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

  • 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, 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 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.

Weekly Newsletter

Jim Cramer Tells Facebook to Drop Libra and Buy Square

Neil Dennis

Jim Cramer, the energetic host of CNBC's Mad Money, advised Facebook on his Thursday night show to drop Libra and buy Square, the San Francisco-based payments company.

Focusing on Big Tech, the mega-cap sector that has come under ever-increased scrutiny from governments and regulators over its  growing global influence, he said companies such as Amazon, Alphabet and Facebook "need more grown-ups at the top".

On Facebook's cryptocurrency project, he said:

The Treasury department is not thrilled with Facebook's plan to launch its own cryptocurrency - talk about a self-inflicted wound.

More Heavy Hitters Needed

Indeed, earlier this week David Marcus, Facebook's executive at the helm of the Libra project, faced combative US lawmakers on Capitol Hill. Senator Sherrod Brown, chair of the Senate Banking Committee, said Facebook displayed a "breathtaking amount of arrogance" to suggest it could run its own bank.

Cramer believes Big Tech companies will face more of this hostility around the world as they grow and suggested:

They need more heavy hitters out there: if they simply bring in some unassailable outside counsel with real credibility - a distinguished retired federal judge from somewhere - then maybe the government would allow them to self regulate again.

A New Plan

However, Cramer said he was not worried about Facebook, partially because its Instagram business is on fire. But mainly because he has a better plan for the company. He said - aiming his statement directly at Facebook's top management:

I like the Libra concept but you've got to drop it. It's clearly doing more harm than good. Instead, just take some of your money and go and buy Square.

He suggested the price tag for the payments network run by Twitter boss Jack Dorsey would be somewhere around the $70 billion mark - a 100% premium over the current market value, but "no one turns down a hundred per cent premium".

And it would be worth it, buying the company for annual revenues of around $3.3 billion. Cramer added:

Then they can blow out Square's payments network worldwide and Square cash is going to be Facebook cash. And don't forget they take bitcoin so they can still get their cryptocurrency fix.

Evan Niu, technology specialist at The Motley Fool website, disagreed, however, suggesting that buying Square for its relatively minor exposure to bitcoin would be a waste of Facebook's capital. He added:

Additionally, Facebook's terrible reputation would tarnish Square's if Facebook acquired it, undermining the massive amount of goodwill it would inevitably record from such a large transaction.

Big Tech's Problem

Speaking more broadly on the issues of government and regulatory scrutiny now aimed squarely at the powerful Big Tech sector, Cramer said these companies needed to find a way to self examine. He added:

Being in the crosshairs of the federal government is going to cost these companies money.

Alphabet, he said, has "incredible power" and possesses the "ability to be coercive", which means there's earnings risk and even break-up risk as presidential elections approach.

Speaking to all Big Tech companies, he advidonsed:

They have the money, I know they don't want to slow down the innovation, but they lack a powerful, well-known outside counsel who can tell them what's right or wrong.