What is Bitcoin and why are so many people interested in it? As we well know, Bitcoin is a code in a computer network that works without the need for an intermediary such as a bank or a government. It was created in 2009 by a mysterious person or group calling themselves Satoshi Nakamoto, who combined various ideas from cryptography to create an anonymous, decentralized electronic payment system. It could be said that it was created to function as a citizen currency for its users.
This “citizen currency” was born initially as a hobby of libertarians, anarcho-capitalists and conservatives who had a strong anti-system spirit and wanted to build an alternative to promote a monetary “insurrection” against the government, private banking, fiat money and central banks. In this way, they hoped to achieve a libertarian utopia based on their hard, private money. His dream is to separate the State from the economy. At bottom, it is the old dream of classical liberalism.
Of courseDespite the bombastic narrative, we must remember what in many cases does not seem obvious: all these ideas are the aspirations of a small minority. The vast majority of humanity is on another wave and does not share the same passions as these few militants. Actually, it is a niche that thanks to social networks is now much more visible than before. Now they share a common space and can now form their own tribe. But do they have the numbers to conquer the entire planet?
However, if the price of Bitcoin wants to continue rising, it is necessary that Bitcoin stop being the aspiration of a small minority. In other words, the circle must get bigger. It cannot be limited to a single ideological current. Because? Well, because Bitcoin to grow needs new money and it needs institutional money. And new and institutional money is diverse and plural. Not all are libertarians looking to overthrow the system. And, in most cases, that new and institutional money is the system.
There are various perspectives and motivations for acquiring Bitcoin. The future of Bitcoin raises questions: Will it become a universal currency that frees humanity from the yoke of the State and banks? Or will it be one more investment that conforms to the rules of the system? To answer these questions, one must look at society. Will the libertarians succeed in persuading everyone to their vision? Or will Bitcoin have to give up its libertarian origins? Which option is more likely?
Imagine the average person. Why buy Bitcoin? For the financial opportunity? Or because of idiosyncrasy? You will most likely buy Bitcoin for the financial opportunity. Or am I wrong? However, by immersing himself in the world of YouTube, Twitter or Reddit, he is partially infected with the culture of this digital tribe and its ideology. But this has a limit. In the end, the financial weighs more than the ideological. In social networks, great narratives have a leading role. But that’s just to impress. In reality, the priority of the majority is to take care of the pocket.
Now, the militant bitcoiner is in a state of permanent protest against the system. For him, self-custody is very important and not using intermediaries of any kind. Here individualism and technology function as alternatives to the system considered corrupt and evil.
The militant bitcoiner defends the use of Bitcoin as a way to free himself from the control and manipulation of the traditional financial system, which he considers unfair, inefficient and oppressive. The militant bitcoiner rejects the flexible currency issuance, bank bailouts, censorship and surveillance that the system imposes. He believes that Bitcoin is a tool to empower the individual and protect his privacy, his freedom and his sovereignty.
But the militant bitcoiner faces a dilemma: how to grow the price of Bitcoin if he already has everything in BTC? New capital is needed. Where is the money? The money is in funds, pensions, hedge funds… I mean, most people give their money to managers who invest their money for them. Guilds, associations, foundations… they all come together to invest together with the help of managers and capital administrators. What is the biggest money manager in the world? BlackRock.
BlackRock manages more than $10 trillion in assets and is the world’s most influential financial institution. BlackRock has shown interest in Bitcoin and has in fact established a partnership with the Coinbase exchange to offer Bitcoin to its institutional clients. The BlackRock CEO recently said that confidence in the US dollar is fading, which could be good news for Bitcoin.
What does the alliance between BlackRock and Coinbase mean for the price of Bitcoin? It means that more institutional capital will have access to Bitcoin. It means that sooner or later the smart money will have more weight in this market. And that is excellent for the price of Bitcoin. In other words, it means that we now have more reason to be bullish in the longer term.
But what does BlackRock’s entry into the crypto space imply for the ideal of the militant bitcoiner? It implies that there will be more intermediaries and centralized entities with influence in Bitcoin. Means that the traditional financial system will have more participation in this market. And that contradicts the view of the original Bitcoin community. Is the growth of Bitcoin a betrayal of its ideals?
Profit or idiosyncrasy? Have you ever felt pressured by the so-called gatekeepers of Bitcoin? Those who tell you how you should use your BTC, what you should think and what you should aspire to? Those who claim the power to speak for you and preserve the purity of dogma? Well, it happens to me all the time. And the truth is that it bothers me a lot.
I did not buy BTC to follow a libertarian ideology or to be part of a sect. I bought BTC because it seemed like a good investment opportunity, a speculative asset and that’s it. And if I want to delegate my money to third parties, like Blackrock or any other fund, it’s my decision.
The future of Bitcoin depends on the users, not the “gatekeepers”. And most users don’t have to share the ideals of a noisy minority with totalitarian aspirations. I do what I want with my BTC.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.
