Well, I’m sorry I disturbed everyone, but I had to get your attention for what I’m about to tell you. Many will hate the headline, but your rage will reduce if you keep reading.

The key point is Bitcoin is not best as a currency.

At first, Bitcoin as currency sounded good to me too, but then I really gave it some thought. I have a finance background, but it’s not needed to think this through. I’m afraid it’s only common sense if you can beat the bitcoin bias in your brain. Are you ready?

If we want to be passengers to a better future, we may have to let it go. There may remain a place for Bitcoin other than the dustbin, but Bitcoin as currency must go.


    Bitcoin as Currency Could Rob The Poor

Many Bitcoin advocates talk bout helping the poor, but if you truly want to help the poor, the last thing you would do is talk them into spending an appreciating asset on anything that could quickly or instantly lose its value.

Talk about robbing the poor to give to the rich, promoting Bitcoin as currency could achieve the largest transfer of wealth in history, but by taking from the poor and giving to the rich. The ole Robinhood reversal.

Elon Musk accepting bitcoin was brilliant, but it may not be ethical. I’m not talking about carbon footprints. I’m talking about accepting an appreciating asset as payment for a depreciating currency. The Tesla, no matter how innovative, loses value as soon as you buy it. It’s guaranteed. What about the Bitcoin you just spent to purchase the Tesla? Most people are expecting it to go up. See the scheme?

If you expect the price of Bitcoin to go up, it’s clever to talk people into giving you their bitcoin for a depreciating currency. But is it ethical?

No ethical person should accept bitcoin as a payment because people may unwittingly spend their hard earned asset instead of holding onto it. Perhaps tell them to borrow against it, but the smart money managers never exchange appreciating assets for depreciating goods or services.


    The Better Bitcoin Approach

The better scenario is giving all people access to two things:
* A crypto coin that is stable or slightly inflationary for everyday expenditures, like paying a bill or buying a burger.
* A crypto asset that can appreciate in price, store value, act as collateral, and grant access to a borderless economic ecosystem.

You may think, Bitcoin can be both! No crypto, not even Bitcoin, can be both. You must keep them separate. You must choose one or the other. If Bitcoin tries to be both, I will be skeptical of the knowledge or motives behind its backers.


    Bitcoin Can’t Be Bigger than Blockchain

Bitcoin was like blockchain 1.0, but blockchain technology continues to advance beyond Bitcoin. Here are some of the best features of blockchain:
* The stringent record keeping it enables.
* All records are public.
* It inspires open source projects.
* Can put stable currencies in the reach of everyone without middlemen or high transaction fees.
* The ease of digital collateralization of all asset types.
* You can store your treasure out of the reach of corrupt governments and thieves.
* Residents of lawless or unstable nations can easily own property in stable areas, preserving their wealth in property from thieves or rogue actors.
* Relating to the previous point, record of ownership for your assets is out of reach of bad actors.


    A Better Bitcoin

Will a better bitcoin emerge as a store of value? I don’t know. Some say Ethereum is better for a store of value because it has more utility. I must admit, it’s a little unsettling to know the only thing backing bitcoin is perception.

It’s the fiat currencies in the world with no backing, like a stable government, that get destroyed. What eventually happens to an asset with no real backing other than hope and perception? Will scarcity be enough to preserve its value? I’m uncertain. Consensus can change. The more I think about it, the less certain I become of Bitcoin’s future.

I will confess, I own zero Bitcoin because I’m not convinced it has enough value to hold its price forever. Price alone does not always tell the whole story, whether up or down.

If Bitcoin as currency is not the right play, what is? Some say it’s a store of value. Maybe, but what is backing it? I think in time, Bitcoin holders will move to crypto assets backed by real value like gold, real estate, NFT’s, corporate assets, native coins for blockchain ecosystems, DeFi projects, decentralized oracles, DEX’s, and other blockchain enabled applications.

There is just too much room for creativity to stop at Bitcoin as the best version of itself, but Bitcoin may endure. Some think it’s a ponzi scheme. Make up your own mind, but while we are on the topic, would there be any benefits of Bitcoin biting the dust? Well, yes.


    Benefits of Bitcoin Biting The Dust

First let me say, I don’t want any good intentioned person to lose their money. You need to enter the crypto markets with your eyes wide open, especially if you’ve not directly managed your investments before kicking off into crypto.

It’s hard to mitigate risk right now. The market moves up can give you a false sense of skill because the market moves unilaterally most of the time. To me, trying to play the short-term game in the crypto markets is like going to a casino.

This is not financial advice, but my approach is to find projects I understand with utility. Then wait until the market is down to buy.

What could happen if Bitcoin bit the dust? Yes, initially it could drag down the whole crypto market, but eventually the liquidity in Bitcoin would flow into other projects and ecosystems. This would be big for blockchain in the long run.

Much of bitcoin right now is just collecting dust while the money in other coins is working hard to develop DeFi and other projects, including third generation blockchains.

Everyone wants to bridge bitcoin into their DeFi projects because of this. Currently, there is a little over $12 billion USD in DeFi from Bitcoin. The market cap for Bitcoin is right under $900 billion. Imagine more of this money flowing into other parts of the blockchain economy.

Wait! You can just wrap your Bitcoin! This option has been available, but we still see most of Bitcoin sitting it out. Bitcoin needs to stop being a benchwarmer and get in the game. Is hoarding wealth on the sideline going to be the Bitcoin legacy?


    Back of The Bitcoin

I’m just thinking this through and asking questions. Don’t let my thoughts bother you if you are bullish on Bitcoin. Stand firm by your coin.

If you want to set me straight on this, do it, but please be polite. Also, I ask you to start with my biggest concern.

How is it optimal or ethical to convince people, especially poorer people, to spend an appreciating asset on depreciating goods and services?

If you can give me an answer on this, perhaps you can persuade me of a bright Bitcoin future that will deliver on its promises to the poor.