Bitcoin Magazine Beyond The Vault: Why Bitcoin’s True Power Lies In Motion
A critique of Saylor’s store of value obsession and a case for the medium of exchange
A case for why Bitcoin needs to be both
This post Beyond The Vault: Why Bitcoin’s True Power Lies In Motion first appeared on Bitcoin Magazine and is written by Shinobi.
Michael Saylor, CEO of MicroStrategy, has been one of the most vocal proponents of Bitcoin as a store of value. His company has been investing heavily in Bitcoin, with the belief that it is a superior asset to store wealth in. While there is no denying the potential of Bitcoin as a store of value, it is important to recognize that its true power lies in its ability to be a medium of exchange.
Bitcoin was originally created as a peer-to-peer electronic cash system, with the vision of becoming a global digital currency that could be used for everyday transactions. However, over the years it has largely been seen and used as a store of value, with the narrative around it shifting towards being “digital gold”. While this has certainly helped Bitcoin gain mainstream acceptance and attract institutional investors, it has also limited its potential as a medium of exchange.
For Bitcoin to truly fulfill its revolutionary potential, it needs to be both a store of value and a medium of exchange. A store of value is important for preserving wealth over time, but a medium of exchange is essential for facilitating trade and economic activity. Without the ability to easily and quickly transact with Bitcoin, its utility is limited.
There are a number of technical challenges that need to be addressed in order for Bitcoin to become a widely used medium of exchange. These include scalability issues, high transaction fees, and slow confirmation times. However, there are also social and psychological barriers that need to be overcome, such as changing the perception of Bitcoin from being a speculative asset to being a practical means of payment.
Ultimately, Bitcoin’s true power lies in motion – in its ability to flow freely as both a store of value and a medium of exchange. By focusing solely on one aspect over the other, we risk limiting the potential of this revolutionary technology. It is time to move beyond the vault and embrace the full potential of Bitcoin as a currency for the future.
How this will affect me
As a consumer, the shift towards Bitcoin being used as a medium of exchange could provide more options for making purchases and conducting transactions. It could also lead to greater financial inclusion and access to global markets. However, it may also come with increased volatility and uncertainty in the short term.
How this will affect the world
If Bitcoin is able to successfully transition into a widely used medium of exchange, it could have profound implications for the global economy. It could potentially reduce dependence on traditional financial institutions and currencies, and empower individuals to have more control over their money. It could also lead to greater financial inclusion and access to global markets for people in developing countries.
Conclusion
Bitcoin’s true power lies in its ability to be both a store of value and a medium of exchange. By focusing on only one aspect over the other, we risk limiting the potential of this revolutionary technology. It is time to move beyond the vault and embrace the full potential of Bitcoin as a currency for the future.
