The Bitcoin group is presently hotly debating the opportunity of a US authorities crackdown on BTC akin to the historic 1933 gold confiscation, an occasion now ominously referenced in crypto circles as “6102.” David Bailey, CEO of BTC Media, has catapulted this dialog into the highlight with a sequence of predictions on X (previously Twitter), suggesting that the US would possibly enact comparable measures in opposition to Bitcoin throughout the subsequent six years.

Bailey’s Bitcoin Prediction: A Path To Gold Parity And Panic

Bailey’s theory hinges on a sequence of financial and market developments starting with Bitcoin attaining parity with gold. This milestone, in keeping with Bailey, will skyrocket BTC’s market valuation to an estimated $13 trillion. Such an occasion, he argues, wouldn’t solely affirm BTC’s standing as a premier asset class but additionally set off a domino impact throughout international monetary methods.

“Within next 6 years Bitcoin hits parity with gold (I actually think we go beyond by next cycle).” Bailey asserts, outlining the muse of his speculation. He envisages this surge in BTC’s worth as a catalyst for widespread financial ramifications. “[It] metastasizes through the economy and capital markets via massive credit expansion and accelerated consumer spending,” Bailey claims.

The important juncture, nevertheless, comes with a market correction — a “75% drawdown” that obliterates over $8 trillion in collateral worth. This catastrophic loss, Bailey posits, will precipitate a credit score crunch and widespread asset liquidation, echoing the devastating impacts of historic market crashes however on a beforehand unimaginable scale.

He additional predicts the federal authorities’s response to the following monetary chaos can be to enact measures akin to the gold confiscation order of 1933 however tailored for the digital age. Central to this course of can be the nationalization of Bitcoin custodians, such as Coinbase, successfully changing privately held BTC right into a federal asset.

Bailey explains:

As soon as they 6102 the Bitcoin, they nationalize central custodians like Coinbase and payout customers some mounted quantity of cuck bucks per btc. Coinbase’s Bitcoin will change into an asset of the Federal Reserve held at a digital equal of Fort Knox.

This transfer, he suggests, wouldn’t solely strip BTC holders of their property but additionally centralize what was inherently designed to be a decentralized asset, beneath the auspices of stabilizing the monetary system.

The Fallout And The Federal Response

Bailey foresees the federal narrative framing Bitcoin and its meteoric rise because the culprits behind the monetary instability, thereby justifying the draconian measures. “They will say we caused the collapse which wouldn’t be totally wrong… except we weren’t the cause, we were the result of their own monetary policy,” he remarks, highlighting a perceived misattribution of blame that would function a pretext for sweeping regulatory motion.

In Bailey’s view, the aftermath of such a crackdown wouldn’t solely redefine the panorama of cryptocurrency possession and regulation but additionally mark a pivotal second within the wrestle between decentralized digital currencies and conventional fiat financial methods. He believes that the battle, removed from being a mere energy seize, can be a last-ditch effort by the federal government to take care of management over a monetary system threatened by BTC’s ascent.

“It’s why it’s the true crossing of the rubicon, they only do it when they have no other choice but the collapse of their system. The final collapse in dollar confidence is necessary for Bitcoins ascension to reserve status,” Bailey claims.

He additional provides:

Simply to be clear, I believe bitcoin being 6102 is insanely bullish. It’s a important juncture in Bitcoin’s journey to changing into humanity’s reserve worth system. Simply isn’t bullish for the those who lose their bitcoin. Don’t be these folks.

Bailey’s concept has sparked reactions throughout the crypto group. Bitcoin OG Tuur Demeester echoes the sentiment of warning and preparedness: “Important to prepare for scenarios like this. Attempted government bans are the next frontier for Bitcoin.”

Samson Mow, in settlement with the urgency of the scenario, highlights, “It’s all going to happen faster than we think. Gold parity and attempts at 6102. Max Pain Theory. There is no time to prepare,” suggesting an inevitable confrontation between Bitcoin and regulatory forces.

Critiques And Counter Arguments

The notion of an impending 6102 order for Bitcoin just isn’t with out its detractors. Vijay Boyapati gives a extra optimistic view, grounded in authorized precedent: “There is a legitimate concern that the custodial concentration brought about by a Bitcoin ETF increases the risk of a 6102 event. It should be noted there is some legal protection against this with the US 5th amendment.”

Boyapati additional clarifies, “The confiscation of gold in 1933 could get around this protection because dollars were considered equivalent to gold and so the US government could take people’s gold and give them a paper promise in return. The same cannot be said of Bitcoin.”

At press time, BTC traded at $51,869.