🇨🇳🇺🇸Why the New Shanghai Proof-of-Weapons Network Marks America’s Turning Point | This Week in Bitcoin, Macro & GeoPolitics | #BitcoinHardTalk Episode 96

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In Episode 96 of Bitcoin HardTalk, we dissect the historic emergence of the Shanghai Proof-of-Weapons Network as a direct challenge to dollar dominance, marking a profound turning point for America. We delve into the escalating Bitcoin Core vs. Knots "civil war" in the decentralised Bitcoin space, expose the Wall Street "banksters" accumulating Bitcoin to trap you in a two-tier system, and uncover the shocking blueprint for global control being beta-tested in Gaza. Get ready for a deep dive into the economic, technological, and geopolitical shifts that demand you protect yourself with sovereign Bitcoin in self-custody.

Hey-Hey, Bitcoin Wealth Builders!

It’s another week on Bitcoin HardTalk, and the stakes have never been higher. I’m Simon Dixon, and welcome to Episode 96! We took a short break recently because of the absolute carnage across England and mass shootings in the US, but it’s crucial we understand the operations ahead so we can track them in real time. This episode pulls together the seismic shifts happening in Bitcoin, macroeconomics, and geopolitics – focusing on how the new Shanghai Proof-of-Weapons Network is threatening dollar dominance.

For those of you new to the show, I’ve spent over two decades obsessing over investing and monetary reform, with 14 years dedicated to Bitcoin, even speaking at the first Bitcoin conference and writing the first published book in the world to include Bitcoin. Since leaving the "Proof of Weapons Network" where I had a career with the banksters, my mission has been to help you prepare for a world of Bitcoin, AI, and central bank digital currencies. We’ve been on this journey since Bitcoin was $3, and now, we continue to fight for your financial sovereignty.

Part 1: The Bitcoin Core vs. Knots | This Week in Bitcoin

Let’s jump straight into This Week in Bitcoin, where we're witnessing some truly fascinating – and frankly, concerning – developments within the decentralised network itself.

First up, the Bitcoin Core vs. Knots "civil war". This is a bit of a geeky topic, but it’s crucial. For those who weren't around for the Bitcoin block size war that culminated in the 2017 hard fork, this is a new battle. Bitcoin is open-source software, and while there's a core group of developers, alternative implementations are vital. One such alternative, Knots, created by Luke Dash Jr., has gained about 17% adoption, making it the most significant competitor to Bitcoin Core we’ve ever seen. I personally believe this competition is very healthy.

The core of this debate, sometimes called the "spam war" or "node wars", revolves around how much data can be put into a Bitcoin block. Bitcoin currently has filters to block very large data payloads, typically anything less than 100 kilobytes. This allows users to insert small images or data, creating an immutable record. However, public companies like Marathon Digital, a publicly traded miner, have created software like Slipstream and are concerned about illicit images or illegal content being stored on their nodes, which creates a legal and reputational risk. Some developers in Bitcoin Core are proposing to significantly increase this filter, potentially allowing much larger data. This could lead to node runners storing "toxic digital waste" and facing legal liability, potentially reducing incentives for people to run nodes and thus theoretically reducing decentralisation. I am skeptical about this and believe Core is playing with fire, as people can be compromised. I see no problem with competing teams, and I will be running Knots on my node.

Meanwhile, the "banksters" of Wall Street are making their move on Bitcoin. Public companies now own 1 million Bitcoin, approaching the amount held by Satoshi Nakamoto – that's one out of every 20 Bitcoin that will ever exist. Companies like Siqua are raising hundreds of millions to buy Bitcoin for their treasury, and Nakamoto (founded by David Bailey with "deep state actors") is planning a $5 billion equity offering to buy more. This creates a two-tier Bitcoin world. One tier is where Wall Street controls Bitcoin through treasury companies, custody, loans, or ETFs. The other tier, where I want my Bitcoin HardTalk members to be, is sovereign Bitcoin – your own self-custody money that makes you immune from the banksters and allows you to boycott the Proof of Weapons Network.

