Debt, leverage, and paper Bitcoin contracts are reaching #Bitcoin
June 11, 2025
By McGuckin of Bombthrower, translated with modifications
Money has always been of strategic importance, forming the foundation for nations and empires for centuries.
Owning capital and controlling its flow is not just about survival; it is also about building something lasting.
If 2024 was the year of political breakthrough and recognition for Bitcoin, then 2025 was the confirmation.
The bottom line is that what began as an emerging behavior, Bitcoin, has carved its way to the forefront of capital formation in the 21st century. New era dollars are once again backed by layers of sound currencies and lines of innovative technology (stablecoins), which will enhance our ability to build the future in our digital and physical world.
This year's conference discussed how to integrate Bitcoin and stablecoins into corporate balance sheets and national stocks of countries, and how to use them as a financial reserve asset. Supporting traditional assets, new financial instruments (Bitcoin bonds), and reshaping the geopolitical landscape, while driving growth in the 21st century.
"Bitcoin has now become one of the largest asset classes in the world... the United States must be able to defend Bitcoin or use it as an offensive weapon..." - Fred Thiel, Mara
"The executive order from President Trump specifically identified Bitcoin... as a strategic asset due to its scarcity... This was a signal directed towards the American people, as well as to leaders of other countries around the world... The U.S. government sees Bitcoin as a strategic asset... Is this a signal of a strategic shift?... I think that's still an uncertain question, but I believe we tend to lean towards the latter option." - Matthew Baines
"Strategic reserves are no longer limited to oil or Swiss cheese; they are now linked to Bitcoin and the future of money as a political tool* - Matthew Siegel, VanEck
A historical perspective on how we arrived at Bitcoin:
Money began with kings and blacksmiths, then moved to coffers and shipping lanes with the rise of industrial nations. To support this development, a global information and logistics network emerged: wires extending across continents, ships transporting gold from one port to another, and ground teams gathering local intelligence. They then redirected it through government research centers and trading desks at global banks. These traditional and manual networks fueled the dollar machine, creating an unparalleled capitalist engine in the United States.
By the 1960s and 1980s, a new era began. Financial derivatives became dominant, and the pace of information transfer accelerated, requiring the existence of financial trading desks around the world to gather profitable information and support national security. Bankers dominated the market. By 2025, Bitcoin became new capital, but this time it is no different.
In recent decades, social networks have begun to outpace diplomats and spies. Capital has shifted from physical assets to liquid and digital tools, accelerating the pace of our world. We must rebuild that complex network of global banks, but with a preference for contracts over buildings. In this new world, venture capital and software developers and engineers become the absolute authority.
If there is one theme that resonated throughout this year's Bitcoin conference, it is this: monetary information is a weapon, and the dollar network needs to expand. A new innovation to carry its weight around the world faster. That is why Bitcoin is more than just a 'digital number up.'
During the conference, if you heard this phrase once, you heard it many times. Bitcoin will not replace the dollar; rather, it will expand and deepen the immense power of the dollar network. In the future, Bitcoin will become the foundation for capital formation, purchasing power, and geopolitical advantage. Its volatility will be harnessed and integrated into the balance sheets of public companies (Bitcoin treasury companies) like Strategy.
Stablecoins were everywhere:
This was an inevitable path, and we did not miss an opportunity to integrate it into almost every session. Stablecoins representing the U.S. dollar, like USDT, will lead the way in transforming money markets and dollar payment networks, modernizing them with the latest technologies and making 'money' entirely digital and usable.
And making money move at the speed that people live today. Paolo Ardoino, the director of Tether, the issuer of the stablecoin (USDT), demonstrated this in his session. He eloquently explained that we are moving from an era of advanced technologies to an era of advanced monetary technologies.
