In 1997, James Dale Davidson and Lord William Rees-Mogg introduced the world to “mega-politics” in The Sovereign Individual, a book that remains eerily prescient decades later. The authors argued that certain forces – topography, climate, microbes, and technology – shape power dynamics by altering the costs and rewards of projecting power. Among key technologies, they identified cryptography as a revolutionary tool poised to usher in a new era of sovereignty through “cybermoney.”
Today, their predictions have materialized in the form of bitcoin, a mega-political force that empowers individuals and nations to reclaim sovereignty from centralized institutions. Whether through El Salvador’s bitcoin-driven transformation, the rise of home bitcoin mining, or innovative financial products, bitcoin is reshaping the global economic order in 2025.
El Salvador: A Nation’s Journey to Sovereignty
El Salvador is perhaps the clearest example of bitcoin’s transformative power. Just five years ago, the country grappled with poverty, corruption, and crippling debt. Locked into agreements with institutions like the International Monetary Fund (IMF), its economic self-determination was severely constrained.
Since adopting bitcoin as legal tender, El Salvador has charted a new course. Its credit rating has improved to a stable B/B-/B+ range, foreign direct investment is surging, and major companies like Tether are relocating their headquarters to the country. Tether’s $137 billion USDT ecosystem will now be overseen from El Salvador, another step in the country’s transformation into a global tech hub.
Tether’s $8 billion in 2024 profits equates to roughly 20% of El Salvador’s annual GDP. The Salvadoran government has also used bitcoin to attract other major players, offering tax incentives under its ICT Innovation Law to further cement its reputation as a pro-bitcoin jurisdiction.
Bitcoin Megapolitics at the Individual Level
Davidson and Rees-Mogg envisioned bitcoin as a tool for individuals to escape financial repression, and in 2025, that vision is becoming reality. Across the planet, people are leveraging bitcoin to sidestep inflation, capital controls, and financial surveillance.
One particularly exciting development is the rise of home bitcoin mining. Devices like Canaan’s Avalon Mini 3 and Heatbit’s space heaters now allow individuals to mine bitcoin while heating their homes. This dual-purpose approach makes mining accessible to everyday users, democratizing bitcoin production and enabling individuals to earn bitcoin without relying on centralized exchanges.
Open-source projects like the Bitaxe Touch are further lowering the barriers to entry. By sharing blueprints and fostering innovation, grassroots movements are empowering individuals to take part in bitcoin’s decentralized ecosystem, reinforcing its resilience and accessibility.
The FDIC: A Symbol of Dysfunction
Amid these exciting developments, The Federal Deposit Insurance Corporation (FDIC), once established to safeguard depositors and stabilize the banking system, has become a symbol of everything wrong with legacy institutions. From workplace misconduct, including sexual harassment, to its role in “Operation Choke Point 2.0” – a covert campaign to illegally deny banking access to bitcoin companies – the FDIC’s dysfunction runs deep.
Recent accusations suggest that the agency not only targeted lawful bitcoin enterprises but also destroyed or withheld documents to cover its tracks.U.S. Senator Cynthia Lummis (R-WY) has called this behavior “illegal and unacceptable,” likening it to the broader cultural rot within the institution. The FDIC appears less like a regulatory guardian and more like an Augean stable in desperate need of cleaning.
As bitcoin transforms global finance, agencies like the FDIC must adapt or risk becoming relics of a bygone era. In the DOGE era, the voting public simply will not tolerate agencies maintaining bloated budgets that they spend on not doing their jobs.
U.S. Policy Shifts and Bitcoin’s Geopolitical Role
The incoming U.S. administration is laying the groundwork for its promised bitcoin-friendly pivot. Congressman Tom Emmer’s appointment as Vice Chair of the Digital Assets Subcommittee, coupled with potential executive orders supporting bitcoin innovation, suggests that the U.S. could embrace bitcoin as a strategic asset.
Proposals like Senator Cynthia Lummis’s Bitcoin Freedom Act and discussions around bitcoin-backed tariffs highlight the growing recognition of bitcoin’s geopolitical potential. For a country facing inflation, debt, and economic uncertainty, bitcoin offers a path to recapitalize and modernize its financial system.
A New Paradigm for Finance
As we enter a new era that values innovation, liberty, and accountability, bitcoin is poised to play a key role in the new economy. As Davidson and Rees-Mogg predicted decades ago, bitcoin is a mega-political force altering the balance of power in ways we are only beginning to see. Most predictions about the future turn out to be far off base. It’s incredible that we get to see the Sovereign Individual’s vision of “cybermoney” becoming a reality.
