From Cypherpunk Rebellion to Wall Street Staple

The Bitcoin whitepaper, A Peer-to-Peer Electronic Cash System, published by the mysterious and pseudonymous Satoshi Nakamoto, turned seventeen years old yesterday.

Released on Oct. 31, 2008, amid the global financial crisis, the nine-page document laid the foundation for what would become the world’s first cryptocurrency.

The whitepaper outlined a vision for a decentralized, peer-to-peer financial system built on cryptographic proof rather than trust in third-party intermediaries. Its goal was to eliminate the problem of double-spending and enable online transactions without relying on banks or other trusted third parties. “We have proposed a system for electronic transactions without relying on trust,” Satoshi wrote.

Seventeen years later, Bitcoin’s influence has reached far beyond the cypherpunk forums where it began. The anniversary comes as U.S. spot bitcoin ETFs in less than two years of existence have experienced unprecedented success, seeing total net inflow of over $62 billion and total net assets exceeding $150 billion, according to SoSoValue data.

But Bitcoin’s mainstream acceptance extends beyond Wall Street. It has now entered the highest levels of government, including the White House under the current U.S. administration.

Some of Bitcoin’s most outspoken critics have become its biggest advocates. In 2021, former President Donald Trump dismissed Bitcoin as a “scam against the dollar.” Yet by the 2024 presidential election, he was urging supporters to “never sell your bitcoin” and went on to sign an executive order establishing a bitcoin strategic reserve.

Larry Fink, CEO of BlackRock the world’s largest asset manager once called Bitcoin an “index of money laundering.” Today, he champions it as one of his firm’s most successful ETF products and views it as a hedge against sovereign debt instability.
Likewise, Michael Saylor, the outspoken CEO of Strategy, has become one of Bitcoin’s most persistent evangelists, continuing to accumulate BTC through stock and debt offerings. Saylor himself began as a skeptic, once declaring, “Bitcoin’s days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling.”

The last major holdout among prominent financial figures remains JPMorgan CEO Jamie Dimon, who continues to voice doubts about Bitcoin’s value and sustainability. His bank though, has heartily moved into the sector, including recently allowing clients to pledge bitcoin as collateral.

The financialization of bitcoin through ETFs and corporate treasury adoption has drawn comparisons to the mortgage securitization boom of the 1970s an era that saw asset prices soar to new heights.

Yet this evolution has not pleased everyone. Many early Bitcoin believers argue that that its very ethos, a form of money outside the control of the state, has been diluted by institutional adoption.

For the cypherpunk movement that birthed Bitcoin, the system’s embrace by Wall Street and Washington feels like a paradox: a rebellion absorbed by the establishment it once sought to disrupt.

On an annual basis, the average transaction fee per bitcoin block has fallen to its lowest level since 2010, raising concerns about the network’s long-term sustainability. Low fees, while attractive for users, reduce incentives for miners who secure the network, especially as block rewards continue to halve every four years.

Originally envisioned as a peer-to-peer electronic cash system, Bitcoin has increasingly been overshadowed by the “store of value” narrative. “Never sell your bitcoin,” is a common refrain from Michael Saylor to the Trump family and many voices in between.

At the same time, controversy continues within the developer community particularly between Bitcoin Core and Bitcoin Knots over whether the network should allow non-monetary data like Ordinals or enforce stricter rules to block it. Some see such restrictions as necessary to preserve the network’s integrity, while others view them as a form of censorship that alters bitcoin’s open and permissionless nature.

Beyond internal debates, the looming question of quantum computing also poses an unresolved risk. The potential for future quantum machines to break existing cryptographic standards could threaten Bitcoin’s security, with no definitive solution  in place yet.

“It’s no doubt that Bitcoin has arrived, accepted by Wall Street, and its sustained period above $100,000 confirms that,” said Bitcoin OG Nicholas Gregory recently. “Its transition from peer-to-peer cash to a store of value is evident,” he continued. “It remains to be seen where it goes long-term. I, for one, think the narrative of it as a medium of exchange is key to its enduring place, along with solutions to the quantum threat.”