Part 6/12:
Counterintuitively, regulatory rules initially designed to restrict Bitcoin are now becoming gateways for its integration into the financial system. For example, European regulations—originally tough on Bitcoin—are exploited by firms like Strategy to construct credit instruments that avoid punitive capital charges. These products turn what was meant to be a barrier into a bridge, allowing banks to use Bitcoin as pristine collateral.
Key Insight:
Regulation, rather than blocking Bitcoin, is creating the cracks through which it can enter mainstream financing.
This loophole ensures Bitcoin's continued growth as a collateral asset, embedding it deeper into the legal and financial architecture without requiring explicit political approval.