Michael Saylor is doubling down. As bombs literally drop and geopolitical tensions hit a boiling point, he’s laying the groundwork for still another Bitcoin buy-up. On the surface, it's a display of unwavering confidence in Bitcoin's ability to weather any storm. Consider for a moment whether this is truly a smart, strategic investment, or something much more horrifying. Might Saylor’s Bitcoin maximalism be blinding him (and us) to the ethical implications of profiting from global turmoil?
Bitcoin And The Geopolitics Of 'Needs' Vs Freedoms'
The story told about Bitcoin is often a freedom-first framework. It offers the hope of economic freedom, freedom from state oversight, and freedom from the legacy financial world. As you can see, that’s a very empowering message! It strikes a chord with many of us in the developed world who have the luxury of arguing about the merits of decentralized finance. What of the others, whose dreams of freedom lie all too seemingly out of reach? Or because they are consumed by the daily struggle for survival.
Think about it. In fact, Saylor’s MicroStrategy is already flush with more than $20 billion in unrealized gains from its Bitcoin accumulation. That's billion, with a 'B.' A sum that could alleviate immense suffering, fund vital infrastructure projects, or provide crucial aid to communities ravaged by conflict. Instead, it's being used to accumulate more of an asset whose value, in part, is being driven by the very instability that's causing that suffering in the first place.
As of June 9, MicroStrategy created a massive wake by buying 1,045 BTC for about $110 million. This purchase brought their overall Bitcoin reserves to a staggering 582,000 BTC.
It's a jarring juxtaposition, isn't it? The quest for a few to achieve financial freedom, at the expense of the desperation and precariousness of the many. This isn’t only a matter of strategic investment and return on investment, either. It’s the moral calculus of profiting from the agony of the world.
Is Bitcoin Disaster Capitalism In Disguise?
Let's be blunt. When conflict erupts, people flee. Capital flight ensues. Traditional markets crumble. And where does some of that capital typically go? Into what we thought were safe havens such as gold, the dollar and now, Bitcoin.
Consider too the danger that Bitcoin could serve as an instrument of capital flight from developing countries. Picture this—an entire country on the verge of becoming a failed state. Wealthy elites, worried about their future fortunes, exchange their local currency for Bitcoin and whisk it out of the country. This pushes the local economy into a deeper crisis, furthering the crisis and putting average citizens at even greater risk.
Being on the ground in Accra, I experience every day the violent effect that these global economic shocks have on developing economies. Nothing is worse than a sudden spike in energy prices that could cripple local businesses and push families into poverty. This rise is largely due to Middle Eastern conflicts like the possible closure of the Strait of Hormuz, something analysts are cautioning could hurt the price of risk assets—including Bitcoin. So is Bitcoin really the answer for these communities? Or is it just an escape hatch for the elite to protect themselves from the effects of global disorder?
The Crypto Fear & Greed Index is at 60 today. This level of “greed” among investors is a positive sign for the trend of digital assets as it reflects a bullish trend. This is a red flag.
Alternative Visions Beyond Bitcoin Maximalism
I'm not suggesting Bitcoin is inherently evil. Yet we should go deeper than the cliché narrative of Bitcoin as a all-healing-solution. We should acknowledge the risk that this could exacerbate current inequities. Further, we need to be on guard against its use as a vehicle for more pernicious exploitation.
Here’s how blockchain technology can address the root causes of global instability. Instead, we can double down on the things that really matter – fighting poverty, fighting corruption, and expanding access to education and healthcare.
We want a robust international regulation to address and prevent all forms of capital flight, especially to protect vulnerable economies. We do need some international cooperation to uniquely identify bad actors and crack down on Bitcoin being used as a vehicle for illicit financial flows. Let’s bring a healthier, more thoughtful and moral mindset to cryptocurrency. Going forward, this approach should put the health of the many above all else over the liberties of the few.
Saylor probably believes Bitcoin is the most effective hedge against global disorder ever created. Yet for some it is too late, and for most, it still acts as a chilling reminder. In an age of increasing inequality, that promise is sometimes a poisoned chalice of financial freedom. It's time to ask ourselves: whose needs are we serving, and at whose expense?
