Is bitcoins primarily a reserve of value or payment means?

Is it important that Bitcoin becomes a popular means of payment? Michael Saylor has re -developed the controversy in the tweet published on the occasion of “Day Pizza”.

Pizza day

Bitcoiners have recently been on the edge. As for the eternal debate about spam. This week, the angry plebs paid Michael Saylor. The CEO of the strategy recommended buying pizza in dollars and maintaining bitcoins, causing sarcasm and misunderstanding.

This argument has been alive since the addition of Bitcoin payments by the American steak restaurant channel ‘n Shake a few days ago. The reason is that Steak ‘n Shake immediately converts BTC into dollars. “What makes sense to pay in bitcoins if they can’t hold them in reserve?” Some people say they are. Why shoot in the foot by feeding pressure down?

Another argument is that transaction costs for bitcoins are higher than for a visa or main card. It is true that the costs of Lightning Network are small, but platforms like Coinbase interrupt “spread” (~ 2.45 %) when buying bitcoins (among other things).

And what about the transaction costs of the “on-line” if the whole world recharged the wallets every month?

On the contrary, it is free to get rid of your euros or dollars. The cost of 0.30 % collected by Visa and MasterCard pays traders. It is rather 3 % outside the Western world, but this gap is geopolitics.

In the end, realize that the payment of bitcoins remains a taxable event at the moment. However, we bet that this repressive tax will soon belong to the past.

Now that we have said it all, we have to realize that controversy is far beyond the transaction costs. The real question is whether Bitcoin can completely replace the “Fiat system”.

4 aspects of bitcoins

Before you try to answer a big question, let us remember the main cases of using bitcoins. They can be summarized with these four main topics:

1. Reserve value;
2. Payments;
3. Freedom;
4. Energy.

Bitcoin is a technological breakthrough. For the first time in history, humanity has an existing currency in a completely completed quantity. The reserve aspect of the ultra -natural value is undoubtedly the primary reason for its planetary success.

More and more multinational companies make their main cash advantage, and states are on the list. Several senators, such as Cynthia Lummis, propose to sell gold in favor of bitcoins as a reserve currency.

In addition, Bitcoin is a currency at the same time as a payment network, two-in one. What’s more, unlike the SWIFT network, which is unreal. Russia knows something about it. “Who can disable bitcoins?” A person “He launched Vladimir Putin at the end of last year.

Tai -wan also realized it. Like Canadian truckers whose bank cards were deactivated to prevent them from demonstrating. No one is safe, nor the President of the International Court, which has just froze their British bank accounts.

It should also be noted that international payments are very expensive. Bitcoin has a clear advantage in this area. It is an important asset when one claims to be able to serve as an international reserve currency.

Finally, it is obtained that the bitcoin industry is a huge ally for network administrators by offering them an extremely pilotable possibility of release of load. It is also a significant financial unexpected means of energy without. Not only by purchasing electricity throughout the day, but also by reducing the needs of cutting power plants.

Our article on the subject: No outages with bitcoin minors.

But let’s go back to the heart of disagreement. Must Bitcoin replace the Fiat system to succeed?

Bitcoin vs Fiat

Many people think that bitcoins will inevitably replace national currencies. This is what Saifdean Ammous preaches, which is the opinion that Michael Saylor completely refused with him during the exchange:

You are an ideologist (…). You bake in the argument against banks and the theory of credit, which also has nothing to do with bitcoins. Basically, you are against anyone who can borrow money, it’s ridiculous.

Michael Saylor

Credit is essential for complex civilization. Banks must be able to create money ex nihilo and destroy them at the time of payment. Without this money elasticity, impossible to build railways, nuclear power plants or metros.

The other six French nuclear reactors will cost 50 to 100 billion euros. Without the ability to create these ex nihilo money by 10 million Frenchmen accept the equivalent of EUR 10,000 (and block this money for twenty years!). This system does not go on a scale.

The Fiat system has its mistakes, especially if states are shameless, not to mention energy rarity that slows productivity. The risk of hyperinflation is real if we mislead the inevitable decrease in oil production.

Anyway, saving in euros, dollars or pesos is a serious mistake. Bitcoin is a much better value reserve. Previously, the rich could only protect themselves (and mined) from inflation. For what? Because it was necessary to be rich in the purchase of art, prestigious real estate, etc.

Now we have all the approach to what is most rare, whether we are rich or poor. This is the promise of bitcoin, not to replace a visa or mastercard.

If you liked this article, you will appreciate it: A key argument in favor of bitcoins.

Renunciation

The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.