Bitcoin hits $84,900. Sirens trumpet at the prospect of a breakout, a new dawn of crypto hegemony. We hope you’re imagining adventures, because we’re hoping to take you on one! Now, finally, you’re provided an opportunity to stick it to the man and escape conventional finance once and for all! I get it. The potential of decentralized finance, of a world no longer subject to the whims of banks and states, is extremely seductive. Particularly to the millennial and Gen Z generations, who are increasingly being squeezed by rising costs of living and wage stagnation.
Before you start celebrating and sinking your life savings into Bitcoin, let's ask a crucial question: Who really benefits here? And is this new energy having the deeply democratic effect of empowering everyday people? Or is it just another plan for the rich to get a lot richer and the rest of us to fight over the crumbs?
The timing is suspicious, isn't it? Bitcoin’s meteoric rise comes around the same time as Trump’s recent exemptions on tariffs, an action widely praised in big tech circles. These major exemptions, impacting billions in imports of smartphones, computers and chips currently, are being spun as a significant win for consumers. I believe there is something far more insidious at work.
Think about it. For all the brutality of his tactics, Trump’s trade war was at least billed as an effort to protect American jobs and industries. Now, all of a sudden, he’s issuing exemptions—including most egregiously to the tech monopolies who benefit from labor and profits extracted by overseas manufacturing. Why?
The Kobeissi Letter on X calls this bond market pressure. Maybe. But I suspect the real pressure came from powerful corporate lobbyists whispering in Trump's ear, promising campaign donations and favorable press in exchange for protecting their bottom lines.
And guess who ends up paying the cost for these so-called “bargains”? You do. I do. And finally, the working-class communities that have already lost their jobs to "free-trade." These tariff exemptions continue to contribute to the piling perils of American manufacturing. And they incentivize companies to offshore production, creating even greater burdens on families working to make ends meet.
So, how does this connect to Bitcoin? Truth is, these tariff exemptions release a great deal of capital for these corporations. Capital they can invest. Some into Bitcoin, driving up the price. Fast forward, and suddenly crypto is the new buzzword on everyone’s lips—thanks in large part to the allure of easy money.
Let's be honest: most of the real gains from this Bitcoin boom won't go to the average person. They'll go to the big institutional investors, the hedge funds, and yes, the very same corporations who benefited from Trump's tariff exemptions. When the inevitable bubble bursts, they’re going to cash out their profits and leave the rest of us holding the bag.
Third, take into account the people in disadvantaged communities who are contending with both high inflation and low real wage growth. Second, can they really afford to put any money into Bitcoin, which is famously unpredictable asset? Unlikely. Because they’re focused on just finding a way to put food in their family’s mouths and making sure there’s a roof over their heads. After all, the promise of Bitcoin riches serves as a cruel joke and a new mirage within our deserts of economic disparity.
With the combined market cap of these stablecoins still near all-time highs, institutional interest has clearly not died down just yet. This is not to support the underdog, but to double-down on the status quo power structure.
We’re led to believe that this is all about innovation, about disruptive technology. Yet, innovation without social responsibility is merely a vehicle for deepening concentration of wealth among the already wealthy.
We want policies that put economic justice ahead of the bottom line for corporations. Additionally, let’s challenge ourselves to ask ourselves a key question. Is an increasing Bitcoin price really an indicator of a strong economy if the gains are concentrated with the richest 1% of Americans.
Maybe stronger regulation of the whole cryptocurrency space is needed to shield consumers from this fraudulent Guilded Age reality and crypto market manipulation. Perhaps progressive taxation is the answer after all. Such a reform would make sure the rich pay what they owe, so that we can all share in the rewards of a growing economy more evenly. More importantly, we need to invest in better social safety nets. This will help cushion the blow for those living paycheck to paycheck.
The bottom line is that we cannot simply cheer Bitcoin’s meteoric rise without putting the hard questions of who it benefits to the test. Let’s not be distracted by the challengers to most of this progress. We shouldn’t allow the siren song of crypto innovation to seduce us further as our economy crumbles around us. We need to create the future in which all people share in the innovations of technology—not just a select few. After all, a rising tide can’t and doesn’t lift all boats—certainly not just the yachts.
A Future for All, Not Just a Few?
What’s the solution? We need policies that prioritize economic justice over corporate profits. We need to ask ourselves, is a rising Bitcoin price really a sign of economic health if the benefits are concentrated at the very top?
Perhaps increased regulation of cryptocurrencies is necessary to protect consumers from fraud and manipulation. Maybe progressive taxation is the answer, ensuring that the wealthy pay their fair share and that the benefits of economic growth are shared more equitably. Or maybe we need to invest in stronger social safety nets, providing a cushion for those who are struggling to make ends meet.
The point is, we can't blindly celebrate Bitcoin's rise without asking tough questions about who really benefits. We can't allow ourselves to be distracted by the shiny object of crypto while the foundations of our economy crumble beneath us. We must demand a future where the benefits of technology are shared by all, not just a privileged few. Because a rising tide should lift all boats, not just the yachts.
