Will Bitcoin Ever Work As Money? Is It To Slow, Hard To Use, And High Energy Cost?

After going to $9,200 before the weekend, today bitcoin price crashed down to $8,170. Industry commentators say the market is looking bad as the “global economy is having a bigger impact at this point than the halving.”

“Main effect will normally occur after the halving,” said trader Crypto Michael.

Bitcoin is acting like a risk-on asset along with the stock market as investors fear about the impact of the coronavirus on the economy and run for safe-haven assets like gold and Treasuries.

This has people questioning the leading digital asset’s value as more than a speculative asset.

“Here are my top reasons why Bitcoin will never work as money: Can't be adjusted for inflation, enormous energy consumption, not technologically capable (slow TX speeds), very user unfriendly (in current state), and governments aren't likely to allow it,” said crypto trader Magic.

However, popular analyst PlanB who determines bitcoin value by using the stock-to-flow model that puts bitcoin at above $100,000 before Dec. 2021, shoots down all these reasons.

Doesn’t Matter, Not True

For the starters, money is a unit of account, means of exchange, and store of wealth. The flagship cryptocurrency has Sat as a unit of account which unlike US dollar can make micropayments a reality.

With solutions like Lightning Network, it is increasingly working towards becoming a means of exchange along with adoption while it can’t be reversed like a credit card payment. As for a store of value, bitcoin is only a decade old and is already seeing immense participation, development and growth.

Analyst Plan also says it doesn’t matter that bitcoin can’t be adjusted for inflation because traditional safe-haven asset gold has the same quality.

As for the argument that bitcoin uses a huge amount of energy consumption, fiat money consumers 10 times more than bitcoin and gold much higher, 100x of the digital asset said PlanB.

“Mining energy consumption is a necessary feature (not a bug) for Bitcoin's PoW consensus algorithm which makes Bitcoin secure, permissionless and decentralized,” said Gabor Gurbacs.

Bitcoin might be a speculative asset but most store of value assets are and this crypto asset has been the best performing asset of the past decade by recording 9 million percent of gains. The crypto asset has also constantly improved with privacy soon to be added to the network.

Companies like Square Crypto are further working on improving the UX and the second layer, Lightning Network, that already enables fast and low cost transactions.

Interestingly, the last week also marked victories for bitcoin in the regulatory space. “Many govts have given legal clarity, are taxing btc, and regulated derivatives markets,” said PlanB.

Indian Supreme Court quashed the ban imposed by the Reserve Bank of India on banks and financial institutions that prevented them from providing their services to individuals and businesses involved in crypto.

Besides India, lawmakers in Germany, South Korea, also enacted positive legislation for the crypto industry. Also, France recognized Bitcoin as a legal financial instrument, in a court case, the digital asset was determined as a legal form of money.

In the past 11 years, Bitcoin’s market cap has now grown to $150 billion, seeing the interest from institutional investors and mainstream companies while fast approaching its third block reward halving.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitcoin Isn't Budging Because Altcoins Are Out-Trading & Outperforming it

2020 started out bullish for Bitcoin, which went to $10,500 in February, but it didn’t stay that way for long. In March, BTC crashed...

Brave Browser Adds Gemini Crypto Exchange Trading Widget On Its Nightly Version

Gemini exchange announces a partnership with a privacy-focused browser, Brave, to integrate a trading widget app on the Brave Nightly version. This provides a...

Twitter Hacker Managed to Scam Only 12 Bitcoin After Duping Major Accounts Using ‘Internal Tools'

A security incident on Twitter duped businesses and people into sending at least $120,000 worth of Bitcoin to an anonymous online wallet, half of...

Huobi Becomes The Latest Exchange to Enter Bitcoin Options Market With a Q3 Launch Date

The bitcoin derivatives market has seen some astonishing demand this year with the trading volumes soaring all-time highs. The derivative market that primarily dominated...

Kingdom Trust Nominates Fidelity Digital Assets For Bitcoin Custodian of Its Choice IRA's

Kingdom Trust has appointed Fidelity Digital Assets to power its recently launched Choice retirement account, which features an array of assets including Bitcoin. Fidelity will...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today