May 27, 2025. By King Edward.
The Affect of The Genius Act: If banks are permitted to trade in cryptocurrencies and accept cryptocurrencies as payment than there will be a weakening of the US dollar due to the provision in the GENIUS Act that the bank must hold a ratio of 1:1 US dollar to cryptocurrency. This required ratio will cause the financial system to "plug up" where by there will be fewer dollars to lend due to the fact that cryptocurrencies require an equal number of US dollars to back them. Because there exists no facility for lending cryptocurrency there will be fewer dollars to lend to small businesses and consumers. This will raise interest rates to reduce the amount of borrowed credit. Once enough businesses have failed the US government will either outlaw Cryptocurrencies or shut down the internet - Although the latter seems outrageous it is a possibility if the American government wishes to use cryptocurrencies in the future. **The government will confiscate savings and gold from the people of America to offset the shrinking money supply**. When the catastrophe is over the remaining banks will be over capitalized and will require the federal reserve to remove capitalization. This will effectively reset the economic system of America. Be safe, invest in land and housing - that's why they are building so much - Keep little cash.
May 28 2025. By King Edward
**As I have mentioned, the act will permit banks to trade in cryptocurrencies provided they hold an equal number of American dollars to cover their investments. So, how will Americans lose their savings... When a bank becomes insolvent the depositors lose their savings and are awarded $75 000 in depositors insurance if their accounts do not possess secondary insurance to cover a larger amount. Because large banks will become more selective as to who they lend to, smaller regional banks will fail causing small businesses to fail too. A spike in lost savings and unemployment will be how the American government confiscates savings. The confiscation of gold is questionable but possible too.
May 30, 2025 by King Edward
In the past cryptocurrencies could be issued privately without the need for financial backing by any currency. When buying the currency you either purchased from a holder or the issuer if they were selling. When selling the currency you had to sell to a buyer with cash. The new requirement of the GENIUS Act states that all cryptocurrencies issued by institutions (called stable coins) must be backed 1 to 1 with approved US reserves. So what does this mean for Bitcoin? Well, there are approximately 20 million bitcoins in existence and each one sells for 104 thousand US dollars - that's a market cap of 2.08 Trillion dollars. In order for Bitcoin to be considered a stablecoin they would need this much money in reserve with an institution. I don't believe they ever will, it's the cost of being first and I believe it will result in a Bitcoin sell off. The sell off will occur because American institutions will not be permitted to bank with Bitcoin, and Bitcoin will not be advised as a secure investment. My suggestion? Sell your Bitcoin and wait.
June 1, 2025. By King Edward.
As I have been saying... The GENIUS Act requires one to one capitalization using approved reserves like cash and short term treasuries (<90 day). This will lead to the over capitalization of banks that issue stable coins. As the stable coins increase in value the banks will have less resources to lend; this will lead to a capitalization crisis. To avoid the crisis, banks will have to refrain from issuing their own stablecoin. If that can not be done issue a low volume stablecoin with a price cap (the cap would be chosen with respect to the desired max capitalization of the institution). And finally, invest in foreign financial services like those of England and China because if capitalization becomes a concern in America and banks can not lend resources to businesses, those businesses have a right to seek foreign investment - and they will. In conclusion, the GENIUS Act requires too much capital to be held in reserve. As a result there will be an over capitalization of banks in America which will lead to a capitalization crisis and a lack of lending. So it is advised to refrain from issuing a stablecoin and to invest in foreign financial services.
June 1, 2025. By King Edward.
Private credit may be the match that ignites the capitalization crisis in America. If lenders bypass banks to produce loans then banks will have a reduced access to capital and be more exposed to the stablecoins they underwrite. Furthermore, as private credit deals increase in popularity there will be fewer and fewer senior debts and a rise in junior debts will occur. Because junior debts are unsecured there will be an increase in risk in the banking sector as private equity firms leverage the new lending practices - if the juniors fail the seniors will fail too and the entire market will collapse. JPMorgan recently launched Kinexys on May 14, 2025 in partnership with Chainlink and Ondo. Is this the beginning of the crisis?
June 3, 2025. By King Edward
It looks like the federal government will be reducing the capital requirements for large banks. This is bad news for wall street and main street because it reduces the amount of reserves the banks have, to deal with bad debt. With investment firms pushing private capital and banks becoming involved in Stablecoins it looks like a perfect storm of legislation that will bring down corporate America within the next few years. I have read that the federal government might remove secure reserves like treasuries from bank balances for capital requirement calculations which my boost investment in treasuries. Overall, however, I think it is a good time to start shorting the banks. But I will say, buy JPMorgan, Kinexys is a pegged stablecoin tied to US Treasuries and unless they issue an unpegged stablecoin they should make record profits.
Jun 4, 2025. By King Edward.
