This is your bitcoin warning: pros and cons of BTC
2 min read
The latest Bitcoin price drop has triggered the pro-fiat media to define “in their own way” the queen of crypto, and among the many is the case of Michael Taylor who in his article, entitled “This is your bitcoin warning”, describes how the value of Bitcoin and its Blockchain technology applied to the money sector is negative when compared to the centralized system of fiat currencies such as US dollars.
Specifically, his warning refers to Bitcoin in the following way:
“Bitcoin’s only plausible real-world use cases — as a medium of exchange rather than a speculation — are tax evasion, drug dealing, prostitution, child pornography, assassinations, arms-dealing, illegal gambling and ransomware for computer hackers”.
A slap in the face to the continuous mass adoption that the crypto par excellence of decentralization, has been demonstrating for years now.
The latest example, in fact, is the possibility of buying luxury homes in Bitcoin, thanks to the opening to the crypto world of some real estate agencies, in tune with the country’s government laws.
However, the use cases extend to the possibility of buying airline tickets, hotel stays, gift cards for shopping in supermarkets, clothing shops and many more.
Bitcoin vs. Dollars: decentralization versus centralization
Following Taylor’s argument, the idea that Bitcoin cannot be seen as a digital asset (which it is!), is given by the absence of government control. As opposed to dollars, which although defined as ‘fiction’, according to him remain more useful.
Once again, “Bitcoin you either love it or you hate it!” It is a decentralized system whereby peer-to-peer transactions are anonymous (compared to classic bank accounts) and verified between parties who do not know or trust each other.
This system seems to be of interest not only to the ‘illegal’ world. Some Central Banks and even institutions themselves have been participating in the buying and selling of Bitcoin for years.
This is your bitcoin warning: Taylor, BTC and celebrities
Another definition by Taylor reads as follows:
“Bitcoin has all the makings of collective financial madness. Magical thinking! A difficult-to-grasp technology! Breathless media coverage of its ever-increasing price! Celebrities might be buying it!”
A growing price is precisely given by the continuous demand for Bitcoin and, therefore, the expansion of its mass adoption.
Not only that, remaining on the celebrity theme, indeed a small (almost hopeful) eye is on Elon Musk‘s infamous Bitcoin investment.
In fact, here’s a hypothetical solution to involve even pro-fiat people in the crypto world:
“When President Elon Musk declares in 2028 that we can and must make tax payments in bitcoin, then — and only then — will I agree that bitcoin has any fundamental value. It may well go to $200,000 (and beyond!) in the meantime for all I know”.
The post This is your bitcoin warning: pros and cons of BTC appeared first on The Cryptonomist.
