As per reports, Bill Harris, CEO of PayPal and former Intuit CEO asserts that Bitcoin is a “colossal pump-and-dump scheme, the demerits of Bitcoin is not seen by the universe.” The main section of Harris’s post is directed at three key components of Bitcoin debate.
The three areas are means of payment, store of value and intrinsic value. Bill pulled out the well-known argument like “Bitcoin has no value at all”.
In the terms and conditions for the use of Bitcoin as a mode of payment, Harris says Bitcoin is accepted in almost every place. It is useless anyway due to the possibility of a 10% price swinging in a single day.
Reviews on Bitcoin
At first place, Bitcoin is indeed a useful as the mode of payment in specific fields where there are no options available to the user. For instance, Amazon Mechanical Turk workers who find it difficult to transfer money out of the system often turn to bitcoin by way of Purse.
Harris admitted the usefulness of Bitcoin for transferring the value. Later he talks about criminal usage of bitcoin as a mode of payment.
He claims even if users find a specific use of Bitcoin morally acceptable does not have any impact on whether the usage exists in the real world. Furthermore, it constitutes an illegal commerce which can recklessly throughout the globe.
Harris confers the efficiency issues connected with Bitcoin. It obtuse the two network layer such as Lightning Network, Again this array loss the point as the key value proposition. It has censorship-resistant payment than purchasing a coffee at Starbucks.
In terms of price volatility, the day-to-day price fluctuates and do not matter to those who aren’t living paycheck. These paychecks are willing to hold bitcoin for reasons pertaining to political philosophy, price speculation or other several reasons.
The people possessing bitcoin for several years are unlikely to view Bitcoin’s price movements as “loathsome”
The last comment Harris states that the Bitcoin only has value if people think other people will purchase it at a higher price. Apparently, there have been price dementias where a large number of people purchase. Bitcoin for the first time and have viewed the same. The reality says there is also a fundamental value proposition of Bitcoin. Since that is digital gold that is increasing cashless society.
Bitcoin and Initial Coin Offerings
Overall with response to Harris article is how he clumps Bitcoin with all altcoins and Initial Coin Offerings on the market. In fact, the article is associated with a supporting evidence for the “pump-and-dump” claims in Harris’s post is related to ICO Scams.
There are several scams in the crypto asset ecosystem, but these have nothing to do with Bitcoin asset. It is ambiguous why the post deviates into alternative crypto assets. However, when the point of the article is probably how Bitcoin itself is a scam.
The key point of this article is that the value of Bitcoin as a censorship-resistant, seizure-resistant form or digital value with an apolitical monetary policy. The value proposition can increase in relevance as the world becomes more digitized. The critics are free to make the case that bitcoin is overrate at any point in time. But to claim that it has no value whatsoever has no basis in reality.
Image Source: Bill Harris