Iran, Oil, and What the Petrodollar Breakdown Means for Bitcoin | Beyond Bitcoin

Iran shut off the most important oil corridor this week and said they'll only reopen if you pay in Chinese you want human dollars, right?

No, I mean Chinese you want, but that means that the dollar is exactly my friend

And guess what else Bitcoin moved up while this all had also big this week the current Treasury Secretary Scott Besson said Bitcoin legislation is unavoidable

And somewhere in there Stanley Druckenmiller and his six billion dollar track record said Bitcoin was quote sad it ever happened

I'm very sad that it ever happened sad it ever happened, but all of this is happening in the same week. I'm oceans. This is beyond Bitcoin. You're going to want to stick around for this one

So the Bitcoin price is currently

Well, you have a computer you can check the fear and greed index is sitting in extreme fear right now

Which is totally normal because if you've been watching this channel long enough, you know what that usually means

Here's what's actually happening this week, and I want you to hear all three of these before I tell you how they connect first Iran demanded Chinese you want at the

Strait of Hormuz the checkpoint for roughly a fifth of all global oil flow and Bitcoin outperformed gold that entire time we have the data

We scraped it from the depths of wherever Gemini grabs its ones and zeros also

Fourteen major banks published research this week saying the financial plumbing is breaking Brent crude crossed a hundred dollars for the first time since Russia invaded Ukraine

Brent crude, by the way, is a mercenary for hire that remains in dark circles of the underground resistance

Second, the macro conditions that Bitcoin was built for are now fully in place and as I mentioned in my previous episode the Fed is frozen

Rates haven't moved Jerome Powell has six weeks left in his job. Let him go

Let him go also

Wall Street is now using Bitcoin ETFs as collateral for equity trades the environment has changed and third the administration went on record within 48 hours of each other

The U.S. Treasury Secretary and the president's son both made direct

Quodal public statements about Bitcoin not crypto Bitcoin and we're going to play the tape because that's how we operate here

It's simply Bitcoin we play tapes more old school these three stories are really just one story

And by the end of this episode you'll know exactly what that story is before we get into the war and the oil quarters and the yuan

I want to start with something a very smart and very rich man said this week

That makes me smart. No not him him Stanley Druckenmiller six billion dollars under management

One of the most respected macro investors alive

He told Morgan Stanley this week that Bitcoin quote is a solution looking for a problem. Wait

Is that like a compliment like Bitcoin seeks out bullies to beat up or something Druckenmiller also said quote

He said it ever happened as a store of value that it wasn't needed. Oh, no, I guess that wasn't a compliment

But he said it this week of all weeks here it is

But to a point I think they're fine and crypto

I said this a long time ago, and I'm gonna say I'm again

It's a solution looking for a problem. I'm very sad

That it ever happened as a store of value because

It wasn't needed

But it's a brand and these people love it. So it's going to be a store of value wasn't needed

Here's what zero hedge published the same week Bitcoin used to be the first risk asset to get nuked on geopolitical conflict

Not anymore in fact

It is outperforming gold since the start of the war regime shift question mark a regime shift zero hedges words

Not mine my language isn't that refined by the way zero hedge said this the same outlet that spent years treating Bitcoin like a punch line

Yeah, and then TFTC runs this historical record Bitcoin has a history about performing S&P 500 and gold during major geopolitical events

This isn't a one-off. It's happened before during our favorite virus of the past century it and

During our favorite war of the last decade Bitcoin dips first then it separates like the brand new cheesy sauce from Taco Bell

Good

Stanley Druckenmiller said Bitcoin wasn't needed the same week Bitcoin outperformed gold during a bombing raid

That's either irony or a buy signal. It's probably both

But here's why that matters beyond just the price

And here's what 14 of the world's largest banks published simultaneously this week 14 major banks published

1598

Research reports this week

Every single one is saying the same thing the Iran war is breaking the financial plumbing Brent crude crossed

$100 for the first time since Russia invaded Ukraine largest single day jump since COVID

