A Critical Examination of Bitcoin’s Conflict with the Established Financial Order
The Challenge to the Order
My investigation began by asking if Bitcoin is sustainable money. It concludes that this is the wrong question. The true conflict is not about sustainability, but about legitimacy.
The Core Conflict: Bitcoin challenges the established financial order not because it is “fake money,” but because it introduces a rival system of Truth.
The Established Order relies on Political Truth: Value is determined by law, enforced by courts, and managed by central banks to serve social goals (employment, stability). It is backed by “real property” and “labor.”
The Bitcoin Order relies on Mathematical Truth: Value is determined by code, enforced by cryptography, and managed by no one. It serves no social goal other than the preservation of the ledger.
Addressing the “Productive” Critique: Buffett and Dimon are correct in their frame of reference: Bitcoin is not a productive asset. It creates no goods. However, they miss the “Option Value” of the network. In a world where “Rule of Law” is eroding or weaponized (via sanctions/debasement), the market is placing a high premium on a system that requires no human trust.
The Verdict: Does Bitcoin challenge the financial order? Yes. It challenges the state’s monopoly on value transfer. Does it bypass necessary safeguards? Yes. It prioritizes the “freedom to transact” over the “safety of society,” enabling both dissidents and criminals.
For the sophisticated investor, Bitcoin is neither a “fraud” nor a “savior.” It is a Hedge Against Institutional Failure. You are not buying a “productive asset”; you are buying an insurance policy against the incompetence or overreach of the “established financial order.” The question is not whether you believe in Bitcoin, but whether you still believe in the infallibility of the State.
Final Recommendation: Investors should proceed with an allocation that is sized for insurance, not investment. Recognize that this asset is a bet on the continued fracturing of the global geopolitical consensus. If the world becomes more stable, peaceful, and cooperative, Bitcoin will likely underperform. If the world becomes more fragmented, distrustful, and chaotic, Bitcoin’s “unproductive” silence may be the most valuable asset you own.
Upcoming eBook: “The Dialectic of Digital Sovereignty” is the book title. The subtitle is: “A Critical Examination of Bitcoin’s Conflict with the Established Financial Order.” If the book were intended for the general public, I might have called it, “The Bitcoin Wars: How Digital Money is Challenging Banks and Governments.” However, I am writing the book for the following audience:
Academics & Scholars: In fields like Political Science, Economics, Sociology, and Critical Media Studies.
Policy Makers & Think Tanks: Individuals concerned with financial regulation, monetary policy, and national sovereignty in the digital age.
Serious Bitcoin/Crypto Professionals & Enthusiasts: Those who are tired of hype and price speculation and are interested in the philosophical, political, and systemic implications of Bitcoin.
Finance Professionals with a Theoretical Bent: Bankers, analysts, or investors who are curious about the existential threat or potential integration of Bitcoin into the existing system, framed in a sophisticated context.
The book is a work of substance, not just opinion. It will be available in a few days for just $9.99 and be embedded with an extensive DeepMind Review. I hope you buy it.