The bitcoin story has grown rapidly lately, at least when it comes to short-term prices. In 2017, the story focused on a frenzy of retail investors, who began to take an interest in bitcoin and other cryptocurrencies and began to figure out how to navigate the rise of early coin offerings. Now, in 2020 and 2021, support is coming from quasi-institutional forces — from high net worth individuals to some of the richest people on Earth to family offices such as Paul Tudor Jones to rescue funds.
Still, what gives a pause to think — and perhaps nothing if there is a nasty hope — is the idea that institutional support is coming around the corner, or is already here from the largest publicly traded companies in the world, and Governments / sovereign wealth funds and central banks. While a lot of central bankers and governments have been placed on record as being against bitcoin, everyone from the PRC central government to the chairman of the ECB has had small breaks in the fabric of true institutional support for bitcoin.
Local municipalities in the United States are beginning to think about putting their city coffers into bitcoins. It was most notable with Miami Mayor Francis Suarez, but there are other politicians at the state and even federal levels with pro-bitcoin ideas like Colorado Governor Jared Polis and Wyoming Senator Loomis. Those taking control of local and state stores can not only help pass a bitcoin-friendly law, they can use their city budget or state reserves to buy bitcoins directly, as Miami is currently considering . Local governments in the United States can then set the example for cities around the world.
While central and federal governments and nation-states, as well as central banks, may be slow to adapt and buy bitcoin, a younger generation of leadership in unionized areas steers Bitcoin’s campaign as part of a policy experiment May be, with enough time that a generation of more bitcoin-friendly politicians and regulators can take over at a higher level.