Bitcoin is increasingly seen across the Atlantic as a strategy aimed at countering global distrust of the dollar.
Miners enter the geopolitical arena
The recent open letter from the CEO of Marathon (the first American BTC miner) offers a striking contrast with the obscurantism that reigns in Europe.
This letter happens in a particular context. The recent election of Donald Trump has brought his promise to create a strategic bitcoin reserve back into the spotlight. Senator Cynthia Lummis proposes in her Bitcoin Act to acquire one million bitcoins over the next five years.
While speculation is rife about countries accumulating bitcoin before the United States, Fred Thiel recommends “to act quickly to secure a dominant position”.
His clear description of what makes bitcoin interesting would benefit from spreading in the French media:
“The unique characteristic of bitcoin is its fixed supply guaranteed by its decentralized monetary policy. Gold is historically considered the premier store of value, but it faces increasing challenges posed by the digital age. It is ineffective for carrying out international transactions. This limitation has gradually undermined the status of gold.
[…]
Conversely, bitcoin shines with its ability to transfer value not only in time, but also in space. This asset makes it attractive as a store of value and medium of exchange, particularly for nations seeking financial sovereignty. Since Bitcoin is a rarer and more transferable asset than gold, the United States should take the initiative to accumulate it just as it did with gold.
[…]
The United States already holds just over 200,000 bitcoins, but countries like China, with around 190,000 bitcoins, are not far behind. As more countries recognize bitcoin's potential as a reserve asset, the United States must take decisive action to maintain its leadership position. »
Bitcoin to counter dedollarization
With lucidity, the minor confesses that “the world is witnessing a significant trend towards dedollarization. Nations are increasingly turning to alternatives to the dollar due to concerns over monetary policy and sanctions.”
Indeed, the BRICS no longer hide their ambition to gradually get rid of the greenback. Many countries are still hesitant for fear of American reprisals, but this will not last indefinitely.
That being said, the BRICS have still not agreed on a new international reserve currency. However, bitcoin is reaching out to them. The United States understands this and intends to get a head start. Fred Thiel does not say anything else in his letter:
“This dedollarization trend has profound implications. The dollar's status as an international reserve currency could weaken and hamper the United States' ability to finance its growing debt while causing geopolitical instability. Without strategic investment in the bitcoin industry, the United States risks amplifying these challenges and accelerating the loss of confidence in the hegemony of the dollar. »
Concerning these “industrial investments”, let’s quickly recall how the Bitcoin network works. Transactions are broadcast in what are called “blocks”. Each of these blocks can contain a fixed amount of transactions. Access to these blocks belongs to the miners who control the “hashrate”, that is to say the computing power necessary to add new blocks to the “blockchain”.
A country with a significant share of hashrate on its territory is sovereign in matters of transactions. This country can prioritize certain transactions and prevent opposing countries from censoring transactions.
An asset for the energy transition
Beyond its geopolitical importance, the CEO of Marathon also highlighted that the bitcoin industry strengthens the energy and technology sectors.
“The bitcoin industry encourages domestic manufacturing of electronic chips as well as energy production. Without investment in domestic ASIC chip production, the United States will remain dependent on foreign manufacturers [chinois]thereby missing the opportunity to create a robust domestic supply chain. »
Furthermore, miners are a customer of choice for energy companies. They make profitable use of excess electricity produced by renewable and intermittent energies.
Rather than selling off excess electricity production outside peak hours, energy companies could sell it at a higher price to bitcoin miners. The latter can also be erased during peaks in demand, which helps stabilize the electricity network. The State of Texas is already at the forefront in this area and one wonders what RTE and EDF expect to seriously look into the subject.
Better yet, the bitcoin industry helps reduce greenhouse gas emissions. The explanation lies in the fact that oil fields extract oil, but also methane which is often unprofitable to transport to civilization.
The consequence is that this gas is burned on site, in flares. Unfortunately, a substantial part of the methane escapes (incomplete combustion due to wind).
Faced with this problem, bitcoin miners can use this gas for mining. In doing so, they completely burn the methane into CO2, which significantly reduces CH4 emissions into the atmosphere.
It is high time for the old continent to lift the anathema, otherwise it will suffer the greatest monetary earthquake since the end of the Bretton Woods agreements.
Don’t miss our article: “Bitcoin – The United States’ geopolitical masterstroke”.
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