Is Bitcoin Creating a Political Revolution?
The question of whether Bitcoin is fueling a political revolution is something I’ve been chewing on for a while.
According to a 2024 study by Fidelity, 47% of institutional investors now consider digital assets like Bitcoin an important part of their portfolios. Yes, large fund managers, family offices, and nation states are taking interest too, but I’m not talking about ‘Number Go Up’. This is different. Bitcoin is allowing people to have more control and sovereignty over themselves, their labor, and their property. It’s a fast moving narrative picking up pace as anxiety around spiraling debt and rising inequality reach fever pitch. So recently among other things, I caught up with John Alcock to see what he thought of the question.
This is what I learnt:
Bitcoin Can Re-Balance Power.
For centuries, the struggle between collectivism and individual sovereignty has shaped how capital is distributed. The West’s most enduring value, individual property rights, has always run counter to the values of centralising authorities. As we shift closer to collectivism, Bitcoin emerges as the newest tool for a peaceful rebellion of sorts: a bearer asset that, once owned, can’t be seized or debased by government decree. In previous generations, people had to hold gold for this purpose. Privately preserved and pristine capital, was wealth, all throughout the ages. Bitcoin goes further than gold in a few more important ways, however. Not only is it immune to forceful confiscation or inflation, it can move permissionless across boarders. This is precisely why so many investors, concerned about “stealth taxation” by a nation state on a mission creep bender, us it. Bitcoin as a hedge not just against currency debasement, but also against governmental overreach.
It Can Help Reform Government.
Ever wonder why central banks target 2-3% inflation?
Money isn’t just a store of value, but it’s a tool for social coordination. Governments and central banks, through the currency we use, engage in a hidden transfer of wealth from individuals to the state. You can do this when the money can’t be tampered with. When we use bitcoin, we’re voting for government where personal sovereignty is paramount. Perhaps most compelling for investors is the notion that blockchain technology, which underpins cryptocurrencies, could also serve as the antidote to corruption and government opacity. With transparent, trackable transactions, even the largest public projects could be scrutinised in real-time by anyone, eliminating the need for layers of costly intermediaries. Imagine a set of incentives that bring out the best in people, and government, at the same time?!
How To Remove Money, From State.
Bitcoin’s design, being finite, divisible, and resistant to censorship, forces both individuals and institutions to reconsider their strategies for preserving wealth. When even countries like El Salvador begin accumulating Bitcoin reserves, and corporations like Strategy, Metaplanet, and other, openly declare an intent to move treasury assets into digital scarcity, the traditional pillars of property investment, cash, and equities must adapt. As long as governments can print currency at will, the buying power of savings erodes, and the incentives shift to spending right now, instead of saving for the long- term. Bitcoin flips that dynamic, rewarding patience and thoughtful asset allocation towards projects that pay off in the future, even if there’s short-term pain. For investors, the opportunity cost of spending versus holding becomes a central calculation – unless what you do outperforms the rate at which bitcoin grows our purchasing power, why do it? Sound money forces us to consider a much higher hurdle rate for investments.
Can Bitcoin Really Fix This?
Of course I would love to see the value of bitcoin reach infinity, however, that type of world might not be so fun to live in. Thankfully we have tools to change the world, but ultimately, people need to act. If bitcoin can change government, and change our investment outcomes also, the revolution brewing may be a lot more peaceful than it could otherwise be. So, is Bitcoin creating a political revolution? I think it is, although perhaps not in the form of street protests or fiery manifestos. The revolution is subtle, reshaping the flow of capital and demanding new levels of accountability from both public and private actors. For high-net-worth and aspirational investors, there’s a clear takeaway: It’s time to reconsider not only where wealth is stored, but how financial sovereignty and transparency best align with your values.
As custodians of significant capital, should we continue to entrust our economic future to institutions that may not share our interests, or is it time to claim sovereignty?
