A historically-independent state, Texas’ ongoing embrace of Bitcoin makes it an innovative leader, with or without the rest of the U.S.
This is an opinion editorial by James Collins, a financial professional with experience in various asset classes.
“We encourage it, we advance it. But I would say we provide the platform … for those involved in Bitcoin to make sure they have a place to come to.”
The above words spoken by Texas Governor Greg Abbott are a clear reminder of the sheer power hidden within the varying components of Bitcoin that allow the system to organically steer a state or nation into a realm of independence and ethical, fiduciary responsibilities for its citizenry.
Combining the American spirit of the „shot heard round the world“ in 1775 and „Remember The Alamo“ in 1836, Texas has an opportunity to obtain absolute state independence through mathematical independence thanks to the „block heard around the world“ in 2009. This is my analysis of the characteristics of Texas, the effects of historic events and how, through Bitcoin, Texas can become completely sovereign.
The Lone Star State
Texas is one of the most fascinating states in the union. Starting with the Texas Revolution’s use of the „come and take it“ flag, as an emboldened and outnumbered Texan rebel group won the Battle of San Jacinto to claim Texas independence, the state has always had a spirit of freedom.
Texas then became the Republic of Texas, electing Sam Houston as its first president and proudly flying the Lone Star flag representing itself as its own country. By 1846, Texas had been annexed by the United States and used as a beachhead for the westward expansion of the United States, culminating in the Treaty of Guadalupe-Hidalgo and a U.S. payment of $15 million to Mexico for large swaths of western territory. Texas would later secede from the United States in 1861 and side with the Confederacy during the United States Civil War.
As he attempted to wrangle southern independence, Abraham Lincoln clearly fell under monetary duress. A supposed quote from Lincoln may have described his feelings: „I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.“
To address these problems, Lincoln issued credit-based money in the greenback to finance war spending. In essence, what this brief history lesson points out is two things:
- Polarization between states (in this case, northern industrialists vs. southern agrarians) can lead to events that affect all states negatively (i.e., the Civil War)
- Private issuance of currency has been a thorn in the side of states as they attempt to act more independently of the federal government and can lead to greater centralization
So, with the fracturing of state ideologies today, is Texas primed to embrace a new, neutral and peaceful way of expressing its independent spirit and desires to keep its citizenry prosperous?
The Age Of Self Sovereignty
The age of individual self sovereignty is upon us thanks to Bitcoin and it could mean the emergence of a way to solidify and express states‘ rights.
Texas has a history of self reliance and the promotion of individual freedom. Its ethos forms the perfect peanut-butter-and-jelly combination with Bitcoin’s open, permissionless, decentralized monetary protocol. As such, Texas seems the most ready to absorb the economic reality that such a financial network promises — one that means you cannot step between users and their money in a forceful manner and that, if threatened, would see these users pick up and leave, bringing their economic power with them. The state’s embrace of this economic shift can be understood through the continued increase in bitcoin mining in Texas, the passage of House Bill 1576 and the current plan for an El Salvador Embassy in Texas.
In addition, Texas is the largest energy producer in the United States. This advantage is of material importance, as seen with the influx and continued growth of bitcoin mining in the state after the China mining ban in 2021. Texas will surely continue leveraging its ethos and energy production to drive further bitcoin mining activity. It may soon use bitcoin as a treasury reserve asset to leverage its guaranteed decoupling from an unstable world, driving local infrastructure development and upgrades to continue bitcoin mining. The outcomes of those actions would bleed into other state economic sectors to supercharge benefits to its citizenry, further incentivizing more interest in productive state population immigration.
In conclusion, throughout history, states have been dragged into devastating wars, at least partly due to their inability to operate their state economies how it sees fit. The ability of all states to make decisions that best serve their citizenries lies in their ability to control their own economic destiny, which starts with money.
Bitcoin has flourished due to the ethos in Texas since its inception and its continued flourishing gives Texas the ultimate hedge. It allows the state to continue as a vital driver of national economic activity and help the United States stay ahead in the rapidly-changing 21st century or, at worst, ultimately secede and form the northern border of a massive, orange economic zone that could stretch throughout Latin America and down to El Salvador. Texas, via its historic ethos of independence and self-reliance, has flourished alongside the open, permissionless decentralized monetary network of Bitcoin. The further infusion of Bitcoin into all aspects of the Texas economy will allow it to stand tall as a beacon of economic freedom when humanity needs it most.
This is a guest post by James Collins. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.