Shattered, But Unbroken
Mt. Gox’s collapse almost killed bitcoin in 2014—but like Jerusalem rising from ashes, bitcoin grew stronger. With legal battles, looming trials, and banks embracing crypto collateral, is this the dawn of a resilient, new era in digital finance?


Erik
“We just heard Mt. Gox is bankrupt. All the money is gone. I cried that day.”
This is how one of the most well-known early bitcoin explainers, Andreas Antonopoulos, recalls 2014—the year the first crypto exchange, Mt. Gox, collapsed. “This could kill bitcoin.” Yet that never happened. After a brutal bear market, bitcoin bounced back and, a few years later, emerged stronger than ever, ready for its next existential challenge: the blocksize wars.
This reminded me of a passage in Jerusalem - The Biography by British historian Simon Sebag Montefiore. He recounts how the Romans reduced Jerusalem, including the Temple on the Temple Mount, to ashes in 70 AD. It was the second time the city had been destroyed—the Babylonians had done it six centuries earlier. Still, each time, Jerusalem rose again, even stronger than before.

With a touch of poetic license, one might say that after the devastation of 70 AD, Jerusalem experienced a bear market—a deep decline lasting three centuries. It wasn’t until the fourth century, when Emperor Constantine converted to Christianity, that Jerusalem reclaimed its status as a holy city, now revered by Christians as well.
The repeated attempts to destroy it only deepened its historical and religious significance. The scars became symbols—for instance, the Wailing Wall stands as a remnant of the lost temple.
The Challenger of Power Begins in Obscurity
The parallel between Jerusalem and bitcoin runs deeper than mere antifragility—though I admit this is speculative and philosophical. Comparing the two to the divine is bold, but what matters here is the idea of power without a physical form. In both cases, events unfolded that defied traditional notions of power.
Jerusalem became the city where the laws of Yahweh were inscribed on stone tablets, housed in an otherwise empty space. Montefiore describes that space:
“There was nothing in the Holy of Holies except the cherubim and the Ark of the Covenant, and nothing in the Ark—just stone tablets measuring 120 by 60 centimeters bearing Moses' law. [..] In this emptiness resided the austere, formless divinity of Yahweh, an idea that was unique to the Israelites.”
Thus, the God of Jerusalem had no face or statue. The Holy of Holies held no spectacle—just a brief text.
Bitcoin, too, is essentially textual and formless. While traditional money is tied to kings, central banks, signatures, logos, and buildings, bitcoin remains abstract. It has no famous founder to personify it, no issuing institution, no central point vulnerable to attack. It is made up of rules, code, and a peer-to-peer network.
Both the God of Jerusalem and bitcoin embody power without a face. In each case, there is only the sacred, immutable text and the protocol—a transparent yet unyielding framework.
And just like Jerusalem, bitcoin—(I constantly resist the temptation to capitalize “bitcoin”)—had humble beginnings. Jerusalem started as an insignificant desert village, devoid of strategic or religious importance. Bitcoin emerged in 2009 as an experimental software project by an unknown, anonymous figure, without institutional backing, fanfare, or media attention. Yet it was the first crypto project to break through. Every crisis has only strengthened belief in its core invention: an open, neutral, and resilient monetary system.
Imagine if Jerusalem were destroyed again—it certainly wouldn’t diminish the city's symbolic religious significance for the major world faiths. And if bitcoin were to be banned once more or face a new kind of attack? Nothing is guaranteed, but bitcoin’s antifragility so far is promising.
Perhaps comparing bitcoin to Jerusalem is a stretch, but as symbols of resilience, obscure beginnings, and enduring allure, they have more in common than one might think.
More Alpha
Are you Plus member? Then we continue with the following topics:
- The law that came too late for Roman Storm
- JPMorgan Bends: Bitcoin as Collateral
- ‘New’ Mission of the Ethereum Foundation
1️⃣ The Law That Came Too Late for Roman Storm

