(I am sending this week’s commentary early this week due to travel) Dear Chancellor, Me again. I am the author of Bitcoin: The Future of Money? (2014) , generally agreed to the first book on bitcoin from a recognised publisher. I write with regard to the proposed sale of the UK’s bitcoin. Since bitcoin was first introduced in 2009 - invented in reaction to the loose monetary policies of the Global Financial Crisis - bank bail outs, quantitative easing, zero interest policies etc - and the economic injustices they created, the protocol has grown from nothing to a market cap above $2 trillion. A whole new economy has emerged around the technology where none previously existed, providing countless opportunities for individuals, entrepreneurs and nations alike. Initially the domain of a few coders, it is now finding mass adoption at the corporate and even national level. The US is recognizing the digital asset’s importance, as it introduces its Strategic Bitcoin Reserve, while China, according to estimates, holds 190,000 coins. Initially, the UK was at the heart of the Bitcoin story. Satoshi Nakamoto, the pseudonymous inventor, wrote in British English, cited UK media, and many early meetups and conferences took place here. Chancellors George Osborne and Rishi Sunak both expressed their desire for the UK to become a global hub for this emerging technology. But the FCA took an opposing view and made it increasingly difficult for UK citizens to participate, so that we have now fallen behind. Opinion about bitcoin is divided. Those who use the technology regularly believe it is not just likely, but inevitable, that it will become the world’s dominant monetary network. Many others – typically the older generation, economists or legacy finance – dismiss it as a bubble, often without having tested the tech in any meaningful way. Whichever side of the debate you fall on, the fact that Bitcoin has become the most desired digital asset in the world is indisputable. Among the many features that make bitcoin unique is that its supply is finite. With its estimated 61,000 confiscated bitcoins, the UK has been gifted an extraordinary opportunity. We now hold roughly 0.3% of total supply. I understand that politics demands a focus on the short term – the next Budget, the next election – but I urge you to approach your decision with long-term vision. Please consult with people who regularly use the technology. Do not make this decision based solely on advice from people who never use bitcoin. Take Bulgaria, for example. In 2017, it sold all of its seized bitcoin to cover a short-term budget gap. Those coins today would be worth enough to eliminate the country’s entire national debt. From a strategic perspective, the UK’s bitcoin holdings represent a once-in-a-generation opportunity. As fiat currencies decline in purchasing power and the global economy moves toward digital and AI-driven systems, this asset could help Britain re-establish itself as an economic superpower with significant geopolitical leverage and monetary independence. An opportunity of this kind is not to be thrown away lightly. Once those coins are sold, we will never be able to buy them back. If bitcoin becomes a hundred trillion dollar network – as some project – the UK's share could prove transformational. That may sound fanciful today, but every surprise in bitcoin’s history has been to the upside. There is also your personal political legacy to consider. You would be the Chancellor who sold Britain’s bitcoin. That will be how people remember you – just as Gordon Brown, for all else he did, is remembered primarily for needlessly selling Britain’s gold at the bottom of the market. For the rest of your life, every timebBitcoin rises in price, people will look at what you sold our coins for and say: “This is how much she lost us.” You are consigning yourself to that fate. Do you want that to be your legacy? So once again, I implore you: take advice from people who understand this technology and its potential. Don’t just listen to nocoiners. If you sell bitcoin for fiat you are swapping a superior asset for an inferior one. It is that simple. The trade might bring short-term benefit, but it does nothing to address the underlying structural issues facing this country. If, however, you hold on to the bitcoin – and understand how to integrate it into policy – perhaps create a UK Strategic Reserve - you may find it solves many of our problems. As bitcoiners often say, “bitcoin fixes this.” I hope you read and consider this letter with an open-mind. Yours sincerely, Dominic Frisby Author of Bitcoin: The Future of Money? Writer of The Flying Frisby newsletter PS Please like, share - all that stuff. Thank you! This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.theflyingfrisby.com/subscribe
