Even though the crypto industry has changed dramatically in its own decade-long life span, the storyline surrounding Bitcoin (BTC), together with its own original value proposition. Has been steady, less or more. Yet, there are a few nuances. Case in point, over recent years, proponents of BTC have flickered involving the asset becoming a Store of Value (SoV) or a Medium of Exchange (MoE). As the arguments have their own merits and evidence, a sometimes volatile dichotomy has formed between commentators, analysts, researchers, and investors touting the different thought processes.
But a top crypto analyst has lately achieved his utmost to put the record straight, claiming that Satoshi Nakamoto did not initially produce Bitcoin for the asset to be an electronic form of cash.
At a 47-part ribbon, Held, that also goes by Hedl within an evident nod into crypto's long-standing inside jokes, explained those pushing the belief that"Bitcoin was initially made for payments" are non-sensical. Held simply maintained that Bitcoin was"purpose-built to be a SoV."
After his impassioned beginning, that the co-founder of crypto strength manager Interchange went on to breakdown Satoshi's"goals," diving comprehensive into his remarks to discern his inherent belief system. Via the ribbon, Held drew attention to a handful of Satoshi's comments, in which he, she, or they mentioned gold, long-term growth, along with Bitcoin's commodity status. The cryptocurrency godfather, so to speak, also mentioned lack occasionally, together with Held asserting that Satoshi"highlights that Bitcoin's lack gives it value... as a SoV."
Held proceeded to split down the time of Satoshi's activities, asserting that the pseudonymous programmer's choice to establish Bitcoin"during the 08′ financial catastrophe wasn't coincidental." At a pseudo-timeline, accentuating the insider did his research, Held attracted lines involving applicable phenomena in Bitcoin's background and key events at the short collapse of international finance. The prior Blockchain product director even explained that Satoshi's purported birthdate, April of 1975, was the exact same year that the U.S. allowed citizens to possess gold.
Held then explained that Bitcoin was conceived to become an alternative to banks, thus the iconic headline which Satoshi embedded at the Genesis Block's coinbase, maybe not a new variation of Visa. To back his back, he brought attention to the network's cardinal rules -- 21 million BTC supply cap, ten-minute blocks, and block dimensions caps -- asserting Satoshi might have shifted those values to push the electronic currency narrative.
But he did not. Actually, during his active years as a developer, Satoshi was largely against pushing block capabilities higher, and was adamant that the BTC issuance program should be maintained as is. This led to the next conclusion:
"What he was attempting to accomplish was clear, he wanted to build a new backbone for the fiscal system. Bitcoin is not only digital money, but an alternate to banks... People pushing the MoE story at this moment in time are more resistant to adoption. By creating these expectations, that can be unattainable at the moment, many people will get burnt or disillusioned."
Held isn't alone in his sentiment that Bitcoin is currently suited much better as the second coming of stone, rather than since the future of money. The Winklevoss Twins, the co-founders of this Gemini Exchange, recently asserted that Bitcoin"better being golden than gold itself." Twin Tyler noted that as this industry continues to grow, BTC will keep on consuming bits of gold's market capitalization, until the cryptocurrency moves its physical counterpart.
Lou Kerner has recently chimed in to the issue. Per preceding reports from Bitcoinnetmagzhe told Bloomberg the BTC is"just a better way to put away your worth [than gold]." Kerner, the founding partner of CryptoOracle, clarified that the strength's portability, ease-of-use, divisibility, and scarcity, make it a viable option to precious metals, using this particular variable finally potentially pushing BTC over $100,000 apiece. Much Travis Kling, the creator of the Ikigai Fund, made a near-identical claim.
BTC May Eventually Replace Fiat, But Not Yet
But, this is not to say that BTC will ever become a workable form of electronic money.
At a recent blog post, Arthur Hayes, chief executive at BitMEX, clarified that since centralized digital money becomes a common sight, using platforms like WeChat Pay quickly surmounting physical greenbacks, Bitcoin can make a transfer. Hayes remarked as payment ecosystems such as WeChat Pay are heavily-centralized, Bitcoin can establish itself as a personal choice, especially once the Lightning Network reaches bonafide mainstream adoption.
Held himself acknowledged that, writing that"at adulthood," the payment usage case will probably be plausible, not just a quixotic dream. But then again, as it stands, this ecosystem is too nascent and volatile for the MoE story to be supported. Regardless, this industry continues to mature at an exceptional pace, in spite of decreasing crypto asset values.