Bitcoin (BTC), Not Fiat, Is the Only Form of Money that Can Work from Space
The past two weeks has been rough for Bitcoin, and cryptocurrencies in general. The contention is whether these assets are agents of money laundering as asserted by the top brass. Sticky as they are, the call for fitting, non-stifling regulation, supersede everything regardless on baseless attacks.
The United States president, for example, was one of the critics. For Trump, Bitcoin and crypto are “based on thin air.” Consequently, crypto enthusiasts countered his view, noting that the US dollar, among other fiat currencies, has no solid backing if any.
Expectedly, the debate is and supporters are stepping their argument even higher. Now, it’s a battle of how cryptocurrencies are advantageous compared to fiat. At present, the battle is how and from where crypto transactions can be conducted.
According to Cameron Winklevoss, the co-founder of Gemini cryptocurrency exchange, crypto transactions can be initiated from space.In a tweet, Winklevoss said:
“Crypto is the only money that works on the internet. But it’s also the only money that works in space. It’s really expensive to bring gold bars to mars.”
Crypto is the only money that works on the internet. But it's also the only money that works in space. It's really expensive to bring gold bars to Mars…
— Cameron Winklevoss (@winklevoss) July 21, 2019
Bitcoin over Gold
Furthermore, it’s important to realize that Bitcoin has long been thought to be a better alternative to gold. Consequently, Bitcoin has been christened as “digital gold.” Among the key difference between Bitcoin and gold is their respective inflation rates.
According to Chris Burniske, a former crypto lead at ARK Investment Management:
“A well-known characteristic about Bitcoin is that it’s on a disinflationary supply schedule. While many people think gold as being the same, gold is actually a sneakily asset. …If you were to ask people what gold’s supply schedule looks like over time, they probably wouldn’t draw you something that looks like an exponential curve. With gold being sneakily inflationary, it’s not set up to preserve value in the way that Bitcoin is.”
Transact Bitcoin from Space
Another key point that the Gemini co-founder is banking on is the internet. As long as you have an internet connection, it’s possible to send cryptos since the blockchain is often the distributed and immutable layer directly dependent and built on the internet.
As such, cryptocurrencies, in the modern world, are advantageous over traditional, hard money thanks to their digital nature.
Citing Winklevoss comment, cryptocurrencies is the only form of money that can be accessed from space. For instance, early this year, Blockstream and SpaceChain, which are two companies dealing in crypto-related products and network services, each conducted cryptocurrency transactions via satellite. According to SpaceChain’s co-founder, Zee Zheng:
“We would also love to have GEO satellite, ground stations and LEO satellite terminal equipment partners participate in the network to enhance the overall connectivity…launched two nodes equipped with our own payloads and built multi-signature cold wallet [secure cryptocurrency storage] technology on satellites. …done in-depth research and exploration, and deeply integrated space technology and blockchain technology.”
Bitcoin in Radio
But the mode of transmission doesn’t stop there. Recently, it was demonstrated that BTC-and indeed cryptocurrencies, can be sent over radio waves. At the beginning of the year, two developers managed to send a payment over the Bitcoin lighting network. Notably, using radio waves proved advantageous since crypto transactions can now move away from being internet-specific.
More than being available from space, transmitted over radio waves, and being better than gold, Bitcoin and other cryptocurrencies are way superior from fiat in many aspects.
For instance, unlike fiat, which each country has its specific currency, cryptocurrencies are global helping in advocating for borderless economies. Aside from that, these they are cheap and there is no need of trusting intermediaries.