Bitcoin: A Medium of Exchange? Think Again 🤑

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The inimitable Lyn Alden, that grande dame of macroeconomics, has deigned to share her thoughts on the humble Bitcoin. It appears she’s not entirely convinced of its merits as a medium of exchange. Quelle surprise! 😏

According to Alden, those who find themselves in a pickle with payment issues – capital controls and whatnot – may indeed find Bitcoin a useful tool. But, she notes with a healthy dose of skepticism, they might just as well use those frightfully dull stablecoins as a short-term solution. How terribly… practical. 😒

“There are some very well-meaning Bitcoin proponents trying to convince Bitcoin holders to spend it more. I don’t particularly view that as a sustainable practice. Bitcoin is not going to catch on as a charity. In order for spending it to catch on persistently at scale… it has to solve problems for spenders and/or recipients that other solutions are not doing. And at this stage of adoption, that’s not necessarily the case, especially with capital gains taxes applicable to every single transaction and with options like stablecoins for near-term spending needs where volatility needs to be low.” Ah, the voice of reason in a world gone mad! 🙏

Alden opines that Bitcoin’s true value lies in its “optionality” – a fancy term for “it’s a jolly useful thing to have in one’s back pocket, old chap.” 🔮

“Owning a sound, liquid, fungible, portable store of value that is going through its adoption phase gives the owner some perks, or options, that other assets do not. Mainly, they can bring their store of value wherever they want in the world without relying on central counterparties and credit. It also allows them to make crossborder payments, including to deplatformed recipients, through substantial friction even if they are staying put where they are. They might not be able to ubiquitously pay with it, but if need be they can find ways to convert it to local currency in most environments that they find themselves in, and in some cases can indeed pay with it directly.” Ah, the joys of being a Bitcoin holder – it’s like having a superpower, minus the cape and awkward explanations to the authorities! 💪

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2025-07-09 03:12