Bitcoin's back above $100,000. The champagne corks are popping in crypto circles—and the front pages are full of tales of a new digital-dominated dawn. Trump announces a new trade deal and all of a sudden, Bitcoin’s mooning again. Unexpected connections, indeed. Before we all mortgage our houses and pile in, let's ask ourselves: Is this surge a genuine step towards financial liberation, or just another gilded cage built on hype and volatility?
Is Bitcoin Really for Everyone?
The promise of Bitcoin is alluring: a decentralized, censorship-resistant currency that empowers individuals and bypasses traditional financial gatekeepers. As a result, it’s a siren song to anyone who feels disenfranchised by the banks, burdened by inflation or shackled by government oversight. This is the awe part. Picture that future—one in which you’re no longer beholden to the whims of central bankers. So now, friend, you hold the keys to your own fate!
Let’s be brutally honest. Who really benefits from this surge? Perhaps it’s the single mom in Venezuela struggling to protect her savings from the ravages of hyperinflation. Or is it the Silicon Valley venture capitalist, who’s already swimming in dough? Accessibility to Bitcoin is very limited. Even more concerning, the information required to understand the complex world of crypto wallets, private keys, and gas fees is not readily available. You have to be extremely tech-savvy and have a lot of disposable income to get started at all. Otherwise, the poor and marginalized are going to be excluded, taken advantage of by scams and market manipulation.
Think of it like this: imagine a revolutionary new voting system that requires a PhD in computer science to use. Yes, it would make elections more democratic, but in practice, it would disenfranchise a vast majority of Americans. Is this the injustice of which we speak?
Green Dream or Environmental Nightmare?
Let's not forget the elephant in the room: Bitcoin's colossal energy consumption. The environmental impact of Bitcoin mining Bitcoin mining works to verify transactions and add new blocks to the blockchain. This computing process requires drastic amounts of computing power, resulting in astonishing electricity use.
Despite the doom and gloom of 2022, many miners are turning towards renewable energy sources. The overwhelming majority still remain focused on fossil fuels, deepening climate change and other environmental harms. Are we actually fighting for financial freedom if it comes at the price of raining destruction on our planet? This is the good kind of anxiety that we’re speaking of. The world may be burning, but we are still prioritizing short-term Wall Street profits.
This isn't just an abstract concern. Developing countries often experience the worst impacts from climate change and as a result are disproportionally vulnerable. Even worse, they are disproportionately affected by the environmental devastation caused by Bitcoin mining. Are we creating a financial system that empowers some people and intentionally or unintentionally harms others? The answer is likely yes.
Regulation: Friend or Foe of Freedom?
The current regulatory climate for Bitcoin is a bit of a minefield. While some national governments have fully embraced cryptocurrencies, others have taken an aggressive approach to repression. The Trump administration's crypto policies, which caused a price decline between February and April, remind us that government intervention is a constant threat.
Don’t get me wrong — I love the libertarian motivation to fight regulation. I recognize that there needs to be some level of oversight to protect consumers and prevent illegal activity. The Wild West of crypto is a haven for scams, fraud and money laundering. Without well defined rules of the road the entire system is in danger of coming crashing down under its own weight.
The secret sauce is moderation. What we want is regulations that promote innovation, preserve consumer freedom, and do so without killing the entire market in the crib. That’s the ‘shock’ we’re discussing. I don’t think anyone truly knows what’s waiting around the corner, but we need to prepare ourselves.
So, what's the verdict? Is Bitcoin's surge to $100k a sign of true financial freedom, or just another fool's gold rush? The answer, as always, is complex. When used intentionally, Bitcoin can be an immensely effective tool for empowerment, though it certainly carries a ton of risk and pitfalls. Let’s approach it with plenty of skepticism. To be sure, we all have to recommit to sustainability—including those of us who run through tough and thoughtful regulatory fire—we’d argue. If we don’t act now, we will likely doom ourselves to a future where only the privileged few have access. In the meantime, the rest of us will be left holding the bag of empty tokens.
The $100,000 level could now be support. Even then, note that the RSI indicates overbought territory and that trading volumes on Coinbase (COIN) are in decline. You won’t want to be the last one to the party.
I don't own any Bitcoin. My freedom doesn't depend on it. Does yours?
