Governments around the world are building up Bitcoin reserves, the largest asset managers are offering Bitcoin-based investment products, while millions of companies and individuals are becoming participants in the same decentralized network. What do they see in it that many still don’t? In this article, we explore this question while examining how Bitcoin has evolved from an experiment within a small tech community into one of the most remarkable phenomena in the global financial world.

There are still many different opinions circulating about Bitcoin. Some consider it a speculative investment, others view it as a technological revolution, while many are still watching with skepticism to see if it will truly become a lasting part of the global financial system. One question, however, is becoming increasingly difficult to avoid: if Bitcoin were truly insignificant, why are governments, financial institutions, and companies—which seemingly have no need for it—paying it more and more attention?

Bitcoin is no longer just a matter for the tech community

In Bitcoin's early years, it was primarily developers, cryptographers, and cypherpunks who were involved with it.

For most people, it was just an interesting online experiment.

Today, the situation is completely different.

As for Bitcoin today:

• courses are offered at universities,
• Central banks prepare analyses,
• are being investigated by international financial organizations,
• exchange-traded funds (ETFs) are based on it,
• some countries maintain Bitcoin reserves,
• Multinational financial companies offer Bitcoin-related services.

This alone does not prove that Bitcoin will be the only financial system of the future.

What is certain, however, is that it can no longer be treated as merely a technological curiosity.

Who owns Bitcoin today?

• 👤 Individuals
• 🏢 Public companies
• 🏦 Institutional Investors
• 🌍 Countries

When Even Governments Start Holding Bitcoin

One of the most interesting developments in recent years is that it is no longer just individuals and companies that own Bitcoin.

States, too.

But it is important to make a distinction.

Not every government's Bitcoin holdings have the same story behind them.

Bhutan – When Hydropower Becomes a Digital Reserve

Bhutan is perhaps the most unique example in the world.

The Himalayan kingdom isn't just buying Bitcoin.

Instead, it mines through state-owned companies.

The country is harnessing its abundant hydropower capacity to create digital wealth.

Essentially, it converts renewable energy into Bitcoin reserves.

This represents a completely new way of thinking.

It does not export raw materials.

It doesn't produce gold.

Instead, it generates digital value from energy.

El Salvador – A Strategic Decision

In 2021, El Salvador made history.

It was the first country to recognize Bitcoin as legal tender.

The country has continued to build up its Bitcoin reserves ever since.

The decision was met with both criticism and support.

However we look at it, one thing is certain:

With this, Bitcoin has definitively entered the realm of international economic policy.

The Seized Bitcoins

The United States, China, and the United Kingdom also hold significant amounts of Bitcoin.

It is important to note, however, that the vast majority of these are not the result of deliberate government accumulation.

Rather, Bitcoin seized during criminal proceedings.

This clearly shows that Bitcoin is now an asset that governments must also manage.

The Situation in Europe

Many people think that Europe has fallen behind.

The reality is more nuanced than that.

Currently, very few European countries have an officially announced Bitcoin strategy.

Most of the state-owned Bitcoins here also come from seizures.

At the same time, regulatory developments, the emergence of ETFs, and institutional interest indicate that Europe has not been left out of this process either.

Even the world's largest asset managers were not left out

If someone had said ten years ago that the world’s largest asset manager would offer a Bitcoin investment product, few people would likely have believed it.

Today, this is a reality.

BlackRock

BlackRock is the world's largest asset manager.

It manages assets worth several thousand billion dollars for its clients.

Its Bitcoin ETF has become one of the most successful ETF launches of all time.

This does not mean that BlackRock has become a “Bitcoin believer.”

However, he did see a customer need that he could no longer ignore.

Fidelity, Strategy, and other institutions

In addition to BlackRock:

• Fidelity,
• Strategy,
• Coinbase Institutional,
• numerous pension funds,
• as well as institutional investors

are also playing an increasingly important role in the Bitcoin ecosystem.

Bitcoin is no longer just a tool for the tech community.

The traditional financial world is also adapting to this.

A Unique Feature of Bitcoin

There is, however, one interesting difference.

We know exactly how much Bitcoin a publicly traded company holds.

The Bitcoin holdings of ETFs are also known.

Some countries disclose their own stockpiles.

But there is one character about whom no one has any specific information.

The individual.

The Bitcoin network does not know who is behind an address:

• Hungarian,
• German,
• Japanese,
• American,
• individual,
• company,
• or a state.

He only knows the titles.

