Fiat Utilization: Why Bitcoin Holders Will Be Forced to Give Up Their Coins

FIAT UTILIZATION: WHY ALL PLAYERS — FROM MUSK TO RETAIL HOLDERS — WILL BE FORCED TO GIVE UP THEIR BITCOIN

DISCLAIMER

This material is an analytical investigation prepared by the editorial board of Kafedra and SforNews magazines as part of a series of studies on the new economic reality. It is based on open data, official documents, and hypothetical analysis.

Our conclusions are based not only on publicly available data, but also on documents that the majority of people either do not see, do not want to notice, or are unable to interpret due to their complexity and non-obvious nature. These documents change the lens through which we perceive current events — they show that the world is not in a phase of “crisis,” but in a phase of completing the old architecture and transitioning to a new one, which most do not notice or do not want to notice.

This material does not constitute investment advice or a call to action. All conclusions are probabilistic in nature.

INTRODUCTION: THE ILLUSION OF OWNERSHIP

We are used to thinking that bitcoin is “digital gold.” That it protects against inflation, against the state, against financial chaos. We are used to thinking that by accumulating bitcoin, we become free.

But what if this is not the case?

What if bitcoin in its current incarnation is not “protection from fiat,” but a trap for fiat money? What if everyone who accumulates bitcoin — from Musk to the small retail investor — is actually participating in the process of fiat money utilization, not in its preservation?

And what if, at the end of this process, they will be forced to give away their bitcoin?

PART ONE: INTRODUCTION OF THE TERM “BITKIN”

Throughout this material, we will use two terms:

Bitcoin is the pure protocol created by Satoshi Nakamoto. A decentralized system of electronic cash that allows value to be transferred directly, without intermediaries. It is architecture, mathematics, code. Independent. Uncontrollable. Free.

Bitkin is what people turned bitcoin into. An asset on exchanges. A tool for speculation. “Digital gold” for those who want to get rich without creating anything. This is bitcoin embedded in the same banking system it was supposed to liberate us from. This is bitcoin that is bought and sold, accumulated and spent, but not used as money.

We introduce this term for simplicity, to clearly distinguish: bitcoin is the protocol, bitkin is the perversion.

PART TWO: SATOSHI’S VISION — AND HOW IT WAS PERVERTED

Satoshi Nakamoto created bitcoin to “take the banks out of the equation.” In his White Paper, he wrote:

“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.”

He did not describe bitcoin as an “investment asset” or “digital gold” for speculators. He described it as “A Peer-to-Peer Electronic Cash System.”

Key words: electronic cash. Not “store of value.” Not “hedging instrument.” Not “digital analogue of gold.”

Satoshi created bitcoin to:

Bitcoin was created as a system that frees people from banks. Today, banks and exchanges have made it their main currency. What they created is bitkin.

But here it is important to make a fundamental distinction: Satoshi did not create bitcoin as a financial product. He created a protocol. He created an architecture. He created a possibility.

And what people did with this possibility — is no longer bitcoin. It is bitkin — a perverted, mutilated version of the vision, into which people built their banks, their exchanges, their speculation, their greed.

The first perversion: bitcoin was turned into an “investment asset”

Bitcoin was created for transferring value. It was supposed to be money that could be used to pay for coffee, for services, for goods.

Instead, it was turned into an “asset” that needs to be bought and held, hoping that it will increase in value. This is not using bitcoin. This is speculating on bitcoin.

Satoshi did not write: “Buy bitcoins and wait for them to appreciate.” He wrote: “Transfer value directly, without intermediaries.”

Thus bitkin was born — an asset that does not move, is not transferred, does not serve as money. It just sits and waits.

The second perversion: bitcoin was forced into the infrastructure of banks and exchanges

Bitcoin was created as a system where everyone is their own bank. Keys — yours. Storage — yours. Control — yours.

Instead, people store bitcoins on exchanges. They entrust their keys to third parties. They create centralized structures that contradict the idea of decentralization.

