A historically independent state, Texas’ continued adoption of Bitcoin makes it an innovative leader, with or without the rest of the United States
This is an opinion piece by James Collins, a finance professional with experience in various asset classes.
“We encourage him, we make him progress. But I would say we provide the platform… for people involved in bitcoin to make sure they have somewhere to come.
The words above delivered by Texas Governor Greg Abbott are a clear reminder of the absolute power hidden in the various components of Bitcoin that allow the system to organically lead a state or nation in a realm of independence and ethical and fiduciary responsibility for its citizens.
Combining the American spirit of “shot heard around the world“in 1775 and”Remember the Alamo“in 1836, Texas had the opportunity to achieve absolute state independence by mathematical independence through the”block heard around the worldin 2009. This is my analysis of the characteristics of Texas, the effects of historical events, and how, thanks to Bitcoin, Texas can become completely sovereign.
The Lone Star State
Texas is one of the most fascinating states in the union. Beginning with the Texas Revolution’s use of the “come and take itflag, 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 1846Texas 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 $15 million US payment to Mexico for large swathes of western territory. Texas would later separate from the United States in 1861 and on the Confederate side during the United States Civil War.
As he attempted to vie for the independence of the South, Abraham Lincoln clearly fell under monetary duress. A supposed lincoln quote possibly 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 in my rear is my greatest enemy.”
To address these issues, Lincoln released credit based money in greenback to finance war expenses. Essentially, what this brief history lesson points out is two things:
- Polarization between states (in this case, industrialists in the North versus agrarians in the South) can lead to events that negatively affect all states (i.e. 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 may lead to greater centralization
So, with the fracturing of state ideologies today, is Texas ready to embrace a new neutral and peaceful way of expressing its independent spirit and its desires to maintain the prosperity of its citizens?
The age of self-sovereignty
The era of individual self-sovereignty has arrived thanks to Bitcoin and it could mean the emergence of a way to solidify and express the rights of states.
Texas has a history of self-reliance and the promotion of individual liberty. Its philosophy forms the perfect combination of peanut butter and jelly with Bitcoin’s open, permissionless, and decentralized monetary protocol. As such, Texas seems most ready to absorb the economic reality that such a financial network promises – a reality that means you can’t forcefully interfere between users and their money and which, if it were threatened, would see these users pick and go, bringing their economic might with them. The State’s adherence to this economic change can be understood through the continuous increase in bitcoin mining in Texas, the passage of House Bill 1576 and the current project of a Embassy of El Salvador in Texas.
Additionally, Texas is the largest energy producer in the USA. This advantage is of material importance, as evidenced by the influx and continued growth of bitcoin mining in the state following China’s 2021 mining ban. Texas will surely continue to pull leveraged its philosophy and power generation to further boost bitcoin mining activity. It could soon use bitcoin as a cash reserve asset to leverage its guaranteed decoupling from an unstable world, spurring the development and upgrading of local infrastructure to continue bitcoin mining. The results of these actions would trickle down to other economic sectors of the state to increase the benefits for its citizens, which would further incentivize more interest in the productive immigration of the people of the state.
In conclusion, throughout history, states have been embroiled in devastating wars, at least in part due to their inability to make their state economies work as they see fit. The ability of all states to make decisions that best serve their citizens lies in their ability to control their own economic destiny, which begins with money.
Bitcoin has thrived due to Texas ethos since its inception and its continued rise gives Texas the ultimate cover. This allows the state to continue to be a vital engine of national economic activity and to help the United States stay ahead in the rapidly changing 21st century or, at worst, end up seceding and forming the northern border of a huge orange economic zone that could extend throughout Latin America and as far as El Salvador. Texas, via its historic philosophy of independence and self-reliance, has thrived alongside Bitcoin’s open, permissionless, decentralized monetary network. Bitcoin’s further infusion into all aspects of the Texas economy will allow it to stand as a beacon of economic freedom when humanity needs it most.
This is a guest post by James Collins. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.