Bitcoin's 15-Year Journey: From Anti-Banking to Wall Street Darling

Bitcoin, introduced as the first decentralized electronic commerce network, was designed to operate independently of traditional financial institutions. Fifteen years after its inception, discussions persist about Bitcoin's potential to bolster the American dollar, while financial institutions increasingly invest in cryptocurrency. Despite these developments, some still argue that the rise of Bitcoin signals the impending demise of fiat money. The question remains: is Bitcoin a genuine threat to the established financial system?

Before launching the Bitcoin network on January 3, 2009, Satoshi Nakamoto published the Bitcoin whitepaper, a nine-page document detailing the purpose and functionality of Bitcoin. Titled “Bitcoin: A Peer-to-Peer Electronic Cash System,” the whitepaper presents a clear message about the need for Bitcoin as a healthier alternative to traditional banking. Nakamoto acknowledges that the existing commerce system is functional for most transactions but highlights several issues that Bitcoin aims to address. These include the additional costs incurred by banks mediating transactions, the struggle against fraud, and the privacy concerns arising from banks collecting user information to verify transactions. Nakamoto emphasizes that Bitcoin offers a trustless system, where a third party cannot intervene in transactions between two parties.

Nakamoto's criticism of banks is evident in both the whitepaper and the Genesis block, where he attached a newspaper headline highlighting the government's bailout of banks during the 2008 economic crisis. However, rather than opposing banks, Nakamoto proposed an alternative system that could complement the banking sector and provide additional options for those in need. Despite its own limitations, the Bitcoin network remains active and is gradually being integrated by governments and financial institutions, with banks now creating Bitcoin treasuries.

While some view Bitcoin as a potential replacement for traditional financial systems or central banks, this does not seem to be the case. Bitcoin excels in facilitating global transactions and has shown significant potential for long-term value appreciation, making it a viable store of value. This characteristic has led various governments and companies to grow their Bitcoin treasuries in 2025. Stablecoins, a type of cryptocurrency with lower volatility, are preferred by those who seek stability both as a store of value and as a means of remittance. However, Bitcoin itself is not suited to replace banks, as it does not regulate interest rates, manipulate money printing, or offer loans directly. Instead, Bitcoin and other cryptocurrencies are used as stores of value and remittance tools in regions with high smartphone penetration but limited banking services, such as multiple African countries.

Messages about the potential defeat of the fiat money system by Bitcoin should not be taken literally. Rather, they reflect a preference for Bitcoin over fiat money when it comes to savings. Some individuals prefer to save in Bitcoin due to its more sustainable price compared to national currencies. However, as of 2025, traditional payment methods remain more convenient for spending money.

Institutional investors are increasingly interested in Bitcoin, viewing it as a strategic investment. While Bitcoin is still not mainstream for all investors, it is less marginal than it was in previous years. Professional traders and investors have taken notice of Bitcoin's returns, which outperformed NASDAQ stocks in 2024. BlackRock, a capital management giant, recommends allocating up to 2% of a portfolio to Bitcoin and manages over 625,000 bitcoins, nearly 3% of the total supply. Bitcoin ETFs approved in early 2024 have allowed large institutional investors to benefit from Bitcoin's rising value. Strategy, a public company, has adopted a Bitcoin Standard, gradually increasing its Bitcoin holdings, making its stock MSTR the fastest-growing stock.

Governments utilize Bitcoin in various ways. For instance, Russia and Iran use crypto, including Bitcoin, to circumvent Western sanctions in their overseas trade. North Korean hackers steal crypto to fund the country’s nuclear program. The U.S. aims to weaken the American dollar using Bitcoin, which could enhance export trades, while popular USD-pegged stablecoins continue to support the dollar as a global reserve currency.

It is challenging to determine the extent of Satoshi Nakamoto's anti-banking sentiments. In his whitepaper, he outlined several issues with the banking system and offered a solution. While Bitcoin was designed to empower individuals' financial independence, it has become a staple of Wall Street and the government, indicating that others are not excluded from Bitcoin's advantages. Regardless of one's opinion on Bitcoin, the anti-banking ethos is not mainstream among Bitcoin investors.