Bitcoin is also a fiat currency. The White House is already divided | by Paulo A. José | October 2022

This makes discussions about advantages and disadvantages impossible. If you have a different opinion on Twitter, you’re screwed.

For Bitcoin brothers, the system must 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 limited amount of Bitcoin. Since there can never be more than 21 million Bitcoins, the currency will not decrease in value over time, but increase in value.

Of course, there has to be a requirement for Bitcoin for this to happen. But enthusiasts consider it unique. It will happen.

They console themselves with regular price drops with the dumbest theory I’ve ever heard: Zoom out when in doubt. When in doubt, look at the big picture.

And even though Bitcoin is plunging, its price is still double what it was two years ago. It 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 ability to give billions of poor and working people property, financial security, and freedom from governmental and institutional economic oppression, wrote Michael Saylor.

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

No one can control the money

This is one of the beliefs of the Bitcoin religion.

Friedrich August von Hayek, the Nobel laureate in 1976 published an essay entitled Denationalization of Money. Here, Hayek leads a polemical campaign against governments and central banks, which 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 proposes is private sector competition between currencies without government influence, which will 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 today’s society, something is only valuable if people believe in it. And that’s not a bad thing.

Because economists assume that currencies that are not backed by a 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 such as banks or advisers will still be necessary.

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

But to really be used as a means of payment on a large scale, the Bitcoin network needs to fix all the problems. VISA supports up to 56,000 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 abundantly clear whose side she was on when it came to bitcoin: Let’s 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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