BTC cannot and should not replace a Fiat, says the former Greek finance minister
2 min readIn an interview with the Greek Reporter, Varoufakis, who has never been a BTC fan, took the opportunity to put on BTC. He touched on one of the most remarkable advantages of BTC – its limited offer. According to him, this is the main reason why the cryptocurrency cannot and should not serve as a currency.
BTC cannot replace fiat money
“Suppose bitcoins replace uncovered money by waving a magic wand. It will be a disaster. We would all be in a very desperate situation now. What happens when another pandemic comes and you have to increase your money supply? You can’t increase your bitcoins because it’s a fixed offer. “
It is worth noting that while the former Greek minister considers the 21 million BTCs that will ever exist to be a disadvantage, other prominent names from the financial world see it completely differently. For example, American investors from the United States Paul Tudor Jones III, Stan Druckenmiller and Bill Miller recently identified this function as the main reason why they invested part of their money in bitcoins.
In his speech, Varoufakis suggested that “bitcoins celebrate bitcoins because they are not state money.” The natural conclusion he then reached is that bitcoins can never be currency.
Blockchain is not BTC
This is one of the most well-known attitudes among people, organizations and even governments that refuse to accept bitcoins. China is probably the largest player, repeatedly outlining support for BTC’s core technology, but reaffirming the ban on cryptocurrency as an asset class.
And Varoufakis also supports this idea. He was told during the interview that he was an “admirer of this brilliant” technology.
“When I first looked at the blockchain code, I thought, ‘My God, that’s absolutely great.’ A decentralized ledger that allows for full accounting and transparency while maintaining the anonymity of transactions. That’s brilliant “
About ten years ago, Varoufakis wrote an article in which he described blockchain as “a fantastic solution to a problem we have not yet discovered.” However, this is not a solution to the problem of money.
At the same time, BTC has no “democratic mechanism to determine” who gets the extracted bitcoins. In fact, the former finance minister believes that the BTC creates a “kind of feudalism” that is driven by early adopters.
Conclusion
It is interesting how a property that many consider to be ingenious (limited quantities) can be viewed from a completely different perspective. Personally, I take the side of the above Paul Tudor Jones, Stan Druckenmiller or Bill Miller. On the other hand, I acknowledge that some of Varoufakis’s ideas are definitely worth thinking about.
