Post
Topic
Board Economics
Merits 2 from 1 user
Re: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’
by
JayJuanGee
on 12/08/2020, 18:02:53 UTC
⭐ Merited by fillippone (2)
I'd be vary of such orgs coming into btc trading... Sorta defeats the purpose of it surviving as a currency and only as a trading mechanism; which is not what it should primarily be.

There is no "this is what bitcoin should be". Bitcoin is what it is. If someone wants to spend it, they can spend it. If someone wants to use it for sending money across borders, they can do that. If someone wants to trade it, they can trade it. If someone wants to hold it as a long term investment, they can do that. Hell, if someone wants to use Bitcoin in Ethereum smart contracts for DeFi or whatever they can tie it up in that, and that's fine. All of these things are fine to do. There is no one right way to use bitcoin. And all uses add to Bitcoin's relevancy in society and its adoption, so they are all good.

Largely, I agree with you thecodebear in terms of bitcoin users figuring out whether bitcoin provides some kind of use case for them and then, if it does, then using bitcoin in the way that they believe is suitable to their needs.  If bitcoin does not provide certain use cases for certain would be users that they would like to have in bitcoin, then surely they can attempt to get those kinds of features or use cases added to bitcoin, but in the end, bitcoin is not going to give any shits, if someone wishes that they could use bitcoin to buy a latte and not pay any fees.. and do it with zero confirmations.

Of course, in accordance with gresham's law, most people are going to use whatever payment processing service that is either the least valuable or the least costly, and maybe some day, BTC will supplant a bunch of the payment processors too because value is gravitating into BTC.. but seems more likely that is going to happen on some kind of second or third or fourth layer rather than directly on the BTC blockchain.. absent some surprise developments that push bitcoin to change in the on-chain payment processing direction.

Surely, bitcoin provides a powerful option that was not available, earlier, in terms of a sound money that is kind of like gold, but better, and recognizing that bitcoin is better than gold seems to be a better way of thinking about what bitcoin is.. in terms of it being more scarce, more portable, more divisible, more verifiable, and just something that is capable of being individually held and managed, either without a third party or just way less expensive to manage... which give powerful options in and of themselves, even if I have not described all of the possibilities that a better kind of Gold has, with the passage of time, it seems quite likely that more and more people are going to recognize a variety of use cases around bitcoin which will continue to cause value to gravitate towards and into bitcoin, which likely was part of the incentive that Microstrategy had in terms of their decision to take a decently-sized stake in bitcoin at supra $10k prices (seems to be around $11,653-ish per BTC that they paid).