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.

Electric Capital: 'Monetary and Fiscal Stimulus Is Hastening' Crypto Adoption

  • Early stage crypto venture firm Electric Capital says government monetary and fiscal policies are expediting mainstream adoption for cryptocurrency. 
  • The firm highlighted a long term erosion in trust for fiat currencies coinciding with an increase in trust for cryptographic processes. 

Early stage crypto venture firm Electric Capital claims that recent monetary and fiscal stimulus has hastened bitcoin’s adoption. 

In an investor update, the firm argued governments around the world are hastening adoption for cryptocurrency with their unprecedented monetary and fiscal stimulus initiatives. 

The firm explained that bitcoin is emerging as a potential store of value versus the U.S. dollar. While some detractors say bitcoin’s short term correlation to U.S. equities has undercut its potential as a store of value asset, Electric Capital called this a “straw-man argument.”

The report reads, 

As we regularly state: Bitcoin is not a store of value today relative to USD. It is a potential store of value, as it has many (though not yet all) of the characteristics of an excellent store of value.

The report continued, highlighting bitcoin’s value as a hedge against inflation, fiat devaluation and government seizure. The firm also pointed to bitcoin’s proven track record as a store of value relative to distressed emerging market currencies, emphasizing its popularity in the hyperinflation zones of Latin America and Africa. 

The investor update claimed to be optimistic about bitcoin’s long-term potential as a store of value and argued recent market developments have increased the likelihood of bitcoin’s broader adoption. 

According to the report, government monetary and fiscal stimulus policies are trending towards a long term "collapse in trust" in existing financial markets and fiat currencies. Simultaneously, Electric Capital reports a long term trend increase in trust in cryptographic systems, on which a new store of value can be developed. 

The report reads, 

Trust in governments is at all time lows, a global recession looms, unemployment will hit historic highs, government debt-to-GDP is at all time highs, dollar denominated debt payments in emerging markets loom, and many are worried about the scale of government stimulus.

The investor update concluded by saying long term data suggests an increase in global concern over an unsustainable economic path, which may drive people and institutions to consider cryptocurrencies as an alternative. 

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