For many years, skeptics of cryptocurrency have been baffled: what does it all mean? Meanwhile, cryptocurrency supporters have tirelessly sought compelling answers. They firmly believe that blockchain, as the technological cornerstone of cryptocurrencies and many similar applications, is a groundbreaking innovation. It cleverly achieves precise records of online ownership and powerfully drives the vigorous rise of digital communities. Moreover, they believe that blockchain is the core element that builds and supports the third-generation hyper-financialized network. In this brand-new era of the internet, you can easily purchase a digital artwork featuring a cartoon ape for $3.4 million without any human intermediary.
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Next, we have cryptocurrency itself: Bitcoin, Ethereum, and a plethora of meme coins and new tokens. Most of these are highly volatile, speculative assets—some people trade with them, release parody content, store value, and sometimes become overnight millionaires, but they can also lose everything. Meanwhile, they are often used for illegal activities, such as notorious money laundering, illegal funding of startups, and orchestrating complex financial scams. Nevertheless, cryptocurrency does have its applications. For a long time, skepticism about it has centered on the notion that this technology is overly complex and does not provide functions that the modern financial system cannot achieve—in other words, for those who do not intend to use it for criminal purposes, cryptocurrency is a technology solution looking for a problem.
I tend to agree with this viewpoint. I have spent time reporting on NFTs and decentralized autonomous organizations (DAOs) based on cryptocurrency tokens, such as the DAO that attempted to purchase a first edition of the U.S. Constitution in 2021. I have also read some obscure white papers from Web3 startups and decentralized finance protocols (DeFi) that utilize smart contracts to facilitate financial service transactions without the need for major banks. However, I have never found the so-called 'killer application.'
However, after the presidential election, my thoughts on the influence of cryptocurrency have changed.
Cryptocurrency, as a technological innovation, extends far beyond a singular service domain, instead fostering a unique cultural atmosphere. This culture harbors an innate distrust of traditional institutions while resonating to some extent with those who seek to challenge or dismantle these institutions. The recent election outcomes, to some degree, reflect a questioning of the authority of traditional institutions (such as the federal government, public health systems, and the media), and the cryptocurrency industry has played a role in amplifying this process. The industry has established a super political action committee called 'Fairshake,' raising over $200 million to support political figures who are friendly to cryptocurrencies, regardless of whether they come from the Democratic or Republican parties.
It is particularly noteworthy that Trump has shown great enthusiasm for cryptocurrency technology. During the campaign, he not only vigorously promoted an emerging cryptocurrency platform focused on decentralized finance (DeFi) called 'World Liberty Financial,' but also vowed to remove Gary Gensler, the chairman of the SEC, who has come under public scrutiny for strict regulations on the cryptocurrency industry. Gensler's resignation is scheduled for January, a routine operation when a new government takes office.
Moreover, Trump has also promised to relax relevant regulatory policies in a bid to 'make America the global center of cryptocurrency and the superpower of Bitcoin.' He explicitly stated during his campaign: 'If you support cryptocurrency, voting for Trump will be your best choice.'
In the short term, cryptocurrency seems to have given rise to a lasting and complex cultural phenomenon, encompassing devoted believers, tech utopia dreamers, as well as speculators, criminals, victims, investors, and political figures trying to appease voters. The financial impact of this technology has made many people overnight millionaires, and they are using these resources to work towards building a world that aligns with their vision.
Although the declaration of Bitcoin's birth, that white paper that laid the foundation for the entire cryptocurrency industry, did not directly address political issues, cryptocurrency quickly won the favor and admiration of internet libertarians. The core beliefs held by these internet libertarians can be traced back to the 'Declaration of the Independence of Cyberspace' published in 1996, which clearly states: governments should not interfere in the management of the internet.
Bitcoin and other cryptocurrencies are built on blockchain technology, and the decentralized nature of blockchain inherently carries a counter-establishment tone. Their operations do not rely on any central authority or intermediary. The late digital culture scholar David Golumbia deeply analyzed this in his 2016 work 'The Politics of Bitcoin: Software as Right-Wing Extremism': 'Among Bitcoin's most fervent supporters, many depict the Federal Reserve as an essentially corrupt institution, a tool manipulated by conspiracy theorists' bankers who aim to 'gain total control over people's lives.'
