The Battle Between Strategy, STRC, and Bitcoin for Supremacy: Who Will Control the Future Monetary Order?

Author: MarylandHODL

Translation: TechFlow

TechFlow Summary:

Financialists’ Model of Rule: By controlling credit, price discovery mechanisms, and monetary transmission channels, financialists maintain a highly centralized system with fiat currency at its core.

The Sovereignists’ Counterattack: This camp consists of nations seeking monetary independence, institutions and enterprises tired of the banking system, and individuals choosing Bitcoin as a store of wealth. They believe Bitcoin can break the monopoly of traditional money.

The Significance of STRC: MicroStrategy’s STRC is an innovative financial instrument that transforms fiat savings into real yields collateralized by Bitcoin, while reinforcing Bitcoin’s scarcity by tightening its circulating supply.

JPMorgan’s Countermove: JPMorgan quickly launched synthetic financial products tied to Bitcoin, attempting to pull Bitcoin exposure back into the traditional banking system—without involving real Bitcoin at all.

Historical Comparison: The article likens the current Bitcoin revolution to the centralizing reorganization of the American industrial era (1900–1920), noting that this time the foundation is decentralized Bitcoin, not a fiat-based debt system.

Potential Impact:

For Individuals: Bitcoin offers ordinary people a way to protect wealth from inflation and potentially bypass the traditional financial system.

For Society: Widespread adoption of Bitcoin could realign monetary and social incentives, possibly triggering profound economic and ethical change.

For the Financial System: The rise of Bitcoin and tools like STRC may weaken traditional financial institutions’ power, leading to a split and reorganization of the monetary base.

Most Important Ideas:

Bitcoin is not just an asset; it’s a tool to break the monopoly of traditional money.

STRC is a key innovation in the Bitcoin ecosystem, providing a legitimate, scalable capital-market gateway for Bitcoin.

The current monetary war is not just an economic contest, but a profound struggle over future social structures and values.

Once the truth emerges, decentralized Bitcoin may rapidly reshape the existing financial and social order.

TechFlow Note: Content summarized with the help of GPT4.0.

In my previous article, I painted the grand battlefield: the struggle over monetary architecture centered around Bitcoin. Now, it’s time to dive deeper into its inner workings.

This follow-up aims to reveal the specific levers and structural dynamics explaining everything happening right now. We’ll analyze how derivatives systems and new financial products are integrating into this emerging framework.

The full story is gradually coming into view:

Bitcoin is the battlefield, MicroStrategy is the signal, and this conflict is a direct contest between “Financialists” and “Sovereignists.”

This isn’t just an argument about asset allocation—it’s the opening phase of a multi-decade transformation, like tectonic plates deep within society slowly grinding until fissures finally appear.

Let’s walk this fault line and face the truth head-on.

I. The Clash of Two Monetary Architectures

Matt @Macrominutes has provided the most compelling framework so far:

The Financialists

Since the clandestine deal of 1913, the Financialists have controlled the game. This camp includes:

• The Federal Reserve,
• JPMorgan and the US banking consortium,
• European banking dynasties,
• Globalist elites,
• A growing number of controlled politicians,
• And a derivatives-based framework supporting global capital flows for over a century.

Their power is built on “synthetic monetary signals”—their ability to manufacture credit, shape expectations, modify price discovery, and regulate every major form of settlement.

Eurodollars, swaps, futures, repo facilities, and forward guidance—these are their tools. Their survival depends on controlling abstractions that obscure the underlying monetary base.

The Sovereignists

On the other side are the Sovereignists—those seeking less distortion and more robust money. This group is not always unified, made up of friends and foes, individuals and nations, with different politics and ethics.

This camp includes:

• Sovereign nations seeking monetary independence,
• Institutions and enterprises frustrated by banking bottlenecks,
• And individuals opting out of the credit-based system toward self-sovereignty.

They see Bitcoin as the antidote to centralized monetary power. Even if many don’t fully grasp its implications, they instinctively sense one core truth: Bitcoin breaks the monopoly of monetary reality.

And this, the Financialists cannot tolerate.

Flashpoint: The Conversion Rails

The war now centers on conversion rails—the systems for converting fiat into Bitcoin, and Bitcoin into credit.

Whoever controls these rails, controls:

• Price signals,
• The collateral base,
• The yield curve,
• Liquidity pathways,
• And ultimately, the new monetary order rising from the old.

@FoundInBlocks

This battle is no longer hypothetical. It has arrived—and it appears to be accelerating.

II. The Last Time This Happened (1900-1920)

We’ve seen something like this before—though the protagonist was not Bitcoin, but a disruptive technology that forced a complete rebuilding of America’s financial, governmental, and social frameworks.

Between 1900 and 1920, America’s industrial elite faced:

• Populist rage,
• Antitrust pressure,
• Political hostility,
• And the threat of their monopoly systems imploding.

Their response was not to retreat, but to centralize.

