Armstrong Confirms Bitcoin Bull Market; Warns Dacronian Capital Controls

@anonymint · 2020-02-22 02:37 · bitcoin

The pitch that was coming from the IMF under Legarde was that countries should create their own cryptocurrency and then she implied that they would effectively outlaw private cryptocurrencies. I believe, based upon reliable sources, that governments have stood-by to observe if the public would embrace electronic currencies. Once they became acceptable, then they would end paper money and private cryptocurrencies and force all money into their version where they could get 100% of the taxes they ever dreamed of. They will also use terrorism as a justification.

I commented in my February 21, 2020 update:

The perennial Bitcoin bear and doomsday-for-Bitcoin protagonist Martin Armstrong in his blog yesterday Gold in Currencies & Cryptocurrencies, has apparently finally capitulated and admits Bitcoin may test the major downtrend line from the 2017 ATH in March and given the directional change expected I presume he implies Bitcoin could break above that major resistance level:

The two key weeks ahead are those of 01/27 and 02/17. Therefore, failure to make a new high warns that we may see a retest of support ahead. We see February is a Double Directional Change

[…]

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Even BitCoin was scheduled for a rally into February and it has yet to test the Downtrend Line. Here too, March remains as a Directional Change. As far as Blockchain is concerned, I do not think that is the issue […many excuses and his continued ignorance of the issues followed]

Armstrong should note the similarity of his Bitcoin chart to the his chart of the collapse of Rome, which of course subsequently soured to higher highs (not shown on his chart’s cutoff date):

Again as I pointed out 9 months ago, Armstrong is mislead by employing a linearly instead of logarithmically scaled vertical (price) axis. Bitcoin is an exponential phenomenon and thus can’t be properly measured with linear price analyses over long periods of time. Here follows what I recently blogged in Bitcoin Movements Ahead on the Way to the Moon for a logarithmic comparison:

Appears Bitcoin is moving back up to the top of a massive bull flag wedge which originated at the peak at the end of 2017:


Analyst Who Predicted $6.4k Bitcoin Bottom: Price Will Hit $11k Before Pullback

That wedge bull flag is projecting a price rise to between $28,444 to $74,960!

Martin Armstrong isn’t aware of the surreptitious backstory Legacy Bitcoin Rises Surreptitiously as the Reserve in a new Two-tier Monetary System; whilst impostor Bitcoin Core Dies.

Armstrong is correct that in a two-tiered monetary system that the masses are forced into fiat (aka permissioned, non-trustless) currencies — only the globalist $billionaires will use the international reserve asset into this new coming monetary system.

Thus Armstrong doesn’t realize that Bitcoin isn’t intended for the masses, it’s only for the $billionaires in the end game.

Also Armstrong should remember that he has in the past written that international investment flows now dwarf international trade (which is why Trump’s tariff charade is a red-herring bluster/charade). Thus the tiered currency system coming is focused on facilitating the globalists’ hegemony over the nation-states. Armstrong should read the late John Nash’s thesis on Ideal Money and then contemplate how legacy Bitcoin fulfills all the requirements.

Perhaps related in his psychology, Armstrong also blogged in “Economics” – What Does the Term Imply?:

Even in Star Trek, money was eliminated and people simply used electronic credits – cryptocurrency. That is perfectly reasonable for the long-term future. The economy simply reflects the exchange of money (whatever form it shall take) for labor of the average person.

And in Demonizing China & Russia – A Covert Means to Justify War?:

Just take a deep breath. There is such a thing as the Deep State which loves to spin such conspiracies in hopes they will lead to justify their thirst for more power. They salivate over the idea of getting everyone so panicked that they refuse to use cash, surrender it all, and accept electronic digitize money once and for all.

Bitcoin Rising as Economist Magazine’s Phoenix

I had featured that seminal, oft-cited 1988 article from the Rothshilds’ controlled (c.f. Why did wealthy families pay over the odds for the Economist?) Economist Magazine in my blog ~3 years ago Get Ready for a World Currency.

Others have hence also tied Bitcoin to Economist's Phoenix:


The Birth of Bitcoin: A Phoenix Born from the Ashes of the Financial Crisis


“Get ready for the Phoenix” — The Economist, 1988

It's almost eerie, but The Economist may have predicted the rise of the new cryptocurrencies and downfall of the old fiat almost 30 years ago, to take place in 2018.


Bitcoin Phoenix by @CryptoHustle


Weekly News 1/2019: Bitcoin is Ready to Rise Like a Phoenix

I wrote in my blog yesterday Bitcoin Fractal Projects an Infinite Price:

IOW, Bitcoin eventually becomes the new world reserve currency asset and U.S. dollar dies, as I have predicted in many of my blogs such as:

My answers on Quora:

Recent news related to the draconian FATF regulation of cryptocurrency coming:

The European Union’s Fifth Anti-Money Laundering Directive (5AMLD) went into force on Jan. 10, with new regulations for cryptocurrencies, wallets and exchanges

Speaking with CNBC on Friday regarding Bitcoin and the broader cryptocurrency space, Mike Novogratz — incumbent CEO of Galaxy Digital and a former partner at Goldman Sachs — argued:

“We’re going to see something from Treasury in the next few months that kind of puts some guardrails around Bitcoin […]

“We are working with FinCEN, and we will be rolling out new regulations to be very clear on greater transparency so that law enforcement can see where the money is going and that this isn’t used for money laundering.”

[…]

In Chainalysis’ latest report, the blockchain analysis firm found that the value of cryptocurrency spent on dark web markets, where individuals can buy items like fake identification and drugs, surged 60 percent to a “new high” of $601 million in Q4 of 2019.