For those steadfast believers at the time, cryptocurrency was like a beam of light from a technological utopia, illuminating the path to combat a fragmented, exclusive, and exploitative financial system. They believed that this technological revolution could either reshape the financial system or completely disrupt it.
However, to this day, the cultural ecology of cryptocurrencies has become increasingly diverse. Trading platforms like Coinbase and Robinhood allow anyone with a bank account and a smartphone to easily enter this once-mysterious trading world. Indeed, there are still those 'die-hard believers' who are unwavering in their faith in cryptocurrency technology; but at the same time, we also see celebrities and 'meme kings' launching new coins using internet pop culture to attract attention through hype, along with a large number of day traders attempting to find opportunities for overnight wealth in these speculative tokens.
The profits from cryptocurrency are often closely tied to hype and marketing, a characteristic that has spawned a unique digital culture. This culture not only attracts those yearning for a sense of belonging but also those lured by dreams of 'thousandfold returns,' as well as players who simply enjoy the fact that cryptocurrency can 'irk the mainstream.' Even as cryptocurrency gradually moves toward the mainstream, many loyal supporters still view their investments and communities as symbols of a counter-mainstream culture.
Therefore, it is not surprising that right-wing cultural warriors like Jordan Peterson and Joe Rogan, who have considerable influence today, still consider themselves 'outsiders' and show a strong interest in cryptocurrency. Similarly, venture capitalists like Marc Andreessen, whose firm is deeply involved in the cryptocurrency industry, are gradually leaning towards a more conservative political stance, a change that is also worthy of our attention.
Mocking the hype cycles of cryptocurrency is indeed easy—you can scoff at the insane rise and fall of 'Bored Apes' NFT prices, or look down on the shameless speculation in meme coin culture. When mentioning controversial figures associated with the launch of meme coins, one cannot overlook internet celebrity-turned-Podcast host Haliey Welch, better known by her online alias 'Hawk Tuah girl.' The meme coin she launched skyrocketed in price in a short time, only to crash rapidly afterward, infuriating many loyal fans. If you relate to this description, I apologize, but at the same time—I trust you understand my underlying message.
The culture of cryptocurrency is filled with obscure internet slang and unique visual symbols, making it seem out of touch with mainstream society and even off-putting. Moreover, the frequent exposure of Ponzi schemes and scandals involving retail investors in this industry—such as companies like FTX, which were undercapitalized, and bankrupt platforms like Celsius—has further eroded trust in it. Yet, despite these upheavals, or perhaps because of these experiences, the cryptocurrency industry has still produced a batch of millionaires, billionaires, and vast reserves of corporate capital. Now, they are leveraging this accumulated wealth to exert influence on the political stage.
This brings our attention back to Trump. Whether he truly understands the deeper logic of cryptocurrency—beyond recognizing that it is an effective means of garnering votes and can be exploited for profit—remains unclear. However, the alliance between Trump and cryptocurrency supporters has a certain philosophical rationale. Trump himself is a figure filled with a thirst for money and not lacking in corruption. For his supporters, part of the appeal of a Trump administration stems from his promise to weaken the power of the federal government, retaliate against political opponents, and reshape various institutions in America. It is not difficult to see how the vision of 'Making America Great Again' (MAGA) intersects with a 'marginal culture' that holds a deep disdain for the existing system, viewing it as corrupt and untrustworthy. This intersection is also reflected in certain high-level executives in the tech world, such as David Sacks, a venture capitalist opposing 'woke culture,' who was appointed by Trump to oversee matters related to artificial intelligence and cryptocurrency.
I discussed these views with Molly White, who has long focused on the cryptocurrency industry. She pointed out another similarity between cryptocurrency advocates and the MAGA camp—they both aspire to become the powerful institutions they openly disdain. 'Bitcoin, and to some extent other crypto assets, embodies an anti-government and anti-censorship spirit,' she explained to me. White stated that the original intention of cryptocurrency was based on the idea that large financial institutions and governments should not interfere in this emerging industry. However, 'many cryptocurrency advocates have accumulated vast wealth through holding these assets, thereby gaining tremendous power. Over time, this idea has gradually shifted from 'we don't want those institutions to hold power' to 'we desire to hold power.'
