Wall Street’s Attack on Bitcoin: Who Wins?

I like to teach, especially GenX and Boomers, who aren’t digital natives, how to look at Bitcoin.

Because GenX, especially – it’s moving fast, my friends, it’s on sale right now, and we really cannot sit this one out because it’s going to change the trajectory of our lives – for better or worse.

Learn now and win – or sit on the sidelines and Game Theory will drag you in, like it or not, at a much higher price. Your pension fund manager or wealth advisor is probably putting you in Bitcoin funds right now. When you could own Bitcoin yourself.

Real Bitcoin vs Paper Bitcoin: Wall Street’s Attempt to Control the New Financial System

Most people don’t realize this yet, but Wall Street is quietly trying to turn Bitcoin into the very thing it was designed to escape.

What you’re seeing in today’s volatility isn’t random – it’s the opening move in a battle between real Bitcoin and paper Bitcoin.

Banks and financial institutions can’t stop Bitcoin, so instead they’re flooding the market with synthetic versions that look like ownership but aren’t.

And if you’re GenX or a Boomer who didn’t grow up digital, understanding this difference now could change the trajectory of your financial future – for better or worse.

Let’s Talk More About Real Bitcoin vs. Wall Street’s Synthetic Bitcoin

The volatility we’re seeing in Bitcoin has an interesting explanation.

And if you listen carefully, you’ll see how it makes holding and self-custodying your Bitcoin that much more important.

That sound you’re hearing? Listen carefully because it’s the old financial system breaking, and the old financial system is screaming.

We need to stop staring at charts because things are changing so fast that the charts fail us a lot, anyway, here in Year 17 of Bitcoin’s history.

The old financial system has declared war on the new one. We’ll be parsing this for months – but what it looks like is Wall Street deciding, we can’t beat Bitcoin, so let’s see if we can control as much of it as possible.

For over 100 years, Wall Street has controlled the world by selling things that do not exist:

Paper claims on gold, to the extent some estimate 800 times more paper claims than there is actual gold. Paper claims on silver, and paper claims on real estate through instruments like CDO, where we’ve built skyscrapers and office buildings on top of financialized paper instruments.

But now, Wall Street is looking at a real threat that they aren’t going to be able to control.

The New Story of “Pristine Collateral”

Strategy, the leader in the pack, by miles, of the Bitcoin treasury companies, has proven that Bitcoin can function in capital markets as pristine collateral. In fact, more and more banks are calling it that, and stating their intent in 2026 to custody and lend against Bitcoin as collateral.

Think about your Bitcoin – that can’t rust, depending on how you’re holding it, can’t be seized in a wrench attack, and will still be there in 100 years. Compare that to what banks have considered pristine collateral until now – real estate. Where tenants take a beating, and so does weather (I know this from living through 4 hurricanes in 4 years that cost me and my insurance over $100K), and time.

Strategy’s product STRK (Strategy / “Stretch”), is generating yield that banks can’t compete with—creating a flywheel that pays you on real assets. It’s making the rest of Wall Street look really bad. Because we pay so much for Nvidia or Microsoft stock due to our expectations of its future earnings. But Strategy is paying us dividends on actual collateral they’re holding.

Strategy has shown us a new open secret in finance– that Wall Street is trying to figure out how to deal with:

Companies can run a treasury better than a bank by using Bitcoin as the engine, and with less expense, fewer employees, and higher, more predictable yield.

I’m sure you can imagine how that threatens the debt-based banking model. I’m not even a Strategy investor, but I’m excited about the Wall Street shakeup.

So big banks are counterattacking – flooding the market with synthetic Bitcoin, rolling out products that look like Bitcoin and feel like Bitcoin, without ever touching real Bitcoin.

Which is what they did with gold. And sadly, they take advantage of investors who don’t know the difference.

So let’s talk about how regular people like you and me can front-run what looks to intend to be the biggest wealth transfer in history.

Let’s talk about:

1. Why synthetic Bitcoin is the what the banks are going for
2. Why Strategy’s business model already planned for this and they cannot penetrate it
3. And why, for the first time in history, their paper tricks won’t work

Let’s Talk About the Old System

The rails of the old system consist of:

• Central banks (think Federal Reserve, Bank of London, Deutche Bank)

• Huge banks often called “too big to kill” – like JPMorgan

• The derivatives market, built entirely on betting, where nobody owns assets – only claims on assets.

Fractional reserve banking creates claims on money that doesn’t even exist. We’re so used to accepting it that we forget to take a look at what a “doom loop” it is. So let’s compare it to the new system:

The New System

The new rails are blockchain-based and equity-based – not debt-based.

