- Block Inc. CEO Jack Dorsey said Bitcoin would fail if only used as a store of value on the “Presidio Bitcoin” podcast episode.
- Bitcoin maximalists don’t agree with Jack Dorsey as Bitcoin being a store of value can position it as an alternative to devaluing fiat currencies.
Bitcoin is the first successful application of blockchain technology, which made it possible to create the entire crypto ecosystem we see today. Satoshi Nakamoto created Bitcoin with a vision of creating an electronic peer-to-peer payment network. His main purpose was to create a digital currency that could be used for everyday payments across the globe.
However, Bitcoin is becoming more popular by the year as a store of value (SOV) rather than a medium of exchange. Crypto community even refers to as “Digital Gold,” comparing its nature of limited supply and increasing value to that of gold. The recent comments by one of the Bitcoin advocates, such as Jack Dorsey, have resurfaced the debate of Bitcoin’s actual use case.
During the “Presidio Bitcoin’s 21 in 21” podcast episode, Jack Dorsey said Bitcoin succeeds if BTC holders use it for everyday payments. In his words,
“I think it has to be payments for it to be relevant on the every day. Otherwise, it’s just something you kind of buy and forget and only use in emergency situations or when you want to get liquid again. So I think if it doesn’t transition to payments and find that everyday use case, it just gets increasingly irrelevant. And, that’s failure to me.”
Dorsey believes creating a simple and accessible payment solution is important for today’s fintech world. He thinks that with time and increased accessibility, the cryptocurrency volatility issue will subside. Jack Dorsey is one of the early and strong Bitcoin advocates. He firmly believes in the original vision of Bitcoin.
Jack Dorsey’s View on Bitcoin Sparked Debate
What Jack Dorsey says is true to the actual purpose behind Bitcoin’s creation. However, the asset has come a long way from being a medium of exchange. Its deflationary supply and incredible value growth over the years have made it best suitable as a store of value.
Lead Developer at Bitcoin Keeper Ben Kaufman made a post on his X account. He seems to disagree with what Jack Dorsey said in his podcast.
Ben Kaufman made a strong case, saying,
“Bitcoin requires as a store of value because governments erode the value of their currencies. It is needed for payments to circumvent financial censorship. Currency devaluation affects everyone, while payment censorship affects small groups.”
Bitcoin maximalist Dan Held clarified on this debate years ago on one of his threads on X. He argues that Bitcoin was purpose-built to first be a store of value. Dan Held even quoted what Satoshi Nakamoto said in his early comments after the Bitcoin whitepaper publication. It says,
“If there were nothing in the world with intrinsic value that could be used as money, only scarce but no intrinsic value, I think people would still take up something. It might make sense just to get some if it catches on. If enough people think the same way, that becomes a self-fulfilling prophecy.”
Bitcoin is definitely a noteworthy creation that holds the potential to change the global economy. Governments coming forward to adopt Bitcoin for national reserves. This would only increase its store of value in the coming years. No matter if it will be used as a medium of exchange or a store of value, Bitcoin is something that might not be irrelevant in the coming years.
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