You've heard this before, haven't you? One of the arguments that is always presented is: BTC is "Store of Value".
Let's see, this can be dismantled in several ways.
The supposed fundamentals of “store of value” in BTC
What is store of value?
"Store of value" is any asset that reliably maintains its value without depreciating over time and, therefore, can be used to transfer purchasing power into the future. Some of the basic requirements for an asset to be considered a reliable store of value include:
There should be sufficient demand for this asset and it should be easy to exchange.
It should not be perishable or decline significantly in value over short periods of time.
There should be a limited supply.
There should be general agreement on its monetary value at any given time.
With this definition we can draw several conclusions. First, that BTC meets the last two characteristics, but not the first two mentioned.
It complies by being a limited supply, since it has no issuance (for now). And it has monetary value in space and time, since it is itself priced with a numerical "value" like all other cryptocurrencies. The topic gets interesting when we start analyzing the parameters it does not meet. For example, it is not easy to transfer, all the problems with the limitation of 1Mb blocks within the blockchain are well known.
The reservation of value is a consequence of being a medium of exchange. Therefore, BTC cannot be. Besides, no one can guarantee that the price will be the same in a month or a year, not even within the same order of magnitude, so the reserve of value is a marketing phrase with no connection to reality.
Let's look at the definition of money by one of the most important authors of the Austrian School to clear our doubts and to know what money is:
"When a medium of exchange comes into common use, it becomes money. The concept of money is of vague contours, since it implies a condition that is in itself imprecise, which is the "common use" of the medium of exchange. There are cases in which it is difficult to decide whether or not the medium of exchange in question is "commonly" used. But this imprecision in no way affects the rigor and certainty of praxeology, since what it predicates on money can be said equally of any medium of exchange. Therefore, it is of no importance in this matter to retain the traditional expression of money theory or replace it with another. The theory of money is and always has been the theory of indirect exchange and of the means of exchange".(1)
Another enlightening quote from Mises:
"Those goods are called means of exchange which are acquired neither to be consumed nor to be employed in productive activities of their own, but precisely to be exchanged for other goods which are actually intended to be consumed or used in further production."
In the next paragraph it states:
"Money is a medium of exchange. It is the most easily placed good; people desire it because they intend to use it in further interpersonal barter. Money is that which is generally offered and accepted as a medium of exchange. This is the only function of money. Any other functions generally attributed to it are nothing more than particular aspects of this fundamental and unique function, that of being a means of exchange".(2)
Let's see what Diego Giacomini, an economist from Buenos Aires, another of the referents of the Austrian School, says:
"Money has an essential function and another fundamental derivative function. The essential function is to be a general medium of exchange. The fundamental derivative function is to be a store of value".(3)
As can be clearly seen, before these statements it is seen that the myth falls, the veil of the myth of reserve of value falls. Since this has a function derived from the general exchange towards the reserve of value. First the generalized exchange and then the store of value.
One of the big problems seen in BTC for exchange are several.
First, the limitation of blocks to 1Mb makes this a bottleneck that greatly delays the ease of exchanging goods and services in a short period of time.
Second, this problem is further aggravated by the Lightning Network, which is theoretically a solution. But which fails tremendously when one realizes that this system does not touch the original BTC Core blockchain, in addition to making the whole procedure for making transactions more cumbersome.
The most difficult steps are those of opening and closing channels having to make a double commission payment for each transaction, completely discouraging the use of BTC in an easy and fast way.
Another point is to know that money is a social institution. And for it to become an institution, economic agents (exchanging goods and services) will have to do it repeatedly until this means of exchange becomes a custom in different communities over time.
The basics of Bitcoin Cash.
In Bitcoin Cash all these problems are already solved. There is no need for third parties or intermediaries. No need to open and close channels of any kind. Bitcoin Cash is the one that stays true to Satoshi Nakamoto's White Paper.
Conclusion.
Bitcoin Cash is precisely the one that has the essential fundamentals to be widely used as a medium of exchange. Its fees are very low, it is fast and very easy to use for all types of users of any age and from any part of the world.
It's the only cryptocurrency that in its fundamentals has the arguments to be the widely used currency of exchange of common use in the private sector, above the others that are slow, difficult and expensive to transact.
It's Just Money Bro.
Notes:
Ludwig Von Mises - Human Action - p. 479
Ludwig Von Mises - Human Action - p. 479
Diego Giacomini - La Revolución de la Libertad (sadly not available in english) - p. 299
SLP:
simpleledger:qqhqrvjp2jvngjswu88j3dhxl0vp7n7ntcrkpd8a4m
