Entering The Fray

June 25, 2021
Steven McCormack
2 mins
Circling The Wagons

I've just digested Robert Breedlove's rejection of Bitcoin maximalism. A welcome move, folks. In simple terms, maximalists believe in only One True God; that no other digital asset can possibly coexist alongside Bitcoin. Any suggestion that there is a place for other assets is typically met with a volley of abuse and ungentlemanly behaviour. Skeptics and unbelievers must be rounded up and sent to the digital gulags for 'reeducation'. Maximalism is not representative of the entire community, thankfully. I am sure there are many folks, just like myself, who have quietly held the asset and are very excited about its future prospects. With Robert's intervention, now feels like a good time to pipe up and lend support for a balanced perspective.

That is not to say maximalists have served no purpose. In the very early days, when Bitcoin had a small and brittle network, it was critical to close ranks and protect its integrity. We are all indebted to the Bitcoin OGs who developed the early mining operations, fought the fork wars and supported the network through its darkest bear markets. I certainly did not have the mentality, knowledge or financial resolve to commit to Bitcoin during this period. So as adoption now reaches a critical mass, with the corresponding increase in (fiat denominated) value, I am delighted for those early holders who are being richly rewarded for their efforts.

Fight The Next War

We are now at a critical juncture for the digital asset class. Bitcoin is proven. It is working (even amidst a mining relocation to safer jurisdictions). It carries a prestige that no other cryptocurrency can match - a truly decentralised store of value. Ethereum can never offer the same narrative of the immaculate conception, digital gold or mythical creator(s). But it can certainly offer value in other ways (see my recent notes on the Metaverse). So why expend so much precious energy on fighting this network (and others)? For that is exactly what the real rivals (communist governments, central banks and bretton woods era institutions) want to achieve; to divide and rule. Just like the British in India.

And what of the big nasty banks? They will not be able to resist the prospect of massive returns in a sclerotic macro landscape. I say let them snuggle up to digital assets. Let them do what they do best; extort rents in all sorts of nefarious ways. The victory will be short lived ultimately. How can they possibly compete with frictionless peer to peer transaction (a la Strike etc.)? They will soon be flying far too close to that big, golden, alluring sun. As for the establishment climate warriers (Elizabeth Warren, Greta Thunberg etc), all we have to do is bat them away with the ultimate capitalist solution to ecological abuse; Bitcoin mining. Never has there been such a tantalising reward for renewable energy.

We can take the Cantillon Effect and flip it on its head; we let the earth benefit from the money supply. Now that's a good note to end on.

Signing out, Steven.

Photo by Matthias Wagner on Unsplash.


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