Galaxy Digital’s Head of Research Alex Thorn Reflects on Bitcoin’s Future

As a seasoned crypto investor with a strong background in American values and political dynamics, I find Thorn’s perspectives on Bitcoin particularly insightful and relevant to my own investment strategies. In the conversation with Pompliano, Thorn effectively draws parallels between Bitcoin and our cherished American principles of self-sovereignty, free markets, capitalism, and private property rights.


As a crypto investor, I’ve been following The Pomp Podcast closely, and in episode #1377, I was particularly intrigued by Anthony Pompliano’s conversation with Alex Thorn, the Head of Research at Galaxy Digital. In this engaging discussion, they delved into the growing impact of Bitcoin on Wall Street.

Bitcoin: American Values Codified

Thorn initiates the discussion by pointing out the similarities between Bitcoin and American ideals. He contends that Bitcoin symbolizes self-rule, free enterprise, capitalism, and personal property ownership. These tenets, he asserts, resonate strongly with the American identity, making Bitcoin an enticing investment option for those who value individual liberty and financial autonomy. Thorn underscores that Bitcoin’s decentralized structure upholds these principles more effectively than conventional financial frameworks.

The Political Landscape and Bitcoin

The conversation moves on to the political acceptance of Bitcoin in the United States. Thorn highlights the contradiction between the principle of individual control and the regulatory stance of certain American policymakers. Some politicians perceive Bitcoin as a danger to the dollar’s dominance, while others are starting to acknowledge its potential advantages. Thorn is convinced that the U.S. holds a distinct advantage in the Bitcoin sphere due to its significant financial resources, intellectual influence, and regulatory progress.

Bitcoin Mining and Energy Concerns

Thorn acknowledges and addresses worries regarding Bitcoin mining’s effect on energy usage. He highlights the potential advantages of Bitcoin mining as flexible loads for electrical grids. Furthermore, he debunks the notion that Bitcoin mining will deplete all the world’s electricity, emphasizing the need for a more nuanced perspective on Bitcoin’s energy interactions.

Regulatory Clarity and Innovation

One significant point of debate is the requirement for unambiguous regulatory distinctions between digital commodities and securities. Thorn advocates for definitive regulations that provide clear-cut definitions. Moreover, he underlines the necessity of shielding non-custodial software developers from onerous regulatory obligations. Such clarification would not only encourage innovation but also empower businesses to constructively engage within the crypto sector with confidence.

Global Adoption and Geopolitical Dynamics

Thorn ponders over which countries may embrace Bitcoin next, be it through mining operations or utilizing it as a reserve asset. He points towards energy-abundant nations and those grappling with rampant inflation as prime candidates for adoption. In his vision, Bitcoin will become a crucial component of international commerce and serve as a shield against political turmoil. The motivation behind this adoption, according to Thorn, stems from the unique characteristics of Bitcoin, including its global accessibility and imperviousness to confiscation.

The Role of Spot Bitcoin ETFs

The discussion explores how Bitcoin and Ethereum spot exchange-traded funds (ETFs) have influenced the market. Thorn points out that Bitcoin ETFs have experienced large investments, but Ethereum ETFs could encounter distinct challenges due to the intricacy of the Ethereum backstory and the present market situation. Nevertheless, Thorn is hopeful about the possibility of considerable investments in Ethereum spot ETFs under favorable circumstances.

Token Unlocks and Market Impact

Approximately half of the conversation focuses on the approaching releases of tokens generated during the 2021 and 2022 market surge. Thorn underscores the potential repercussions for the market, as approximately $10 billion in tokens are poised to become available. He advises that some projects might need to adjust their token distribution models or even consider mergers to lessen the impacts of this increased supply.

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2024-06-29 22:35