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@ BitcoindollarBook
2025-04-22 14:27:15The motivation behind my newly published book Bitcoindollar the Dawn of American Hegemony in the Digital Era was simple: to answer some of the most pressing and overlooked questions about the future of money. My analysis starts by viewing Bitcoin not in isolation, but as a paradigm shift in the evolution of money—a foundational institution that underpins both economic and societal relationships, from individuals to nations.
Rethinking the Monetary Landscape
To understand Bitcoin's potential, we need to explore the landscape it seeks to disrupt:
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The dominance of nation-states.
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The role of the US fiat dollar as the global reserve currency.
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US debt as the reserve liability (pardon "asset") underpinning the fiat system.
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The influence of the banking cartel and the distorted incentives built into the fiat monetary structure—especially in the last 55 years, since the US elegantly defaulted on its promise to convert paper dollars into gold in 1971.
Bitcoin is a direct response to these imbalances, but its adoption will depend on how and who drives the transition.
Two Paths of Bitcoin Adoption: Bottom-Up vs. Top-Down
Bitcoin’s journey can take two distinct paths:
1. Bottom-Up Adoption
This is driven by grassroots use of Bitcoin as a currency, particularly in developing nations, often alongside dollar-denominated stablecoins like USDt.
2. Top-Down Adoption
This path sees Bitcoin increasingly used as a store of value (SOV) and financial asset, especially in developed economies. It is driven by institutions, wealth managers, and financial innovation.
It's clear that top-down adoption correlates with faster price appreciation, whereas bottom-up adoption is slower, more organic—and potentially more resilient in the long run.
Why the Top-Down Path Matters
A critical but often uncomfortable truth is: elites don’t give up power easily. The fiat system is held tightly by those benefiting most from its continuation.
Pareto’s Law teaches us that no historical revolution was purely bottom-up. Real change happens when a new elite emerges to replace the old one—carrying the masses along.
The advantages of top-down adoption:
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Speeds up the revolution.
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Allows coexistence between Bitcoin and fiat for a transitional period, avoiding violent disruption.
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Strengthens new power structures around Bitcoin as it becomes a more established SOV.
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Enables the U.S. to reinvent the dollar’s role through dollar-backed stablecoins and their recycling into US TBills, maintaining global dollar demand even post-Petrodollar.
A Warning for the United States
In my book, I argue that the #Bitcoindollar system gives the U.S. a first-mover advantage—but only if it changes course.
The U.S. must shift from a militaristic, imperialist approach to a cooperative, multipolar model that welcomes both allies and adversaries into this new system.
Unfortunately, the Trump administration appears headed in the opposite direction, risking this historic opportunity. I explore this further in an upcoming article expanding on my book’s conclusions.
Store of Value vs. Currency: Which Comes First?
Some critics lament that Bitcoin isn’t widely used as a currency yet. But ask yourself:
What is the world’s most urgent need in today’s monetary environment?
A medium of exchange? Or a store of value to protect savings from corrupt governments and inflation?
We already have more or less efficient payment systems. But we lack a sound store of value with key properties such as decentralization, censorship resistance and hard coded scarcity. That’s why the market is adopting Bitcoin primarily as a SOV.
Gresham’s Law gives us the formula:
Save the hard money (Bitcoin, gold), spend the USDt, USDC, and fiat.
Looking Ahead: From Store of Value to Currency
This doesn’t mean #bitcoin won’t be used as a currency eventually. Once it’s widely adopted as a store of value—perhaps within the next 10–20 years—its volatility will decrease, more people will price goods in bitcoin, and acceptance for payments will grow.
We will get there. Just not through the path many imagined at the beginning.
Call It What It Is: A Revolutionary Monetary Transition
Rather than a disruptive revolution, think of this as a revolutionary monetary transition—a new system growing alongside the old, until one inevitably replaces the other.
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