Since Bitcoin (BTC) came into being, incumbents of the legacy world, such as Jamie Dimon or Janet Yellen, have bashed the cryptocurrency en-masse. Dimon, the chief executive of JP Morgan (ironic, I know), remarked that Bitcoin is a “fraud” and of no inherent value, while former Federal Reserve chair Yellen quipped that the asset is “anything but useful.”
Even JP Morgan’s research group has been overtly skeptical of cryptocurrencies, remarking that BTC could fall to $1,260, as its value will only be proven in a dystopian world where fiat currencies and financial incumbents have bitten the dust. In other words, they don’t believe that the cryptocurrency is what it was created to accomplish.
Bitcoin Is A Means Of Exchange
But Clem Chambers, the chief executive of investment website ADVFN.com and a cryptocurrency commentator, recently took to Forbes to exclaim why Bitcoin “really is money,” not a purely speculative asset.
He first addressed the idea that Bitcoin isn’t a proper medium of exchange, as critics claim that the asset’s slock block times and high transaction fees make it illogical to use BTC in brick and mortar stores.
Chambers noted that this is far from the place, first noting that the fact that cryptocurrency transactions are immutable, while secure make it much better than traditional credit cards and services like PayPal, which allow for so-called “chargebacks.”He added that the fact BTC is international makes it better than “old fashioned money,” also drawing attention to the transparency that public blockchains provide. Thus, Chambers concluded:
It has many advantages over classic money, but also drawbacks. The fact is that it is a valid, fast, cheap and powerful new means of exchange.
It’s Also A Store Of Value
Chambers then touched on those who bash Bitcoin’s volatility, quipping that it is far from the second gold or digital store of value that its pundits paint it to be. The ADVFN founder said that such commentators are missing the point. From a fundamental viewpoint, he explained, money stored in BTC will remain there, in spite of short-term price fluctuations, which is in and of itself “far better than Venezuela’s money or Iran’s.
He added that even fiat currencies, like the Swiss franc, U.S. dollar, or the Chinese Renminbi, oscillate in value, which is a characteristic that hasn’t discounted their value as a relatively stable currency.
This comment comes just days after Mike Novogratz, the Galaxy Digital chief executive, that Bitcoin will be the only cryptocurrency with the atomic number of 79 on crypto’s periodic table.
Lastly, BTC is a Unit Of Account
Finally, he noted that crypto, especially BTC, can act as a unit of account. Blockchain technologies themselves are decentralized ledgers, thus making the argument that cryptocurrencies aren’t such units is illogical. Chambers even quipped that to say that “Bitcoin isn’t a unit of account” is like saying an abacus isn’t a form of calculator.
While he rebutted critics’ points well, he did note that it would be irresponsible to assume that Bitcoin is going to be widely used in the future, as it may not have enough benefits.