Billionaires in Bitcoin

Bajillionaires are offering their thoughts on Bitcoin. Not because they have anything interesting to add, but because they pretty much have to. If you’re still a Nocoiner in the year 2021, you’d better have some darn good reasoning to spin to your shareholders. Putting bitcoin in your corporate cash reserves is like buying IBM in 1970. You don’t wanna be the guy who gets fired for buying a UNIVAC.

Some years ago, JP Morgan built an enterprise version of Ethereum, and I joked that having JP Morgan support your blockchain is like receiving a presidential endorsement from David Duke.

But here we are. BNY Mellon announced plans to provide bitcoin custodial services; Citi thinks Bitcoin is At the Tipping Point; now Goldman Sachs has restarted its crypto trading desk and will begin dealing bitcoin futures. Having Goldman Sachs support your blockchain is like receiving a glowing eulogy from the Washington Post 🤮.

Maybe the revulsion is unfounded. We reject the banking system and Wall Street because they have a monopoly over the money supply, and anything that can be monopolized can be manipulated. Money begets power. See also: Cantillon Effect

When it comes to Bitcoin, disproportionate wealth does not translate to disproportionate influence over the protocol. BlackRock may be “dabbling” in Bitcoin, but it won’t be appointed by a central bank to manage a bailout.

So, fine. Welcome billionaires and legacy banking. Fossil fuels may be dirty, but they provide the propulsive force to send our rocket to the moon.

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