MicroStrategy founder and bitcoin maximalist Michael Saylor said Monday central bank digital currencies (CBDC) are unstable and doomed to fail. He believes Bitcoin is better because of its relationship with scarcity, time, and energy. In fact, Bitcoin’s inflation hedging and store of value benefits prompted Saylor to include it on MicroStrategy’s balance sheet.
Michael Saylor claims that Bitcoin is superior to any CBDC
MicroStrategy Chairman Michael Saylor claims that Bitcoin is superior to virtual currencies issued by authorities such as central banks. Bitcoin’s association with scarcity, time, and energy makes it better than any central bank digital currency (CBDC).
Michael Saylor also believes Bitcoin is better than gold and real estate as scarcity is preferable to commodities or securities. Michael Saylor cites an article explaining how digital scarcity makes Bitcoin better than CBDC.
Bitcoin’s Proof-of-Work (PoW) makes information available for digital and physical work, since the information only exists because of certain things happening in the real world. A block is formed after real people invest time and energy to bring the information into reality.
“Bitcoin’s difficulty-adjusted proof-of-work makes bitcoin a real phenomenon, something to contend with. That makes it non-virtual, non-imaginary.”
On the other hand, virtual currencies such as in-game currencies and fiat currencies are not in short supply. In addition, their creation does not require energy and time.
CBDCs are likely to fail in the future for reasons such as centralization; Power to print on demand and authority; and vulnerability to bankruptcy, intervention or collapse. Also, others may find cheap ways to create it.
So far, central banks are conducting research and testing on CBDCs, including Digital Dollar, Digital Euro, eAUD, and Digital Renminbi.
MicroStrategy Continues to Buy Bitcoin (BTC)
Michael Saylor and MicroStrategy’s new CEO, Phong Lee, have pledged to continue buying Bitcoin despite the BTC price drop. Last month, MicroStrategy announced that it acquired almost 301 BTCs between August 2nd and September 19th. Thus, MicroStrategy and its subsidiaries now hold nearly 130,000 BTCs.
Meanwhile, Bitcoin (BTC) price continues to struggle to surpass $20,000. BTC price is currently trading at $19,429.
Varinder is a technical writer and editor, technology enthusiast, and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge of blockchain, cryptocurrencies, artificial intelligence and the Internet of Things. He has long been associated with the blockchain and cryptocurrency industry and is currently reporting on the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
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