Bitcoin blasting past $90,000. It’s a click-bait headline, but it should be. Whoa there—before you hop on this bandwagon, stop and think. The siren song of instant fortune and immunity from it all is seductive, but hold up, we need to rethink the approach. So, are we really experiencing the beginning of genuine economic liberty? This digital revolution gives individuals and nations the tools to assert independence from the unpredictable tidal pull of centralized authority. Or are we just writing what’s essentially the second act of the same old whodunit in which we line up to be fleeced?
Escape the Dollar, Really Though?
The narrative is compelling. As the dollar weakens, turbulence is brewing in the stock market. In the background, Bitcoin, the digital insurgent, fights the power and climbs to new highs. It isn’t that investors are just fleeing to crypto as a safe haven, we’re told. U.S. ETFs are seeing massive inflows. Bitcoin’s not even decoupling from risk assets like stocks. Sounds great, right?
The devaluation of a currency and stock market turbulence are hardly new phenomena. Remember the Asian Financial Crisis? The Dot-com bubble burst? The 2008 Global Financial Crisis? For all of history, working families have looked for safe harbor from the economic tempest. Gold, real estate, perhaps even art have been the usual safe-harbors. Is Bitcoin fundamentally different?
Bitcoin maximalists will tell you yes. They’ll tell you it’s decentralized, unconfiscatable, and immune to manipulation by governments and central banks. Such tempting temptations, particularly if you are in a developing country in which your own national government is the culprit.
Think about it. For many countries in the Global South, including those in Latin America, devaluation is a everyday sword of Damocles. Without access to relatively stable financial systems, many people find themselves lured in by the siren song of Bitcoin. For people who have seen life savings evaporate with corrupt regimes or hyperinflation, the promise of a currency that their government cannot hack is so attractive. Providing hope and security, delight and wonder to a sometimes scary world. This is the freedom narrative in action.
Here's where the "unexpected connection" comes in: is Bitcoin really that different from the promises of colonialism? The dream of a better life, a more stable future, held out in front of those dispossessed and disenfranchised?
Needs vs. Freedoms: Which Wins?
Bitcoin’s volatility undermines its purpose and creates an enormous risk. This is doubly problematic for the groups who are often least able to absorb a loss on their investment. A family in Venezuela makes a decision to put their scant savings into Bitcoin. With horror, they see its value drop 30% in a single week. Where's the freedom in that? Where's the meeting of needs?
Let's not forget the regulatory uncertainty. Governments are still having a hard time figuring out how to regulate cryptos. The specter of government crackdowns and outright bans looms larger than any threat we’ve ever seen. This is not fear-mongering, this is simply stating the truth of the world we now live in.
Bitcoin’s boom is not only connected to its use in black markets. Proponents laud it as being more transparent than cash. The truth is that it could be a tool to further enable money laundering, tax evasion and other criminal enterprises. This would deepen the shock on already fragile economies across the Global South, at odds with many of the freedoms it seeks to claim.
I know, it’s easy to get swept away by the buzz. Let’s be clear about the dangers. This recent Bitcoin surge could be the beginning of a massive move toward a more decentralized and equitable financial system. But it could be a colossal speculative bubble just asking to be popped, once again leaving average citizens on the hook.
Authority Needs To Be Built Responsibly
The real question here isn’t can Bitcoin head to $90,000, $100,000 or $1 million. The real question is: can Bitcoin actually empower individuals and nations struggling in volatile conditions, or does it just create a new form of financial dependence?
We need to demand more responsible innovation. We can support regulation that protects consumers and citizens but doesn’t suffocate innovation. Instead, we need to be really clear about the limitations of Bitcoin. This is crucially important for those of us in the Global South, who are most exposed and sensitive to its serious risks.
Before you bet the house on Bitcoin, ask yourself: are you seeking freedom, or are you chasing fool's gold? The answer might surprise you.
