Was Bitcoin Meant For Digital Payments Not Only To Be Store Of Value? OpenBazaar Rep Weighs In
- Bitcoin (BTC), the flagship cryptocurrency, is often considered a great store-of-value (SoV) by many traders and investors.
- However, OpenBazaar Co-Founder, Sam Patt, thinks Bitcoin's main use case is to settle payments.
Bitcoin: Store of Value or Medium of Exchange?
In a blog post, co-founder of OpenBazaar, Sam Patt, pointed out the reason why he thinks that Satoshi Nakamoto intended Bitcoin to be the form of payment but it has increasingly become an asset for storing value.
The claim “Bitcoin was purpose-built to first be a Store of Value” is false.
In this article I've posting every single instance I could find across everything Satoshi ever wrote related to store of value or payments.
It wasn't even close. Payments win.https://t.co/PkfMiAigZS
— SamPatt (@SamuelPatt) June 6, 2019
There are many people who believe that BTC is a store of value and that if they keep hodling someday they might be super wealthy and protected from the world’s turbulent economy.
In the blog post, Patt writes:
“As far as I could determine, Satoshi never wrote the words “store of value” a single time. This would seem to pose a problem for those promoting the idea that Satoshi built Bitcoin as a store of value. However, he did talk about the idea indirectly. So to give the argument the best possible chance, let’s examine every instance where he talked about anything that could be interpreted as supporting a store of value, even if it’s a stretch.”
He even gives evidence to prove his hypothesis.
On the above graph, he comments:
“It’s worth mentioning that the results from the tally and timeline above are all from non-whitepaper sources. I intentionally didn’t include the whitepaper when doing the tally because I got tired of SoV proponents dismissing all criticism by mocking people who quote it.”
Bitcoin, An Alternative to Traditional Payment Methods?
Earlier Arthur Hayes, chief executive at BitMEX, explained that as centralized digital money becomes a common sight, with platforms like WeChat Pay quickly surmounting physical greenbacks, Bitcoin could make a move.
Hayes remarked that as payment ecosystems like WeChat Pay are heavily-centralized, Bitcoin can establish itself as a private alternative, especially once the Lightning Network reaches bonafide mainstream adoption.