White believes that the cryptocurrency industry has indeed transformed into a version of the system it originally vehemently opposed. 'Look at the actions of cryptocurrency companies like Coinbase; their behavior is strikingly similar to the financial institutions criticized by Bitcoin's founder Satoshi Nakamoto. These companies not only maintain close cooperative relationships with the government but also engage in identity verification operations like traditional banks,' she analyzed. 'It seems they have rebuilt a financial system, but in reality, they offer even less protection to consumers.'
It is evident that if Trump were to be re-elected, the cryptocurrency industry and its tycoons might indeed get what they wish for. The industry could face a new regulatory framework that defines tokens as commodities rather than securities, significantly easing trading restrictions and potentially promoting deeper integration between large banks and crypto assets. Last week, Trump nominated former SEC commissioner and cryptocurrency supporter Paul Atkins to serve as chairman of the U.S. Securities and Exchange Commission (SEC). Upon this news, the price of Bitcoin surged, breaking the $100,000 mark (in contrast, Bitcoin's price was less than half of that figure during the same period last year).
You don't need to be a cynic to perceive the flywheel effect: the rise of cryptocurrency as a political force to be reckoned with is not due to its technology having broad and undisputed utility, but because it has created a batch of wealthy individuals, thereby attracting countless eyes and interests. This industry uses wealth to win over politicians, while politicians cater to the needs of donors through promises. Ultimately, candidates supporting cryptocurrency can win, and the price of Bitcoin rises accordingly, making the same group of people even richer, thus enabling them to exert greater political influence.
Although Trump has not yet officially taken office, a series of potential chain reactions are beginning to emerge. Chinese cryptocurrency mogul Justin Sun recently spent $30 million to purchase a large amount of Trump's 'World Liberty Financial' tokens—this transaction could yield significant returns for Trump while also raising concerns: this soon-to-be president's investments in the cryptocurrency industry could serve as a convenient avenue for bribery. There are rumors that Trump may fulfill his earlier promise to establish a strategic Bitcoin reserve in the U.S., which might even require the federal government to purchase up to 200,000 bitcoins annually over the next five years—perhaps even using the nation's gold reserves as collateral. For cryptocurrency whales, this is undoubtedly an attractive plan—a feast of wealth transfer from the government to cryptocurrency giants. In fact, this would allow cryptocurrency holders to sell their assets at high prices to the government, further driving up asset prices. For a technology that originally adhered to the principle of decentralization, utilizing the government to support Bitcoin's price is undoubtedly a rather ironic maneuver.
During Trump's second term, cryptocurrencies may become the 'lubricant' of government operations, but what is even more concerning is what consequences will arise if the high-ranking executives of the cryptocurrency industry achieve all their goals. My colleague Annie Lowrey recently pointed out: 'Rules favorable to the industry will trigger a massive influx of capital into the crypto market, which will not only make existing cryptocurrency holders richer but may also exacerbate market volatility, exposing millions of Americans to scams, fraud, and deception.'
White also expressed similar concerns, especially as cryptocurrency further integrates with the global economy. The collapse of FTX, while causing significant losses for some users, did not create real chain reactions in the broader financial system. She candidly told me: 'At that time, cryptocurrency companies had not grown to the point of being too big to fail, nor did they require government bailouts. However, if banks are allowed to delve deeper into this space, and if cryptocurrencies become more tightly integrated with traditional finance, I fear this industry will expand to a larger scale, and once it collapses, the destruction will be even more astounding.'
The future of cryptocurrency remains shrouded in heavy fog, but at least in the short term, its impact seems clearer than before November 5. It turns out that cryptocurrency has indeed found a very specific application scenario—it has tightly grasped a culture that views greed and speculation as virtues, further fueling this trend, while also willingly accepting market volatility. The only thing that seems certain about cryptocurrency is that it attracts and shapes a diverse group of individuals—they may be adventurous, overly optimistic about the benefits of technology, or deeply skeptical of traditional institutions. These traits align cryptocurrency closely with the tumult and distrust of the 2020s, as well as the nihilism and culture of corruption unique to the Trump era.
【Disclaimer】The market is risky, and investment should be cautious. This article does not constitute investment advice; users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Invest at your own risk.
This article is republished with permission from: (Deep Tide TechFlow)
Original author: Charlie Warzel
'Where Did the Original Intent of Bitcoin Go? Experts: The Anti-Establishment Disguise Has Been Torn Off, Reduced to a Game of Greed and Power' This article was first published in 'Crypto City'
