Are we really creating a more connected future, or simply more efficient means of monetizing the mayhem? The situation unfolding between Israel and Iran is more than just a geopolitical chess match. It's a stark stress test for Bitcoin and its promise of economic freedom. Michael Saylor, with MicroStrategy, seems to be betting big on the latter despite the escalating tensions. Is this really the right time to applaud Bitcoin’s newfound resilience with bombs about to drop?
Profiting From Pain: Is It Right?
As of mid-October, MicroStrategy is up over 50% on its initial Bitcoin investment, netting MicroStrategy over $20 billion in unrealized capital gains. Bitcoin ETFs record massive inflows of more than $1.3 billion this week. As it stands, the Crypto Fear & Greed Index is at 60—well into “greed” territory. While some cheer Bitcoin's steady price, hovering around $105,000 despite airstrikes, I find myself wrestling with a nagging question: Are we, even inadvertently, incentivizing instability?
It’s quite another to be an active participant, anticipating and preparing for inevitable changes. It’s one thing to make huge profits from the human misery and uncertainty. Consider the horror of being a refugee, displaced by war, seeing Bitcoin’s price increase every second while your world is shredded.
Bitcoin was originally meant to be anti-establishment, anti-decentralization, economic empowerment in the hands of the people, freedom from government, and so on. When its primary purpose becomes protecting against geopolitical instability, are we not simply removing power from the hands of democratic governments? We are now leaving it to people or institutions who can afford to gamble on looming global disasters.
| Event | Potential Bitcoin Impact | Ethical Consideration |
|---|---|---|
| Escalating Israel-Iran Conflict | Perceived "safe haven" status drives price up. | Is profiting from a crisis morally justifiable? Does it normalize conflict? |
| Strait of Hormuz Closure | Initial dip, followed by potential long-term gains. | Should we prioritize personal gain over global economic stability and the potential for humanitarian crises? |
| Global Recession | Bitcoin could act as a hedge. | Does our focus on Bitcoin solutions distract from real-world solutions that could alleviate global suffering? |
Economic Freedom's Dark Side?
Nic Puckrin warns that Iran closing the Strait of Hormuz could negatively impact risk asset prices, including Bitcoin, due to the disruption of global oil supply. Though a pullback may be inevitable, the story at least in the long-term is that Bitcoin is an undeniable victor. What’s left out? What about the millions who cannot afford their energy costs or pay overpriced energy? What’s more, what happens to the businesses bankrupted by cost increases? Are their losses mere collateral damage in Bitcoin’s war for supremacy?
We need to be honest with ourselves. Bitcoin isn't some magic bullet that will solve the world's problems. It’s an invaluable tool and like any tool, it can be used for good or ill. No less than the fate of monetary freedom. Now, Michael Saylor can passionately urge Apple to purchase Bitcoin. That doesn’t absolve us from our ethical obligations.
Beyond Digital Gold: Responsibility Needed
Too much emphasis on Bitcoin as a crisis hedge takes our eyes off the very tangible solutions and the human toll of that instability. What we require is sustained diplomacy and humanitarian assistance. Now, we need to recommit ourselves to peace—not rearm ourselves and attempt to enrich ourselves again as the world burns.
Let’s temper our enthusiasm just a little. We need to be aware of the dangers and do all we can to advocate for a better, smarter, more responsible use of this technology. Don’t let the promise of “digital gold” distract from the human impact. Added to this potential upside is a considerable downside—human cost of conflict. Let’s not allow the Bitcoin revolution to be known for its greed. The real question isn't whether Bitcoin can be a safe haven, but whether it should be. And that’s a question we all have to ask ourselves.
Now, it’s easy to get carried away with the hype. To see those numbers go up gets your blood pumping with excitement! Step back for a moment. Really look at what's happening. Are we helping build the unstable world in which risk is rewarded? Or are we creating a world that works for all people and all life on this planet? The answer, I worry, is not so obvious at all.
It's easy to get caught up in the hype, to see the numbers go up and feel a thrill of excitement. But step back for a moment. Really look at what's happening. Are we contributing to a world where instability is profitable? Or are we building something that truly benefits humanity? The answer, I fear, is far from clear.