It looks like Europe's largest bank HSBC will be entering the private credit markets with a 4 billion dollar investment; which they hope will reach 50 billion in the comming years with the help of private investment. The private credit market is a risky market where money is lent to borrowers who do not qualify for traditional bank loans. There are two types of private equity loan, the senior debt loan and the junior debt loan. Senior debts are written such that they must be paid back first and are secured against a borrowers assests. The junior debt loan is often unsecured but pays a higher intrest rate which makes them attractive. However, in times of economic crisis such as what the globe is experienceing now private equity loans have an addittional risk because more and more businesses are unable to qualify for traditional bank loans. The overload of borrowers are being serviced by private credit in hopes that their businesses will survive. However, if enough junior debts are defaulted the seniors will default too. So, what is the worst that could happen to HSBC? Considering they have a 3 tillion dollar balance sheet, one would think that 50 billion would do no harm. But HSBC also insures debt, and if enough banks enter the private credit market and their debts fail, the payouts could be huge. We could be looking at the financial collapse of 2008 all over again.
June 5, 2025. By King Edward
Chainlink... Creators of the LINK token. Monetizing data for the sake of mankind. Could Chainlink offer a search engine for the internet that rivals that of Google? They have the server capacity and the AI required to sort data. Furthermore they are a payment company so it would be easy for them to make and receive payments for advertising. However, it would mean the end of their partnership with Google Cloud X and all future business with Google, plus Google might begin to compete in interblockchain technology putting pressure on Chainlink. But then again, there is always XRP or Avalanche since the latter has already digitized the California Department of Motor Vehicles regestry. There is obviously more to Blockchain than fungible tokens.
June 7, 2025. By King Edward
So what if the banks do not jump into unpegged cryptocurrencies... If the GENIUS Act passes as it is, and the CLARITY Act passes too, then cryptocurrencies will be governed by either the SEC or CFTC (Commodity Futures Trading Commission) and they will require a 1 to 1 capitalization with US reserves. If the banks do not jump into crypto at that point, then capitalization will need to be removed from the system by way of systematic cryptocurrency crashes orchestrated by the US government. Every crash will result in liquidity removal by the fed, until the balance sheet is a manageable size (Only the fed knows what that size is). And for naysayers out there who don't believe there is a capital crisis on the way remember that the fed had lowered interest rates to zero (or 0.25%) for almost 9 years and during that time the borrowing was tremendous. Now is the time for the fed to take the money back or risk a devalued dollar and all the expense of doing offshore business that comes with it.
June 8, 2025. By King Edward
So, if the US government plans to systematically crash stablecoins in order to remove capital from the federal balance sheet, how will they achieve it? As stipulated in the GENIUS Act, stablecoin issuers will have to submit monthly audit reports outlining the current stablecoin balance they have on their books. As unpegged stablecoins increase in value their capital reserves will need to increase too. If the value of the stablecoin drops abruptly the issuer will have less than a month to allocate the capital reserves which will remain on their balance sheet. The Federal Reserve Bank will then remove the over capital from the issuer and the cycle will repeat. So what happens if the US government does not impose systematic crashes? The stablecoin values will rise to unmanageable sizes; the issuers will not be able to capitalize at a 1 to 1 ratio and the stablecoin will default. Luckily, according to the GENIUS Act, stablecoin holders will be paid out before creditors in the event of a default, so there is a safety net for investors. My advice? Don't over invest in stablecoins, stay liquid and pay your taxes.
resource: https://montague.law/blog/crypto/understanding-the-genius-act.
June 10, 2025. By King Edward
So, what is missing from the world of stablecoins... It would be a settlement contract which limits the number of tokens which may be transferred or exchanged for cash. If a redemption contract existed then that contract could be used to govern redemption amounts and make it difficult for users to "dump" their positions and cause stablecoin crashes. Upon inspection of the Stablecoin Studio suit of software, it appears there is no contract which defines such an activity as sales. The closest contract I see to a 'cashout' contract is 'burnable', but burnable is a valid contract to impose after the redemption activity. So, how can we modify Stablecoin Studio and possibly other stablecoin suits of software to incorporate a redemption limit on stablecoins.
June 12, 2025. By King Edward
Can an invalid block header cause an invalid blockchain? According to Google AI: Yes, an invalid blockchain header can indeed cause an invalid blockchain. A blockchain's integrity is heavily reliant on the validity of its block headers, which are essentially the "fingerprints" of each block and ensure the chain's order and integrity.
When a blockchain is deemed invalid it can have several serious consequences such as loss of assets and a loss of trust in a system. Statistically header errors will become a larger issue as more finance is traded over blockchain systems as used in DeFi. So, at what point do the errors compound at a rate that creates too much distrust in a Blockchain system? There are currently 900,966 blocks in the Bitcoin Blockchain as of (2025-06-12 11:18:09). At one header error in a million (which is a guess) we should be looking at our first legitimate but invalid transaction soon. This could currently cost the account anywhere from $100 000 or more, depending on the size of the transaction. The result is DeFi Risk, and as more DeFi options are offered to the public the risk increases - The question is, what is the reward? Was Bitcoin a one-off phenomena that will never happen again? or will the likes of Chainlink give similar gains in the near future. I will remain traditional with my investment strategy and I will profess that Blockchain has a limited life expectancy.
