Bitcoin Still Has A Long Way Before Becoming Medium of Exchange, Says ex-Google Engineer
Many have opposed Boyapati’s view stating that bitcoin payments are being accepted by a number of entities.
Bitcoin Not Yet A Store of Value
Bitcoin cannot be viewed as a store of value at the moment. This is according Vijay Boyapati, an ex-engineer at Google. Boyapati has argued that there are no agreement about BTC’s value hence it cannot serve as a SoV. Through his Twitter, the expert stated that crypto is very volatile and it is on course to be considered a store of value.
Boyapati is currently based at Peach Inc. He said that bitcoin has to establish that it can be used for exchange without any hitches. He stated that the largest crypto must prove to be a usable medium of exchange while at the same time showing unit for an account.
The engineer added that an agreement about Bitcoin’s store of value might not be reached soon following the emergence of cryptocurrency assets. He said the introduction has resulted in massive confusion. The most common issue about cryptos is that many don't know how to classify cryptocurrencies. There is a debate about classifying them as commodities, money or assets.
The current market confusion might be a product of the volatile nature of cryptos. The volatility has been cited as the reason why cryptos lack a specific class. Boyapoti highlighted some contradiction about the classification of bitcoin. He said it is normal to imagine that bitcoin can shift from lack of a value to a significant value while at the same time stabilizing in the market.
He added that settling on a price for SOV is a gradual process. Boyapoti further pointed out that price movement does not take a particular course since they are not predictable. He cited an example of silver which was demonetized in 1873. He stated that bitcoin still had a long way to go since the opportunity cost is huge.
His claim has met a number of opposition from crypto lovers over the huge opportunity costs linked with bitcoin. A business owner replied to Boyapoti’s tweet stating that he has been accepting payments in form of bitcoin for a long time.
Following this argument, Boyapoti stated that the business owner was insignificant economic wise. He further cited a recent article published by Bloomberg. The article claimed that Bitcoin Cash crusader Roger Ver is having it rough to get more believers.