It has become evident that the history of Bitcoin to this point must be understood in two main epochs. It could ultimately be divided into three epochs:
- Pre-Bitcoin-ETFs
- Post-Bitcoin ETFs
- Post-Bitcoin Mining
For now, the first two can explain the entire history of Bitcoin to this point. The first epoch is pre-ETF; that is, when dreamers, radicals, idealists, risk takers and the like demanded Bitcoin the most.
When Bitcoin first was released by founder Satoshi Nakamoto, early adopters of the nascent technology were often drawn in by the libertarian narrative of incessant money printing by central governments, etc. These idealists sought to separate the state from money and even abolish the Federal Reserve.
While the Bitcoin Community celebrated El Salvador President Nayib Bukele, some early bitcoiners scoffed that such an action warranted celebration. For instance, one well-known and outspoken Bitcoin whale suggested the President return the money to the taxpayers, since it is taxpayer money in the first place.
It is from this early libertarian sect of the so-called Bitcoin industry where narratives about Bitcoin as a digital gold thrived. They argued that an inexorable rise in the price of Bitcoin would be due to the utter devaluation, if not collapse of fiat currencies.
During this first epoch, Fortune 500 companies would try and get in on the action, announcing via a press release that they now accept Bitcoin through one of the payment providers, such as BitPay or Coinbase. Generally, they cashed out right away.
This epoch started to get really interesting with the Silk Road and ends with El Salvador making Bitcoin legal tender and partnering with the Bitcoin Maximalist crowd. The intervening years—between the Silk Road and El Salvador’s Bitcoin legal tender law—were largely defined by price action and towards the end perhaps progress on the Lightning Network, a second layer designed to make small payments possible on Bitcoin.
There arose in the first epoch varying concepts of mass adoption, for which we’ll borrow the term ‘hyperbitcoinization’ in blanket fashion. The first manifestation of this concept saw early Bitcoiners focused on retail adoption. Once upon a time in Bitcoin, there was a strong desire for retail establishments to accept Bitcoin. Bitcoiners would go to restaurants, cafes, electronics stores, etc. and encourage them to accept Bitcoin, either on their own with their own cold wallet or via one of the above mentioned payment providers.
Over time, the focus became convincing major institutions, including governments and corporations, to adopt Bitcoin. That happened.Bitcoin has in 2024 caught a bid from what was once considered an unlikely source: Wall Street. Gone are the days of the first epoch when Wall Street executives laughed at and slandered Bitcoin. Remember the days? Jamie Dimon, CEO of JPMorgan, became known for throwing shade on Bitcoin:
“I’ve always been deeply opposed to crypto, bitcoin, etc.”
“The only true use case for it is criminals, drug traffickers … money laundering, tax avoidance.”
“If I was the government, I’d close it down,” he added.
Dimon went so far as to call Bitcoin a “pet rock” at Davos.
BlackRock CEO Larry Fink also got in on the Bitcoin hate: “Bitcoin just shows you how much demand for money laundering there is in the world, he said.
Things have changed. Fink now calls Bitcoin “an asset class that protects you.”
The US government and Wall Street have approved Bitcoin for mainstream consumption (and theirs,too!). And today we sit on the cusp of a new world: mainstream investors are pouring in billions and billions of dollars into Bitcoin.
The mouths of money managers across the US are watering as they conduct due diligence ahead of allocating funds into Bitcoin ETFs on behalf of clients.
But, a few short years after Bukele’s decree the world got a taste of true hyperbitcoinization. Very serious and practical men wearing suits in mahogany offices, the so-called “fat cats”, wanted to adopt Bitcoin. Their activity in the market gave birth to the second epoch, which began January 11, 2024 when the US government approved ETFs. Now demand would be underpinned by the whole wide world.
In the second epoch of Bitcoin, the work of early bitcoiners is likely to be minimized. It is likely to have less of an impact overall as big money moves in and eats up the relatively small industry built around Satoshi’s protocol.
The work of early bitcoiners—you know, those dreamers, radicals, idealists, etc. from above—can still be achieved in the context of Bitcoin, but it will no longer achieve the headlines it once did in the early days. Perhaps Bitcoiners can look to their community and neighbors to carry on the good work of early Bitcoin. Mostly, however, the work of early bitcoiners will have to be carried on elsewhere. A new day has dawned on the horizon of Bitcoin.