The blockchain industry has existed for a decade now, and so far, its growth has also come along with certain changes. However, Bitcoin has continued to maintain its fundamental value proposition. Some people have had conflicting opinions about the digital asset over the years. There have been arguments on whether BTC is a Store of Value (SoV) or a Medium of Exchange (MoE).
This led to network splits that resulted to a hard fork on 1st August 2018 which saw to the emergence of Bitcoin Cash (BCH), which many referred to as a “real” version of digital cash.
In line with the above events, one of the top crypto analysts felt challenged to bring the issue to rest and how did he do that? By going back to the beginning. He had to remind the world that the creator of Bitcoin, Satoshi Nakamoto, didn’t intend for the digital currency to serve as a form of digital money.
Bitcoin, A Digital Money Or Digital Gold?
An executive of the company called Blockchain, Dan Held, one of the leading industry participants, wrote on tweeter that “Satoshi’s Vision is a silly endeavor.”
Held or Hedl, as he’s sometimes called, stated that the school of thought which believes that “Bitcoin was first made for payments” is absurd. He affirmed that those who stand behind the MoE argument are those who decided to pick out a few quotes from Satoshi’s original posts to create a new narrative. Held stated that the original idea of Bitcoin is to be used as a SoV.
Held explained further that Bitcoin was created to be an alternative to banks. To support his opinion, he made reference to the Cardinal rules of the network which are, supply cap of 21 million BTC, ten-minute blocks, and block size caps. He went ahead to explain that they could have been changed if indeed Satoshi wanted Bitcoin to function as digital money.
There are others who also believe that Bitcoin can be described as gold rather than as the future of money. The founder of Gemini Exchange, the Winklevoss Twins, recently claimed that Bitcoin is “better at being gold than gold itself.” one of the twins, Tyler, said that with the continuous growth of Bitcoin, it would surely surpass its physical counterpart, gold.
BTC May Substitute For Fiat in the Future
All these arguments don’t completely rule out the future use of Bitcoin as digital money.
BitMEX’s chief executive, Arthur Hayes, in a recent blog post said that with the success of centralized digital money in taking over fiat, with platforms like WeChat Pay, Bitcoin also stands a chance of doing the same. He explained further that Bitcoin could position itself as a private alternative to the heavily centralized payment ecosystems such as WeChat Pay, once the mainstream adopts the Lightning Network fully.
Held also admitted to this when he wrote that the use case of Bitcoin would be logical “at maturity.”