US lawmakers redefine Bitcoin: not an investment asset, but a payment system

U.S. Ohio Congressman Warren Davidson recently made remarks that brought the essence of Bitcoin back into focus. In his view, the core value of Bitcoin is not its appreciation potential, but its property as a “permissionless, peer-to-peer payment system” that allows individuals to directly control funds, bypass third-party interventions, and facilitate rapid asset transfers. This seemingly simple definition reflects a subtle shift in the American political circle’s understanding of Bitcoin.

From Investment Narrative Back to Payment Attributes

Over the past decade, Bitcoin’s narrative has undergone multiple identity transformations. From geek experiments to “digital gold” and then to “institutional investment asset,” each shift has been accompanied by market enthusiasm. But Davidson’s statement reminds us that Bitcoin’s original design purpose has never changed: a payment network that requires no banks or government endorsement.

He emphasizes three key elements:

• Permissionless: Anyone can participate without applying, approval, or intermediary permission
• Peer-to-peer: Transactions occur directly between parties, with no middlemen involved
• Personal Control: Users hold their private keys and have full control over their assets

These features are especially important in the current financial environment. Traditional payment systems like banks, Alipay, and PayPal act as “gatekeepers.” Bitcoin breaks this model.

Market Implications of Political Signals

A U.S. Congressman publicly defining Bitcoin this way sends a significant political signal. It indicates that at least some American politicians now recognize Bitcoin as more than a “speculative tool”—they see it as “financial infrastructure.” This shift in perception could influence future policy-making.

The current market performance of Bitcoin also confirms this. According to the latest data, BTC is priced at $87,936.82, down 0.82% in 24 hours but up 1.13% over 7 days, with a 30-day increase of 4.30%. Its market capitalization has reached $1.76 trillion, accounting for 59.01% of the entire crypto market. Such a market position means it is no longer a niche asset.

Practical Challenges for Payment Systems

However, honestly assessing the current situation, Bitcoin’s application as a daily payment system is still far from mature. Although technically feasible, it faces several practical issues:

• Transaction Speed: Faster than traditional cross-border remittances but still lagging behind credit cards and mobile payments
• Price Volatility: Sharp fluctuations make it difficult to serve as a stable unit of account
• User Experience: Ordinary users still find operations challenging
• Regulatory Environment: Different attitudes across countries limit use cases

This also explains why BTC is more often regarded as a “digital asset” rather than a daily payment tool. Of the 19,969,625 BTC in circulation, most are held long-term rather than used frequently for transactions.

Future Possibilities

Davidson’s remarks may signal a direction: U.S. policymakers are re-evaluating Bitcoin’s role. If this perception gradually becomes consensus, it could promote two developments:

First, improving payment infrastructure to make Bitcoin’s payment features more accessible to ordinary users. Second, granting Bitcoin legal status as a payment system at the policy level, rather than merely as an investment asset.

Of course, these are still expectations; real policy changes will take time. But from a public statement by a politician, we can see that the understanding of cryptocurrencies in the U.S. is undergoing a profound shift.

Summary

Warren Davidson defines Bitcoin as a “permissionless, peer-to-peer payment system,” which is not only an accurate description of Bitcoin’s technical features but also reflects a re-evaluation of Bitcoin’s role by the American political circle. Currently, Bitcoin’s market cap has reached $1.76 trillion, nearly 60% of the crypto market, but its potential as a payment system has yet to be fully realized. This politician’s statement may be a signal indicating that policymakers are beginning to reconsider Bitcoin’s position within the financial system. The key follow-up is whether this shift in perception will translate into actual policy support.