bitcoin-backed financial products

Bitcoin lending platform Lava launched the world's first bitcoin-backed line of credit this week, letting holders access dollars without selling their holdings or triggering taxable events.

Simultaneously, Arch unveiled TaxShield, enabling wealthy bitcoin holders to post bitcoin as collateral for loans funding mining equipment purchases—with the entire investment deductible in year one, potentially saving investors hundreds of thousands in federal taxes.

Beginning of the bitcoin-native financial system

Bitcoin's fixed 21 million supply and predetermined issuance schedule cannot be altered by any government or authority, making it superior to gold, real estate, or Treasury bonds as collateral. As institutional capital recognizes that bitcoin's monetary certainty is immune to political whims and debasement, expect an avalanche of structured products built atop it: lines of credit, insurance instruments, derivatives, and wealth management services.

Milei's takes midterm victory in Argentina backed by $40 billion Trump bailout, but currency crisis persists

Argentinian President Javier Milei secured an unexpected landslide victory in Sunday's midterm elections, beating the Peronist movement in their longtime stronghold with support from a $40 billion U.S. bailout package. Despite reducing inflation from 211% to 33.5% and balancing the budget, the peso has weakened by 63% since December 2023 and continues to test the limits of government intervention.

Credibility, not just short-term policy, determines monetary success

Argentina's persistent currency volatility despite improved fiscal policy demonstrates a fundamental truth: Argentines don't trust their government's money, regardless of who's in charge. Bitcoin offers what no bailout or electoral mandate can provide—a monetary system that doesn't require trusting politicians to maintain discipline, making it the ultimate credibility shock for countries trapped in cycles of devaluation and leftwing populism.

IBM launches "Digital Asset Haven" platform to onboard banks and governments into bitcoin

IBM announced a new platform designed to help financial institutions, governments, and corporations securely manage bitcoin and blockchain-based assets, developed in partnership with custody provider Dfns. The platform supports over 40 blockchains and offers institutional-grade security features including multi-party approvals, policy-driven governance, and cold storage options.

Follow the money

When legacy tech giants like IBM invest in building bitcoin infrastructure for traditional institutions, they confirm that bitcoin adoption is no longer a question of "if" but of "how." As banks and governments prepare the technical rails to hold bitcoin, they're acknowledging what orange-pilled folks already know: bitcoin is the future of money, and institutions must adapt or risk obsolescence.

BITCOIN ADOPTION CONTINUES

TD Cowen analysts predict bitcoin will reach $141,000 by December, following its proven resilience through recent market volatility.

American Bitcoin acquired 1,414 bitcoins and Strategy added 390, exemplifying accelerating corporate bitcoin treasury adoption across major U.S. firms.

Nordic banking giant Nordea will launch a bitcoin-linked ETP in December, bringing regulated exposure to retail and institutional investors across the region.

Germany's AfD urges parliament to recognize bitcoin as a strategic asset exempt from the Europe-wide MiCA regulatory framework.

Fedi launches multi-signature federated bitcoin mints through G-bot, letting communities create private, decentralized payment networks in minutes.

Lolli's acquisition of Slice consolidates bitcoin shopping and browsing rewards into a single platform, making daily bitcoin accumulation easier for its 600,000+ users.

Standard Chartered predicts investors will increasingly rotate capital from gold to bitcoin as it gains acceptance as a safe-haven asset.

Solo bitcoin miner wins $347K block reward mining independently on an Umbrel-hosted pool.

Prenetics raised $48M to fund a disciplined bitcoin treasury strategy, committing to purchase one bitcoin per day and targeting $1 billion in holdings within five years.

Rumble will enable its 51 million users to tip creators directly in bitcoin, eliminating traditional payment intermediaries, and will roll out the feature by mid-December.

Brazilian solar producer Thopen plans to deploy bitcoin mining to monetize surplus renewable energy and offset grid curtailment losses.

HOW BITCOIN WORKS

Learn one key idea about bitcoin each week. This week:

Tokenization and the “Age of Scambling”

Robinhood's CEO recently suggested that investing could replace labor as a primary income source in a post-AI world. Combined with the rise of tokenization, prediction markets, sports betting, and perpetual futures, this vision reveals a darker reality: millions could soon find themselves "trading" 24/7 just to survive.

Is that truly the promise of AI – the fiat hamster wheel with a fresh coat of paint?

Tokenization promises to put everything on-chain: stocks, bonds, real estate, even intellectual property. Proponents claim this will democratize finance by enabling fractional ownership and 24/7 global markets. But democratization and financialization are not the same thing. The former distributes power; the latter concentrates it.

When every asset becomes a tradable token on global exchanges, it becomes possible to build a casino that permeates every nook and cranny of human experience. The same central bankers, executives, and insiders who benefit from the current system will simply extract value through new mechanisms. They'll profit from the spread, the leverage, the liquidations, and the chaos of non-stop markets where information moves faster than regulation ever could.

Swan Bitcoin CEO Cory Klippstein illustrates what this "upgraded" system might look like:

This is what "updating the system" delivers: more complexity, more extraction, more opportunity for insiders to profit while retail traders get liquidated.

Bitcoin offers a different path entirely. It doesn't update the financial system; it replaces it. Rather than gambling on tokenized everything in markets designed to separate you from your capital, bitcoin lets you focus on productive work and save in an asset with a fixed supply that no executive can dilute and no central banker can inflate.

As tokenization accelerates, the choice becomes clear: run faster on the hamster wheel, or step out of it and begin truly living.

COIN CHECK

In October 2025, S&P Global Ratings gave Strategy Inc. an inaugural issuer rating. Which answer best reflects how S&P treated the company’s bitcoin holdings in that rating?

A) Counted as cash equivalents with no haircut
B) Treated as a high-volatility, non-operating asset with valuation haircuts and limited liquidity, which can worsen leverage metrics
C) Ignored unless pledged as collateral
D) Given a rating uplift for “asset diversification”

Check your answer at the end of the page.

FROM THE MEME POOL

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ANSWER

B. On Oct 27, 2025 S&P assigned Strategy a B- (stable), citing heavy concentration in bitcoin, limited dollar liquidity, and funding dependence. They did not treat most holdings as core liquidity and modeled volatility/haircuts that pressure leverage and coverage. That approach is consistent with agencies’ broader practice of excluding most bitcoin from liquidity while stressing valuation and liquidity risk.

 

Contributor posts published on Zero Hedge do not necessarily represent the views and opinions of Zero Hedge, and are not selected, edited or screened by Zero Hedge editors.
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