June 15, 2025. By King Edward
Bitcoin has a current market capitalization of 2.08 trillion dollars which is 8% of the GDP of America (50% of the GDP of Japan) according to, World Bank. Bitcoin has what is called a "block subsidy" which is paid out when a miner successfully mines a block of Bitcoin. But this subsidy halves every 4 years and is currently at 3.125 Bitcoin per block. Over the last 4 years the ratio of mining costs to Bitcoin price has hovered near 1 with most deviances being greater than one. In 2028 the mining subsidy will be 1.5625 and if Bitcoin doesn't double by then, the cost of mining to price of Bitcoin will be much greater than one and miners may cease their operations. Note too that a double in Bitcoin price will bring its market cap to well over 4 trillion dollars which will make it the most valuable traded commodity on the market (3 times greater than the next highest commodity, crude oil). So, is Bitcoin more valuable than oil? Short answer is no. And knowing that Bitcoin has a life expectancy of less than 7 years due to the policy of halving the mining subsidy and the current market cap of Bitcoin being 2.08 Trillion dollars (to be close to 30% of the GDP of America in 2032) I will advise those listening to avoid Bitcoin based on its fundamentals. This is not to mention the current competition in the Stablecoin market that will surely strain Bitcoin as well.
resource: https://en.macromicro.me/charts/29435/bitcoin-production-total-cost A chart of Bitcoin price to mining cost.
resource: https://kf106.medium.com/what-happens-when-bitcoins-block-subsidy-runs-out-0e1e779b041a An article about Bitcoin mining scenarios.
June 16, 2025. By King Edward
In Blockchain technology, currently each block is linked to its former block by encryption contained in the block as well as a header. However, data corruption in the header or body of the block will cause a Blockchain to fork creating a mess of Blockchains and making it difficult for miners to choose the active chain. But what if every other block was a duplicate? Then all data would be held in three places which would make data recovery much easier and result in fewer forks of the Blockchain. I call this approach Tri-blockchain and I believe it may be the future of DeFi.
June 17, 2025. By King Edward.
In Triblock technology (also known as Tri-Blockchain technology) every other block is a duplicate, therefore it is important to be able to identify the lead block in a triplet. This may be done using a modulo function for three to determine which block number is divisible by three perfectly. Once found it can be determined that that block and the previous block are identical and the next block has in its body the hash of the current block. In this way headers and block content can be patched in the event of data loss due to corruption. Note, modulo remainder 1 means that you are dealing with a singular block; there is no remainder 2 at the end of a chain, and a remainder zero means you are dealing with a lead block. If a remainder 2 is encountered at the end of a chain, then a duplicate block was not created.
June 20, 2025. By King Edward
In Triblock technology, how can a duplicate block be created successfully? We use modulo 3 and duplicate every block with a remainder 2, it is that simple then when counting up the chain we only count blocks with a remainder 1 or 0 to create the linear chain.
June 20, 2025. By King Edward.
So, the Senate has passed the GENIUS Act and a final vote will occur very soon by the House of Representatives. I am aware of a second bill called the STABLE Act which is also part of the vote as it was created by the House. Either the GENIUS Act will be passed in its entirety or some form of hybrid GENIUS-STABLE Act will be passed either way the 1:1 capitalization requirement and the expected quick transaction times will speak doom for the American dollar. If an individual of incomparable wealth (or a country) buys up a Stablecoin and then decides to sell it off "en masse" then the Treasury rates will increase putting more debt strain on America. If this happens enough, then America will not be able to service its debt and America might default on its obligations. I will suggest, like I have done before, that you invest in a money market fund and take advantage of the high interest rates that will result as America attempts to cover their debt.
June 25, 2025. By King Edward.
So, what is to stop the US treasury rates from becoming chaotic once the GENIUS Act, or a variation of it, is enforced? According to Google AI, "Inflows into stablecoins reduce three-month US Treasury yields by 2–2.5 basis points within 10 days, while outflows can have a larger impact, raising yields by 6–8 basis points." That outflow effect can be achieved by as little as 3 billion dollars in a 28 trillion dollar market. With almost instant trade times for Stablecoins it wouldn't be far to imagine a group of investors coordinating sell-offs so that they may repurchase the treasuries at a higher rate. Are there provisions that delay the repurchase of treasures after a sale? No. The Treasury markets are based on good faith and it is just understood that to crash a Treasury is bad business. But what if that business can't fail like the USA? What measures does the USA have to protect itself against bad business?