In the realm of stablecoins, Tether announced it will be launching USDT on the Bitcoin blockchain using RGB technology. This allows users to hold and transfer digital dollars alongside Bitcoin in the same wallet, potentially with additional layers of privacy. While it’s a centralised company, it offers an easy off-ramp to get into Bitcoin and aligns with the coming QR code-based payment systems. Interestingly, US banks are lobbying to block stablecoins from paying yield, as this could create trillions of dollars in deposit outflows from traditional banks. This is the banks holding onto their monopoly in the financial industrial complex.

Globally, we’re seeing a shift in national reserves. Thailand and Japan are considering Bitcoin strategic reserves. The Kingdom of Bhutan is already mining Bitcoin using hydropower to build sovereignty. El Salvador continues to buy Bitcoin, despite IMF pressure, with President Bukele even trolling prediction markets about its holdings reaching $1 billion. Most significantly, the UAE has confirmed mining its first 6,000+ Bitcoin through Citadel Mining, which is controlled by the UAE Royal Group. This ranks the UAE as the sixth largest country in Bitcoin reserves, surpassing El Salvador. This demonstrates that Middle Eastern countries are wisely building their Bitcoin reserves.

Finally, the US Commerce Secretary, Howard Lutnik, announced the US will issue its economic data on a blockchain, starting with GDP. The question remains: will it be the immutable Proof-of-Work Bitcoin blockchain or a "Shitcoin casino" like Chainlink? My guess is the latter, as it serves as a gimmick rather than true decentralised verification.

Part 2: 🇨🇳🇺🇸  The New Shanghai Proof-of-Weapons Network Threatens Dollar Dominance | This Week in Macro

Welcome to This Week in Macro, where we are witnessing a massive escalation towards a multipolar world. The new Shanghai Proof-of-Weapons Network is directly threatening dollar dominance, a journey that is fundamentally reshaping global power.

At the moment, the US has been the dominant Proof-of-Weapons Network, increasingly vassalised into BlackRock, State Street, and Vanguard. We saw further consolidation this week as Citi Bank handed over $80 billion of its wealth management services to BlackRock, giving them more power and control over assets.

In the US, unemployment data is being used to build a case for another Fed rate cut in September. Despite rising inflation, this move, influenced by Trump, aims to run the economy hot, pushing assets up and further exacerbating the K-shaped economy and wealth inequality. This fiscal dominance strategy is inherently inflationary.

The US-India trade war significantly escalated, which I believe was engineered to push India closer to China and the BRICS bloc. Despite Modi’s visit to the White House, the US demand for India to stop buying Russian oil was rejected, with Modi exposing the hypocrisy of US and EU sanctions. Immediately afterwards, Modi met with Putin and then attended the Shanghai Cooperation Organization (SCO) meeting in China.

The SCO summit was nothing short of historic. It was the public unveiling of a new system, resistant to sanctions, mixing finance, AI, and serious military power. This "new Shanghai Proof-of-Weapons Network" is a global alternative where financial and technological independence are enforced by military hardware. The SCO is building a separate infrastructure designed to shake up Western economic control. 

Key moves include:

•  SCO Development Bank: A direct rival to the IMF and World Bank.
•  New payments and settlement systems: Designed to bypass SWIFT, allowing money to move without US oversight.
•  Energy cooperation platform: Circulating sanctions by enabling oil and gas trades outside the US dollar. The petrodollar has already reduced from 100% to 70% due to Saudi Arabia’s relationship with China.
•  Artificial Intelligence Innovation Center: Building sovereign machine learning infrastructure, competing with US AI.
•  China’s BeiDou GPS expansion: Challenging Google’s dominance.
•  Russia’s proposal for an SCO bond: Based on local currencies.

India's role is critical. Modi's presence at the SCO meeting lends global legitimacy to the alliance, moving it beyond just a "Russia-China thing". India brings its massive tech infrastructure, including the Aadhaar ID system and a domestic payment network bypassing Visa/Mastercard, allowing it to fund its country even under sanctions. India is also defense hedging, buying weapons from both US and Russian Proof-of-Weapons Networks and building its own manufacturing base. This public signalling shows India's move towards multipolar sovereignty.

