Even after 15 years of existence, debates surrounding the nature of Bitcoin still exist. Despite introducing the pseudonym's creator, Satoshi Nakamoto, as a “peer-to-peer electronic cash system,” the technology is understood to go beyond the realm of payments and compete with commodities such as gold and real estate. More and more people are supporting it. One of the most prominent proponents of this view regarding Bitcoin is Michael Saylor, Chairman of MicroStrategy MSTR.
Mr. Saylor is one of the most famous Bitcoin holders and supporters around the world. In 2020, his company made Bitcoin its primary asset in the Treasury and has been systematically acquiring BTC ever since. According to bitcointreasuries.net, Saylor's MicroStrategy holds his 214,246 BTC worth about $15 billion, making him one of the largest holders in the world.
For Thaler, there is a need for a deeper understanding of Bitcoin's nature and primary purpose. “People call it a currency or a digital currency, but it's an unfortunate artifact of history. It's not a digital currency. It's a digital property,” Saylor explained in a CNBC interview in early March.
With this in mind, Thaler argued that an attractive use case for this technology is “capital preservation,” so using it for payments doesn't make much sense to him. He compared owning Bitcoin to owning real estate, arguing that no one would complain if they couldn't use part of a building.
He said, “The medium of exchange is only worth $1 trillion, but the store of value is worth $100 trillion (…) The medium of exchange is a distraction (…) Bitcoin is gold “We are competing with,” he said.
However, since its origins are presented as an electronic cash system, declared legal tender in El Salvador, and elevated over the years as a borderless global payment network used for digital and physical commerce, this New interpretations are expected to receive negative reviews. Reactions from the Bitcoin community on social media channels such as X.
For example, Francis Pollio, CEO of Canadian exchange BullBitcoin, posted a lengthy response claiming that Bitcoin is “the best medium of exchange the world has ever seen.” did. Mr. Pollio explained how many people around the world use it to make payments on a daily basis and how his company helps them. “Wall Street games and illegal activities are a distraction,” he said, referring to Saylor's comments.
“Nearly all transactions will be performed using Bitcoin as the medium of exchange and unit of account. These payments will be performed using a variety of payment methods that involve varying degrees of trust and permission. Presumably, large payments will always be made on-chain, while smaller payments will be made via non-custodial “layer 2” payment protocols such as the Lightning Network, or custodial bearer asset protocols such as the Liquid Network or Fedymint. “Bitcoin bank accounts,'' he told me in further detail, “are carried out using simple custodial 'Bitcoin bank accounts.' X Via Direct Message.
Saylor's comments sparked a debate over the nature of Bitcoin. But they also showed that this change in narrative is part of a new breed of holders who are part of the Bitcoin market.
In the early days, it was mostly cypherpunks, technologists, and geeks. The new wave of investors are similar to Saylor: established businessmen who are finding unique use cases for BTC. And that doesn't necessarily match the known story about Bitcoin and its reason for existence.
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