Written by: Charlie Warzel
Translated by: BitpushNews Yanan
For many years, skeptics of cryptocurrency have been perplexed: what does it all mean? Meanwhile, cryptocurrency supporters tirelessly search for compelling answers. They firmly believe that blockchain, as the technological cornerstone of cryptocurrency and many similar applications, is a groundbreaking innovation. It cleverly achieves precise records of online ownership and has significantly propelled the rise of digital communities. Moreover, they believe that blockchain is the core element that builds and supports the third-generation hyper-financialized internet. In this new internet era, without any human intermediaries, you can easily purchase a digital artwork of a cartoon ape for $3.4 million.
Then there are the cryptocurrencies themselves: Bitcoin, Ethereum, and a plethora of Memecoins and startup tokens. Most of these are highly volatile and speculative assets—some use them for trading, posting memes, storing value, and sometimes getting rich overnight, but they can also lead to total financial ruin. At the same time, they are often used for illegal purposes, such as notorious money laundering, illegally funding startups, and planning complex financial scams. Nevertheless, cryptocurrency does have its applications. But for a long time, the skepticism towards it has been that this technology is too 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 technological solution searching for problems.
I tend to agree with this view. I have spent time reporting on NFTs and decentralized autonomous organizations (DAOs) based on cryptocurrency tokens, like the DAO that attempted to purchase the original copy of the U.S. Constitution in 2021. I have also read some obscure white papers from Web3 startups and decentralized finance protocols (DeFi), which use smart contracts to achieve financial service transactions without large banks. However, I have yet to find the so-called 'killer application.'
However, after the presidential election, I have different thoughts on the influence of cryptocurrency.
Cryptocurrency, as an innovation in this technological field, has far-reaching implications beyond a single service domain, giving rise to a unique cultural atmosphere. This culture holds an inherent distrust of traditional institutions while resonating to some extent with those who attempt to challenge or dismantle these institutions. Recent election results, to some extent, represent a questioning of the authority of traditional institutions (such as the federal government, public health systems, and the media), with the cryptocurrency industry playing a role in this process. The industry has established a Super PAC called 'Fairshake,' raising over $200 million to support political figures who are friendly to cryptocurrency, regardless of whether they are from the Democratic or Republican parties.
It is particularly noteworthy that Donald Trump has shown great enthusiasm for cryptocurrency technology. During his campaign, he not only vigorously promoted a new cryptocurrency platform focused on decentralized finance (DeFi) called 'World Liberty Financial,' but also vowed to remove Gary Gensler, the SEC chairman who has drawn public attention for strict regulation of the cryptocurrency industry. Gensler's resignation is scheduled for January, which is typically a routine operation when a new government takes office.
Additionally, Trump has promised to relax relevant regulatory policies in hopes of 'making America the global center for cryptocurrency and a superpower in 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 spawned a lasting and complex cultural phenomenon, which includes devoted believers, dreamers of technological utopia, as well as speculators, criminals, victims of scams, investors, and politicians trying to cater to voters. The financial impact of this technology has made many people wealthy overnight, and they are using these resources to strive to build a world aligned with their vision.
Although the birth declaration of Bitcoin, that white paper that laid the foundation for the entire cryptocurrency field, did not directly address political issues, cryptocurrency quickly won the favor and respect of net libertarians. The core beliefs held by these net libertarians can be traced back to the 'Declaration of Independence of Cyberspace' published in 1996, which clearly states that governments should not intervene in the management of the internet.
Bitcoin and other cryptocurrencies are built on blockchain technology, whose decentralized nature inherently carries an anti-establishment color. Their operation does not rely on any central authority or intermediary. The late digital culture scholar David Golumbia profoundly analyzed in his 2016 work, 'The Politics of Bitcoin: Software as Right-Wing Extremism,' that 'among Bitcoin's most fervent supporters, many depict the Federal Reserve as an essentially corrupt institution, a tool manipulated by bankers from conspiracy theories who seek to 'totally control the lives of the people.'
For those staunch believers at that time, cryptocurrency shone like a beam of technological utopia, illuminating the path to combat the fragmented, exclusive, and exploitative financial system. They firmly believed that this technological innovation could either reshape the financial system or completely overturn it.
However, to this day, the cultural ecology of cryptocurrency has become increasingly diversified. Trading platforms like Coinbase and Robinhood allow anyone with a bank account and a smartphone to easily step into this previously mysterious trading world. Certainly, there remains a group of 'die-hard believers' who firmly believe in cryptocurrency technology; at the same time, we also see celebrities and 'meme kings' launching new coins leveraging internet pop culture to attract attention, 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 linked to hype and marketing, which has spawned a unique digital culture. This culture attracts not only those seeking a sense of belonging but also investors tempted by the dream of 'thousandfold returns,' as well as players who enjoy the fun of cryptocurrency 'annoying the mainstream.' Even as cryptocurrency gradually moves toward the mainstream, many loyal enthusiasts still view their investments and communities as a symbol of countercultural identity.
Therefore, it is not surprising that right-wing cultural warriors like Jordan Peterson and Joe Rogan, despite their current influence, still regard themselves as 'outsiders' and show a keen interest in cryptocurrency. Similarly, venture capitalists like Marc Andreessen, whose company is deeply involved in the cryptocurrency field, are gradually leaning toward more conservative political positions, a change that is also worth our attention.
