Bitcoin: A Store of Value or a Medium of Exchange?
The debate around Bitcoin’s nature has been ongoing for years, with some proponents arguing it’s a digital currency, while others see it as a store of value. MicroStrategy Chairman Michael Saylor is one of the most prominent advocates for the latter view. In a recent CNBC interview, Saylor explained that Bitcoin is not a digital currency, but rather digital property.
“People refer to it as currency or digital currency, and that’s an unfortunate historical artifact. It’s not a digital currency. It’s digital property,” Saylor said.
Saylor’s argument is that Bitcoin’s compelling use case is capital preservation, making it more comparable to real estate than a medium of exchange. He believes that using Bitcoin for payments doesn’t make sense, just as nobody complains about being unable to spend a fraction of their buildings.
“Medium of exchange is worth only one trillion dollars, store of value is worth a hundred trillion dollars (…) medium of exchange is a distraction (…) Bitcoin is competing with gold,” Saylor emphasized.
However, this interpretation has sparked controversy within the Bitcoin community, with some arguing that Bitcoin is, in fact, the best medium of exchange the world has ever seen. Francis Pouliot, CEO of BullBitcoin, countered Saylor’s claims, explaining how people use Bitcoin for payments worldwide on a daily basis.
“Wall Street games and fiat shenanigans are the distraction,” Pouliot said, referring to Saylor’s comments.
The debate highlights a shift in the narrative around Bitcoin, with new investors like Saylor finding their own use cases for the cryptocurrency. This shift is part of a larger trend, as established businessmen and investors enter the Bitcoin market, bringing new perspectives and use cases.
MicroStrategy CEO Michael Saylor speaks at the Bitcoin 2021 Convention
The rise of Bitcoin has sparked a new wave of investors, moving beyond the early adopters of cypherpunks, technologists, and geeks. This new wave is characterized by established businessmen finding their own use cases for Bitcoin, which may not fit the traditional narratives around the cryptocurrency.
Bitcoin as a store of value
The debate around Bitcoin’s nature is far from over, but one thing is certain – its value and potential uses continue to captivate investors and spark important discussions around its role in the world of cryptocurrency.