Peter
Roman Storm is counting down the days until his trial on July 14. He faces charges of money laundering and violating U.S. sanctions for his involvement with Tornado Cash, an open-source tool that helps users hide their crypto transactions. The U.S. Department of Justice alleges that he even assisted the North Korean Lazarus Group. Storm’s defense is straightforward: “I wrote the code; I didn’t handle any money.”
With only 42 days until my trial, it’s getting very real. I’m reaching out again for your support and apologize for asking repeatedly—I never expected this challenge. Please consider donating to my legal defense fund to help me through this fight. https://t.co/ElFVRY6flx… pic.twitter.com/F7nZXdj5s0
— Roman Storm 🇺🇸 🌪️ (@rstormsf) June 2, 2025
On that very issue, political momentum is building. Eight lobby groups in Washington D.C.—including Paradigm, Coin Center, and the Blockchain Association—urged Congress this week to incorporate the Blockchain Regulatory Certainty Act (BRCA) into new legislation.
The BRCA clearly distinguishes between developers of non-custodial software and traditional financial institutions. Under this act, only those managing money on behalf of customers would be subject to stringent financial regulations; those who merely write code or provide infrastructure would be exempt.
While this is an important signal, for Storm it comes too late. The BRCA is not yet law, and even if it were, it might not have fully shielded him from the charges. The Public Prosecution Service argues that Storm wasn’t just the code’s author but also its executor, manager, and beneficiary. The central issue remains his alleged involvement in money laundering and sanctions violations—matters outside the scope of the BRCA.
Nonetheless, the proposed law gives Storm’s defense ammunition to argue that he is not an anomaly but a pioneer in an uncharted legal landscape. It also shows that policymakers recognize the shortcomings of current legislation and the dangers of prosecuting someone solely based on “association with bad actors” when they don’t manage funds or have the power to stop transactions.
🚨NEW: In a notable display of unity, eight of the biggest crypto policy organizations in Washington D.C. have issued a joint statement calling on Congress to include the Blockchain Regulatory Certainty Act (BRCA) in market structure legislation.
— Eleanor Terrett (@EleanorTerrett) June 5, 2025
The groups — @fund_defi,…
The BRCA may not exonerate him, but it underscores that he isn’t the only one being targeted by an outdated system. For the next generation of developers, this law could make all the difference.
2️⃣ JPMorgan Bends: Bitcoin as Collateral

Peter
JPMorgan Chase, one of the world’s most influential banks, is about to roll out a new service: lending against bitcoin ETF holdings. Soon, bank clients—from everyday consumers to ultra-high net worth individuals—will be able to use their bitcoin holdings as collateral for loans. The initiative begins with BlackRock’s IBIT, with additional funds expected to follow.
The practical impact is significant. Investors who prefer not to sell their bitcoin can now extract value from it, much like they do with stocks, real estate, or art. For asset managers, this means bitcoin will be counted as part of a client’s overall wealth, shedding its status as an exotic asset and becoming a standard component of the balance sheet.
scoop: JPMorgan is set to allow trading and wealth management clients to use crypto ETFs as collateral for loans. the bank will also start valuing crypto as part of clients' overall net worth.
— Emily Nicolle (@emilyjnicolle) June 4, 2025
in wealth, crypto ETF collateral will be available to all investors — from retail to…
Is this surprising? No. Is it important? Absolutely.
JPMorgan isn’t just any bank—it’s the largest in the U.S. and serves clients across the entire economy. Its acceptance of bitcoin ETFs as collateral speaks volumes about the shifting attitude in the financial world. The narrative is no longer driven solely by CEO Jamie Dimon’s personal views (“I’m not a fan”) but by customer demand, competitive pressures, and evolving political dynamics.
And that change is coming from Washington. Since Donald Trump openly embraced the sector, regulators have taken a step back, banks are adapting, and major institutions are hurriedly becoming “crypto-friendly”—a notion unthinkable just months ago.
What JPMorgan is doing goes beyond enhancing its services; it sets a precedent. Transitioning from using bitcoin ETFs as collateral to eventually using bitcoin itself may be a small technical shift, but it carries enormous symbolic weight. As with other innovations, there’s a familiar pattern: first it’s mocked, then criticized, and finally quietly accepted.
Or, borrowing Dimon’s own words: “I don't smoke, but I defend your right to smoke.” In doing so, he gives customers the green light while reserving the option to fully join the movement later.
BREAKING: Jamie Dimon says "Bitcoin itself has no intrinsic value... I just don't feel great about Bitcoin."
— The Kobeissi Letter (@KobeissiLetter) January 13, 2025
He compares the ability to buy and sell #Bitcoin to the right to smoke.
"But I just don't think you should smoke," he adds. pic.twitter.com/bT3F34Oaae
For bitcoin, this development confirms its growing role in the financial system—first as a speculative asset, then as an investment product, and now as collateral. The next step is broader integration, from pension funds to capital markets. And if JPMorgan is willing to adapt, you can bet that bitcoin is here to stay!
3️⃣ ‘New’ Mission of the Ethereum Foundation