Mocking the hype cycles of cryptocurrency is indeed easy—you can scoff at the crazy rise and fall of 'Bored Apes' NFTs or look down on the shameless hype in Memecoin culture. When mentioning controversial figures due to the launch of Memecoins, it is impossible not to mention Haliey Welch, who transitioned from an internet celebrity to a podcast host, better known by her online name 'Hawk Tuah girl.' The Memecoin she launched saw a rapid price surge and then quickly collapsed, which angered many loyal fans. If you resonate with this description, I apologize, but at the same time—you must have understood my underlying message.
Cryptocurrency culture is filled with obscure internet slang and unique visual symbols, appearing out of sync with the mainstream and even repulsive. The industry frequently exposes scandals involving Ponzi schemes and defrauding retail investors—such as insolvent companies like FTX and bankrupt platforms like Celsius—further eroding trust. However, despite these controversies, or perhaps because of them, the cryptocurrency space has still created a number of millionaires, billionaires, and a massive reserve of corporate capital. Now, they are using this accumulated wealth to exert influence on the political stage.
This brings our attention back to Trump. Whether he truly understands the deep logic of cryptocurrency—beyond recognizing that cryptocurrency is an effective means of securing votes and can be a tool for amassing wealth—remains elusive. However, the alliance between Trump and cryptocurrency supporters has its philosophical rationale. Trump himself is a character filled with a desire for money and not lacking in corruption. For his supporters, part of the appeal of the Trump administration comes from his promise to weaken federal government power, retaliate against political opponents, and reshape American institutions. It is not hard to see how the vision of 'Make America Great Again' (MAGA) intersects with a 'fringe culture' that deeply despises the existing system, viewing it as decayed and untrustworthy. This intersection is also reflected in certain tech executives, such as David Sacks, a venture capitalist who opposes 'woke culture' and was appointed by Trump to oversee artificial intelligence and cryptocurrency affairs.
I discussed these views with Molly White, who has long followed the cryptocurrency industry. She pointed out that there is 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, embody a spirit of anti-government and anti-censorship,' she explained to me. White noted that the original intention of cryptocurrency was based on the idea that large financial institutions and governments should not meddle in this emerging field. However, 'many cryptocurrency advocates have accumulated vast wealth through holding these assets, thereby gaining significant power. Over time, this idea has gradually shifted from 'we do not want those institutions to hold power' to 'we desire to hold power.'
White believes that the cryptocurrency industry has already transformed into a replica of the very system it initially opposed. 'Look at the actions of cryptocurrency companies like Coinbase; their behavior is remarkably similar to the financial institutions criticized by Bitcoin's creator Satoshi Nakamoto. These companies not only maintain close cooperative relationships with the government but also perform identity verification operations like traditional banks,' she analyzed. 'They seem to have rebuilt a financial system, yet the protection they offer consumers has decreased.'
It is evident that if Trump is re-elected, the cryptocurrency industry and its moguls may truly get what they wish for. The industry may 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 chair the SEC. Upon this news, Bitcoin's price surged, breaking the $100,000 barrier (in contrast, Bitcoin's price was less than half of this figure at the same time last year).
You do not need to be a cynic to see the flywheel effect: the rise of cryptocurrency as a political force cannot be attributed to its technology having widespread and indisputable utility, but rather because it has created a group of wealthy individuals, in turn attracting countless eyes and interests. This industry uses wealth to win over politicians, who in turn cater to the needs of their donors through promises. Ultimately, candidates who support cryptocurrency win, and Bitcoin prices soar, making the same group of people even richer, thereby enabling them to wield even greater political influence.
Although Trump has not formally taken office, a series of potential chain reactions have begun to emerge. Recently, Chinese cryptocurrency mogul Justin Sun spent $30 million to purchase a large amount of Trump's 'World Liberty Financial' tokens—this transaction could be very profitable for Trump, raising concerns that the incoming president's investments in cryptocurrency may become a convenient channel for bribery. There are rumors that Trump may fulfill his previous promise to establish a strategic Bitcoin reserve in the U.S., which could 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 in exchange. 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 upheld the principle of decentralization, using the government to support Bitcoin prices is undoubtedly a rather ironic operation.
During Trump's second term, cryptocurrency may become the 'lubricant' for government operations, but what is more concerning is what consequences may arise if the executives of the cryptocurrency industry achieve all their goals. My colleague Annie Lowrey recently wrote, 'Rules favorable to the industry will attract a flood of capital into the cryptocurrency market, which will not only enrich existing cryptocurrency holders but may also exacerbate market volatility, putting millions of Americans at risk of scams, fraud, and deception.'
White 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 a true chain reaction 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 field, and if cryptocurrency becomes more tightly integrated with traditional finance, I worry that this industry will expand to a greater scale, and once it collapses, the destructive power will be even more astonishing.'
The future of cryptocurrency remains shrouded in heavy fog, but at least in the short term, its impact appears clearer than it was before November 5. It has become evident that cryptocurrency has found a very specific application scenario—it captures and further fuels a culture that regards greed and speculation as virtues, while also readily accepting market volatility. The only thing that seems certain about cryptocurrency is that it attracts and shapes a diverse group of individuals—who may be adventurous, overly optimistic about the benefits of technology, or deeply skeptical of traditional institutions. These traits align perfectly with the turbulence and distrust of the 2020s, as well as the nihilism and corruption unique to the Trump era.
