Viewpoint by: Michael Amar, co-founder of Chain of Events and general partner at v3nture
In 1848, there was a time when a man could enter the wilderness on the verge of destitution and emerge covered in mud, dust, and the residue of hard work, a newfound multimillionaire. The gold discovery in California during the 19th century unleashed a wave of transformation that reshaped the American economy.
By 2025, a novel resource, while less shiny, is poised to alter the global financial landscape and ignite a fresh race for wealth accumulation. This time, it won’t involve pickaxes and pans—rather, we’ll see ASICs, algorithms, and distributed ledger technology taking the lead.
Indeed, this is a nod to Bitcoin (BTC), often referred to as digital gold.
Similar to how the gold rush catalyzed advancements in banking, financial systems, lending, trading, and monetary policies, we’re witnessing a revival of history through Bitcoin, digital transactions, asset tokenization, and cryptocurrency advocates. Just as laws, regulations, and societal norms adapted to accommodate gold, the same is happening now for Bitcoin and the wider cryptocurrency sector.
Examining historical parallels
The gold rush produced wealth seemingly “out of thin air,” and Bitcoin is doing likewise. With a market cap around $2 trillion, those who ventured early and embraced significant risks are now millionaires (in fact, over 85,000 verified) and, in some instances, billionaires (estimated to be around 17).
From the hundreds of thousands who flocked to California, those who unearthed real gold leveraged their newfound riches to build railroads, telegraph systems, and entire communities. In today’s context, early Bitcoin adopters have harnessed their financial success to further expand their reach by creating applications, enhancing infrastructure, and supporting the industry’s growth. Notably, Michael Saylor established MicroStrategy, now rebranded to Strategy, which possesses over $48 billion in Bitcoin, while Changpeng Zhao founded the globe’s largest cryptocurrency exchange and boasts a net worth exceeding $57 billion.
Recent: Support for a Bitcoin-only US crypto reserve from Coinbase and Gemini CEOs.
Today’s market analysts should reflect on the American gold rush to uncover compelling similarities. Just as gold once drew workers and investors, Bitcoin is currently appealing to institutions, startups, talent, governments, and capital investments. Gold-backed reserves transformed global economics; could a Bitcoin reserve initiated by the US have the same effect?
Gold miners began their journey with basic tools, transitioning to hydraulic mining apparatus. Similarly, the earliest Bitcoin miners operated on home computers, yet we now have massive energy-efficient mining facilities, advanced cooling technologies, and the Lightning Network. The evolution in scalability and efficiency has been remarkable.
Wider implications for global finance
Besides creating instant wealth, enhancing infrastructure, and altering monetary policy, there’s also the aspect of monetary sovereignty. Countries establishing Bitcoin reserves as a safeguard against inflation or for geopolitical stability are seizing control of their economic future. This mirrors the longstanding status of gold as a reserve asset. However, since “The Nixon Shock” in 1971, the US dollar has detached from gold, uncovering a long-awaited opportunity for a new asset to take its place.
Monetary sovereignty is a significant driving force behind retail adoption, with Bitcoin providing a hedge against inflation and government policy through its decentralized economic structure.
Confronting skepticism from various groups
An enthusiastic reception from tech leaders, libertarians, celebrities, corporations, and noted political figures has been met with years of apprehension and skepticism from regulators, critics, and some of the most recognized investment managers worldwide. They often claim that Bitcoin lacks intrinsic value, yet it should be recognized that gold is fundamentally just a shiny, somewhat scarce mineral.
Larry Fink, CEO of the world’s largest investment firm, which manages $10 trillion in assets, once described Bitcoin as “an index of money laundering.” Over the years, his stance shifted from skepticism to acquiring 2.7% of the global Bitcoin supply and expressing belief that it could reach $700,000 per BTC. “As I delved into crypto, it became apparent that it serves as a currency of fear,” Fink has remarked. “But that’s perfectly fine. If you’re worried about currency devaluation or the economic or political stability of your nation, Bitcoin provides an international instrument that addresses those local anxieties.”
If Fink can reconsider his viewpoint, so too can other skeptics.
Leading up to his election victory, Trump was outspoken about forming a strategic Bitcoin reserve and maintains that stance. Additionally, we are witnessing states move towards establishing their own Bitcoin reserves.
Gold has undeniably transformed the world; Bitcoin is now stepping in to take on that vital role.
Viewpoint by: Michael Amar, co-founder of Chain of Events and general partner at v3nture.
This article serves solely for general informational purposes and should not be considered as legal or investment advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of any organization.