Is it important that Bitcoin becomes a popular means of payment? Michael Saylor rekindled controversy in a tweet published on the occasion of the “Pizza Day”.
In short
- The Bitcoin community ignites following the words of Michael Saylor advises not spending his bitcoins.
- Bitcoin is distinguished as a finished reserve of value, a non -censurable payment network, a freedom of freedom in the face of banking restrictions, and an ally for energy management thanks to its flexibility for electrical networks.
- Although some, like Saifdean Ammous, predict that Bitcoin will replace Fiat currencies, Michael Saylor rejects this idea.
Pizza Day
Bitcoiners have been on the edge lately. In question, the eternal debate on spam. This week, the angry plebs have paid Michael Saylor. The CEO of Strategy advised to buy his pizza in dollars and keep his bitcoins, causing sarcasm and misunderstandings.
The argument was already alive since the addition of the Bitcoins payment option by the American Steak restaurant channel 'N Shake a few days before. The reason is that Steak 'N Shake immediately converts BTC into dollars. “What is the point of paying in bitcoins if they don't keep them in reserve?” Some people say they are. Why shoot yourself in the foot by feeding the down pressure?
Another argument is that the Bitcoin transaction costs are higher than with Visa or Mastercard. Admittedly, the costs of the Lightning Network are tiny, but the platforms like Coinbase punctuate a “spread” (~ 2.45 %) when buying bitcoins (among other costs).
And what about the “on-chain” transaction costs if the whole world recharged its Wallet Lightning every month?
Conversely, it is free to get rid of your euros or dollars. The costs of 0.30 % collected by Visa and Mastercard are paid by the merchants. It is rather 3 % outside the Western world, but this gap is geopolitics.
Finally, note that paying in bitcoins remains for the moment a taxable event. We bet, however, that this punitive taxation will soon belong to the past.
Now that we have said it all, we must recognize that the controversy goes far beyond the transaction costs. The real underlying question is whether Bitcoin can completely replace the “Fiat system”.
The 4 facets of Bitcoin
Before trying to answer the big question, let us recall the major cases of use of Bitcoin. They can be summarized by these four main themes:
- Value reserve;
- Payments;
- Freedom ;
- Energy.
Bitcoin is a technological breakthrough. For the first time in history, humanity has an existing currency in absolutely finished quantity. The reserve aspect of ultra-liquid value is undoubtedly the primary reason for its planetary success.
More and more multinationals make them their main cash benefit and the states are the next on the list. Several senators such as Cynthia Lummis propose to sell gold for the benefit of Bitcoin as a reserve currency.
In addition, Bitcoin is a currency at the same time as a payment network, two-in-one. What is more, a non -censurable network, unlike the Swift network. Russia knows something about it. “Who can prohibit Bitcoin?” Person “launched Vladimir Putin at the end of last year.
Taiwan also realized it. As well as Canadian truckers whose bank cards were deactivated to prevent them from demonstrating. No one is immune, not even the president of the International Court of Justice who has just been made freeze his British bank accounts.
It should also be noted that international payments are extremely expensive. Bitcoin clearly has an advantage in this area. It is a significant asset when one claims to be able to serve as an international reserve currency.
Finally, it is acquired that the Bitcoin industry is a tremendous ally for network managers by offering them an extremely pilotable load shedding option. It is also a significant financial windfall for energy -free. Not only by buying electricity throughout the day, but also by reducing the needs in cutting -edge power plants.
Our article on the subject: No blackout with bitcoin minors.
But let's go back to the heart of the disagreement. Does Bitcoin need to replace the Fiat system to succeed?
Bitcoin vs fiat
Many people think that Bitcoin will inevitably end up replacing national currencies. This is what preaches Saifdean Ammous, an opinion that Michael Saylor completely rejected during an exchange with him ::
You are an ideologist […]. You bake in an argument against banks and the theory of credit which also has nothing to do with Bitcoin. In essence, you oppose anyone who can borrow money, it's ridiculous.
Michael Saylor
Credit is essential for complex civilizations. Banks must be able to create ex nihilo money and destroy it at the time of reimbursement. Impossible to build railways, nuclear power plants or metros without this monetary elasticity.
The next six French nuclear reactors will cost between 50 and 100 billion euros. Without the ability to create this ex nihilo money, 10 million French people would each take the equivalent of 10,000 euros (and block this money for twenty years!). This system does not go to the scale.
The Fiat system has its faults, especially if the states are shamelessly go intoxicated, not to mention the energy rarefaction which slows down productivity. The risk of hyperinflation is real if we poorly anticipate the inevitable decline in oil production.
Anyway, saving in euros, dollars or pesos is a serious mistake. Bitcoin is a much better reserve of value. Before, only the rich could protect themselves (and benefit) from inflation. For what ? Because it was necessary to be already rich to buy art, prestigious real estate, etc.
We now have all access to what is most rare, whether we are rich or poor. This is the promise of Bitcoin, not to replace visa or mastercard.
If you liked this article, you will certainly appreciate it: The key argument in favor of Bitcoin.
Maximize your Cointribne experience with our 'Read to Earn' program! For each article you read, earn points and access exclusive rewards. Sign up now and start accumulating advantages.
