Bitcoin Is Also A Fiat Currency. The White House is already divided | by Paulo A.Jos | Oct, 2022

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The White House is already divided

Photo by Kanchanara on Unsplash

Michael Saylor is one of the loudest apostles of the bitcoin gospel. He doesn’t need a church to preach. Twitter is enough for him.

For some, bitcoin is just an investment. For others, it is the worlds greatest promise of freedom.

bitcoin is a religion

For Bitcoin apostles, there is no currency next to bitcoin.

They ignore not only national currencies, but also other cryptocurrencies, such as Ethereum, Tether, and the tens of thousands of altcoins, which they group as shitcoins.

This means that discussions about the pros and cons become impossible. If you have a different opinion on Twitter, you will get screwed.

For Bitcoin bros the system needs to disappear

Bitcoin promises a world without inflation and unemployment, without banks, and without government insight into cash flows.

They see the solution to the inflation problem in the finite amount of Bitcoin. Since there can never be more than 21 million Bitcoins, the currency would not decrease in value over time but would increase in value.

Of course, there must be a demand for Bitcoin for this to happen. But fans take it as unprecedented. It will happen.

They take comfort in regular price drops with the dumbest theory Ive ever heard: When in doubt, zoom out. When in doubt, look at the big picture.

And even as Bitcoin plummets, the price is still double what it was two years ago. That gives them security and hope.

In their eyes, because Bitcoin is decentralized it guarantees that no government, central bank, or any commercial bank interferes with the value or distribution of money or monitors transactions.

With Bitcoin, we finally have the opportunity to give property to billions of poor and working people, economic security, and freedom from state and institutional financial repression, wrote Michael Saylor.

Like the dollar or the euro, which derive their value only from the fact that people believe in them, central banks have reserves of gold, currencies, or bonds. However, there is no right to exchange euros for gold at any time.

Nobody can control the money

This is one of the beliefs of the Bitcoin religion.

Friedrich August von Hayek, the 1976 Nobel Prize winner published an essay entitled Denationalization of Money. Here Hayek leads a polemical campaign against governments and central banks, whom he blames for inflation and economic downturns.

He blames the government for printing and controlling money as the source and origin of all monetary evil.

When it comes to money, governments have always and everywhere abused their trust to deceive the people.

What Hayek is proposing is private sector competition between currencies without state influence, which would automatically stabilize currencies.

Bitcoin is also a fiat currency

Bitcoin is created out of nothing.

What Bitcoin enthusiasts ignore is that Bitcoin itself is also a fiat currency. Bitcoin is created out of nothing.

In todays society, something is only valuable if people believe in it. And thats not even a bad thing.

Because economists assume that currencies that are not backed by security like gold are the most efficient.

However, the great freedom promised by Bitcoin enthusiasts has a downside, the world is becoming more complex. So intermediaries like banks or advisors will continue to be needed.

People are no longer forced to use an intermediary. This will cause a shift in the balance of power.

However, to really be used as a means of payment on a large scale, the Bitcoin network must fix all the problems. VISA supports up to 56000 transactions per second. Bitcoin only supports 7 transactions per second.

You can already imagine the collapse of the global economy.

As much as bitcoin lovers praise the democratization of money through cryptocurrencies, their commitment is not true. Michael Saylor, for example, owns over 130,000 Bitcoins.

The White House is already divided

Republican US Senator Cynthia Lummis has introduced a draft bill aimed at boosting cryptocurrencies.

In a Senate debate in October 2021, Lummis had already made it absolutely clear whose side she was on when it came to bitcoin: Lets thank God for bitcoin and other non-fiat currencies that transcend government irresponsibility.

Michael Saylor was one of the first to share the good news. Of course on Twitter.

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