Bitcoin is running out of enemies

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Bitcoin is running out of enemies

By Jeff John Roberts | Fortune Magazine | March 4, 2024

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“First they ignore you, then they laugh at you, then they fight you.” This quote—frequently misattributed to Gandhi—has been around in one form or another for at least a century, and in recent years became a rallying cry for crypto believers. There’s a problem though. In the case of Bitcoin, the number of powerful people who want to fight it is dwindling rapidly—so much so that it’s becoming harder to tell who is David and who is Goliath.

This is apparent from a new Bloomberg report that recounts how many of Bitcoin’s one-time adversaries on Wall Street have adopted an “if you can’t beat ’em, join ’em” attitude in response to the gusher of money that’s flowing into Bitcoin products following the approval of spot ETFs in January. Recent converts include the most stodgy names from old-link banking, including Bank of America’s Merrill Lynch and Wells Fargo. 

At this point, it’s getting hard to find high-profile people willing to dismiss Bitcoin altogether—or at least ones too young to collect a Social Security check.   If you want to beat the bushes for Bitcoin’s remaining enemies, you’ll find them among environmentalists who object to its energy guzzling. They have a point—Bitcoin does require an absurd amount of electricity—but a lot of that juice is drawn from environmental sources, especially in the case of U.S. crypto miners who account for a growing percentage of overall Bitcoin production. The green critics also don’t have the same clout as the big banks that are starting to look more like allies than enemies of Bitcoin.

Meanwhile, Bitcoin’s popularity is only going to grow in the coming days for the simple reason that firms like BlackRock and Fidelity are sprinkling it, directly or indirectly, into the portfolios of millions of investors. And like investors everywhere, these new Bitcoin owners are likely to put aside any philosophic objections they may have and simply root for the price to go up.

Finally, when it comes to Bitcoin’s enemies, the final boss is looking less menacing every day. Reference here is to nation states, which can cause real trouble for crypto. Once again, though, younger politicians are more likely to have a favorable view of Bitcoin compared with those in their 70s or 80s and even own some crypto outright. This will make it harder for countries to “ban Bitcoin” or whatever. At the same time, don’t be surprised if some countries are already adding small positions of Bitcoin to their global reserves.

The bottom line is that Bitcoin has converted or simply outlasted many of its powerful critics, showing again it is here to stay.

3 key takeaways from the article

1. Number of powerful people who want to fight against Bitcoin is dwindling rapidly.  The possibly is in response to the gusher of money that’s flowing into Bitcoin products following the approval of spot ETFs in January. Recent converts include the most stodgy names from old-link banking, including Bank of America’s Merrill Lynch and Wells Fargo.
2. Meanwhile, Bitcoin’s popularity is only going to grow in the coming days for the simple reason that firms like BlackRock and Fidelity are sprinkling it, directly or indirectly, into the portfolios of millions of investors. 
3. Finally, when it comes to Bitcoin’s enemies, the final boss is looking less menacing every day i.e., nation states. Once again, though, younger politicians are more likely to have a favorable view of Bitcoin compared with those in their 70s or 80s and even own some crypto outright. This will make it harder for countries to “ban Bitcoin” or whatever.

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Topics:  Technology, Finance, Bitcoin