This is one of the most remarkable consequences of decentralization.

Is it possible that the residents of a country own more Bitcoin than the government itself?

No one can give a definite answer to this question today.

It's possible.

And this is a historic first.

In the past, the states knew exactly:

• how much money is in the banking system,
• how many government securities are in circulation,
• how much gold is stored in the central bank's vaults?

In the case of Bitcoin, however, no such complete ledger exists.

It is possible that a country may have virtually no official Bitcoin reserves, while its citizens collectively hold a significant amount.

And not even the government itself knows exactly.

When Bitcoin Makes the News

From time to time, news reports surface in Hungary alleging that certain institutions or local governments have used electricity without authorization for Bitcoin mining.

These are, of course, unlawful acts.

However, it is important to distinguish between the technology itself and its unlawful use.

Just as a stolen car is not the car manufacturer's fault, unauthorized Bitcoin mining is not inherent to Bitcoin itself.

Technology in and of itself is value-neutral.

It's up to the person to decide how to use it.

What does all this tell us?

This is perhaps the most important question in this article.

If Bitcoin were truly worthless…

Why would the world's largest asset managers build investment products around it?

Why would universities conduct research?

Why would countries hold it?

Why would companies develop it?

Of course, this does not prove that Bitcoin is the solution to every problem.

But it is true that no one can afford the luxury of simply ignoring it anymore.

What does all this mean for the individual?

This is perhaps the most important question.

The Bitcoin protocol makes no distinction.

It follows the same rules:

• to an individual,
• a company,
• an investment fund,
• or even a country.

This is a rare occurrence in the history of finance.

All participants in the network are equal.

This is perhaps one of the most important messages of decentralization.

Bitcoin doesn't discriminate

It makes absolutely no difference to the Bitcoin network whether:

• is used by a humanitarian organization,
• used by a family fleeing a dictatorship,
• used by a long-term saver,
• used by a speculator,
• is used by a state,
• or by a billion-dollar investment fund.

The protocol treats everyone the same.

I think this is one of the clearest examples of decentralization.

Why would someone buy Bitcoin?

There is no single answer to this.

Some people do it because:

• hopes to get rich quick.

Some people do it because:

• sees it as a long-term store of value.

Some people do it because:

• does not trust his own country's financial system.

Some people do it because:

• He considers it a technological revolution.

Some people do it because:

• engages in institutional diversification.

Some people do it because:

• is seeking protection against political or economic uncertainty.

These are all genuine motivations.

And none of them is “the motivation behind Bitcoin.”

But it belongs to the people.

The same is true for institutions

Many people think:

“If BlackRock is buying Bitcoin, then it must believe in decentralization.”

It is more likely that:

• identifies a customer need,
• sees a new market,
• sees a new source of revenue,
• sees portfolio diversification.

And that's perfectly natural.

The primary responsibility of an asset manager is not to support philosophical revolutions.

Rather, it is the management of its clients' assets.

And the same is true of states

Bhutan, for example, is probably not mining Bitcoin because it follows cypherpunk ideology.

But because:

• it has cheap hydroelectric power,
• can turn this into economic value,
• wants to diversify his income.

This is a business decision.

People's motivations, however, vary greatly

It's possible that

• the user is looking for a vacation,
• The investor is looking to make a profit,
• The government is seeking a strategic reserve,
• BlackRock is looking for new clients,
• The miner is looking for cheap energy.

Yet they all contribute to the same network.

Because Bitcoin doesn't ask:

Why did you join?

Just say:

If you agree to the rules, you're part of the network.

One of the most interesting paradoxes in the history of Bitcoin is that the same network is capable of connecting participants who come to it with very different goals. Some seek freedom in it. Others seek technological innovation. Others see it as an investment opportunity or a means of economic diversification. Their motivations differ, but their participation strengthens the same open, decentralized system.

Summary

Bitcoin remains a topic of debate.

It's possible to love.

It's okay to criticize.

One might doubt it.

That's only natural.

But today, there's one thing that's hard to ignore.

Fifteen years ago, Bitcoin was a project undertaken by a handful of developers and cypherpunks.

Today, the participants in that same network are:

• individuals,
• countries,
• publicly traded companies,
• ETFs,
• pension funds,
• as well as the world's largest asset managers.

No one knows for sure yet where all this is headed.

But perhaps we should ask ourselves the question:

If even those players who seemingly have no need for Bitcoin are paying it more and more attention… what do they see in it that many others still don’t?