Paradigm: The competition for sovereign states to establish BTC reserves has begun

Original title:Bitcoin for the Sovereign

Author: Matt Huang, founder of Paradigm; compiled by: 0xjs@Bitchain Vision

At the beginning of Paradigm in 2018, we firmly believed that the value of BTC (at the time of about US$4,000 per coin) would increase several times in the next few years, partly due to increased legitimacy and institutional adoption (for more reasons to be optimistic about BTC, please see the previous article”Preach Bitcoin to enlightened skeptics“).

But at that time, the possibility of sovereign states adopting BTC was still very small.Now it seems that the possibility is underestimated.

Currently, multiple sovereign states hold BTC, the most well-known of which is El Salvador.

Abu Dhabi sovereign wealth fund participates in Bitcoin mining.

US President-elect Donald Trump talks about strategic Bitcoin reserves on the stage of Bitcoin Nashville.

U.S. Senator Cynthia Lummis proposed a draft legislation on strategic Bitcoin reserves.

Forecast market platform Polymarket estimates that Trump is about 30% likely to establish strategic Bitcoin reserves.

So what?As Tyler Cowen likes to say, seeking solve for the equilibrium.The game theory equilibrium adopted by BTC has changed.

Sovereign states can no longer ignore BTC.From a game theory perspective, BTC is like gunpowder, not iPhone.Christopher Nolan can use an iPhone, and his intentional Ludeism may even lead to increased creativity.All computers that are not connected to the Internet are used).But once gunpowder is discovered, every sovereign state is forced to adopt it…or the consequences are terrible.Today, so are AI, drones and other key technologies.

Since the US adopts BTC’s Overton Window (Translator’s Note: Overton Window, a political theory that refers to the policy concept that was once flatly rejected is now widely discussed) has opened, other sovereign countriesI won’t wait.Sovereign states that establish BTC reserves in advance will benefit from significantly more favorable entry prices.

The competition for sovereign states to establish BTC reserves has begun.