By Lola Wang, Hedy Bi, Jason Jiang | OKG Research
As the physical world grapples with the forces of deglobalization, a quieter but no less significant form of globalization is taking root in the digital world.
Last year, over half the world’s nations held elections. The Russia-Ukraine war stretched into its third year, while tensions in the Middle East escalated. Historian Yuval Noah Harari’s Nexus argued that storytelling drives human progress, but the dominant narrative of globalization has reached an impasse. Once championed by developed nations as a force for shared prosperity, it now faces criticism — ironically led by those same nations. Slowing economic growth has exposed globalization’s inequities, from income disparity to asset bubbles, deepening social divides.
In the digital world, the story is different. By 2024, cryptocurrency had been legalized in over half the world’s nations and regions. El Salvador’s 2021 adoption of Bitcoin as legal tender was followed by Cuba and the Central African Republic. Early 2024 saw the U.S. approve 11 Bitcoin spot ETFs, cementing Bitcoin’s role in mainstream finance. Former President Trump’s campaign pledge to create a Bitcoin national reserve further fueled sovereign crypto adoption.
Globalization, once a tool to shape the global economy, is now questioned by its architects which are developed countries. Cross-border capital flows boosted efficiency and consumption but left structural imbalances.
In the U.S., the Gini coefficient — a measure of income inequality — rose from 34.7% in 1980 to 41.3% in 2019. It dipped briefly in 2020 but has since rebounded, underscoring globalization’s role in deepening inequality.
Meanwhile, emerging economies have claimed a larger share of global GDP. The BRICS nations now account for 37.4%, up from 7.7% in 2000. By contrast, the share held by the U.S. and EU has declined, echoing shifts in global manufacturing dominance toward East Asia.
Mounting public debt adds to the strain. U.S. government debt rose from 58% of GDP in 2000 to 98% in 2023. Japan’s debt remains over 200% of GDP, severely limiting fiscal policy flexibility.
Sixteen years after Bitcoin’s debut, it has transformed from a “peer-to-peer electronic cash system” to a digital gold. In 2024, Bitcoin delivered a 128% annual return, outperforming all other major asset classes. Its market cap surpassed silver’s, becoming the eighth-largest global asset since Nov 2024.
Beyond investment, crypto is pioneering a new form of globalization — one unfettered by geography or politics. While the physical world retreats into fragmentation, the digital world builds bridges. Bitcoin’s decentralized network of over 15,000 global nodes exemplifies this shift, enabling trust without centralized control.
Amid geopolitical tensions and restricted capital flows, crypto’s resilience is evident. Russia, cut off from SWIFT, turned to crypto for trade. Ukraine raised over $150 million in crypto donations during the 2022 conflict, highlighting its potential for rapid cross-border liquidity.
In this evolving landscape, trust is anchored in algorithms, not institutions. Cryptocurrencies transcend time zones, different national holidays, and political borders, offering an alternative in a fragmented world.
As traditional globalization falters, crypto offers a better answer — a technological shift with the potential to redefine collaboration and reshape the global order.