Examples of these efforts still deeply shape society today:

Healthcare

The 1910 Flexner Report standardized medical education, destroyed millennia-old alternative therapies, and gave rise to the Rockefeller-dominated medical system—now the foundation of modern US pharmaceutical power.

Education

Industrialists funded a standardized school system, designed to produce obedient workers for centralized industrial production. This framework still exists, optimized today for services rather than manufacturing.

Food & Agriculture

Agribusiness consolidation created a system of cheap, calorie-dense, but nutrient-poor foods loaded with preservatives and chemicals. This system has reshaped American health, incentives, and political economy over the past century.

Monetary Architecture

The Federal Reserve Act of December 1913 imported the European central bank model.

Ten months earlier, the federal income tax (starting at just 1% on income over $3,000—about $90,000 in 2025 dollars) created a permanent revenue stream to repay federal debt.

A fiat-based debt system was born.

This was America’s last great power pivot—a silent reorganization around a centralized monetary core, controlled by an entity independent of elected government and governed by murky mandates.

Now, we approach the next inflection point.

But this time, the base layer is decentralized—and incorruptible.

That base is Bitcoin.

The players are familiar: echoes of industrial titans on one side, Jeffersonian populists on the other. This time, the stakes are higher. Financialists wield a century’s worth of synthetic suppression tools and narrative control, while the Sovereignists, though dispersed, are deploying tools the old system never anticipated.

For the first time since 1913, the fight has spilled onto the streets.

III. STRC: The Great Conversion Mechanism

In July, MicroStrategy launched STRC (“Stretch”). Most observers dismissed it as just another eccentric Saylor invention—a quirky corporate lending tool or fleeting experiment in attention.

But they missed what STRC really represents.

“STRC is the great conversion mechanism for capital markets. It is the first key incentive reshaping tool.”

STRC is the first scalable, regulatorily compliant mechanism that:

• Exists within the legacy financial system,
• Is natively connected to capital markets,
• Converts yield-starved fiat savings into real returns collateralized by Bitcoin.

When Saylor called STRC “MicroStrategy’s iPhone moment,” many scoffed.

But from the perspective of conversion rails?

STRC just might be Bitcoin’s iPhone moment—the reflexive equilibrium point for Bitcoin price dynamics, providing a stable foundation for the unveiling of a new monetary order.

STRC connects: Bitcoin the asset → collateral base → Bitcoin-driven credit and yield.

This matters because in an inflationary, debasing system, value is quietly siphoned away from the unsuspecting. Those who understand the game can access “pristine collateral”—a means to store and protect their life energy and accumulated wealth across time and space.

Ultimately, when trust collapses, people instinctively seek truth… and Bitcoin represents mathematical truth. (If this doesn’t resonate yet, it just means you haven’t truly started down the “rabbit hole.”)

When trust collapses, people seek truth—and Bitcoin is the embodiment of mathematical truth. STRC turns that principle into a financial engine.

It doesn’t just provide yield; it channels suppressed fiat liquidity into a spiraling Bitcoin collateral loop.

The Financialists feel threatened. Some may even realize just how dangerous this is to their exploitative system.

They sense, dimly, what could happen if this loop scales.

IV. The Reflexive Loop Financialists Fear Most

As America tries to “grow out” of fiscal dominance (via monetary expansion and yield curve control), savers will chase real returns in a reflationary world.

But traditional channels can’t provide them:

• Banks can’t do it,
• Bonds can’t do it,
• Money market funds can’t do it. But Bitcoin can.

MicroStrategy has built an enterprise-level monetary loop:

• Bitcoin appreciates
• MicroStrategy’s collateral base is strengthened
• Borrowing capacity expands
• Cost of capital drops
• STRC delivers attractive, Bitcoin-backed yield
• Capital flows from fiat → STRC → Bitcoin collateral
• Bitcoin’s circulating supply tightens
• The loop repeats at a higher base

This is the “Scarcity Engine”—a system that strengthens as fiat weakens.

The arbitrage (ARB) between suppressed fiat returns and Bitcoin’s structural internal rate of return (IRR) is becoming a monetary black hole.

If STRC scales, Financialists risk losing control over:

• Interest rates,
• Collateral scarcity,
• Monetary transmission,
• Liquidity channels,
• And the cost of capital itself.

That’s the context for the first attack.

V. The Coordinated Suppression Operation

(This is a pattern, not hard evidence.)

After Bitcoin peaked on October 6:

• BTC fell from 126k to a low of 80k,
• MSTR dropped from the $360 range to the high $100s,
• STRC remained stable amid broad crypto turbulence,
• Until November 13, when a sudden liquidity vacuum cracked STRC.

Days later, the “delisting” narrative from MSCI re-emerged, targeting MSTR directly.

This sequence didn’t look natural. It bore the hallmarks of a coordinated first strike against the conversion rails. (Again, this is a pattern, not hard evidence—but it’s hard to ignore.)