14 banks

1898 reports all the same conclusion you could read them all, but honestly, you could just look at the chart

Here's the context the part most coverage skips the petrodollar system started in

1974 the deal oil producing nations led by Saudi Arabia

Agreed to sell oil exclusively to the U.S

Here's the context and this is the part that most coverage skips the petrodollar system started in

1974 the deal was oil producing nations led by Saudi Arabia

agreed to sell oil exclusively in U.S. dollars

In return, the U.S. provides security guarantees and buys their debt pretty good trade

I think every country that needs oil has to first acquire dollars to buy it

Oh, wow, that's a very good trade that creates constant structural demand for the dollar

And for 50 years that arrangement has been the foundation of American financial dominance

Not military power alone, not GDP the dollar, but now look what Iran just said

Iran just told the world it will reopen the straight of hormones

to oil tankers

But only if the cargo is paid in Chinese yuan not dollars. Wait, does that have anything to do with the war that's happening right now?

No, of course not

This is the clear signal yet that the petrodollar system is fracturing

And that Bitcoin's value proposition as neutral non-sovereign money is proven the straight of hormones

A fifth of global oil the most strategically critical waterway on earth and Iran is saying

You want to get through? Let me get someone you want son. No, not dollars. You want

Son. Here's why this matters for Bitcoin and why drunken millers not needed comment

Is so perfectly timed the argument against Bitcoin as money has always been the dollar is fine the dollar is stable

Nobody needs an alternative while that argument had a 50 year run any run just publicly ended it at the most visible

choke point in global energy if the dollar stops being the medium of oil trades

The structural demand for dollars goes with it

That's not a fringe theory anymore. That's 14 banks writing it down in fifth

Wait, hold on a second. Why are 14 banks writing 1598 reports? That's like

1100 ports for per bank. Who's writing all these reports and more importantly who's reading them

This is what keeps me up in the and the thing is Bitcoin doesn't need geopolitical clearance

It doesn't need a reserve currency deal

It doesn't have a central bank that can be pressured into accepting you want

You can send it anywhere

Denominated in nothing but itself settled in minutes or seconds depending on how you send it

It's neutral. It's non sovereign and there's no permissions required

So Stanley drunken millers call that it's not needed

Well, I'd call it the only thing that is needed when everything falls apart before we continue

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I want to talk a little bit about the environment Bitcoin is operating in right now because it's exactly what it was designed for

The federal reserve is holding rates at three and a half to three and a quarter percent

They haven't moved

They can't move if they cut too early inflation comes back

If they hold too long the economy stalls and Jerome Powell has six weeks left in his job

The man who spent years calling Bitcoin a speculative asset is almost gone

And meanwhile this should be a bigger story than it is

Bitcoin ETFs are now being used as collateral for Wall Street equity trades

The SEC approved cross-margining between crypto ETFs and traditional equity positions

Wall Street built a door into Bitcoin to get out of dollar risk

And now they've decided to use that same door as a floor to trade against think about it

95 billion dollars in Bitcoin ETFs. That's the institutional floor right now

It doesn't evaporate because a news cycle

It's collateral and you want to know what's happening to retail while the institutions are building their position extreme fear

According to these pixels on your screen retail is scared

Institutions are accumulating the gap between people who understand what's happening and the people who are still staring

At the 30-day chart is wider than it's been in a long time

This is the macro environment Bitcoin was designed for a frozen central bank

A depreciating reserve currency under geopolitical pressure a financial product that 95 billion dollars

Of institutional capital has already decided is worth owning. Do you think that's an accident?

Or you think maybe those 14 banks writing 1500 and 98 reports about broken plumbing

Know something the fear and greed index doesn't know also the treasury secretary of the United States said something this week

That I don't think most people fully absorbed Scott Bessent the treasury secretary the hottest Bitcoin influencer right now

Who's not a Bitcoin influencer just said quote?