Chainalysis added that 1 percent of Bitcoin transactions are used for illicit activity — up from the approximately 0.5 percent seen in the year prior

  1. Both proposals foist a new burdensome beneficial ownership reporting requirement on small businesses, while exempting those most able to abuse the financial system.
  2. For decades, the U.S. government has expanded the regulatory burden under the AML regime, requiring financial companies to file millions of reports.
  3. The existing AML framework now costs Americans billions of dollars per year—more than $7 million for every conviction obtained.

[…]

On May 11, 2018, a new FinCEN “Customer Due Diligence” rule took effect that substantially ramped up these requirements. If bankers are having trouble completing these tasks, perhaps the real problem is that Congress should never have treated them as if they were law enforcement officials. Of course, that’s the way that Washington works—this legislation is moving toward passage because large financial institutions are pushing for it.

[…]

Aside from shifting the reporting burden from banks to small businesses, the legislation would create a national corporate ownership database to “facilitate financial institutions’ customer due diligence efforts to confirm information currently obtained during the customer onboarding process.”

This feature raises all kinds of privacy concerns […] * Mnuchin: stricter crypto AML rules coming ‘very quickly’

Mnuchin’s comments come at a time when governments worldwide are changing the way they regulate crypto assets to comply with new guidance put forth by the Financial Action Task Force last year. The international body, which creates policies to combat money laundering and the financing of terrorism, is followed by about 200 countries, including the U.S..

Amendment of the Reporting, Procedures, and Penalties Regulations. On June 21, 2019, OFAC published an interim final rule amending the Reporting, Procedures, and Penalties Regulations (the “RPPR”).³⁷ Among other things, the rule revised the RPPR to require all U.S. persons (not just U.S. financial institutions, as had previously been the case) to file rejection reports with OFAC. The rule also amends the RPPR to require rejection reports for all rejected transactions (not just fund transfers, as had previously been the case), including transactions relating to wire transfers, trade finance, securities, checks, foreign exchange, and goods or services. In addition to these new requirements, the interim final rule also expanded the scope of information that OFAC requires to be included on initial and annual reports of blocked property.³⁸

  • Federal Register / Vol. 84, No. 120 / Friday, June 21, 2019 / Rules and Regulations

    §501.603 Reports on blocked and unblocked property. (a) Who must report—(1) Holders of blocked property. Any U.S. person (or person subject to U.S. jurisdiction), including a financial institution, holding property blocked pursuant to this chapter or releasing property from blocked status (i.e., unblocking property) pursuant to this chapter shall submit the relevant reports described in this section to the Office of Foreign Assets Control (OFAC). This requirement applies to all U.S. persons (or persons subject to U.S. jurisdiction) who have or have had in their possession or control any property blocked pursuant to this chapter, including financial institutions that receive and block payments or transfers.

Guidance on Applicability of FinCEN Regulations to Certain Business Models Involving Convertible Virtual Currencies. On May 9, 2019, FinCEN issued interpretive guidance stating that preexisting BSA regulations applied to several common business models involving Convertible Virtual Currencies (“CVCs”).⁸⁸ Covered business models include:

  • Peer-to-Peer Exchangers: Natural persons who engage in transfers between different types of CVCs, as well as exchanges of CVC for other types of value;

[…]

  • Anonymity-Enhanced CVC Transactions: Transactions structured to conceal information otherwise generally available through the distributed public ledger;

[…]

Guidance on Red Flags and Typologies for Suspicious Convertible Virtual Currencies Activity. Also on May 9, 2019, FinCEN issued an advisory regarding the use of virtual currency to support illegal activity, money laundering, and other behavior endangering U.S. national security.⁹⁰ The advisory highlights the capability of virtual currency to be used as an alternative to traditional payment transmission systems, and tracks the rising exploitation of virtual currency in criminal enterprises. The advisory describes multiple virtual currency abuse typologies, including those involving darknet marketplaces, unregistered peer-to-peer exchangers, unregistered foreign-located MSBs, and CVC kiosks, and provides case studies of each. In addition, the advisory discusses several red flags to assist financial institutions in identifying unregistered MSB activity and suspicious virtual currency purchases, transfers, and transactions. The red flags include any connections between a customer’s CVC addresses or IP addresses to darknet or Tor activity; receipt of multiple cash deposits or wires prior to purchasing virtual currency; transmission or receipt of funds or CVCs to or from foreign exchanges or jurisdictions with reputations for being tax havens; operation of CVC kiosks in locations with high incidences of criminal activity; and structuring of transactions just below reporting thresholds or CVC kiosk daily limit to the same wallet address.⁹¹

[…]

On October 11, 2019, the CFTC, FinCEN, and SEC issued a joint statement on activities involving digital assets.¹⁴⁵ In this statement, the agencies discuss the AML/CFT obligations that apply to entities that the BSA defines as “financial institutions,” as well as the factors involved in determining whether and how a person or entity must register with one or more of the different agencies. Each agency also separately provided additional commentary regarding the application of BSA regulations to their specific agencies.

[…]

Considerations for Strengthening Sanctions/AML Compliance

In light of the developments described above, senior management, general counsel, and compliance officers should consider the follow points in strengthening their institutions’ sanctions/AML compliance:

[…]

Continued Caution Around U.S. Dollar Transactions. In its landmark 2017 settlement with CSE Global and CSE TransTel, two Singapore-based companies, OFAC found that they violated U.S. sanct

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