The Bitcoin Reformation

Adamant Capital believes that the 21st-century emergence of Bitcoin, encryption, the internet, and Millenials are more than just trends; they signal a new wave of change that exhibits similarities to the 16-17th century protestant reformation that took place in Europe. According to Tuur Demeester, Founding Partner of Adamant Capital, there are four conditions that enabled the protestant reformation and those same four conditions are present today: a bitter status quo in the form of a rent-seeking monopolist, technological catalysts for change, a new economic class with something to fight for, and credible defense and exit strategies for that new, rebellious economic class. Given these conditions, the rebel economic class must defend itself in a dynamic, volatile, and hostile environment. Historically this has led to numerous innovations and secular trends in pursuit of economic security.

Through this framework, Tuur sees striking parallels between the protestant reformation and the emergence of Bitcoin, potentially providing a guide to the future. Not only do the times in which Bitcoin emerged provide fertile ground for the movement to be adopted, but we already see notable progress with the Bitcoin ecosystem maturing. If this process persists Bitcoin could become a true check on, and potential alternative to, the international monetary and financial system; a revolutionary movement on par with the protestant reformation.

Why it matters:

• Within the crypto community, there has been a notable uptick recently in the exploration of Bitcoin as a social, political and economic movement as opposed to just a revolutionary technology. This comes off the back of numerous government cryptocurrency related announcements and hearings.
• As institutional development of Bitcoin continues to progress expect this trend to increase as ideologists express their skepticism towards increased government and corporate involvement in the industry.
  

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