I'm writing this to critique this post here appearing in Bitcoin Magazine:
"Beyond The Vault: Why Bitcoin’s True Power Lies In Motion"
https://bitcoinmagazine.com/culture/beyond-the-vault-why-bitcoins-true-power-lies-in-motion
Posts like this one (from the chief of staff at Breez) in my opinion do not help us, and they completely miss the forest for the trees. They miss the big picture.
The author writes, critiquing Michael Saylor's "Store of Value narrative":
Your SoV obsession misses the mark—badly. The biggest aspect of Bitcoin is the medium of exchange.
Not true. A ****coin can be a 'medium of exchange' and used 'for payments' too but it would be pointless. In fact many proof-of-airtoken ****coins are better 'at payments' than Bitcoin in some way. But are they better overall? Do they matter?
No.
...but simply using Bitcoin just to store value is attacking it. That approach will turn it into digital gold 2.0, captured.
Total nonsense.
There’s no store of value without a medium of exchange! The medium of exchange comes first.
A medium of exchange without the 'hodling' and savings and trust as a foundation... is completely pointless. It's not worth anything.
...then immediately call Bitcoin one of the world’s most liquid markets, running 24/7/365. Guess what? Liquidity means medium of exchange.
Yes, well you know what else has a liquid, 24/7 market that runs 365?
The Bond Market.
And guess what isn't so "risk-off" as of late? That isn't looking as "safe" anymore?
- US Treasury Bonds
Billed on Wall Street as so rock-solid safe they’re risk-free, US Treasury bonds have long served as first port of call for investors during times of panic. They rallied during the global financial crisis, on 9/11 and even when America’s own credit rating was cut. But now, as President Donald Trump unleashes an all-out assault on global trade, their status as the world’s safe haven is increasingly coming into question.
This has profound implications for the global financial system. As the world’s ‘risk-free’ asset, Treasuries are used as a benchmark to determine the price of everything from stocks to sovereign bonds to mortgage rates, while serving as collateral for trillions of dollars of lending a day.
In other words, does this look normal to you?
Because when US Bonds, Stocks, and the Dollar all sell-off simultaneously... we call that the "sell America" trade.
- So what is the 24/7 liquid neutral alternative, that countries can begrudgingly agree on, to America? Where do you go to 'protect capital' that trades 24/7 that's neutral, safe, without the risk and manipulation of any one country?
The Swiss Franc?
The Japanese Yen?
The Euro?
Because it's not looking like the United States:
It's time to look at the big picture.
Back to the original article:
Where does Bitcoin fit into all of this? The prevailing narrative urges holders never to sell, positioning Bitcoin solely as a store of value.
It is impossible to 'convince' people to HODL. Or to sell. Or even to 'use' Bitcoin. Market forces shape all of those things. You can't 'convince' people to buy an ice-cream cone.
And the truth is that people have many ways to spend. Companies provide more apps, services, and "methods" with which to spend than ever before. People don't have a "spending" problem...
[These pictures are taken from this article about the Miami luxury real estate market which is BOOMING:
https://www.wsj.com/real-estate/luxury-homes/miami-real-estate-entry-level-homes-62f252d3?mod=hp_featst_pos4]
A couple with no children that buys a 12,000 ft house with 11-bedrooms in Miami... doesn't have a "spending" problem clearly they know how to spend.
Drive around Miami and you'll see what I mean...
To the contrary, they have a "savings" and a "capital-management" problem because energy is capital and traditional capital is CONSTANTLY losing energy at-risk of dilution.
THIS is the front page of Bloomberg this morning.
Do you see anything here to suggest that people face a "spending" problem?
To the contrary... it's a capital-management problem.
Where do I put my capital, energy essentially so it's at the least risk of dilution with the greatest risk of return?
Well?
I will "die on this hill" when I say that Bitcoin is an energy distribution and capital management network.
It is NOT a "payments network" per se. Shitcoins can be used 'for payments' but they have ZERO energy.
To the contrary, when energy is settled on the Bitcoin network a payment takes place. And when capital/energy exchanges hands conservatively from peer to peer ON Bitcoin... Bitcoin is "for payments" plus capital distribution.
There is no reason to believe then, that value settlement the size of the Bond Market can't and won't "settle" on Bitcoin in the future, at which point Bitcoin becomes a global settlement layer foundational to ALL the Capital Markets.
What do you NOT see on this page?
Any mention of Bitcoin. Which is a shame because when the world, in my opinion, finally figures out what Bitcoin is relative to everything else risk-adjusted it will 100x.
I love Lightning and use it everyday and I couldn't be more positive on its future. And I think 10s of thousands of companies will integrate Lightning... to be more productive, more profitable, with better customer service. It really is Bitcoin's scaling layer and it works.
From the original article:
[in writing to Saylor] Instead, you’re speculatively hitting those who fund your Bitcoin buys. You’re not just hurting them; by strengthening the dollar...
The dollar is not strengthening.
Even this guy says so.
So don't forget the big picture. Lightning is amazing and when there are more places to "spend" Bitcoin:
The world will 'get' it.
Bitcoiners are just far, far ahead of everyone else.