BitCoin will eventually enter the culture wars. That might have happened already. Unless BTC becomes culturally entrenched, then eventually its value will go to zero.
Former President Trump gave the keynote address at the Bitcoin 2024 conference recently. In his address he said that “Bitcoin stands for freedom, sovereignty and independence from government coercion and control.” Robert Kennedy Junior (RFK) also attended.
BTC = Freedom.
Neither President Biden, nor Vice-President Harris attended. President Biden recently vetoed a bill that would have allowed US financial institutions to provide custody for BTC.
Senator Elizabeth Warren, a prominent member of the progressive part of the Democrat Party, has promised to build an anti-crypto army. The high energy usage of BTC miners is her prime concern.
BTC = CO2.
Of the approximately 80 million BTC owners, about 50 million are believed to be US citizens (on the basis of ownership of BTC wallets).
If BTC does move closer to the centre stage of the culture war in the US, then what does that mean for BTC investors?
It might be good for investors.
First, it will give BTC protection against heavy regulation. It would be hard to pass legislation through a divided US Congress.
Second, the more embedded BTC is in culture, the more permanent and less fad-like it will be. Unless it becomes embedded in culture will eventually fade away.
The deep cultural significance of gold is ultimately what underwrites its role as a permanent store of value. It is not enough that gold, is (relatively) fixed in supply. Enough people have to believe in its permanence. Gold has roots in almost every major culture and is mentioned repeatedly in every major religious text.
The culture wars could embed BTC in culture (actually, a counter-culture), which would give it greater permanence.
That said, I favour gold over BTC. Shares in high-quality gold miners are even better. Most investors won\’t want to own either gold or BTC.
Copyright April 2024 Sam Wylie