Michael Saylor: The five cohorts of bitcoin investors: Denier: It’s a mirage too good to be true. Skeptic: It’s so good the government will ban it. Trader: It’s an (un)correlated asset. Technocrat: It’s a digital monetary network. Maximalist: It’s economic empowerment for all.
While Michael Saylor continues to push bitcoin, BTC has fundamental flaws according to economists and thinkers. Best to pay attention to them. Bitcoin is a prototype created by Satoshi Nakamoto. Bitcoin enthusiasts are claiming that Bitcoin will become the currency of the future. Typically, critics have to state that the “first prototype” will be a test case that will have design flaws and that which will be discarded in favor of something else.
To make it a functioning currency, the Bitcoin source code should be changed significantly. The supply of BTC by 2025 will increase; however, by that time it will become somewhat of a fixed money supply. While this design feature is considered to be clever, this is also the reason for why BTC has become a speculative asset. When the supply of BTC is very less the way people use will change drastically. Since inflation is becoming high, people are not willing to spend their BTC and they are only willing to hold it. Thus, BTC becomes an asset for speculative purposes than as a means of payment.
The supply of BTC cannot be increased to how much it is being used for. This is considered to be a design flaw. Because of this design feature to ensure scarcity, and the value of BTC increases consistently and rapidly in comparison to other currencies, thus it will be considered more of an asset than an instrument meant for spending.
Bitcoin is new and uncertain and due to the volatility factor – authorities are not simply sure of how to deal with it. There is a lot of concern about whether BTC will be banned or accepted. Apart from the fundamental criteria of the speed at which BTC is getting mined, whether it will be banned or accepted is a greater problem.
Early adopters and speculators benefit from Bitcoin. Those who benefit from BTC are not those who spend the cryptocurrency in the real economy, but they are the miners and those who decided to hold it long term. So, BTC as a currency does not seem to be a thing that really works.
Bitcoin is not as secure as national currencies. It is still considered as a speculative asset bubble where people are looking to boost their income more than what they will be able to earn from working.
Being terrible to serve as a currency how can BTC be a reason for economic empowerment for all?
Get the latest Crypto & Blockchain News in your inbox.