In this system:

• The asset is the settlement. You can do business if you have the underlying asset, Bitcoin.

• You hold Bitcoin, the value itself, not a claim against it, where there may be hundreds of times more than there are the asset itself, and that system is propped up by the assumption that everyone won’t make a run on the bank at the same time.

For some years, Augustin Carsons at the Bank of International Settlements, and the Federal Reserve, the old system, ignored the new rails. It didn’t take them seriously. Then it mocked them. It should surprise nobody that now it’s fighting them.

Strategy didn’t just buy Bitcoin. They exploited a glitch in the fiat system.

They hold real Bitcoin in self-custody – Bitcoin that cannot have cotton-candy paper bets on it, like gold does. As it appreciates, it strengthens their balance sheet. They issue debt to acquire more of it.

This creates a self-reinforcing flywheel:

• Constant incoming inexpensive capital
• Hard-asset appreciation
• And yield that doesn’t just beat the debasement of the dollar and even other fiat currencies–but it’s also better yield than over 99% of the S&P500.

Strategy is effectively becoming, whether it technically qualifies or not, a bank that doesn’t need the Fed.

Traditional Finance is melting down, trying to figure out what to do.

The Counterattack Begins

If Strategy (and Bitcoin) keeps succeeding, the banking model is in jeapardy – so of course, they’re going to fight back.

• What they’ve done so far is that margin requirements on MSTR stock are raised to force liquidations. What JPMC can control is to increase holdings requirements from 50% to 95% to lend against Bitcoin.

• And secondly, rumors are running rampant that Strategy could be removed from major indices like MSCI (a Morgan Stanley index), choking liquidity.

Fact is, this has happened before. And it didn’t end well.

The Hunt Brothers Take On Silver in 1980

In 1980, the Hunt brothers bought up physical silver.

So much that banks didn’t have enough metal to back their paper claims.

So what did banks do? They changed the rules.

Margin requirements were raised to 100% overnight. And silver crashed.

The Hunts went bankrupt.

The paper system, though, survived. And while this is small consolation, if you’re still holding silver 40 years later, it’s worth more than ever.

Big banks are now trying to run the same playbook on Michael Saylor and Bitcoin. And I can’t yet prove that first they had a hand in getting Bitcoin’s price way down.

And putting the squeeze in Strategy wouldn’t be enough – they need to suppress Bitcoin itself.

Creating Fake Bitcoin Supply

Bitcoin has a fixed supply and rising demand, especially with “the debasement trade” being openly discussed everywhere right now – as in, what are you doing to protect yourself against money printing, quantitative easing, your dollars getting worth less and less? – so how do you suppress the price of Bitcoin?

Well, the clever answer is to create fake supply.

JPMorgan has filed for Bitcoin-linked leveraged structured notes.

These products do not buy Bitcoin.

No Bitcoin is removed from circulation.

No scarcity loop is created.

Instead, banks issue IOUs – synthetic Bitcoin – creating artificial supply that meets real demand and suppresses price discovery.

This is exactly how gold has been controlled. You’d think this would be illegal, but they do this kind of thing. They’ve paid many fines for doing worse, and it’s in the end a “buyer beware” situation.

I’ve had several people tell me they “own” Bitcoin and that their financial advisor put them in it. I don’t want to offend them, but I say, “Uhhh, your financial advisor can put you in shares of an ETF, so if the price of Bitcoin goes up, your shares go up – but no way did your financial advisor put you in Bitcoin.”

You can own it yourself, and very easily. I teach classes every Weds night, see the link below, it’s literally the price of a cup of coffee for me and my co-teacher – and we do one-on-one coaching sessions, too.

Do You Think Gold is A Free Market?

Gold tends to be the OTHER “debasement trade” to protect you against inflation or what is very obviously your dollar (or other fiat currency) falling in its purchasing power.

Prices of gold, though, I hate to tell you, aren’t set by physical supply and demand.

Just like it’s not the free market setting the interest rate, or the price of money. It’s the Federal Reserve headed by a guy named Jerome Powell.

The price of gold is set by the paper markets (LBMA and COMEX).

For every ounce of real gold, those organizations admit that there are roughly 100+ ounces of paper gold traded.

Banks use manage the price with naked short selling and rehypothecation.

Now they want to turn Bitcoin into Gold 2.0.

If they can convince people who don’t understand Bitcoin anyway to buy paper Bitcoin instead of real Bitcoin, they can manipulate the price indefinitely.

I’m not making this up – this is what has already been done with commodities like gold and silver.