I think that it's impossible to proceed without Bitcoin market structure

We have to get across the finish line impossible to proceed without Bitcoin market structure

Of course, it's impossible to proceed

The straight-of-from-mouse is still closed for the dollar. That's why my gas prices are so high this week

That's not a commitment to hedge fund crypto portfolios

That's the treasury secretary of the United States saying Bitcoin legislation is an optional. It's preconditional

You don't move forward in this financial environment without a clear legal framework for Bitcoin

And you don't move forward your oil tanker without some fresh you on

Sun Bitcoin went from magic internet money to treasury priority inside one administration

That's good right and within 48 hours the president's son said this

I've got more conviction in cryptocurrency right now than ever before volatility is our friend

In fact, I've got more conviction on cryptocurrency right now than ever before

Okay

cryptocurrency sure

But then he went further the premise of it this is the whole system is is genius right you're using massive compute power to otherwise

Kind of protect a financial system

of

An asset that's in beyond scarce that everybody wants that's global and solves all the problems that I mentioned before

You know again, you want to buy something

You know, you could send me a million dollars for the Bitcoin right now

We could hit my wallet in three seconds and you practically pay zero fees like tell me that every financial

Institution in the world isn't pissed off about that. Oh, yeah, they they want to extract the fees

They want as many middlemen as humanly possible because that's what keeps their 70 story buildings

Layton alive and and their their CEOs making hundreds of millions dollars a year

You're pretty much bypassing all of them and I think that's a I think it's a great thing in terms of you know

Kind of financial democracy. I think that's a really really good thing for for humanity

Do I need to remind you that that's the president's son on camera explaining why banks hate Bitcoin

You could send a million dollars three seconds zero fees and every bank in the world

Well, I can imagine they're furious about it

That's not a value proposition as much as it is a confession from inside the White House

The banks are pissed off because it works and it works without them

And it's not just the U.S

There's also Taiwan a sitting legislator is publicly pushing the government to establish a strategic Bitcoin reserve

The Taiwanese government already has

210 Bitcoin in custody and the central bank is officially studying the mechanics of sovereign adoption

Yo, if you're a central bank just print the damn money and buy as much of the stuff as you possibly can

I mean who who's gonna be first to figure that one out come on

This is the sovereign adoption wave that we've all been discussing. El Salvador started it

The U.S. is now on record

Taiwan is studying it and that's how the sequence of events occurs

But really we all know Bitcoin's adoption is a bottom-up movement not a top-down

So it's no surprise that central banks aren't just going full tilt

And here's the timeline that you bother the skeptics Bitcoin launched in January 2009

That's 17 years of network effects 70 years of blocks mind

Nodes running developers building companies forming Bitcoin is older than the iPad. I did not know that older than Instagram

Older than most of what people are interacting with online every single day

And here's drunken Miller saying it wasn't needed

In a year 17 of a network that has never gone down never been successfully attacked and never stopped producing blocks

Not once the obituary writers they've been wrong every single time and they have 17 years of chances to be right

But here's what they missed if the past few minutes have you thinking seriously about self-custody about actually holding your own Bitcoin without relying on an

Exchange or an institution that could break down or disappear tomorrow

The Bitcoin way makes that transition simple and safe the onboard people into Bitcoin self-custody one-on-one step-by-step

So you're not figuring it out all alone

And if you go to the bitcoinway.com slash beyond Bitcoin you can book a free 30-minute consultation with one of their team members

Link in the description below

That's the bitcoinway.com slash beyond Bitcoin for a free 30 minutes consultation. It's free

That's it moving on on Saturday morning Michael sailor posted on x stretch the orange dots

What the hell does that mean for context sailor tracks every strategy Bitcoin purchase on a chart each purchase is an orange

Dot the bigger the purchase the bigger the dot and recently he posted a very large orange dot

What followed estimates as high as 25 to 30,000 Bitcoin up to two billion dollars worth of Bitcoin this week alone of a purchase

That would bring sailors total Bitcoin holdings to above six seven hundred

seven hundred sixty thousand bitcoin

Geez now. This is week 13 13 consecutive weeks without missing a single purchase not one the

