The Fight Against the Final Boss
Ryan Selkis, the co-founder of Messari, has put forth an intriguing observation in his 2021 crypto sector thesis: the U.S. government remains one of Bitcoin’s toughest challenges. Describing this obstacle as the “final boss,” Selkis emphasizes that Bitcoin could present a unique tool for evading international sanctions, especially since a significant chunk of mining operations is located in geopolitical hotspots like China, Russia, and Iran.
A Shifting Government Stance
Throughout its tumultuous 12-year journey, Bitcoin has faced a rollercoaster of government resistance. Although its classification as a commodity has strengthened its reputation, recent fears of a potential U.S. ban loom large. Yet, Brian Brooks, the acting leader of the Office of the Comptroller of the Currency, has tipped the scales slightly in Bitcoin’s favor.
History Repeating Itself?
History has shown that the governmental perspective can make a 180-degree turn, much like the gold confiscation in 1933. If authorities choose to pursue a Bitcoin ban, it could significantly impact the asset’s value and its accessibility.
Bitcoin’s Unmatched Tenacity
Despite the hurdles, Selkis points out Bitcoin’s impressive resilience. He asserts that it’s “an unseizable form of private money” that refuses to be extinguished. Over the years, it has outperformed all major asset classes and enjoys favorable macroeconomic conditions. He underscores the evolving perception of Bitcoin among institutional investors, suggesting that it’s becoming increasingly “safe” to invest in it from both a legal and reputational standpoint.
The Market Dynamics at Play
The backdrop of Bitcoin’s meteoric price surge in 2020 is rooted in the unprecedented money printing executed by the U.S. government, alongside widespread economic alarm bells ringing. Major players, such as Microstrategy and Paul Tudor Jones, have taken the plunge into Bitcoin, bolstering its credibility.
A Tale of Rebirth
Reminiscing about Bitcoin’s turbulent past, Selkis recalls its dramatic drop from nearly $20,000 in 2017 to below $5,000 shortly after. The cryptocurrency’s ability to rally back and achieve a new all-time high this year is a testament to its essentially unkillable nature—a quality that attracts seasoned investors.
Lessons from Tech Giants
Drawing parallels with big tech brands like Amazon and eBay, Selkis suggests that these entities also emerged stronger after their own market breakdowns. Investors who are drawn to Bitcoin often admire its uncanny resemblance to these resilient companies: they don’t just survive; they thrive.
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