Bitcoin Gains Institutional Acceptance Despite Persistent Skepticism

Coin WorldSunday, May 25, 2025 12:16 pm ET
1min read

Bitcoin, once a niche technology primarily used for illicit transactions on the dark web, has now gained significant institutional acceptance. Major players from Wall Street giants like BlackRock to the U.S. government have embraced the leading cryptocurrency, making it more mainstream than ever. Even everyday transactions, such as buying burgers, can now be conducted using Bitcoin.

Despite this widespread adoption, skepticism surrounding Bitcoin persists. Traditional finance heavyweights like investor Warren Buffett and JPMorgan Chase CEO Jamie Dimon have been vocal in their criticism of the asset. This raises the question: why is it still so hard for some people to understand and accept Bitcoin?

Adam Back, the CEO of Blockstream and a well-known early Bitcoiner, spoke about this ongoing skepticism. He noted that even tech-savvy individuals, including programmers and cypherpunks, find Bitcoin difficult to comprehend. Back found it "crazy" that some cypherpunks, who understood code, peer-to-peer networks, privacy, public key cryptography, and secure sockets layer, were not interested in Bitcoin. He speculated that the digital nature of Bitcoin, which lacks a physical form, might be a contributing factor to the skepticism.

Bitcoin is a digital payments system and virtual currency with a fixed supply of 21 million coins, ensured by its secure cryptographic engineering. However, Jamie Dimon, the CEO of JP Morgan, expressed doubts about Bitcoin's code. In a 2023 interview, Dimon questioned how one could be certain that Bitcoin's supply would stop at 21 million, labeling it a "hyped-up fraud." Despite his criticism, Dimon acknowledged that his firm uses blockchain technology, which was created by Satoshi Nakamoto, the pseudonymous creator of Bitcoin.

Bitcoin was created in response to global banking failures, with its original white paper released during the 2008 recession. A message referencing a newspaper article about the financial crisis was inscribed on the network's genesis block. Advocates of Bitcoin argue that its scarcity makes it a true inflation hedge. Back added that those who benefit from the current financial system may not understand or trust something as grassroots as Bitcoin. He suggested that individuals with high-paying jobs and stable financial situations might not feel the need for an alternative like Bitcoin.