“First they ignore you, then they laugh at you, then they fight you.” This quote—frequently misattributed to Gandhi—has been around in one form or another for at least a century, and in recent years became a rallying cry for crypto believers. There’s a problem though. In the case of Bitcoin, the number of powerful people who want to fight it is dwindling rapidly—so much so that it’s becoming harder to tell who is David and who is Goliath.
This is apparent from a new Bloomberg report that recounts how many of Bitcoin’s one-time adversaries on Wall Street have adopted an “if you can’t beat ’em, join ’em” attitude in response to the gusher of money that’s flowing into Bitcoin products following the approval of spot ETFs in January. Recent converts include the most stodgy names from old-link banking, including Bank of America’s Merrill Lynch and Wells Fargo. As Bloomberg puts it:
And what was once almost universal resistance to it on Wall Street is disappearing day by day…As the cryptocurrency skyrocketed in recent weeks back to lofty levels that had shocked the old guard years earlier […] it became clear to many pundits that the underlying demand from people young and old, rich and poor, is simply too robust and steady to allow Bitcoin to collapse as the cornerstone of an asset class.
At this point, it’s getting hard to find high-profile people willing to dismiss Bitcoin altogether—or at least ones too young to collect a Social Security check. There is Warren “crypto is rat poison squared” Buffett, who is 93 years old and industry scourge Sen. Elizabeth Warren (D-Mass.), who is 74. The youngest of the prominent haters at this point is JPMorgan’s 67-year-old CEO, Jamie Dimon, who loves to hurl disparaging quotes at Bitcoin—but whose own banks have been experimenting with blockchain for years.
If you want to beat the bushes for Bitcoin’s remaining enemies, you’ll find them among environmentalists who object to its energy guzzling. They have a point—Bitcoin does require an absurd amount of electricity—but a lot of that juice is drawn from environmental sources, especially in the case of U.S. crypto miners who account for a growing percentage of overall Bitcoin production. The green critics also don’t have the same clout as the big banks that are starting to look more like allies than enemies of Bitcoin.
Meanwhile, Bitcoin’s popularity is only going to grow in the coming days for the simple reason that firms like BlackRock and Fidelity are sprinkling it, directly or indirectly, into the portfolios of millions of investors. And like investors everywhere, these new Bitcoin owners are likely to put aside any philosophic objections they may have and simply root for the price to go up.
Finally, when it comes to Bitcoin’s enemies, the final boss is looking less menacing every day. I refer here to nation states, which can cause real trouble for crypto. Once again, though, younger politicians are more likely to have a favorable view of Bitcoin compared with those in their 70s or 80s and even own some crypto outright. This will make it harder for countries to “ban Bitcoin” or whatever. At the same time, don’t be surprised if some countries are already adding small positions of Bitcoin to their global reserves.
The bottom line is that Bitcoin has converted or simply outlasted many of its powerful critics, showing again it is here to stay.
Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts
DECENTRALIZED NEWS
A handful of "distressed debt specialists" that bought FTX claims for 20 cents on the dollar are poised for a big win as the firm is set to pay creditors out in full—a very unusual outcome for bankruptcy proceedings. (Bloomberg)
Crypto PACs have poured $13 million into Super Tuesday primaries that will take place tomorrow across 15 states. (PYMNTS)
In a setback for the crypto industry, a judge in the Coinbase insider trading case ruled the tokens in question are securities under the jurisdiction of the SEC. (Fortune)
The Department of Energy said it would drop its mandatory emergency survey of Bitcoin miners' energy use and destroy the data it had collected so far in response to industry lawsuits over the legality of the project. (Fortune)
Bitcoin continues to edge toward its all-time high, briefly hitting $64,000 in Asian markets on Monday morning, while Ethereum topped $3,400. (The Block)
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