Ever since its inception, there has been a debate about the built-in purpose of Bitcoin (BTC). While one camp claims BTC is a store of value, another camp believes Bitcoin is a medium of exchange. There is also a camp that believes Bitcoin works perfectly as a store of value and a medium of exchange. The debate was part of the reason why Bitcoin Cash was forked and referred to as digital cash. Until now, there hasn’t been a community consensus regarding the true nature and definition of Bitcoin.
Dan Held Says Bitcoin (BTC) Is A Store Of Value
Dan Held is a leading industry insider who recently set the record straight. According to him, Satoshi Nakamoto did not create Bitcoin to serve as digital cash. Rather, it is an inherent gold that is meant to be a value store. He said that Nakamoto’s vision for Bitcoin was silly and it doesn’t matter now because things have evolved. In his words:
“Satoshi’s Vision™ is a silly endeavor because it no longer matters what he had in mind when he built Bitcoin. The fact is that we are where we are today. Notwithstanding, Bitcoin wasn’t first made for payments. That’s just a narrative developers picked out of the white paper to suit themselves.”
His Twitter thread was extensive containing 47 parts. Part by part, he explained why Bitcoin was created to serve as a store of value. He referred to the ‘Bitcoin was first for payments’ theory as nonsensical. He made reference of several comments made by the anonymous creator of Bitcoin in which the developer used the word ‘gold’. Nakamoto also used terms like ‘commodity’ ‘, scarcity’ and ‘long-term growth’.
Held broke down the timing of the actions Satoshi took stating that the creator decided to launch BTC during the 2008 Global Financial crisis. This was no coincidence according to Held. He explained that Satoshi was purportedly born in 1975, the year United States citizens were allowed to purchase gold legally again.
Bitcoin (BTC) Price Today – BTC / USD
Going further, Held explained that Bitcoin was created to serve as an alternative to fiat and the centralized banking system. It wasn’t created to be a new type of Visa. Held drew attention to the cardinal rules of the network stating that Satoshi would have altered these rules to promote Bitcoin as a medium of exchange if that was his intention. Instead of trying to increase block capacity, Nakamoto, during his/her years as a developer, wanted the BTC blockchain to remain as is. He didn’t try to change the blockchain capacity to make it more suitable for large scale use as a medium of exchange. Held concluded by saying those who promote the MoE narrative will get burned or disillusioned because it is counterproductive.
Keep in mind that Held isn’t the only industry insider who shares this sentiment. Many others have said that Bitcoin works better as digital gold than digital cash. Not too long ago, the Winklevoss twins said that Bitcoin is more efficient as the second coming of gold than the future of money. They believe that Bitcoin will keep taking up shares in gold’s market until it becomes more popular.
What do you think? Does BTC work better as a store of value or a medium of exchange?