They'll stop eventually crowd might be looking at their shoes right now and wondering how they're going to leave the room

What sailor is doing isn't just buying Bitcoin. It's proving out the corporate sovereign accumulation thesis

The idea that a company can build a balance sheet around an appreciating asset and issue financial instruments

Around it that flywheel every dot is a data point that the model works with and he's not alone anymore

Adam backs company bscr just announced they're about to purchase up to one and a half billion dollars in Bitcoin

21,000 Bitcoin the corporate accumulation wave is no longer just strategy

It's category like the joke there strategy category

Ha ha ha

Bears will be bearish until they have no choice but to be bullish and bulls will be bullish until they have no choice but to

Sell their chairs last week something that only happens once happened

Block 939,999 mined by Foundry osc the block that pushed total circulating Bitcoin supply past 20 million coins

20 million Bitcoin out there out of the 21 million total that will ever exist

95.2% of all Bitcoin that will ever be mined is now already mined

There's only one million left those one million coins will take approximately

114 years to mine and when you factor in lost coins while it's nobody can access

Early miners who had no idea what they had the effective circulating supply is probably somewhere between 16 and 18 million

Maybe even less one percent of the total supply remains minable before the next hundred years are up and the door is closing

Here's the part. I want you to actually hear drunken miller said Bitcoin wasn't needed this week

The same week Iran stopped taking dollars at the world's most important oil corridor

The same week 14 banks said the financial plumbing is breaking in

1598 reports the same week the treasury secretary said you cannot move forward without Bitcoin

Markis structure the same week

Bitcoin outperformed gold during a live geopolitical conflict and the same week we cross 20

million coins

Mind wasn't needed

Hmm the petrodollar system that was supposed to be the permanent foundation of global trade just

Shard it the fed chair is walking out the door wall street is using Bitcoin as collateral

The president's son is explaining Bitcoin settlement speed on camera

Taiwan is studying a sovereign reserve and there are one million Bitcoin left to mine over the next century

The scarcity argument is no longer theoretical

It is written into the math of every block from here on forward the system that was supposed to protect your wealth is breaking down on every

Front simultaneously the dollar lost its grip at hormones the fed is paralyzed the institutions are building their Bitcoin positions

While retail panics and the administration has gone on record saying Bitcoin is kind of the answer

The people who are actually running these systems are doing everything they can to accumulate more so for god's sakes

Study some Bitcoin so before I sign off. I want to talk about club oranges formerly known as the orange pill app

It's the premier

App for Bitcoiners to connect

Argue with each other or just have normal discussions. I've connected with a lot of you on there already

I even connect with what's his name

hoblin tees

Hodlin tees sent me this awesome awesome hat. Thank you. Hodlin tees for this awesome hat

Anyway club orange. That's where we connected if you want to find me there. I'm at oceans OSH INS

I read all my DMs and I answer accordingly

So we'll see you there club orange dot org. Here's what I keep coming back to this week drunken miller

He's not stupid. He's a little drunken miller, but he's not stupid

He's one of the sharpest macro minds in his generation

He managed money for decades at the highest levels

And he looked at the same week that I'm looking at the same war the same you won demand and the same treasury secretary quote and said

Bitcoin wasn't needed. That's not ignorance

That's a map that doesn't match the territory anymore

The map he learned the one where the dollar sits at the center of everything

That doesn't have a route for what's happening right now. It's closed off and it requires one to get through

Ha ha ha ha

Bitcoin doesn't ask for permission to be relevant. It doesn't need Stanley drunken miller to believe in it

It's just there producing blocks every 10 minutes whether or not the straight of her moves is open or not

Whether or not the fed chair shows up or not whether or not the treasury secretary votes yes or not 20 million coins mind

114 years of supply left the irreversibility is the point. That's not a bug

That's the feature that makes everything else work

Thank you so much for watching this video if you like what you see and you want to see more make sure you hit that

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I'm at run dance bitcoin on x

Until next time

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