When STRC was stable, it showed what a properly functioning Bitcoin-collateralized credit engine could be.

Though the numbers in the first two weeks were small, the significance was huge:

Nov 3–9: $26.2 million in BTC purchased from $6.4 billion in volume.

Nov 10–16: $131.4 million in BTC purchased from $8.3 billion in volume.

Source: @0xPhii

Don’t focus on specific dollar amounts; what matters is the mechanism.

Scaled up, the Financialists’ reaction is obvious.

If STRC scales:

• Money markets lose relevance,
• Repo markets no longer dominate,
• Derivative price suppression is weakened,
• Bank-manufactured yields collapse,
• Capital flows bypass the banking system,
• The Treasury loses control over domestic savings,
• The dollar’s monetary base begins to fracture.

MicroStrategy is launching not just a product, but a new conversion rail.

And JPMorgan moved quickly to respond.

VI. JPMorgan’s Counterattack: Synthetic Shadows

(This is a pattern, not hard evidence.)

In a holiday-shortened trading week—ideal for quiet structural tweaks—JPMorgan loudly rolled out a “Bitcoin-linked” structured note.

Its design looks like a confession:

• Linked to IBIT, not spot,
• Cash settled,
• No Bitcoin purchased,
• Does not tighten Bitcoin’s circulating supply,
• Upside capped,
• Convexity retained by the bank,
• Downside risk transferred to the customer.

But as @Samcallah exposed, the real intent is more insidious: JPMorgan has recently launched a series of IBIT-linked structured products.

Source: @samcallah

This is not innovation; it’s the same old playbook—privatize gains for the designer, socialize losses.

It’s an attempt at “recapture”—pulling Bitcoin exposure back inside the banking system, without touching real Bitcoin.

This is the rebirth of the “paper gold” system. In this system: “synthetic shadows” = undetectable paper Bitcoin.

By contrast:

• STRC requires real Bitcoin,
• STRC tightens Bitcoin supply,
• STRC strengthens the “scarcity engine.”

Two products, two paradigms—one belongs to the future, one to the past.

VII. Why MicroStrategy Became Target #1

(This is a pattern, not hard evidence.)

MicroStrategy threatens the Financialists because it is:

• The company with the largest public Bitcoin balance sheet,
• The first enterprise “bank” to hold Bitcoin as a reserve asset,
• The only company monetizing Bitcoin collateral at institutional scale,
• The only regulated entity offering real Bitcoin-collateralized yield,
• The only bridge bypassing all synthetic exposure channels.

This explains the pattern of pressure:

• MSCI penalizes companies with heavy Bitcoin holdings—see @martypartymusic’s post:

Source: @martypartymusic

(Note: they carefully avoided Coinbase, Tesla, or Block.)

• Credit rating agencies (creations of Wall Street) reluctantly rate MicroStrategy’s preferred stock, but “coincidentally” target Tether too—both moves aimed at undermining sound money as legitimate collateral.
• Rumors of JPMorgan blocking MicroStrategy stock transfers.
• BTC and MSTR price drops coinciding with MSCI-related news.
• Sudden regulatory attention—positive and negative.
• Banks racing to rebuild synthetic Bitcoin exposure to pull demand back inside the legacy system.

MicroStrategy isn’t attacked because of Michael Saylor personally, but because its balance sheet architecture breaks the Financialists’ system.

It’s still a pattern (not hard evidence)—but the signals are strikingly similar.

VIII. The Sovereign Layer—The Endgame

Zooming out, the architecture is coming into focus:

• Stablecoins will dominate the front end of the yield curve,
• BitBonds will anchor the long end,
• Bitcoin reserves will become the core anchor of sovereign balance sheets.

MicroStrategy is the prototype of a Bitcoin reserve bank at the capital markets layer.

The Sovereignists may not have articulated this plan, but they’re moving steadily in that direction.

And STRC is the upstream catalyst.

Because STRC is not really a debt or equity product. STRC is a jailbreak mechanism.

It’s a derivative that triggers a violent chemical reaction, dissolving fiat in scarcity.

It breaks the monopoly over:

• Yield,
• Collateral,
• And monetary transmission.

More importantly, it attacks from within—using the system’s own regulatory framework as leverage.

IX. The Moment We’re In

Right now, the logic of fiat debasement is a simple, undeniable mathematical fact—and it’s being noticed by more people every day.

If Bitcoin is wielded as a tool by the Sovereignists, the Financialists’ architecture could collapse as quickly as the Berlin Wall.

Because in the end, once the truth emerges, it always wins—quickly.

Bitcoin is the battlefield.

MicroStrategy is the signal.

STRC is the bridge connecting the two.

This war (open, visible, undeniable) is a war over the conversion rails between fiat and Bitcoin.

This war will define the 21st century.

And for the first time in 110 years, both sides are showing their hands.

What an extraordinary time to be alive.