Today, bitcoin is not a P2P system. It is an “exchange asset” that exists in the same banking system it was supposed to liberate us from. This is bitkin.

The third perversion: bitcoin became a store of value, not a medium of exchange

Satoshi created bitcoin as money. Money is supposed to move.

Instead, bitcoin became “digital gold.” It is accumulated. It is not spent. It is viewed as a “store of value.”

But if bitcoin does not move, it does not function as money. It becomes just an asset that is held while it grows. And when it stops growing — it is sold. This is bitkin.

The fourth perversion: bitcoin was embedded in the usury system

Banks and exchanges make money on bitcoin exactly the same way they made money on dollars: loans, margin trading, interest rates, commissions.

They did not make bitcoin “free.” They made it another tool for extracting profit. This is bitkin.

PART THREE: THE ILLUSION OF OWNERSHIP — DO YOU EVEN OWN BITKIN?

Satoshi created a system where ownership is determined by knowledge of the private key. Whoever knows the key — owns it. Mathematically, this is flawless.

But in practice, people do not store keys. They store them on exchanges. They trust third parties. They create infrastructure that contradicts the idea of decentralization.

Millions of people think they own bitcoin, but in reality they own a promise from an exchange. This is not a decentralized system, but a centralized one with bitcoin inside.

Because the same bitcoin is sold on multiple exchanges simultaneously, the market operates with inflated supply. Instead of 21 million coins, 210 million virtual units are in circulation.

Price is formed not on the basis of real supply and demand, but on the basis of paper obligations. Bubbles, crashes, manipulation — all are consequences of the market trading not bitcoin, but its derivatives.

This is exactly what we call “bitkin” — the very asset that people accumulate, speculate on, buy and sell on exchanges. This is not bitcoin. This is bitkin.

PART FOUR: STRATEGY — THE FIRST WARNING SIGN

The largest corporate holder of bitcoin — Strategy (formerly MicroStrategy) — began changing its strategy. For the first time in a long while, they DID NOT buy bitcoin. Instead, they approved a $1 billion share buyback and gained the ability to sell bitcoins to replenish their dollar reserves.

This is not just a “change in tactics.” This is recognition that the “buy and hold” strategy no longer works. Even the most ardent bitcoin supporter, Michael Saylor, realized: accumulating bitkin in the current infrastructure is not protection, but a trap. He cannot use his bitcoins as a real asset. He is forced to sell them to get the dollars he needs.

PART FIVE: JEREMY GRANTHAM — A PROPHECY THAT CANNOT BE IGNORED

Jeremy Grantham, who predicted the dot-com bubble and the 2008 crisis, stated that bitcoin “will go to zero, even if it takes a long time.”

He is not saying that bitcoin will die tomorrow. He is saying that the system in which bitcoin exists is not viable. And he is right.

Bitcoin as “digital gold” works only as long as there is a fiat system that buys it. When the fiat system collapses — and it is collapsing — bitcoin is left without buyers. It becomes just a number in an explorer.

Grantham is talking about bitkin — the very asset that became a victim of its own popularity. What people turned into a bubble.

PART SIX: PLANNING HORIZON = 0 — THE END OF ALL MODELS

Gref said: the planning horizon has compressed to zero. This means there is no future. No future cash flows. No discounting. No DCF. No stocks. No bonds. No bank deposits.

Everything based on “tomorrow” — disappears.

Bitcoin rests on belief in “tomorrow.” On the belief that tomorrow it will be worth more. On the belief that tomorrow it can be sold.

When there is no tomorrow — belief disappears. And without belief, bitkin is just a line in a database.

PART SEVEN: THE ILLUSION OF FINANCIAL FREEDOM

Institutional players and retail holders accumulate bitcoin, thinking they are “leaving the system.” But they are not leaving the system. They are simply exchanging one asset for another within the same system.

Bitcoin does not exist outside the fiat system. It is bought for dollars. It is sold for dollars. Its price is fixed in dollars. Bitkin is a derivative of the fiat system, not an alternative to it.