Centralize & Suppress

When a decentralized system (think Bitcoin, gold, or silver) threatens the power structure of the banks, the response is always the same:

1. Centralize the rails
2. Control the narrative
3. Suppress the alternative

This has everything to do with the GreenSmoothieGirl mission, but I want to credit Crypto Casey with these comparisons, where competition was squashed, at the people’s expense, in these arenas of life:

• Medicine (Flexner Report, to get rid of naturopaths, chiropractors, herbs, to protect the allopathic and pharmaceutical complex)

• Education (where we went to factory-style schooling, rote memorization, creative thinking no longer encouraged)

• Food (industrial agriculture replacing the real food and the ups and downs of good and bad growing years–depending on flavoring and texturing cheap products like corn, soy and wheat)

• Money (the Federal Reserve after 1907, which is about as Federal as the company Federal Express is!)

Bitcoin is the alternative – and Strategy proves it works.

So they want to kill:

• Self-custody
• Independent thinkers
• Real asset ownership

And con everybody into thinking a piece of paper is the same thing as real Bitcoin. Like they did with other assets like gold. And you don’t have to. You can hold and own the real thing.

But be aware: the pressure to sell your Bitcoin to these huge players will be intense. But I predict they lose, this time!
This playbook won’t work on Bitcoin!
With gold, supply could be hidden.

With Bitcoin, every satoshi is auditable on the blockchain every 10 minutes!

Bitcoin is:

• Fully transparent
• Useable and tradeable 24/7
• Global
• Borderless
• Impossible to fractionalize secretly

If JPMorgan sells “30 million Bitcoin” on paper, but on-chain data shows zero movement, the lie is exposed instantly, and hundreds of thousands of Bitcoin node operators know it – or any average Joe who looks at the blockchain.

If JPMorgan sells “30 million Bitcoin” on paper, but on-chain data shows zero movement, the lie is exposed instantly, and hundreds of thousands of Bitcoin node operators know it – or any average Joe who looks at the blockchain.

And there are now dozens of Bitcoin-related alternative media outlets who will blow the whistle, and fast. I know I will.

Synthetic layers cannot survive in the light. Bitcoin, because of the blockchain, brings a big, huge flashlight to the party.

The real war isn’t Bitcoin vs. the dollar. That’s what I used to think – I’m in the early 2020 class of investors.

Now I see the big 2025-2026 war is between Traditional Finance and the new Bitcoin-backed hard-money system. Banks are constantly coming into the space, saying they’ll hold Bitcoin as collateral against loans, and participating in other ways, too.

Some of them are banks that were making fun of Bitcoin just three years ago.

The real war is between the old system and the new system. And the new system? There’s never been anything like it. Attempts were made, for years. But nobody got anywhere near the network effect Bitcoin now enjoys, all over the world.

If Bitcoin becomes global collateral, and these same banks are accepting it as collateral, if you want to borrow in dollars losing value, against your Bitcoin over time gaining value–these same banks are practically daily announcing they’re coming into that game, in 2026.

Here’s the bottom line: the banks lose their ability to create money from nothing.

The Only Way to Win

Don’t fall for:

• ETFs
• Structured notes
• Derivatives
• Paper Bitcoin
• Shares in stuff

The only way to win is to hold the real asset.

Self-custody matters.

In a black swan event, or if these propped-up banks fail, those holding paper claims will pay the price.

Imagine waiting through a bankruptcy proceeding, hoping you get pennies on the dollar back. In all the Bitcoin-related bankruptcies (of the early companies in the space) except the Celsius bankruptcy, where Simon Dixon has shown up to every hearing and convinced the judge not to sell the Bitcoin–

–the Bitcoin actually got sold and the lawyers got what little there was to squabble over, in the end. These investors trusting third parties with their asset got left holding the bag.

Just like how in the Great Financial Crisis, bankers got their massive paychecks and bonuses, and 10 million Americans lost their homes!

Those holding Bitcoin keys will inherit the new system.

We’ve never had a more robust asset to protect our wealth. Tell your friends about my channel because it’s for smart people, but it’s to INTRODUCE you to Bitcoin.

A lot of people are in despair in our economy. But there is always opportunity in crisis. And for the first time in history, the people have an unparalleled weapon, to win at protecting themselves and their wealth.

What’s hard isn’t to get people to buy Bitcoin. It’s to take the time to understand it.

So every Wednesday night, at 8 pm Eastern, we teach, and we focus on beginners. And we do one-on-one coaching too.

Join us for a third free month. And use ROBYN as a coupon code for another $50 off.

And we’ll see you on Wednesday nights – some of our students say it’s the highlight of their week, and while we are not financial advisors, we are educators–

–those we’ve been teaching a while have seen their financial lives improve radically.

So check out the page about it, including what our students say, and we’ll see you on Wednesday nights!