Importance Score: 80 / 100 🔴
What connects acclaimed 90s skateboard icon Tony Hawk, controversial political figure Robert F. Kennedy Jr., and NBA champion John Salley?
It may sound improbable, but the answer is their appearance as interviewees in a new documentary film, God Bless Bitcoin. This film explores the proposition that the cryptocurrency, bitcoin, offers a potential solution to perceived issues within the global financial system and prevailing economic challenges like inflation.
“My view is that bitcoin does fix everything,” asserts Salley in the documentary.
This raises crucial questions: Can bitcoin truly address societal and economic problems, and what exactly is posited as needing repair?
Seeking insights, I attended a screening of the documentary followed by an expert panel discussion.
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The UK debut of God Bless Bitcoin coincides with recent research indicating that 63 percent of UK adults lack confidence in the government’s economic management capabilities.
Similarly, the same proportion of young adults, aged 18 to 34, reported that their earnings have not kept pace with inflation since its peak in 2022. Approximately 14 percent stated their wages have not increased at all since 2022.
According to the survey, commissioned by the filmmakers, 69 percent of younger Britons are contemplating the adoption of bitcoin as an alternative financial mechanism.
This appears to be a central objective of the documentary‘s creators, Brian and Kelly Estes. As part of their campaign for a “peaceful revolution” towards a bitcoin-based economy, they aim for 500 million views of the film over the next four years. At the time of writing, the film had garnered 1.2 million views on YouTube.
The core argument presented in the documentary, and by its creators Brian and Kelly Estes, is that the current United States monetary system, and by extension, global financial frameworks, are flawed. They propose that bitcoin offers a viable remedy.
Speaking via video link from the US during the post-screening panel, Brian Estes commented: “Bitcoin is the finest form of money humanity has ever devised.”
God Bless Bitcoin attributes the origin of the current system’s issues to the US abandoning the gold standard in 1971. This shift, they argue, led to currency devaluation driven by inflation.
Under the gold standard, governmental authority to print currency was restricted. Proponents of bitcoin highlight that this limitation is analogous to bitcoin‘s fixed supply cap of 21 million units that can ever be ‘mined’.
Their theoretical framework suggests that an economy founded on bitcoin would operate with a finite money supply. The filmmakers contend this inherent scarcity would prevent governments from effectively taxing citizens through inflationary practices.
However, economists and central bankers generally view a degree of inflation as desirable.
The expectation that prices may rise slightly in the future incentivizes consumers to make purchases sooner rather than postponing them and incurring higher costs later.
Conversely, a deflationary environment risks slowing down economic activity. In simple terms, why spend money today if you know it will increase in purchasing power tomorrow as goods become cheaper?
Thus, if individuals hoard their bitcoin rather than spending it, what would be the economic consequences? Historical periods of deflation suggest potential challenges for an economy.
Despite these debates, bitcoin‘s continued presence and increasing adoption appear certain.
Earlier this month, a private school in Scotland announced it would accept bitcoin for tuition payments starting the next academic year. Concurrently, news emerged last week that a UK bitcoin holding company launched an IPO to establish a digital asset reserve, providing a UK stock market route for accessing the crypto asset.
Whether bitcoin evolves into a global reserve currency remains an open question.
Exploring Bitcoin’s Potential Use Cases
Nevertheless, bitcoin does possess specific applications and benefits.
Championed by some as a defense against rampant inflation, advocates assert that bitcoin enables individuals to transfer their rapidly depreciating local currency into crypto to safeguard value.
Nic Carter, General Partner at Castle Island Ventures, remarks in the documentary: “Bitcoin has served as a lifeline for many individuals.”
However, historical data shows that while bitcoin may have outpaced inflation over certain periods, users must tolerate significant price volatility in the short term.
Glenn Goodman, author of The Crypto Trader and frequently consulted for perspective on the cryptocurrency market, observed: “The documentary presents some valid arguments about bitcoin‘s universal accessibility.”
- “Billions worldwide lack access to traditional bank accounts, yet using bitcoin does not require one.”
- “Governments cannot debase bitcoin as they can national currencies.”
- “Excessive currency printing by governments generates inflation, often impoverishing ordinary citizens.”
- “In nations مثل Nigeria and Turkey, many convert local funds into bitcoin, confident their government cannot dilute its value.”
In 2021, El Salvador became the first country to adopt bitcoin as legal tender, a move later mirrored by the Central African Republic.
Yet, fewer than 10 percent of Salvadorans utilize the government’s Chivo wallet, and 89 percent of bitcoin-related businesses in the country are reportedly non-operational. The IMF has cautioned that this policy increases risks to financial stability.
Meanwhile, the Central African Republic subsequently rescinded its decision after its top court deemed the action unconstitutional. The CAR remains the world’s poorest nation.
Addressing the Concentration of Bitcoin Ownership
The widespread positive portrayal of bitcoin as inherently fair and equitable might warrant closer examination.
Goodman points out: “The documentary overlooks a significant issue: the ‘whale’ phenomenon.”
He defines a “whale” as an individual possessing an extremely large volume of bitcoin, and it is widely believed these wealthy holders control a substantial portion of the existing bitcoin supply.
A 2021 study indicated that a mere 0.01 percent of bitcoin holders held approximately one-third (27 percent) of the 19 million bitcoin in circulation at that time.
Currently, about 20 million bitcoin are in circulation, maintaining the total cap of 21 million.
While 1 million bitcoin remain to be mined, the process is exceptionally costly.
Furthermore, a small minority of miners—just 10 percent—command roughly 90 percent of the total global bitcoin mining capacity.
Goodman adds: “Despite discussions in the documentary about concepts like freedom and fairness, there’s no suggestion that existing bitcoin holders should redistribute their holdings to disadvantaged populations worldwide.”
“If the world transitioned to a universal bitcoin economy, it’s probable that the early adopters would enjoy a privileged position from the outset.”
“It’s understandable why they express such fervent enthusiasm for bitcoin in the film…”
Personally, I remain unconvinced about the likely realization of a global bitcoin economy. If it were to materialize, it might benefit a select group, but perhaps not the general population.
For Tony Hawk, at least, bitcoin‘s future appears promising. This perspective is perhaps natural, given that the skateboarder admitted to purchasing bitcoin during its nascent stages in 2012.
“Current developments are things we could only fantasize about while using PCs in computer class back in 1985,” he remarked.
“I’m optimistic about bitcoin‘s future because we are still merely scratching the surface of its potential, its applications, and its advantages.”
Recent Trends in Bitcoin’s Price
The price of bitcoin surpassed $100,000 for the first time in December 2024, a movement partly attributed to the newly elected US President Donald Trump.
However, it recently retreated to $75,000 approximately two weeks prior, but has since begun to recover, currently trading around $90,000.
While this represents a significant decline from its all-time high, it signifies a substantial appreciation over recent years.
Just five years ago, prior to the Covid pandemic, the price was roughly $7,000 per coin. It subsequently surged past $60,000 before plummeting back to around $16,000.