“Bitcoin is Not a Currency,” says Michael Saylor to Forbes Chairman; Declaring BTC Not an Alternative to the Dollar
Besides being “steak one day, dog food the next, and caviar the day after,” Steve Forbes says Bitcoin’s limited supply makes it not fit to be money.
“With all due respect, Bitcoin is not a currency,” said Michael Saylor, chief executive officer of MicroStrategy, a public company that owns 71,079 BTC.
Saylor’s comment on Bitcoin not being a currency came after Steve Forbes, Chairman & Editor-In-Chief at Forbes Media, wrote an article about Bitcoin not being money.
In his article, titled “Bitcoin is Not money — Yet” on Forbes, Steve talked about the leading digital currency, which has surged more than 1,000% since its March lows, becoming the “new darling” of investors.
Although bitcoin proponents are predicting BTC to “resume its rise and head to $100,000 or higher,” Steve wrote, “that doesn’t make Bitcoin an alternative to the dollar yet.”
Steve goes on to point out that people are rushing in Bitcoin due to “a lack of faith in government currencies,” with the central banks crushing the interest rates and “printing unimaginable amounts of money,” but still “whatever Bitcoin is, it’s not money.”
“Money works best when it has a stable value,” he wrote.
Although the dollar would argue with that, given that it has lost more than 90% of its value since it got unpegged from gold. As Senator Cynthia Lummis said, “The dollar is designed to be worth less every year.”
Meanwhile, Steve said with Bitcoin; the problem is “it’s steak one day, dog food the next, and caviar the day after.” Moreover, its fixed supply is another issue as “the supply of money must be able to expand in order to meet the needs of a growing economy.”
“Although the price of Bitcoin continues to skyrocket, that doesn’t make it an alternative to the dollar yet,” wrote Steve. In agreement with Steve, Saylor responded that Bitcoin is actually “not replacing the dollar” because it is not money rather “a monetary asset rapidly replacing Gold as a store of value.”
Leading spot crypto exchange Binance chief executive Changpeng Zhao (CZ) is also in agreement as he said the point is not the replacement because Bitcoin is a new thing and it “doesn’t care about the old.” According to Saylor, Bitcoin will “coexist with fiat currencies as it attracts capital from weaker safe haven assets.” And he isn’t worried about the flagship cryptocurrency at all as he believes, “The Bitcoin Standard will outlast all of us.”
With this in mind, his company continues to acquire Bitcoin, which was also the first publicly listed company to replace cash with BTC in its balance sheet as a reserve asset. According to Saylor, it is “a 10-year investment,” a time period during which Bitcoin has been “just going up,” he said on Binance Blockchain Week today.
MicroStrategy is also conducting a seminar for other corporations to help make the same transition. Already, more than 1400 firms are joining the discussion about integrating Bitcoin into corporate strategy.