Bitcoin Hijacking: Key Details and Implications
The narrative of Bitcoin has evolved significantly since its inception as a peer-to-peer digital currency. Initially designed as a means for individuals to transact freely without interference from financial institutions, Bitcoin is now being marketed as “digital gold.” This shift raises concerns about its original purpose, with transactions characterized as slow and expensive.
Bitcoin’s Transformation: From Cash to Commodity
Between 2015 and 2017, a pivotal conflict known as the Block Size Fight altered Bitcoin’s operational framework. A faction within the Bitcoin community argued for maintaining smaller transaction blocks, which ultimately led to higher transaction costs and slowed processing times. Consequently, many users turned to the Lightning Network, a secondary system that, while faster, introduces intermediaries, contradicting Bitcoin’s initial vision of a decentralised cash system.
- Original Vision: Peer-to-peer digital cash
- Current Trend: Perceived as a scarce asset for investment
- Key Conflict: Block Size Fight (2015-2017)
- Promoted Alternative: Lightning Network
Funding and Influences
Political and financial influences have played a central role in this transition. Jeffrey Epstein’s financial contributions to the Digital Currency Initiative at MIT have raised eyebrows, with the MIT Media Lab directing funds towards developers promoting the small block narrative. Epstein’s investment helped reshape Bitcoin’s core development path, marking a shift away from its democratic beginnings.
Key Players in Bitcoin’s Hijacking
Several influential figures have emerged in this Bitcoin narrative. Brock Pierce, a co-founder of Tether and key figure in cryptocurrencies, has extensive connections with Epstein, having facilitated Epstein’s investment in Coinbase and served concurrently as chair of the Bitcoin Foundation during its downfall.
- Brock Pierce: Co-founder of Tether; connected with Epstein
- Howard Lutnick: CEO of Cantor Fitzgerald; manages Tether’s U.S. Treasury reserves
The Role of Tether in Price Manipulation
Tether has been instrumental in Bitcoin’s price dynamics, particularly highlighted by a University of Texas study that indicated new, unbacked Tether tokens were issued during Bitcoin’s price dips in 2017. This practice is estimated to have accounted for nearly 50% of Bitcoin’s price surge during that year. The Commodity Futures Trading Commission later fined Tether for falsely claiming that its tokens were fully backed by reserves.
Regulatory Developments
Recent legislation reflects the ongoing transformations throughout the cryptocurrency ecosystem. The GENIUS Act, signed into law in July 2025, alongside the CLARITY Act and the establishment of the Bitcoin Strategic Reserve, seem to formalize the control exerted by influential actors over the cryptocurrency landscape.
Conclusion: The Path Forward
As the landscape of Bitcoin continues to shift, there is an urgent need for grassroots advocacy to return to the core principles that founded Bitcoin. Supporting cryptocurrencies that prioritize privacy and individual control over monetary systems may provide a counterbalance to the prevailing trends shaped by major financial and political interests. The aim should be to reclaim the original vision of Bitcoin as a liberating financial technology, rather than a tool for centralized control.
It is essential to dismantle the regulatory frameworks that undermine Bitcoin’s decentralization, ensuring it serves its intended purpose of financial empowerment for individuals around the world.
