Five reasons to be optimistic about Bitcoin’s role in the world
A few predictions from a self confessed serial optimist.
- Authoritarian socialist regimes like Venezuela will be toppled when Bitcoin miners are the only ones who can feed the people and eventually pay the army. We may see Bitcoin becoming a tool for eliminating authoritarian regimes from the bottom up across many failed regimes as people are able to build true wealth that cannot be stolen from them by their government.
- Bitcoin mining hardware will hit a wall with technological efficiency. Energy prices will come to dominate mining profitability, thus leading miners to renewable energy. Bitcoin mining will grow asymptotically to 100% renewable. Going further out on the optimism scale, some of the largest miners will pour R&D dollars into energy innovation, thus benefitting the world at large.
- Second and third world economies will find a way out of dependence on national currencies of giants like USD, EUR by building a Bitcoin reserve and freeing themselves from legacy colonialism. Listen to this Podcast to learn about African countries holding USD for this reason. It’s interesting to note that Bulgaria stumbled into $3B worth of Bitcoin and could now pay off 20% of its national debt. If it HODLs for 5 years, it could probably be entirely debt free.
- Oppressed people like women in Afghanistan who can’t even get a bank account will find ways to earn bitcoin, memorize their twelve word seed, and walk out of their country carrying their wealth in their head to establish a life in a freer regime.
- Bitcoin will create a global economy in which participation cannot be censored. Those countries that resist or try to crack down will find themselves the victims of jurisdictional arbitrage as the as they lose their brightest minds to countries that embrace the new economy.