The Need To Force And Incentivize Bitcoin
Isn't it ironic?
Bitcoin as legal tender. How is that for a kick in the pants? Government mandating, once again, what should be used for commerce and trade.
In this video I discuss Gresham's Law, where it is inaccurate and correct, and how perhaps Bitcoin is proving this (but not in the way Maxis think). One of the areas where I think Gresham;'s law does come into play is with legal tender.
▶️ 3Speak
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My understanding of this is that Bitcoin has been widely used in El Salvador and a lot of stores and services offer/accept BTC payments. By officially declaring it as legal tender, the government is accepting it and is informing services or stores that don't accept it, to do so. I don't think it is just for publicity, but rather the government being forced to recognize it because of the popularity. I think it will happen in more countries as crypto becomes more accepted, and also in countries where their own currency is losing value.
I can tell you that barely anybody uses it right now, and lots of businesses will tell you they don't accept it (ie: the law isn't enforced). There have been technical problems too lately with lightning payments at some locations.
And nobody is going to use the Chivo ATMs with Bitcoin fees at $30 now.
That is really interesting. It is in stark contrast to what the government wants to happen. I am curious if the citizen's stand on it is changing now that BTC has been increasing.
Not really. It has piqued the interest of a few, but Bitcoin will have to go much higher for the people to really take notice.
It's still not considered a currency by the population, but rather a risky and volatile investment. I think they'll only switch to Bitcoin when USD inflation gets really bad.
I see. Thanks for sharing these info.
I'd rather have Bitcoin retired as the default cryptocurrency and we agree on a better blockchain to promote.
Like our beloved Hive.
Or at least a DPoS version of Ethereum.
The most recent move by Argentina was interesting - to make not only Bitcoin, but any crypto an acceptable means to settle contracts in their jurisdiction.
I imagine they'll be using stablecoins for now, until US dollar inflation gets out of control.
Summary:
In this video, the speaker discusses the idea of incentivizing and forcing Bitcoin's adoption, particularly in light of El Salvador's move to grant citizenship for Bitcoin and make it legal tender. The speaker criticizes the concept of Grisham's law, which suggests that bad money drives out good, and argues that Bitcoin's flaws, such as slow transaction speeds and high costs, make it a less than ideal form of money. He questions the need to incentivize Bitcoin if it truly is superior as some claim. Additionally, the speaker praises alternative cryptocurrencies like HBD for their faster transaction times and lower costs compared to Bitcoin.
Detailed Article:
The video begins with the speaker addressing the topic of incentivizing and forcing Bitcoin's adoption, drawing inspiration from El Salvador's decision to grant citizenship for Bitcoin and make it legal tender. He expresses skepticism towards this approach and questions the necessity of promoting Bitcoin if it is truly superior as some proponents suggest.
The speaker delves into the concept of Grisham's law, which posits that bad money drives out good, but he challenges this notion by providing historical examples that contradict this theory. He highlights the importance of understanding the fundamental basis of money, emphasizing that money is created for trade and commerce, not dictated by governments.
A key point of contention for the speaker is Bitcoin's perceived flaws, particularly in terms of slow transaction speeds and high costs. He shares his personal experience of finding Bitcoin transactions to be inefficient and costly, leading him to prefer alternative cryptocurrencies like HBD for their faster processing times and lower fees.
One of the speaker's central arguments revolves around the idea that the legal tender status of Bitcoin may not necessarily lead to its widespread adoption, especially if users find it to be a subpar form of currency. He praises HBD as an example of better money due to its superior transaction efficiency and lower costs, which are more appealing to users.
Throughout the video, the speaker challenges traditional economic theories and criticizes prominent figures in the financial industry, such as Peter Schiff, for their views on money and cryptocurrencies. He underscores the importance of understanding how the financial system operates and encourages viewers to question mainstream narratives.
In conclusion, the speaker advocates for a critical examination of the efficacy of Bitcoin as a global payment system and promotes alternative cryptocurrencies like HBD as a more efficient and practical option for daily transactions. He raises important considerations regarding the usability and functionality of different forms of money, urging individuals to prioritize practicality and efficiency in their financial choices.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.