Aging Population

One in four Vermont residents are over the age of 60 (28% or 183,000 adults), making it the 4th oldest population in the country (Vermont Department of Health). Since 2001, Vermont has experienced a decreasing youth and an increasing older adult population. An increasing older adult population creates new challenges for state finances, as older Vermonters are more likely to need healthcare and wellness services and are more reliant on fixed income investment strategies.

Heavy Reliance on Small Business

Vermont's economy is heavily reliant on small businesses, which are critical to its overall economic structure and community identity. Small businesses account for a significant portion of the state's private-sector workforce. According to the U.S. Small Business Administration (SBA), over 90% of Vermont's businesses have fewer than 100 employees. This trend reflects Vermont's small but diverse entrepreneurial landscape, which ranges from agricultural enterprises to tech startups and artisanal goods producers.

Small businesses in Vermont help create jobs and foster a sense of community. The Vermont Chamber of Commerce has consistently advocated for policies that support small business growth, particularly focusing on reducing regulatory burdens and enhancing access to financing. As such, the state has also created programs aimed at helping local businesses scale and remain competitive, such as the Vermont Economic Development Authority’s funding programs for small business loans and grants.

Vermont is known for its natural beauty, and many young people wish that they could stay here and plant roots, but are ulitmatly forced to leave due to the economics of the state. Incorporating Bitcoin into small businesses in Vermont could serve as a powerful tool for retaining youth and fostering economic growth. Not only would adventageous tax treatment be beneficial, but sound money would help stabilize wages and effectively allocate capital in a way which most businesses are not currently able to. If your wages could be taken in Bitcoin, they would rise in value over time instead of falling due to inflation. This would keep workers here who would have otherwise picked up work elsewhere due to the sticky nature of wages.

Small Size

Vermont is the second smallest state in the country by population and the sixth smallest by land area. Many see Vermont as a forgotten cousin to Canada rather than a major player in the story of the United States. With that in mind, small states like Vermont stand to gain significantly by adopting Bitcoin early, primarily due to their flexibility and smaller, more manageable economies. While larger states have to gain consensus from tens of millions of people in order to create change, Vermont can adapt through the motivated actions of just tens of thousands of people.

Like El Salvador, Vermont stands to benefit more from adopting Bitcoin due to the more manageable population size, which make it easier to implement changes. In both cases, Bitcoin adoption could help small states economically "leapfrog" past bigger ones which are slower to change their economic models. Vermont should use Bitcoin as a hedge against inflation and a means of economic self-sufficiency, with Vermont focusing on creating a robust and youthful local economic ecosystem, much like El Salvador’s efforts to attract foreign investment through Bitcoin.