Bitcoin Is Money That Works '24/7/365', Unlike the Banking System, Analyst Argues

  • ADVFN.com investment website CEO Clem Chambers explains why bitcoin is money.
  • He noted that bitcoin and other cryptos are an effective medium-of-exchange, store-of-wealth, and unit of account.

Clem Chambers, the CEO of ADVFN.com, a website dedicated to private investors, recently published a blog post in which he argued that bitcoin (BTC), the flagship cryptocurrency, is actually real money.

Despite claims that bitcoin is not money, Chambers revealed in his post on Forbes that he has “made a lot of money out of crypto” and that he “can tell you categorically that” bitcoin has all the essential properties, or characteristics, of money. Traditional economists define money to be a effective medium-of-exchange (MoE), a store-of-value (SoV), and a unit account. According to Chambers, bitcoin meets all three criteria for money, in addition to “other things.”

Bitcoin Is "An Excellent Means Of Exchange"

Going on to argue that bitcoin is “an excellent means of exchange”, Chambers pointed out that users “can’t reverse a BTC payment like a payment by credit card.” This is a useful feature for merchants as bitcoin and other cryptocurrencies bring finality to transactions. Notably, Chambers mentioned “there is now a hard core of people who buy things with credit cards and ‘charge back’ months later.” These people claim that they were either not satisfied with the product or service, or even assert that they did not conduct the disputed transaction. This is often unfair to merchants as they’ve already provided their service, but will ultimately not be compensated.

However, these types of problems, or issues, won’t arise when using bitcoin, as Chamber wrote: 

You can’t do this with bitcoin. You can’t bounce a bitcoin or charge back a bitcoin. You can’t forge a bitcoin. You can’t receive it and claim you didn’t.

"No Multi-Day Banking Delays" With Crypto

Citing other advantages bitcoin and other cryptocurrency payment platforms have over traditional transaction systems, Chambers noted that “BTC arrives in minutes from distant clients” and it’s easy to confirm that the transaction, or payment, has been sent. For cross-border transfers, there are “no multi-day banking delays for payments that may or may not have been sent”, Chambers wrote. He added that users receive “an irreversible notice” their bitcoin payment has been sent out to their address.

In addition to receiving quick and conflict-free payments, Chambers noted there are services available now that allow users to “convert [their] crypto into pounds or dollars with no outrageous currency conversion” rates. Chambers also revealed that a BTC payment “worked for a US Florida client of [theirs]” - even during an emergency situation due to a “recent hurricane while the US bank was evacuated.”

While business-to-business (B2B) transactions involving fiat currencies can only occur during business hours, Chambers mentioned: 

Bitcoin is 24/7/365, the banking system is not. The blockchain works weekends, holidays and evenings, like our international sales staff and our websites.

Bitcoin Is A Store Of Value, & Unit Of Account

Bitcoin is also a SoV, and it’s “ridiculous to point out” that the flagship cryptocurrency was valued at $20,000 over a year ago and it is now trading for only $3,600 - Chambers argued. That’s because “one-yen used to be a gold coin” and if “you look at the history of money and its never-ending narrative of inflation and obsolescence”, then you are able to gain a better perspective, Chambers wrote.

Per the ADVFN.com CEO, “you can [also] use bitcoin as a unit of account.” He pointed out that hundreds of crypto exchanges are using cryptocurrencies as a unit of account and that blockchain-based cryptos are “by definition” associated with a ‘ledger’ - while tokens are “by design encapsulated on a ledger.” He remarked:

To say a bitcoin is not a unit of account is to say an abacus is not a calculating machine.

Staking-as-a-Service Startup Raises $2 Million, Set to Expand Its Team and Services

InfStones, a proof-of-stake (PoS) cloud solutions provider that claims to handle the world’s largest PoS stake, has recently announced it raised $2 million in seed funding, and the launch of its blockchain cloud service platform “Infinity Stones.”

According to a press release shared with CryptoGlobe, the firm’s goal is to bridge financial institutions and institutional investors with PoS chains, by “offering customers a simpler and safer service for the hosting of their mainnet projects and nodes.”

The funds raised from venture capital firms like DHVC and Plug & Play Ventures, known for investing in the early stages of PayPal and Dropbox, will help it achieve its goal. They’ll reportedly be used to expand InfStones’ team and services to additional proof-of-stake chains, beyond the 50 it already supports.

Jonathan Shi, a co-founder of InfStones, stated:

We’re witnessing an increase in interest in PoS coins, and InfStones has been at the forefront by being the first to provide reliable support on our cloud infrastructure, called Infinity Stones, designed for the blockchain to support the latest mainnet launches.

Currently, the staking-as-a-service startup supports some of the top PoS networks in the cryptocurrency space, including EOS, TRON, and Ontology. Shi noted that its clients see staking as a viable way to generate passive income, and as such have staked over $500 million worth of cryptocurrencies with the firm.

InfStone’s new Infinity Stones platform is reportedly being opened to institutional clients who are looking to launch a mainnet or node on a “secure and easy-to-use cloud storage platform.” The firm, launched in 2018, is also set to introduce a “one-click” solution to launch a PoS node on Infinity Stones, which is set to make deploying a node “as easy as launching a WordPress blog.”

Currently, the startup is a block producer in nine PoS blockchains. It aggregates token holders’ votes to participate in the production of blocks to receive mining rewards, and distributes these to holders after taking a commission.