- The ultimate goal of Bitcoin is the separation of money and state.
- A significant shift in political attitudes towards Bitcoin suggests the onset of widespread state-level Bitcoin adoption.
Bitcoin Gains Political Favor Worldwide: A New Era of Adoption
Politicians around the globe are increasingly viewing Bitcoin favorably, setting the stage for the next phase of widespread Bitcoin adoption. This shift marks a significant milestone in Bitcoin’s journey towards its ultimate goal: the separation of money and state.
“First they ignore you, then they laugh at you, then they fight you, then you win.”
This phrase encapsulates Bitcoin‘s history and serves as a beacon for its current status. Technically, Bitcoin has already triumphed due to its robust and unyielding network. However, on a socio-political level, Bitcoin finds itself at a crucial juncture, transitioning from the “fight” stage to the “win” stage.
A Global Shift in Political Attitudes
The first half of 2024 was turbulent, with developers being arrested by court orders and companies halting operations in various countries due to threatening warnings. Yet, a sudden political turnaround emerged. The Biden administration in the United States approved regulations favorable to the cryptocurrency industry and started considering BTC donations for political campaigns. This move likely aims to counter Donald Trump’s pro-Bitcoin stance, as he has also embraced Bitcoin for campaign financing, not just to garner votes but to raise funds.
The approval of Bitcoin spot ETFs in the United States, Hong Kong, and Australia—joining markets like Canada, Brazil, Switzerland, and Germany—has conferred a new level of legitimacy upon Bitcoin. This is largely due to the leadership of financial giants like BlackRock in this sector. Politicians globally, much like wolves in sheep’s clothing, are changing their discourse on digital assets. Countries such as Bolivia, once prohibitive, are now promoting Bitcoin. German parliamentarians are educating themselves on Bitcoin, and the Japanese Prime Minister is speaking at industry conferences. Latin American countries, following El Salvador’s lead, are adopting Bitcoin as legal tender.
The narrative that Bitcoin is the currency of criminals is fading, signaling a shift from the attack phase to the “win” phase. This transition is driven by a simple fact: Bitcoin is money—the best money ever created. And politicians need money.
The Influence of Financial Heavyweights
The entry of major players like BlackRock, Fidelity, Ark Investments, and Goldman Sachs into the Bitcoin market is not just about capturing the votes of the significant American electorate that owns Bitcoin. It also fundamentally changes the rules of the game. These stakeholders, who now wield unprecedented influence, are highly motivated to ensure Bitcoin’s success, thereby enhancing the prospects for price increases. In finance, money attracts more money.
Politicians do not need to fully grasp that Bitcoin is the best form of money to understand the global trend. Although Bitcoin aims to separate money from state control, a transitional phase where states themselves adopt Bitcoin seems inevitable. If Donald Trump wins the presidency and promotes Bitcoin as a national priority, a domino effect across other countries will be unavoidable.
While the duration of this transitional phase, where we confront the state-level adoption or ‘Bitcoinization’ of the state, remains uncertain, the rapid pace of developments over the past fifteen years suggests that the ultimate goal—complete separation of money and state—might be closer than we think.