Following the SCO summit, China held a massive military parade, demonstrating the "muscle" behind this new network. They showcased carrier killer missiles, hypersonics, drone swarms, and mystery laser weapons, alongside nuclear-capable systems from China, Russia, and North Korea. This was a clear message challenging US power and solidifying a nuclear-backed military bloc.

This emerging multipolar world forces a reckoning for America’s long-standing Military, Financial, Consumption, and Technical Industrial Complexes (MIC, FIC, CIC, TIC). The new currency rails directly challenge Washington's control over global money flow. The FIC will adapt, creating BRICS ETFs and swaps. However, the CIC and TIC will be hit hard, demanding tariffs and subsidies. I predict BRICS will not pursue a single currency, learning from the EU’s experience, instead using local currencies backed by a transitioning global Proof-of-Weapons Network to weaken the dollar.

Meanwhile, the UK is heading for a financial crisis, with 30-year bond yields sharply rising, debt projected to reach 274% of GDP by 2073, and inflation above 4%. This points to stagflation and potential calls for an IMF bailout, which would come with harsh austerity and further vassalisation to US companies. This explains the engineered civil unrest I’ve been warning about for September 13th.

Globally, central banks are selling dollars and buying gold at unprecedented rates, with gold holdings at 27% of total foreign reserves – the highest in 29 years. Foreign holdings of US Treasuries are at their lowest since 2008. This multi-decade trend accelerated after the seizure of Russia's frozen assets in 2022. The US is also starting to invest in strategically important companies like Intel and Fannie Mae, mirroring the China model to maintain regional power. This bleak picture means only those who own scarce assets like gold and Bitcoin can escape the K-shaped economy.

Part 3: 🇵🇸🇺🇸  Analysing the shocking leaked Tony Blair & Trump Gaza plan | This Week in GeoPolitics

Now, we move to This Week in Geopolitics, where we analyse the shocking leaked Tony Blair and Trump plan for Gaza. This is not just about the Middle East; this is a beta test for global control systems that they want to bring to the West.

The Gulf Cooperation Council (GCC), led by Saudi Arabia, is consolidating its position as a regional hegemon, negotiating a strategic exit for the US Proof-of-Weapons Network from the Middle East. The GCC is aligning with BRICS and the Shanghai Proof-of-Weapons Network, negotiating with practical alignment, not ideological. In this new paradigm, militants are moving from an asset to a liability. We are seeing targeted strikes on groups like the Houthis and Hezbollah, and pressure on Hamas to integrate into a post-Gaza governance framework. This transition is about moving from "war optics to conflict investment and potential normalization". The Proof-of-Weapons Network wants stability for the rebuild and investment in AI data centres, as per Saudi Arabia’s Project 2030 vision.

The Gaza conflict itself is a humanitarian crisis and a genocide, but I believe it is being used as an "essential prerequisite" for a massive transformation. The atrocities were utilised to level everything so the US Proof-of-Weapons Network could profit from the destruction and then finance the rebuild, with BlackRock setting up offices in Saudi Arabia. Netanyahu, as an operator of the US military-industrial complex, pushed the genocide longer to negotiate his personal survival and gain immunity from legal charges. Israel is now transitioning from a US colony to a GCC vassal, through investment and asset acquisition, using IMF-like tactics.

The Washington Post leaked a plan proposed by Tony Blair and Donald Trump, which I believe outlines the psychopathy of these technocratic institutions. The plan, as summarised by an AI, suggests an AI-generated blueprint for global control, involving:

•  US-led multilateral custodianship in Gaza, retaining "plenary powers".
•  Mandatory ID-based digital systems for all services and the economy within new AI-powered smart cities.
•  Land tokenisation and a blockchain registry, where physical land deeds are traded for digital tokens representing future homes.
•  Manufactured crises to justify these changes, with the destruction in Gaza framed as the "essential prerequisite" for transformation.
•  City redesign with wide streets and specific layouts explicitly mentioned as ways to address insurgency and make surveillance easier.

