BTC Supporter Jimmy Song vs BCH Advocate Roger Ver’s Debate About Which Bitcoin is Fiat Currency
Jimmy Song and Roger Ver had a massively followed debate that took place at the Coinsbank Cruise on September 10th.
After introducing himself, Jimmy Song, one of Bitcoin’s leading evangelists, opened with the following contention: “Bitcoin Cash is a fiat money. You may be thinking that I’m exaggerating or trolling, I’m not. I’m stating a fact….Bitcoin Cash is interventionist, paternalistic and Keynesian befitting its corporate roots.”
Before going in detail to see if BCH is a fiat currency or not, let us see what Fiat Currency actually is. Fiat currency is money that is issued by decree or formal authorization. To be more specific, by decree means it is backed by a government’s alleged authority, and then enforced on the population by law — at the barrel of a gun. Generally, when a money is decreed by the government, using other kinds of competing for paper money is considered a criminal act.
“Fiat money is the currency that a government has declared to be legal tender, but it is not backed by a physical commodity.”
This is why bitcoin cash, or any other crypto, is not fiat. It is not decreed or authorized by the government. It is not “legal tender.” It is possible that a digital currency can eventually be decreed, but then it is likely the “cryptocurrency” in question will not be cryptocurrency in the traditional sense.
Jimmy claimed bitcoin cash was a fiat currency because he believed it is “authorized authoritatively.” Jimmy mentioned bitcoin cash was “paternalistic and Keynesian.” He also said it was “controlled by a central authority.”
Bitcoin cash is an open-source and peer-to-peer cryptocurrency that anyone can get involved in and use. It is not “Keynesian.” Keynesian economists believe the economy should be controlled and stabilized by government printing of money to prevent economic catastrophe. The bitcoin cash protocol functions antithetical to Keynesian ideology. No one can arbitrarily inflate or deflate the supply of bitcoin cash.
So, what about crypto centralization? Jimmy might have only been trying to argue that bitcoin cash is centralized. Jimmy might have only been trying to argue that bitcoin cash is centralized. However, that is a different argument than claiming bitcoin cash is fiat. Of course, most people who claim some crypto is “centralized” do not really define what they mean by “centralized.” Bitcoin and bitcoin cash are also both a bit centralized in terms of mining operations. However, the problem is overstated.
This implies Jimmy did not plan on making a case against bitcoin cash but rather fancied to incite drama during a debate. It was just unusual that he would have started his whole position on an argument that some people make against bitcoin core itself.