Bitcoin’s Great Irony: The Revolution that Rebuilds the Banks

“Sound money”, that’s the rallying cry of Bitcoin believers. Fixed supply, no central control and incorruptible code. They dream of a world free from central banks and government manipulation. A digital utopia powered by “hard money”.

But here’s the paradox: a world run on Bitcoin wouldn’t be free, it would be frozen. Because Bitcoin isn’t destroying the financial system, it’s rebuilding it. The bankers didn’t disappear; they just swapped suits for hoodies. The exchanges, the brokers, and the custodians have the same structure with a new dress code.

Bitcoin’s capped supply makes it the exact opposite of fiat money. It’s not credit-based, it’s scarcity-based, and that’s the problem. What the crypto faithful are cheering for isn’t freedom, it’s financial tyranny wrapped up in rebellion.

Why Bitcoin is rebuilding the banks

You can’t grow an economy without credit. The modern world runs on expansion, whereby businesses borrow to innovate, governments borrow to build, and consumers borrow to live. Every major leap forward, from the Industrial Revolution to Silicon Valley, was fuelled by liquidity, not hoarded assets. When money stops expanding, progress stops.

History has already written this lesson in gold. The Gold Standard collapsed because a fixed money supply can’t keep pace with a growing world. Britain abandoned it in 1931, and the U.S. followed. When Nixon finally ended the gold peg in 1971, growth returned. Hard money always breaks when the world needs to grow.

Bitcoin worships scarcity, but progress depends on flexibility. Under a Bitcoin-based system, every recession would become a deep freeze with no liquidity, stimulus, or recovery. The truth is, Bitcoin isn’t money, it’s momentum. People don’t use it to transact; they use it to speculate, hoping to sell to someone else at a higher price. That’s not an economy; that’s ideology chasing profit.

That said, crypto still offers opportunity, but only for those who understand liquidity, market psychology, and timing. It’s not for those chasing a dream of digital purity because bitcoin may be finite, but opportunity isn’t, and smart investors know the difference between freedom and fantasy.

What were the best and worst-performing sectors last week?

The best-performing sectors included Materials, up 4.03 per cent, followed by Real Estate, up 1.69 per cent and Healthcare, up 1.33 per cent. The worst performing sectors included Information Technology, down 4.29 per cent followed by Consumer Discretionary, down 1.89 per cent and Energy, down 1.67 per cent.

The best performing stocks in the ASX top 100 included Genesis Minerals, up 16.41 per cent, followed by Newmont Corporation, up 16.02 per cent and Telix Pharmaceuticals, up 10.19 per cent. The worst-performing stocks included Life360, down 16.26 per cent, followed by QBE Insurance, down 9.55 per cent and Block Inc, down 8.30 per cent.

What's next for the Australian stock market?

The All-Ordinaries Index delivered a mixed performance last week. Strong buying early in the week helped reverse the previous week’s losses, but late selling on Friday trimmed gains, leaving the index up 0.3 per cent for the week. 

What stands out is that the index has now made two separate attempts to close above its previous all-time high from the week ending 29 August. While it has managed to trade above that level, it has yet to finish the week there. This suggests buyers aren’t fully committed to driving the market higher just yet.

It’s not unusual for markets to pause after making new highs, as buyers often take a breather. However, with October traditionally being a seasonally weak month, there’s also a chance we could see the market turn red before it gathers enough strength to push higher. Until we see a firm weekly close above the 29 August high, the index remains caught between buyers and sellers, meaning we could see more sideways movement in the short term.

On a brighter note, the Materials sector once again stole the spotlight. Smaller resource stocks delivered explosive double- and even triple-digit gains following President Trump’s announcement of 100% tariffs on China in retaliation for further restrictions on rare earth exports. The move has reignited enthusiasm for Australia’s resource sector, given the country’s strategic role as a reliable supplier of critical minerals amid escalating U.S.–China tensions.

With the Materials rally still strong and growing expectations of rate cuts ahead, the Financials sector could soon join the upward move, potentially extending the market’s strength next week, so watch the next key resistance level which sits around 9,600. However, if the market pulls back, initial support lies around 9,000, followed by 8,800, with a deeper support zone near 8,300. For now, the bigger trend remains firmly upward and Australia’s miners continue to drive the market’s momentum.

For now, good luck and good trading.

Dale Gillham is the Chief Analyst at Wealth Within and the international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of the award-winning book Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in all good bookstores.

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