Trump’s rhetoric confirms this, stating, "The US will take over the Gaza Strip and we will do a job with it too. We'll own it... We're going to take it, we're going to hold it, we're going to cherish it and we're going to take it under the US authority". This represents the demonic plan of the US Proof-of-Weapons Network to profit from stability, replacing forever wars with technocratic control. They literally think the plan is to "tokenize it into a shitcoin NFT" and give it to the survivors.

In response to this, the GCC is fighting back. The UAE issued its strongest warning to Israel, stating that annexing the West Bank would be a "red line" ending the Abraham Accords. Twenty-one countries, including the UK and France, condemned Israel’s approval of new illegal settlements. Turkey has banned all ships and suspended trade with Israel. France plans to open an embassy in the West Bank and recognise Palestine as a state. Most symbolically, the US decided to remove the visa for the Palestinian representative to the United Nations, effectively losing its right to be an impartial host of the UN. This marks a symbolic fall of an empire, similar to the transition from the British to the American Empire. The dollar, backed by force and destruction, is being weakened, and we must learn the truth to defeat the Proof-of-Weapons Network.

Final Thoughts: Boycott the System

My Bitcoin Wealth Builders, we are truly alive at one of the most interesting and exciting times in financial history. The evidence is overwhelming: the operating model of the US Proof-of-Weapons Network is to manufacture conflict, stage controlled resolutions, and prop up the dollar-based debt Ponzi scheme. The dollar is not backed by gold or productivity; it is backed by a global network of violence and debt.

The new Shanghai Proof-of-Weapons Network represents a monumental America's turning point. It’s a challenge to total dollar dominance, ushering in a multipolar world order that will inevitably reshape global finance, technology, and geopolitics. While this transition is complex and often brutal, it also presents an opportunity for those who understand it.

The truth is stark, but with truth comes power and a path to protection. The only way out is a peaceful boycott. 

This is how you take back control:

•  Boycott the Fed with Bitcoin.
•  Boycott BlackRock by holding your assets in self-custody.
•  Boycott the banks by aiming to be debt-free.
•  Boycott the global corporations by spending locally.

Choose a peaceful, decentralized monetary system. This is how you reclaim your sovereignty. Own more Bitcoin every month, learn self-custody, and consider running a node to make Bitcoin stronger.

This is our peaceful resistance against a system that profits from carnage. Don’t trust, verify.

Protect yourself and your loved ones in this rapidly transitioning world of Bitcoin, AI, CBDCs, and stablecoins.

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Disclaimer

This blog was generated with the assistance of AI and is based on the views, commentary, and live analysis delivered by Simon Dixon in Bitcoin HardTalk Episode 96. While AI was used to structure and summarise the conversation, the insights, framing, and content originate from the livestreamed episode hosted by Simon Dixon.

The purpose of this blog is to distill complex global developments—from Bitcoin adoption to geopolitical realignments—into an an accessible format for educational and informational purposes only. It does not constitute financial, legal, tax, investment, or political advice. The commentary included here reflects personal opinions formed at the time of the episode, based on publicly available data, historical analysis, and Simon Dixon's professional perspective.

Bitcoin and other digital assets are volatile, high-risk instruments. Readers should perform their own due diligence and consult qualified professionals before making financial decisions. Nothing in this blog should be interpreted as a recommendation to buy, sell, or hold any asset, nor does it suggest any guarantee of future performance or outcome. References to individuals, companies, financial institutions, and geopolitical actors are made strictly for analytical or educational discussion.

By reading this blog, you acknowledge sole responsibility for any interpretation or action you take based on this content. Neither Simon Dixon nor any affiliated parties shall be held liable for financial loss, reputational damage, or decision-making based on the insights presented herein.

For the complete and unfiltered version of Simon Dixon's analysis, readers are encouraged to watch the full BitcoinHardTalk Episode 96 livestream.