One of Bitcoin’s biggest pushes has been for the digital asset to replace fiat currency as the accepted method of payment around the world. It still remains a push among crypto enthusiasts but to a lesser degree. This is because the asset has grown so much to the point that investors would rather hold the cryptocurrency and profit off it rather than purchase anything with it.
Bitcoin has no doubt proven itself to do everything – and more – of what it was created for but with an asset as scarce as it, it has made more sense to hold onto the cryptocurrency for the long term. Celsius CEO Alex Mashinksy gave some interesting insights regarding bitcoin being used as a form of payment, which showed that the CEO was not a fan.
Related Reading | Hackers Cart Away $200 Million From BitMart In Multi-Chain Exploit
Bitcoin Is A Better Store Of Value
There is no doubt that bitcoin is one of the most efficient stores of value of the past decade. The deflationary asset has brought returns that have rivaled the greats in the financial space and continue to do so. However, one part of bitcoin’s predicted destiny that it is yet to be used for is as a form of payment.
For many, they had no problem using the digital asset as a means of payment when it wasn’t worth much. This also meant that fees were very low for transactions. But as time went on, bitcoin showed to be a true store of value, almost completely wiping out the notion of using it as a form of payment from the minds of investors.
Talking to Coin Stories, Alex Mashinksy shared his thoughts around the use of bitcoin to pay for goods and services. According to Mashinksy, bitcoin is a bad form of payment.
The CEO explained in the interview that Bitcoin should be used instead as a store of value, while the dollar could be used as a form of payment.
“The dollar is a phenomenal form of payment. It’s a horrible store of value and Bitcoin is a phenomenal store value, but it’s a pretty bad form of payment.”
People Regret Paying With BTC
Another point that Mashinksy hit during his interview was the appreciation of BTC over time while the item that was purchased depreciates over time. The CEO points to those who had purchased an electric vehicle from Tesla using bitcoin. Early in the year, the EV maker had announced it would be accepting bitcoin payments for its cars. Bitcoin users rejoiced and flocked to purchase a vehicle from Tesla.
Related Reading | Michael Saylor Discusses How The Future Of A Crypto Is Determined
At the time, bitcoin was still teetering below the $40K range and one Tesla to go for as high as two or three bitcoins. Fast forward to the fourth quarter of the year and BTC had risen to new highs. Meanwhile, the vehicles purchased earlier in the year have depreciated in value since then. The Celsius CEO explained that people would regret paying for their items in BTC because they would see how valuable the coins are and wish they could go back and keep their bitcoins instead.
“Anything you bought with Bitcoin in the last 10 years, you rather have the Bitcoin back and would have paid in US dollars,” Mashinksy said. “That’s really the crux of the matter that you cannot use it as a form of payment or cannot use it in a way that makes you happy about the transaction.”