When the fiat system collapses, bitkin loses its value. Not because it is “bad.” But because the measure in which it is measured disappears.

Bitkin is not a way out of the system. It is just another asset within the system.

PART EIGHT: THERE IS ANOTHER SOLUTION — A MEASURE OF VALUE

Bitcoin is not bad. The technology is not bad. It was corrupted by people driven by greed and avarice. What they created — bitkin — is a perversion. But the protocol itself, the architecture itself, remained pure.

And there is another solution. There is an absolute invariant — a measure of value that does not depend on exchange rates, exchanges, or banks.

We described this in the Supplement to Satoshi Nakamoto’s White Paper — WIT ST EED NERD.

In this document, we proposed a new ontology of ownership. We showed that bitcoin can be not just digital gold, but perceptual property — an asset that exists both mathematically and consciously.

We are not rewriting bitcoin. We are not changing its mathematics. We are doing what Satoshi did not have time to do — adding to the protocol what he could not foresee.

We offer a system where ownership of bitcoin is not knowing a string. It is the ability to feel your key. This makes ownership inalienable. Because you cannot steal what exists only in your consciousness.

We return bitcoin to its true purpose. We turn bitkin back into bitcoin.

PART NINE: WHO AND HOW WILL “GIVE AWAY” BITKINS

Large players (Musk, Strategy, funds):

They will not “give away” in the literal sense. They will sell. In parts. During periods of illusory growth. They will use their bitkins as a last reserve of liquidity to get the dollars they need to survive in the new reality.

Retail holders:

They will be forced to sell due to falling prices. When large players start exiting, the price will fall. Fear will sweep the market. Retail investors will panic and sell at any price to lock in at least something.

Banks and brokers:

They will offer clients “structured products” based on bitcoin, which will actually be risk transfer instruments. They will not hold bitcoin. They will hold derivatives. And when the market collapses, they will write off losses on clients.

PART TEN: WHY THIS IS INEVITABLE

MAIN CONCLUSION: BITKIN IS NOT SALVATION, BUT A TRAP

Bitkin is not “protection from fiat.” It is a tool for utilizing fiat money. It was created to absorb excess liquidity of the fiat system and disappear along with it.

Those who accumulate bitkin are not “investors” or “saviors.” They are the last holders of an asset that will be zeroed out along with the fiat system.

But there is good news: those who understand this process can exit in time. They can use bitkin as a conversion tool, not as “eternal storage.”

And there is another solution: not bitkin as a “speculative asset,” but bitcoin as perceptual property — an asset that exists both mathematically and consciously. This is what we described in our Supplement to Satoshi Nakamoto’s White Paper.

The question is only who will manage to exit before the system closes. And who will be able to transition to the new ontology of ownership.

CONCLUSION: THE WORLD THAT MOST DO NOT NOTICE

In this material, we rely not only on publicly available sources. Our conclusions are based on documents that the majority of people either do not see, do not want to notice, or are unable to interpret.

These documents show that the world is not in a phase of “crisis,” but in a phase of completing the old architecture and transitioning to a new one. The old system is not collapsing because it is “bad,” but because its time has expired. Fiat is being utilized through all possible instruments — including bitcoin in its current incarnation.

But there is another path. A path that returns bitcoin to its true purpose — not as a speculative asset, but as a measure of value that exists outside banks, exchanges, and states.

The question is who is ready to see it.

THE FOUR ERAS OF MONEY

Our supplement opens the fourth era of money.

The first era: commodity money — gold, cattle, grain. Things you can touch.

The second era: fiat money — paper that has no value in itself, but there is trust in the state.

The third era: cryptocurrency — bitcoin. Money that rests on mathematics, not on trust.

The fourth era: perceptual money — bitcoin with NERD. Money that rests on perception. You do not just know that you have bitcoin — you feel it. And that feeling is the only proof of ownership.

LINKS TO OUR ARTICLES

Prepared by the editorial board of Kafedra and SforNews magazines based on open sources. When citing, reference to the original source is mandatory.