Experts Warn Of 6102-Style Bitcoin Ban In The US

The Bitcoin community is currently hotly debating the possibility of a US government crackdown on BTC akin to the historic 1933 gold confiscation, an event now ominously referenced in crypto circles as “6102.” David Bailey, CEO of BTC Media, has catapulted this conversation into the spotlight with a series of predictions on X (formerly Twitter), suggesting that the US might enact similar measures against Bitcoin within the next six years.

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

Bailey’s theory hinges on a sequence of economic and market developments beginning with Bitcoin achieving parity with gold. This milestone, according to Bailey, will skyrocket BTC’s market valuation to an estimated $13 trillion. Such an event, he argues, would not only affirm BTC’s status as a premier asset class but also trigger a domino effect across global financial systems.

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

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

He further predicts the federal government’s response to the ensuing financial chaos would be to enact measures akin to the gold confiscation order of 1933 but adapted for the digital age. Central to this process would be the nationalization of Bitcoin custodians, such as Coinbase, effectively converting privately held BTC into a federal asset.

Bailey explains:

Once they 6102 the Bitcoin, they nationalize central custodians like Coinbase and payout users some fixed amount of cuck bucks per btc. Coinbase’s Bitcoin will become an asset of the Federal Reserve held at a digital equivalent of Fort Knox.

This move, he suggests, would not only strip BTC holders of their assets but also centralize what was inherently designed to be a decentralized asset, under the auspices of stabilizing the financial system.

The Fallout And The Federal Response

Bailey foresees the federal narrative framing Bitcoin and its meteoric rise as the culprits behind the financial 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 could serve as a pretext for sweeping regulatory action.

In Bailey’s view, the aftermath of such a crackdown would not only redefine the landscape of cryptocurrency ownership and regulation but also mark a pivotal moment in the struggle between decentralized digital currencies and traditional fiat monetary systems. He believes that the conflict, far from being a mere power grab, would be a last-ditch effort by the government to maintain control over a financial 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 further adds:

Just to be clear, I think bitcoin being 6102 is insanely bullish. It’s a critical juncture in Bitcoin’s journey to becoming humanity’s reserve value system. Just isn’t bullish for the people that lose their bitcoin. Don’t be those people.

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

Samson Mow, in agreement with the urgency of the situation, 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 is not without its detractors. Vijay Boyapati offers a more optimistic view, grounded in legal 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 further 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.

Featured image created with DALL·E, chart from TradingView.com