With increased institutional adoption and a continually evolving regulatory stage, it might be becoming increasingly clear that most countries worldwide might not be able to ban Bitcoin after all. What then can their next course of action be? According to Bitcoin analyst Max Keiser, rather than trying to increase their scrutiny against the top digital asset, governments should jump on the BTC bandwagon themselves.
Speaking on a podcast hosted by Anthony Pompliano, the founder of Bitcoin Capital said that the way forward for Bitcoin adoption in the U.S. would be through the government hoarding these coins and turning its attention towards increasing mining activities in the country.
Further purporting his idea of hash wars, in which ‘smart governments’ would engage in competitive hashing as it becomes a more lucrative business, he said,
“The smart governments are going to start hoarding and mining bitcoin to the extent that the U.S becomes competitive … they would have to immediately start to underwrite mining… that’s the way to build a solid economy going forward.”
That is the way to be considered a first-world country when the world gets reordered on the basis of Bitcoin adoption, according to Keiser. He further explained his revolutionary idea as,
“We’re reordering what constitutes a first-world nation… it will be heavily into bitcoin and then the second and third world would be lagging in bitcoin so if the U.S wants to be competitive they need to immediately start directing resources in multiple ways to start to accumulate and mine bitcoin.”
A gateway to this means was already opened by the recent Chinese miner’s exodus, where the government clampdown forced a majority of BTC miners in China to look for alternate locations to set up shop. Interestingly, many have turned to the southern state of Texas, due to its abundance of renewable energy, comparatively low prices, unregulated market, and crypto-friendly community and lawmakers.
Already, top mining companies like Bitmain, Blockcap, Argo Blockchain, Great American Mining, Layer1, Compute North, Riot Blockchain, and Whinstone have already started to move to the state, amid larger enthusiasm from the state’s government.
Former Texas governor had earlier commented that moving the mining industry there was “a major accelerant for job creation and sustainable economic growth in the state,” while current governor Greg Abbott has also been largely welcome of the bitcoin mining companies.
Another case in point is Wyoming, which has already been hailed as the country’s crypto capital due to its favorable legislature, the existence of a crypto bank, and abundance of crypto businesses.
State governments across the country have in fact been more proactive in the understanding and adoption of BTC. According to Keiser, the U.S. has an advantage over the European nations as American states enjoy considerable autonomy and can push through laws that the federal government might be cautious of. If larger states like Texas and Wyoming take the lead, smaller states can follow their example to the extent that the federal government is forced to kneel.