The world sees bitcoin as a threat

By Elie Blanc.

In a recent article published in the Le Monde newspaper, Bitcoin was again attacked by Jean-Michel Servet and Nicolas Dufrêne. Unfortunately, if any criticism is quite audible about the queen of cryptocurrencies, the criticisms made here are once again highly questionable.

So let us take up some of these criticisms to show how unfounded they are.

Bitcoin is a threat to the monetary and financial system and to citizens

That bitcoin is a threat to the monetary system is obvious, since it was designed for that. But to achieve this goal, it still needs to be widely adopted by the population, which is still highly hypothetical. On the other hand, to say that it is a threat to citizens is a joke.

On the one hand, enter the current monetary system, imposed by a legal, inflationary monopoly and on the brink of financial crisis on the one hand (of which citizens will suffer the full burden), and on the other a digital currency that everyone is in use. free or not, which one is really dangerous for citizens?

If you don’t like Bitcoin, you don’t have to use it. Of course, it is difficult to imagine a high official like Nicolas Dufrêne questioning a monetary system that allows states to borrow almost without limits, since it is clear that he is one of those who directly benefit from it. But for the average taxpayer funding this system, the enthusiasm is immediately less obvious.

Bitcoin is also a solution designed to escape bureaucrats who want to rule our lives for us, and as such (at least for their followers) it has an emancipatory character.

To better understand the links between cryptocurrencies and individual freedoms, I suggest the reader watch this video:

Bitcoin does not finance anything economically and socially useful

This is typically the kind of comment that only a senior official and some economists are capable of making. Who decides what is “economically and socially useful”? And according to what criteria? You have to believe that you have a great deal of knowledge to make such a value judgment.

Bitcoin is a means of payment and as such this currency finances something useful every time it is used as both parties mutually benefit. Should we, more than a century after the marginalist revolution, remember that value is subjective and that no bureaucrat or economist can objectively determine what is useful and what is not?

Bitcoin is an ecological disaster

The environmental argument was repeated ad nauseam regarding Bitcoin. While it is true that bitcoin mining consumes a lot of energy, that does not necessarily make it an ecological disaster. In fact, it depends on the source of energy from which it is extracted. Today, it is estimated that 50% of the energy used in mining bitcoins is carbon free.

We can very well judge that this is not enough, but calling cryptocurrency an ecological disaster is an exaggeration. But above all, you are making a value judgment on an aspect that should be left to the users. If the latter believe that the benefits of Bitcoin outweigh its costs (whether green or not), there is no reason to condemn this asset. Once again, it is worth remembering that bitcoin, unlike fiat currencies, does not benefit from a monopoly that protects it from competition.

This means that if citizens consider that this currency is indeed too ineffective from an ecological point of view, they will turn to other more efficient means of payment in this area.

Bitcoin breaks equality between citizens

On the contrary, bitcoin (and other cryptocurrencies) seems much fairer than the current monetary system. This coin is not interested in your gender, your skin color, or your political orientation. Its rules are clearly defined and highly unlikely to change, which protects its users from arbitrary changes (as the ECB does with its monetary policy). That is why it is said that the code is law, “the code is authentic.”

Bitcoin is a monetary regression

Again, this is a value judgment that, as such, is irrelevant. Citizens must be free to choose, which means ending the monetary monopoly granted to the euro.

Bitcoin cannot handle a large number of transactions

This is partially true, as every cryptocurrency faces the trilemma of choosing only two characteristics among the following: decentralization, security, and scalability (the ability to carry out a large number of transactions in a short period of time). This point remains to be graded, as the Bitcoin community is looking to establish a new protocol, called the Lightning Network, which should allow the network to handle a much larger number of transactions.

What’s more, some consider bitcoin first as a store of value due to its characteristics (hence its nickname “digital gold”), and use it in addition to other more practical cryptocurrencies as a means of payment.

Bitcoin must be banned

While it is now possible to ban bitcoin mining (since its cost has become too high for isolated people to do), banning bitcoin transactions is either ignorance or totalitarian delusion, as anyone with the internet can.

Therefore, the only way to completely ban Bitcoin would be to deprive or closely control the internet use of the entire population.

Bitcoin, neither a miracle nor a calamity

While it is annoying to see such inaccuracies in a newspaper like Le Monde, and if it seemed important to me to point the finger at them, this should not hide the fact that there are well-founded criticisms of the cryptocurrency star.

In my humble opinion, the most relevant of them is the absence of physical guarantees that guarantee the value of this currency. A bitcoin is nothing more than a series of 0 and 1 in a computer network, so its value only comes from the trust that users place in it in their future payment capacity.

Therefore, bitcoin is, by definition, a fiat currency, which may not be as drastically different from existing currencies as expected. Other cryptocurrencies have also chosen to adopt gold as physical collateral, but they suffer from other flaws.

Either way, whatever judgment you make on this asset, it is important not to impose it on others. Bitcoin should not be banned or taxed (as in El Salvador and possibly soon in other countries). It must be integrated into monetary competition, which is the only one that guarantees stability and freedom.

Rank Math Seo Pro Weadown, Wordfence Premium Nulled, Yoast Nulled, PHP Script, Fs Poster Plugin Nulled, Astra Pro Nulled,Woodmart Theme Nulled, Wpml Nulled, Avada 7.4 Nulled, Woodmart Theme Nulled, PW WooCommerce Gift Cards Pro Nulled, Elementor Pro Weadown, Newspaper – News & WooCommerce WordPress Theme, Nulledfire, Slider Revolution Nulled, Elementor Pro Weadown, Jnews 8.1.0 Nulled, WeaPlay, Business Consulting Nulled, WP Reset Pro, Newspaper 11.2, Flatsome Nulled, Woocommerce Custom Product Ad, Premium Addons for Elementor, Jannah Nulled, Consulting 6.1.4 Nulled, Plugins, WordPress Theme, Dokan Pro Nulled

Back to top button