“Bitcoin Is Stupid” Author Gets His Bank Frozen; Is Crypto The Smarter Option?
If anyone has ever tried to explain to older people how the blockchain technology works are to prove why should a person be its own bank instead of just letting a financial institution do it. However, the author of “Bitcoin is Stupid” has just served as a great example on Twitter recently.
The author of the article, which is very anti-cryptos, Peter Adeney, known on Twitter as Mr. Money Mustache, complained that Capital One arbitrarily froze his bank account, which was holding $309,000 USD which would be used for a real estate transaction. The author tweeted that felt like he had been robbed by the bank.
WOW! @CapitalOne Just froze my bank account (and all $309,000 of cash I had collected for an upcoming house purchase), and said I have to call to release it. But then they put me on hold and never answer.
25:08 and counting on my SECOND attempt. Feels like I have been robbed.
— Mr. Money Mustache (@mrmoneymustache) August 13, 2018
Fortunately, he was able to solve the problem later, but this problem is very ironic considered that this problem could have been easily solved by the use of cryptocurrencies.
About “Why Bitcoin Is Stupid”
“Why Bitcoin is Stupid” is an article that appeared on the web this year. On it, Adeney attacked Bitcoin and the crypto craze while warning readers against investing in it. While the author was highly critical of Bitcoin, he clearly did his homework and made a better critique than most people. However, some arguments are worth revisiting.
One of the arguments is that the main purpose of Bitcoin should be to transact money without the government knowing, which would not be something that you really need to do in most of the rich countries in the world as the problem would be more prominent in poor countries.
He also states that it does not make sense that you should believe that the national governments controlling the flow of the money is bad and that this is pure libertarian ideology. Finally, he also says that you should just trust people, as money is based on human trust and cooperation.
Should You Require The Permission Of A Bank To Spend Money?
Adeney’s core point is that decentralized tokens are built on top of faulty economic ideas, including the fact that there is no actual value or reason in allowing users to make uncensored transactions by intermediaries like banks and the government.
However, as you can easily see by his own problem, his own logic is faulty. Yes, the Bitcoin White Paper has a very libertarian and anti-government ideology. You might like it or not. However, he does not see all the potential that the Bitcoin has to eliminate third parties in situations in which they simply should not be required for simplicity alone.
Financial intermediaries receive too much freedom to deal with your money, receiving permission from governments and being able to freeze the customer funds and hold them until the owner can actually prove that he is not going to use the money for illicit purposes.
Governments also seize assets from citizens without good reason, too, so while one might not believe that governments are inherently bad, they are certainly flawed sometimes and it is nice to have options.
The trends will only continue and there is a growing expectation that more banks will be responsible for the money that they hold to be used in a legal way. Banks sometimes also prohibit customers from using credit cards (bank-owned funds) to buy some types of assets, but it would be an exaggeration to believe that this policy could be extended to debit cards and bank accounts.
Because of this, it is simply good to have an option like Bitcoin. If your bank wants to restrict what you want to buy, you could just use Bitcoin instead. Freedom is never enough.
The Intro Verdict
Adeney, or Mr. Money Mustache, if you prefer, was not amused to see many crypto fans making fun of him and telling him to use Bitcoin next time. However, maybe there is a lesson to be learned here. Banks, unlike Adeney, seemed to believe at first, are not always right and having the power to hold your own money can be a considerably secure way to use it.
While it is highly unlikely that Adeney will write a pro-Bitcoin article now, the lesson is learned. Bitcoin can be useful for more than criminals. Adeney’s solution was to find a new bank. However, your solution can be to hold your own money, spend it whenever you want and it is excellent that you actually have that choice.