The adoption of blockchain technology could have followed various paths. Initially, Satoshi envisioned Bitcoin as an alternative to traditional financial institutions. While some governments continue to resist cryptocurrencies, others opt for regulation. The recent participation of top politicians in the Bitcoin Conference 2024 signals a significant shift. The organizers will probably be racing to attract heavyweights to the crypto events. The conferences will provide a platform for dialogue between policymakers and crypto communities, potentially shaping the future of our society. This can bring a lot of positives for Cardano and other blockchains.
Presidential Candidate at Bitcoin Conference
Donald Trump, the US presidential candidate, spoke at the Bitcoin Conference 2024, promising to fire the head of the SEC and have the government buy Bitcoin as a state reserve. Meanwhile, Robert F. Kennedy pledged that, if elected president, he would ensure the US government holds 4 million Bitcoins as a strategic reserve.
Political campaigns often feature unrealistic promises, and while some people may believe them, they are often disappointed when reality sets in. From my perspective, Trump is trying to attract new voters with bold promises. Although he can say anything and is capable of unexpected actions, the US government might consider buying Bitcoin.
The trend of politicians appearing at crypto conferences is likely to continue, making cryptocurrencies a significant topic for political discussion. Politicians will need to form opinions on cryptocurrencies, as some voters will be interested in their stance on the issue. If the majority of the electorate is open to new technologies, politicians will have to respond accordingly.
Dialogue between crypto communities and politicians is crucial. Politicians can be influenced and may see opportunities to support blockchain technology. If a government promises to buy Bitcoin, Ethereum, or any other cryptocurrency for the state reserve, it could lead to a rise in crypto asset prices, making investors happy. While some OG holders might throw coins on government heads it won’t change the overall trend.
Although it seems unwise to announce or promise to buy a large amount of assets in advance, governments might follow through, similar to what El Salvador did.
Bottom-up Adoption
Cryptocurrencies are fundamentally a technology, but their adoption, success, and direction are driven by the community. This may not align with Satoshi’s original vision of an alternative financial system. Satoshi is gone. The community now determines the path of adoption and has chosen to engage with politicians. While this direction can be debated, it’s clear that a significant portion of the community supports it, and it might not be a bad choice after all.
Maybe a few years ago I would have seen it as a failure to fulfill Satoshi’s vision and a waste of a big dream. Today I don’t care, because the original vision was perhaps too ambitious, but above all, I see that a large part of the community is not interested in Satoshi’s original vision. However, it is still possible to fulfill this vision to a large extent, only the path will lead elsewhere. It is necessary to continue the effort and keep reminding ourselves of the original vision.
Finance is inherently linked to banking services and governments. Money cannot be entirely separated from the state, as it facilitates interactions between the government and citizens. Even if individuals switch to cryptocurrencies, they remain citizens reliant on state-run services, which require tax collection.
Even if a government, with citizen consent, abolished the central bank and adopted cryptocurrency, there would still be strong ties between the state and its people. Currency will always serve as a tool of interaction.
Blockchain technology offers the potential to redefine freedom, privacy, transparency, accountability, voting systems, and ownership. However, simply holding crypto in the state treasury won’t achieve these changes.
I hope to see power return to the people through changes in laws that facilitate blockchain and DeFi adoption. If governments implement CBDCs, they should be usable on independent blockchains chosen by users. Cryptocurrencies must remain an alternative for those who prefer to avoid state involvement while also supporting infrastructure for those who want to engage with the state via decentralized platforms.
Crypto is unlikely to bring a violent revolution but rather a gradual evolution. The participation of politicians at crypto conferences indicates that cryptocurrencies are moving from being a tool of resistance to a collaborative effort between institutions and communities. Decentralization is crucial in this process, ensuring that the community retains more control than governments. This balance will be challenging, as history shows that long-standing blockchains tend to centralize either block production or project management.
I envision a future with alternative payment systems, blockchain-based voting, increased political accountability, and easier removal from office. Tokenization will underpin future financial infrastructure, led by tokenized fiat currencies and CBDCs. Decentralized Identity will be as legitimate as current ID cards, paving the way for a more transparent and accountable society.
Trust the code, not the people
‘Trust the code, not the people’ is an ideal that society can achieve in a few decades. The main direction is set, and now it’s a matter of adjusting the speed of progress. In the future, governments and banks will not control infrastructure and money; they will be users like everyone else.
Politicians’ attendance at the biggest crypto conference signals their acceptance of gradual evolution. This marks the beginning of a new era, one that extends far beyond just increasing asset values.
I have always seen Cardano as a project integral to this future. With its focus on decentralization, security, on-chain governance, and a treasury system, Cardano is well-prepared to integrate with the evolving government and financial infrastructure.
Cardano’s adoption by the Dubai Police, efforts by various US governments to build transparent blockchain-based voting systems, and successes in Argentina and other countries, indicate positive development. Many other examples exist.
Cardano, like Bitcoin, has a large community advocating for adoption. However, I see a difference in their missions: Bitcoin enthusiasts often focus on asset value, while Cardano supporters emphasize broader blockchain technology use. Of course, there is overlap.
Currently, Bitcoin and other blockchains are not ready for mass adoption as platforms for the future financial system. Issues such as scalability, privacy, network stability, and long-term economic sustainability need addressing, alongside declining decentralization and lack of interest in on-chain governance.
Blockchain technology has made significant strides in both development and adoption, but the most critical steps are still ahead. Mass adoption will require considerable technological advancements.
I can’t predict the future, but more blockchain projects will play roles in societal transformation. This diversity and competition enhance resilience and drive evolution.
This effort isn’t about short-term market capitalization. In the long term, it’s about which blockchain will best help us transform society. We need to define our goals, build the necessary technologies, and then engage with politicians about implementing these technologies. All major projects are part of this collective effort. It’s time to move past rivalry and seize the opportunity.
What we will need most is a blockchain that will respond flexibly to the new needs of a changing infrastructure and at the same time maintain a high degree of decentralization. Such a blockchain will be very valuable to society, which will be reflected in the market capitalization. A strong team behind and independent financing of the project can be a big advantage that Cardano has.
Cardano’s on-chain governance, with DReps representing stakers and deciding on treasury withdrawals, could inspire similar mechanisms in government structures if successful.
Using cryptocurrencies in government reserves doesn’t address their volatility. Instead, let’s build stablecoins backed by cryptocurrencies as reserve assets.
We have many opportunities to change society through blockchain technology. Let’s keep building.
Governments and banks must not be mere holders of crypto assets, but use them for network interaction with users. That’s a big difference.
On the other hand, let’s not have exaggerated expectations now. After the elections in the US, everything can be different. Another presidential candidate may be elected. Pre-election promises can be broken. Purchases of BTC by the US government may not become a reality in the upcoming election period. The current enthusiasm of politicians can turn at any time if they feel that they might lose control. The adoption of blockchain technology will be accompanied by complex obstacles that will have to be overcome. Politicians often do not understand cryptocurrencies and do not perceive the problems they have.