Bitcoin, the crowning cryptocurrency of all the time is almost not being used by anybody, Bloomberg report claims recently. However, the depth of the sentence is gotten the attention of Blockstream’s CSO Samson Mow who appears to be a bitcoin adherent. He took twitter back-lashing Bloomberg’s write-up and states ‘so many things are wrong in this article about Bitcoin’.
Criticizing ‘Almost Nobody Uses Bitcoin’
At the essence, Bloomberg media on May 31, 2019, published an article entitling ‘Bitcoin’s Rally Masks Uncomfortable Fact: Almost Nobody Uses It’, by citing the report of Chainalysis data. Bloomberg in conjunction with Chainalysis data report, claims that only 1.3% of economic transactions came from merchants until April 2019.
As the article looks quite negative in terms of Bitcoin mass adoption, especially for Bitcoin proponents. Consequently, Blockstrem’s CSO, Samson Mow criticized most aspects of the article and posted continuous tweets, explaining why and how the points mentioned in the Bloomberg article is wrong.
The co-relation between Bitcoin Hype and Mass Adoption
It mentions about AT&T pointing out the crypto adoption, speculators who seek to pay in digital currency when it comes to wireless service, besides that it points to have the mass appeal of Bitcoin, there needs the hype of Bitcoin.
Bitcoin needs the hype to attract mass appeal to be considered a viable electronic alternative to money but it has developed a culture of “holders” who advocate accumulation rather than spending.
By criticizing the above statement, Samson Mow says that Bitcoin is already viable alternative money. It doesn’t need hype to attract mass appeal. Nevertheless, according to him, Hype is even worse for Bitcoin. He justifies this statement by adding if there are hype people would make Bitcoin purchases without a basic understanding of its use cases, in fact, they’ll find difficulty in dealing with volatility. He further adds;
“Hodlers” don’t advocate anything either. Hodlers are just following Gresham’s law: “bad money drives out good.”
Moreover, the article also quoted Chainalysis’s senior economist Kim Grauer’s report and referred his view sent via email;
“Bitcoin economic activity continues to be dominated by exchange trading. “This suggests Bitcoin’s top use case remains speculative, and the mainstream use of Bitcoin for everyday purchases is not yet a reality.”
The vision of Satoshi Nakamoto
Pointing out the lack of mass adoption, the article mentioned the vision of Satoshi Nakamoto and adds that the lower trend of merchant’s using Bitcoin will be troublesome for Bitcoin’s longevity. Referring to this statement, Samson Mow rants to provide the source where he said that;
Wut? Where did he say this? Source on (link: http://bitcointalk.org) bitcointalk.org, please?
In a nutshell, Bloomberg added Jeff Doman’s statement that says ‘Bitcoin itself will never be money’. Jeff Dorman who is the chief investment officer at LA-based Arca said in an email;
“Bitcoin is the leader today, and may continue to be the leader due to having the largest network effect and ‘brand,’ but I don’t think Bitcoin itself will ever be ‘money,”’
Concerning Bitcoin doesn’t have to money to be a success, Samson Mow says ‘no Bitcoin didn’t ever and doesn’t have a roadmap.
Speaking about the speculation, Samson Mow agreed on the existence of speculation but notes that; the bulk of it is essentially HODLing property to store value’
Sure, there is speculation, but the bulk of it is essentially HODLing property to store value. Also, Bitcoin supply is inflating at the rate of 1800 coins a day. Seeing even a flat price at 8k would indicate ~$14.4 million dollars being stored in Bitcoin every day.
While pointing out the VISA’s financial status mentioned in the article, Samson Mow says Bitcoin is not a payment rail. The article noted VISA’s success of handling $11.2trillion in payment and cash volume in 2018, Samson Mow says;
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com