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The approval of a Bitcoin ETF is a historic reversal, as gold is returning to the hands of the people in a digital form.

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The approval of a Bitcoin ETF is a historic reversal, as gold is returning to the hands of the people in a digital form.

In March last year, Balaji Srinivasan, former CTO of Coinbase, made headlines for betting a million dollars on Bitcoin hitting a million dollars. Following the approval of a Bitcoin spot ETF, he stated that history is moving in reverse, with the Bitcoin ETF representing a reversal of Executive Order 6102. In 1935, the US government confiscated people's gold. But now, digital gold is back.

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What is Executive Order 6102?

According to Wikipedia, Executive Order 6102 was an executive order signed by U.S. President Franklin D. Roosevelt on April 5, 1933, which primarily prohibited the hoarding of gold coins, gold bars, and gold certificates within the United States. The order was publicly justified as the hoarding of gold during difficult times impeded economic growth and exacerbated the depression, as the U.S. was on the gold standard at that time.

Executive Order 6102 required U.S. citizens to deliver their gold coins, gold bars, and gold certificates to the Federal Reserve, with each troy ounce of gold being exchanged for $20.67. As of the deadline, the price was $2,035. Violation of the order could result in a maximum fine of $10,000, or imprisonment of up to ten years, or both.

The underlying reason for this order was actually to eliminate restrictions on the Federal Reserve's ability to print money, as the Federal Reserve Act of 1913 at that time required that Federal Reserve notes be backed by 40% gold.

Executive Order 6102 was eventually repealed during President Ford's administration in 1974, legalizing private ownership of gold coins, gold bars, and certificates, and thus marking the end of this historical event.

First Gold, Then Printing Money, Resulting in Continuous Currency Depreciation

Srinivasan stated: The transition from a gold-backed system to a fiat currency system was akin to a soft communist revolution, seizing "tangible gold" first and then laying the foundation for currency devaluation through "intangible money printing."

He also shared a statistical chart from the U.S. Bureau of Labor Statistics, illustrating that in 2020, the purchasing power of $1 was equivalent to $20 in 1933, demonstrating how much the wealth of the people had dwindled over the years.

What the U.S. is Truly Concerned About is the "Freedom" of Bitcoin

Srinivasan expressed that the approval of the Bitcoin spot ETF this time echoes the gold clause case but in the opposite direction. This time, centralized nations are forced to reluctantly surrender institutionally. As seen from the statement made by SEC Commissioner Caroline Crenshaw who voted against it:

The spot Bitcoin market has no major regulatory agency. The spot Bitcoin ETP will participate in an unregulated, decentralized, continuous trading, globally chaotic market. Even if this market has a major regulatory agency, most of it may be beyond the scope of U.S. regulation.

Srinivasan pointed out that this is what the U.S. authorities are truly concerned about:

They are not worried about Bitcoin as "fraud," but Bitcoin as "freedom."

Regulatory agencies are afraid of the prospect of a "global free-for-all...beyond the reach of U.S. regulation." They know that, as intended by Satoshi Nakamoto, any spot ETF will raise the price of self-custodied Bitcoin beyond their control.

History is Reversing, Gold is Returning to Your Hands Digitally

Srinivasan believes that since the Roosevelt administration confiscated people's gold, our lives have revolved around centralized states rather than decentralized markets.

The state has controlled for too long, and we have forgotten what freedom is. But now, gold is slipping back from their hands and returning to yours. History is reversing!