Peter
The Ethereum Foundation (EF) has dissolved its “Protocol R&D” department and reorganized it into a new branch simply called Protocol. With this change comes a restructuring and a sharper strategic focus on three key goals: scaling Ethereum’s base layer (L1), offering cheaper and faster blob data for rollups (L2s), and enhancing the overall user experience.
Announcing the Ethereum Foundation Treasury Policyhttps://t.co/bU566m1zX5
— Ethereum Foundation (@ethereumfndn) June 4, 2025
This shift isn’t merely cosmetic. Leadership roles have been redistributed, teams restructured around strategic priorities, and some staff members have moved on. The message is clear: Ethereum must become more agile, set clearer priorities, and collaborate more effectively.
The broader context is equally complex. Underneath Ethereum’s surface lies a long-standing debate about its identity: Is it a neutral protocol or a financial platform? Is ETH money, a productive asset, or both? Should Ethereum remain politically neutral or celebrate its success—including the memecoins, markets, and memes flourishing within its ecosystem?
Critics call it an identity crisis—an attempt to be too many things at once, marked by ambiguous communication, an uninspiring monetary policy, and a culture that sometimes shies away from commercial success. Others argue that Ethereum’s versatility is its strength. Just as the internet doesn’t need a single identity to serve everyone, Ethereum isn’t a product; it’s the infrastructure upon which countless innovations can be built.
The Many Faces of Ethereum: A Strength in Multiplicity
— William Mougayar (@wmougayar) May 8, 2025
The notion that Ethereum suffers from an "identity crisis" or lacks a strong narrative misses a fundamental point about its very nature and exploding potential. It isn't grappling for a singular definition; rather, Ethereum…
The EF seems well aware of these debates. In earlier blog posts, the new directors emphasized that Ethereum is not a monolith but a network of networks. Their mandate is to strengthen the overall ecosystem without stifling its individual components. With the new Protocol division, the foundation is opting for a more pragmatic approach: less nebulous idealism and more operational efficiency.
But is that enough to bridge the internal divisions within Ethereum? Ultimately, only one force will tip the scales—the direction of the ETH price.
🍟 Snacks
To wrap up, here are some quick snippets:
- Circle goes public, and its share price soared by 168%. The issuer of the USDC stablecoin made its NYSE debut on Thursday at a valuation exceeding $18 billion. Circle raised $1.1 billion and received a warm welcome from investors. Wall Street now appears ready for regulated stablecoins—it's up to politics next.
- No bitcoin in Meta’s treasury. Shareholders voted 99.9% against a proposal to add bitcoin to the company's reserves. The plan, submitted by an individual shareholder, suggested allocating part of Meta's $72 billion cash reserve into bitcoin. The board dismissed the idea, and nearly all investors backed that decision. For tech giants, bitcoin remains off the books for now, despite its adoption at companies like GameStop and Metaplanet.
- Bitcoin Core developers advocate for user freedom and restraint in a new statement. A group of 31 developers declared that bitcoin should not decide which transactions are allowed, provided they are technically harmless. This statement sparked fierce debate. Critics like Samson Mow and Luke Dashjr worry it could pave the way for spam, while others argue that this open stance is essential for preserving censorship resistance.
- Deutsche Bank is exploring the issuance of its own stablecoin. Germany's largest bank is also looking into using tokenized deposits for more efficient payments, according to Bloomberg. With clear regulations emerging in the EU and the prospect of more definitive rules in the U.S., traditional banks are increasingly confident in digital tokens. This move shows that stable money on the blockchain—be it through stablecoins or tokenized deposits—is being taken more seriously by established financial giants.
- Apple, Google, X, and Airbnb are in discussions with crypto companies about integrating stablecoins into their payment systems. The aim is to reduce transaction fees and make international payments more efficient. Google Cloud already accepts payments in PayPal’s PYUSD stablecoin, while X is working with Stripe on stablecoin functionality. Airbnb is in talks with Worldpay about offering payouts in stablecoins, and Apple is exploring integration with Circle’s USDC.
- Japanese firm Metaplanet aims to raise $5.4 billion to boost its bitcoin reserve from 8,888 to 210,000 BTC. Following the announcement, its share price jumped 22% on Monday. The company is following in the footsteps of Michael Saylor’s strategy, financing the purchases partly through equity offerings. Metaplanet plans to control nearly 1% of all bitcoin in circulation by 2027.
- Uber intends to add bitcoin and other cryptocurrencies as payment options. According to CEO Dara Khosrowshahi, this move aligns with their broader strategy to offer customers more choices. The company does not plan to hold crypto itself, but is working on facilitating smooth and secure crypto payments. A proprietary crypto wallet is reportedly on the horizon. The question is not if, but when, this integration will occur.
- Elon Musk’s X is partnering with Polymarket. The two platforms will share data to enhance forecasting capabilities. The AI chatbot Grok is part of the deal. According to X CEO Linda Yaccarino, Polymarket offers more transparency and accuracy than traditional polls, especially during elections. This partnership aligns with Musk’s ambition to transform X into an all-in-one platform for news and payments.
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