Finance has always been complex. 

Before Cryptocurrency, you could even say dull and uninteresting. 

Recent events of people being unable to pull their funds out of banks have left many confused and vulnerable. 

The pandemic-induced economic downturn and the unprecedented rise in inflation rates have left people scrambling for ways to protect their wealth. 

In all this uncertainty, former Coinbase CTO, Balaji Srinivasan, says the only way to protect yourself against the banking onslaught that’s coming is to buy Bitcoin. 

He believes Bitcoin allows Americans to break free from government control over money. 

His primary concern is how the cascade effect can happen to people wanting to get their money out of the bank and how quickly this can all come crashing down on us. 

The digital age has made bank runs fast and easy. 

A bank run is when many people suddenly rush to take all of their money out simultaneously because they’re worried the bank might not be able to give them their money back. 

It usually happens when people lose confidence in the bank or when there’s a rumour they might go bankrupt. 

Balaji says bank runs can happen so much faster in the modern age. No more waiting in line, queueing up outside the building and down the path. 

You open a new tab and move your money if it’s still there. 

The speed of action people can take, and information can bring about the onslaught of a banking collapse in no time. 

And the only way to protect yourself is to take your money out of banks, into Bitcoin and off of exchanges. 

Buckle up, strap yourself in, and let’s dive into the details. 

Banks Are Lying to You With Jargon. 

Balaji says that to understand the significance of what is happening right now, you must understand the bull sh*t banking jargon and read the fine print. 

He explains that banks and regulators knew that a massive crash was coming but didn’t inform depositors. That’s you — an everyday person putting your hard-earned money into your “safe” bank account. 

Instead, they allowed banks to hide their insolvency in the footnotes of financial reports, and it caused many businesses to lose their money and trust in banks. 

The government’s denial of inflation and interest rates has caused long-term damage to the economy. 

They’ve also hidden it from you under the tag “unrealised losses”. 

Balaji Srinivasan — Source 

“The phrase ‘ unrealised losses’ is actually a euphemism for the fact that you’ve (banks) lost money. You’ve lost money. You just don’t want to tell anybody that you’ve lost money. So you’ve hidden it in a footnote somewhere. 

And the thing is, these footnotes are not like hidden in plain sight. They’re hidden in hidden sight. They’re very hard to find. They’re very hard to decipher. 

They’re very hard to understand. And they’re written by accountants for accountants, and lawyers for lawyers. And nobody else understands them. 

So you’re supposed to be able to trust these banks, but you can’t actually trust them because they’re insolvent. 

They’re only insolvent in a way that only a lawyer could understand.” 

You’re Entitled To Your Money 

The consequences can be catastrophic if we lose trust in the banking system. 

Trusting a bank is a big deal since it’s where we keep our hard-earned money safe. We rely on the bank to keep our cash ready when needed. 

Over time, the trust between banks and their customers has grown more robust due to the different regulations and safety measures established to ensure customer protection. 

Balaji says when that trust is lost, we all end up in a financial crisis. 

Balaji Srinivasan — Source 

“The system is built on trust. 

The reason why you put your money in a bank is because you trust that when you want your money back, it’ll be there. 

And when that trust is broken, it’s like a chain reaction. 

People panic. They take their money out. The bank can’t meet its obligations. It collapses. 

And that’s how you get a financial crisis.” 

The Finance System Is Rigged Against the Little Guy. 

Balaji takes it one step further. 

He says people should self-custody Bitcoin, meaning take it off exchanges. 

His message is that the financial system is rigged against the little guy, and it’s time to take matters into your own hands. 

Balaji Srinivasan — Source 

“If you think about the pandemic and the lockdowns and everything that’s happened over the past year, it’s almost like the government has declared war on the middle class. 

And the middle class is being wiped out. 

The people who are benefiting are the elites. They’re the ones who have assets. They’re the ones who have property. They’re the ones who have investments. 

They’re the ones who have Bitcoin. 

And so, if you want to survive in this new world that’s emerging, you have to be like the elites. 

You have to have assets. You have to have property. You have to have investments. 

You have to have Bitcoin. 

And that’s the only way to protect yourself against the onslaught that’s coming.” 

Final Thoughts. 

I don’t think Balaji is one of us, little guys. 

But I don’t blame the technology mogul with a reported $ 1.3 billion net worth for wanting to join the masses and be the people’s hero. 

He’s right. Rich people buy assets. 

He’s filthy rich, so I’m sure he knows. 

The recent events of people being unable to access their funds have raised concerns about the safety and security of traditional banking systems. 

The rise of inflation rates and economic downturns has left people searching for alternative ways to protect their wealth. 

Bitcoin can be an alternative. 

It operates independently of government control. 

And it may just protect you against the banking onslaught.