Michael Saylor’s Misguided Take on Bitcoin: Why It’s More Than Just Capital
Michael Saylor, a prominent figure in the cryptocurrency space, has sparked controversy with his recent claims that bitcoin is not a currency, but rather capital. In a recent episode of the Galaxy Brains podcast, Saylor argued that bitcoin’s true value lies in its ability to store value, not facilitate transactions.
Bitcoin as Capital, Not Currency
Saylor emphasized that bitcoin is not a digital currency, but rather a form of digital capital. He stated, “It’s not a currency, it’s capital… You just have to come to grips with it — it is not digital currency. It is not cryptocurrency. It is digital capital. It is crypto capital.” However, this assertion is at odds with the Bitcoin Whitepaper, which refers to bitcoin as “electronic cash” in both the title and abstract.
The Importance of Bitcoin’s Dual Roles
Saylor’s attempt to downplay bitcoin’s role as a medium of exchange ignores the fact that its value proposition is deeply tied to its ability to facilitate transactions. As Breez CEO Roy Sheinfeld notes in his piece “Bitcoin’s False Dichotomy between SoV and MoE,” bitcoin’s roles as a Store of Value (SoV) and a Medium of Exchange (MoE) are inextricably linked.
USDT and USDC: The Real Digital Currencies?
Saylor also claimed that Tether (USDT) and Circle’s USD Coin (USDC) are the true digital currencies, stating, “The cryptocurrency, the digital currency, is Tether (USDT) and Circle (USDC)… It’s a stablecoin US dollar — that’s the digital currency.” However, this assertion is problematic, as it ignores the fact that bitcoin was created as a decentralized alternative to fiat currencies like the US dollar.
A Plan to Strengthen US Dollar Dominance
Saylor’s “evil genius strategy” involves promoting the adoption of US dollar stablecoins, which would ultimately strengthen the US dollar’s global dominance. He proposed that banks issue their own stablecoins, backed by US treasuries, which would help prop up the US debt market. However, this plan has been met with criticism, as it would essentially create a new iteration of an incumbent version of money, rather than promoting the decentralized and censorship-resistant nature of bitcoin.
Bitcoin is Money
Despite Saylor’s claims, bitcoin is, in fact, a form of money that cannot be censored or debased. Its value has grown spectacularly over the past decade, making it a powerful tool for individuals. To think of it as anything less, or to try to convince people that a new iteration of an incumbent version of money is better, is to be deeply misinformed.
Source: Bitcoinmagazine.com
