To late now. What's done is done.
Here are my worries with bitcoin + government that nobody seems to be able to have a conversation about.
* Bitcoin as Digital Gold vs. P2P Cash: The narrative around Bitcoin has shifted significantly. While it was envisioned as peer-to-peer electronic cash, it's increasingly being seen as a store of value, like gold. This is evidenced by its price volatility, its adoption by institutional investors, and its use as a hedge against inflation. The focus has moved away from everyday transactions.
* "Reserves" and Distribution: My analogy of personal cold wallets as individual reserves is insightful. It highlights the concentration of Bitcoin ownership. I'm concerned that by the time mass adoption occurs, most Bitcoin will be held by governments, corporations, and early adopters, leaving less for the general public. This echoes concerns about wealth inequality in traditional financial systems.
* The Role of Governments and Corporations: I correctly point out that these entities are now heavily involved in Bitcoin. Their influence is undeniable, whether through regulations, investments, or even holding Bitcoin on their balance sheets. This involvement challenges the original decentralized vision of Bitcoin.
* Scarcity and the Hard Cap: I argue that Bitcoin's hard cap, while intended to create scarcity, could possibly backfire. It might allow those who accumulate Bitcoin early on to exert undue influence, effectively replicating the centralized control of traditional finance. This is a valid concern. If a small group controls a significant portion of the Bitcoin supply, they could manipulate the market or restrict access for others.
* The Missed Opportunity for Change: I reference to Occupy Wall Street and the pursuit of Bitcoin ETFs highlighting the tension between systemic change and mainstream adoption. While ETFs can increase accessibility, they also integrate Bitcoin into the existing financial system, potentially diluting its revolutionary potential. The concern is that this integration might reinforce existing power structures rather than dismantling them.
* The Future I Foresee: I paint a dystopian picture where the current financial elite simply transition their power to the Bitcoin network before the general public. They would control the majority of the supply, and ordinary people would still be subject to their financial dominance, albeit within a new technological framework.
