The Fed Just Revealed Bitcoin’s $900 Trillion Opportunity | Bitcoin Simply

**Dante Cook** (0:00)
Everybody tuned in to Jackson Hole on Friday morning to listen for one thing, are we cutting or are we hiking? And Kevin Warsh didn't disappoint. He gave the algo traders everything they could handle. But beyond the discussion on rates and the squashing of the notion of forward guidance, Warsh may have just signaled something much bigger. The way money moves through the American financial system is about to change. And if I heard what he said correctly, the Federal Reserve may become less important and the Treasury more powerful. And if the rules or money are changing, what becomes the new benchmark? Where does money flow when things get repriced? Gold is worth 30 trillion, real estate 300 trillion. Bitcoin at one and a half is still a tiny drop in an ocean full of liquidity. Today, I'm going to show you what I think Kevin Warsh was actually signalling at Jackson Hole. Why the Treasury is actually taking a much larger role in the future of money and why Bitcoin stands to capture a piece of the monetary premium worth hundreds of trillions of dollars. Because if the monetary regime is actually changing, Bitcoin doesn't need to replace a dollar. It just needs to capture a small piece of everything people are using to escape it. We got a lot to cover today. This is Dante Cook with Bitcoin Simply.
Let's go.
On Friday morning at 10am Eastern, Kevin Warsh took the podium in Jackson Hole, Wyoming to deliver one of the most fascinating openers in Jackson Hole history. He used this opener to play with the market manipulators and the AI algos. Listen to what he had to say.

**Kevin Warsh** (1:27)
You can take two different kinds of hikes on the trails around Jackson. I can sum up my hikes with former Vice Chairman Don Cohn with two words. I survived.
These steely marathon death marches revealed a sign of Don that I was not ready for. But there's another kind of hike. This one was with former Chairman Ben Bernanke, another dear old colleague. With Ben, it was a much more leisurely pace, an easy stroll along the wandering trails of the Rockefeller Preserve.

**Dante Cook** (2:04)
He talks slowly and deliberately, so the transcript recorders can capture every single word. And he uses the word hike three times, but he's talking about hiking the Grand Teton and not hiking or cutting rates. Because one thing he signals for sure, and he has in the past, and he also did so at this Jackson Hole meeting, was that they're no longer going to be issuing forward guidance. But let me cut to the chase and give you the most important clip of the entire speech. He highlights the fact that money matters, the flows, the movements, and he even hints as to how it might happen in the future.

**Kevin Warsh** (2:36)
Money matters. I know it's not fashionable these days, but my view is that money has something important to do with monetary policy.
We should pay attention to money created by the central bank and money that comes from the banking and financial system. It's true that financial innovations, the subject of this conference, and other factors alter the mechanics that link the monetary base, the velocity of money, and the broader economy. But that is scarcely a reason to ignore the ultimate effects of money on financial conditions and prices.

**Dante Cook** (3:17)
I think what he's alluding to, you need to watch closely the money that's created by the central bank and the money created in the banking and financial system because if you watch that closely, things aren't going to change much there. It's because the power is shifting back to the Fed, just like it did pre 1951 Fed and Treasury Accord. Scott Besant with the passing of the Genius Act and the Clarity Act is going to unleash USDT and stable coins as a new means and measures to raise debt financially in the world, making and rendering the Fed less dependent upon setting rates. The Fed will be able to enact policy that benefits its own people, which is lower rates while the Treasury enacts economic warfare on the rest of the global financial system. And this is why Bitcoin has a new financial role to play. He talks about the velocity and the speed of money, and the money creation, and the financial plumbing behind it. Well, Bitcoin solves a lot of problems that the old financial system can't. It's the first asset where we don't have to play the financial shenanigans in games in order to have a steady monetary policy. Listen to what Raphael Zagury, CEO of Twenty One Capital, has to say about this.