Let’s not kid ourselves, a person like Steve Hanke has enormous incentives to defend the status quo. He’s benefited tremendously from it. It could be argued that his livelihood depends on Bitcoin failing. A project to make it legal tender in any country goes directly against Hanke’s interests, and it’s no wonder he spoke against it. The insult was over the line, though.
We´re going to take the higher road and elegantly answer all of his points. The tweet in question was this one:
#Paraguay congressman Carlitos Rejala seeks to make #BTC legal tender. How stupid can you be? #Bitcoin is NOT a store of value, medium of exchange, or a reliable unit of account. Its volatility is an obvious reminder that it is merely a highly speculative asset, NOT a currency. https://t.co/BZXA9Y9i3N
— Steve Hanke (@steve_hanke) June 7, 2021
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Is Bitcoin A Store Of Value?
Who decides this? The people. If one person uses an asset to safeguard his wealth, then it’s a store of value. The question then is, is Bitcoin an effective store of value? Well, considering it’s the only commodity in the history of the earth that presents absolute scarcity, it’s probably a safe bet. Make no…