Looking back at his controversy, Thaler’s insightful views will have you questioning your Bitcoin theory.
Thaler is the prodigal son of Bitcoin.
Bitcoin maximalists love him. Because he’s a man of the people and speaks like a radicalized church minister straight from the blockchain faith book.
He’s not for everyone, and he certainly has an ulterior motive when talking about the most popular cryptocurrency, Bitcoin.
I can read an article detailing his biography, as well as the controversies and accomplishments surrounding Thaler, here.
Many use his quirky comments as a stick to beat him up, but he’s in his business for a reason MicroStrategy It has survived three recessions and is worth over $1 billion, even if you don’t own Bitcoin.
The company’s track record shows a pretty safe signal with over 40 patents for the technology they invented.
MicroStrategy is now the world’s most important corporate holder of Bitcoin.
“Bitcoin, the world’s most widely adopted cryptocurrency, is a reliable store of value and an attractive investment asset that has the potential to appreciate over time compared to holding cash.”
Thaler’s insightful views will make you question your bitcoin theory, even if you’re unsure about it.
Over the years, for most people, property has been a storehouse of valuable solutions.
I took out a mortgage on real estate, paid it off for over 30 years, and opened a savings account while my assets were growing in value.
It’s a win-win if you live in a country with land title.
The problem with properties is that you can’t split their value into thousands of pieces and transfer that value around the world in seconds.
“The inability to store one’s economic energy in the form of property or money for the long term is an economic death sentence.”
“It’s hard to divide 1/10th of the building and buy a car in 1/10th of the building. Unlike Bitcoin, property cannot function as money. “
In interviews Thaler often asked about Bitcoin’s short-term price dynamics and why the price is so volatile.
He believes that buying bitcoin should be considered like any other real estate purchase.
When I buy a house, I don’t look at price fluctuations a month after I move in. These are all investments with a buy-and-hold thesis.
“If you buy long-term assets, especially real estate and bitcoin, you shouldn’t hold it for 10 minutes if you don’t hold it for 10 years.”
“There’s a reason why people can’t live off the money they’ve worked for all their lives. The option to store value is broken.
So people take their best guess and invest in risky single assets like game stop“
Thaler strongly believes that Bitcoin is digital gold and that gold has no storage or portability issues.
He knows bitcoin mining is under magnifying glass, and he even ignites gold’s energy usage.
“The problem with gold is that you can’t move it quickly.
We want to move $1 billion of gold to Tokyo. This will cost him three months and him $5 million.
It cannot be disassembled and reassembled. “
Thaler also believes that gold could lose value as Bitcoin gains market share. goldman sachs We share this view and accept that Bitcoin will overtake gold as an asset class by 2030.
“The problem with gold coins is that in 100 years, 50 years from now, they will only be worth a tenth of what they are today.”
Thaler believes that cryptocurrency is not a currency and is not the right term for bitcoin.
He sees Bitcoin as a digital property right that enables economic empowerment, especially in poor, unbanked countries.
“Cryptocurrency” is the worst term. Because it is not legal currency.
The problem is that most people equate money with currency and therefore fall into the same cognitive trap. “
“Crypto assets” are much better.
Thaler believes Bitcoin is not a currency and therefore does not compete with the dollar. Currency is a non-taxable medium of exchange.
He also believes that characterizing Bitcoin as a currency caused a lot of friction with El Salvador, the first country to make Bitcoin legal tender.
“El Salvador has a lot of friction because it characterizes Bitcoin as a currency rather than a property.
If they said so, we would use the dollar as our medium of exchange and bitcoin as our store of value.
Bitcoin is an asset and the dollar is a currency. Those sparks never fly.
I wrote the full story about El Salvador here — El Salvador’s Bitcoin Mad President Loses the Country $61.6 Million.
Perhaps the most important criticism Thaler has set for himself is his divisive stance on Echo Warriors, who believe Bitcoin uses excessive energy.
Thaler believes bitcoin mining is the most efficient and clean use of industrial power, improving energy efficiency faster across important industries.
On his website Saylor.com, Bitcoin Mining Council This indicates that 59.5% of Bitcoin mining energy comes from sustainable sources.
It also shows that Bitcoin mining is 46% more energy efficient year-over-year.
This improvement has mostly to do with miners’ need to profit and the government’s pressure to become more Echo friendly.
“No other industry can match it: airplanes, trains, automobiles, healthcare, banking, construction, precious metals.
Combine this with the bitcoin mining reward halving built into the protocol every four years.
Energy usage consistently delivers an 18-36% improvement in energy efficiency each year. “
Interestingly, Thaler predicts Bitcoin’s energy usage as its fundamental strength.
I think it’s Bitcoin’s Achilles heel in the short term.
He made these statements in light of the Ethereum merger event that made the ETH network 99.5% more energy efficient overnight.
These were his comments before the Ethereum merge event.
“Bitcoin is practically finished, Ethereum is practically unfinished.
This is a matter of Vitalik’s philosophy that anything can be imagined. It’s far from reality.
You write a piece of software and find it doesn’t work. All Proof of Stake ciphers are very romantic.
Idealism makes them unsuitable as money and commodities.
Bitcoin is about to become a digital asset without an issuer. “
After the successful completion of the Ethereum merge, Thaler questioned the lack of proven information about Ethereum, which has led to concerns about the technical reliability and security of the protocol.
“Technically sound means we need to see the protocol functioning for about five to 10 years.
If you’re hardforking and modifying, every major upgrade introduces a new attack surface.
Thaler is now questioning the ethical integrity of Ethereum.
“‘Ethically sound’ means that no one or individual on Ethereum needs to know that the protocol cannot be changed.
Because if they can change the protocol, it becomes a security, and if it becomes a security, it doesn’t become global money.”
I have always disagreed with Thaler’s stance on not acknowledging Ethereum’s smart contract capabilities or significant improvements in energy usage that people around the world care about environmental factors.
It’s as if you feel threatened.
sailor has 130,000 Bitcoin, so I can see why he takes a partisan view. I believe Bitcoin and Ethereum will complement each other in the Echo system, so I tend to ignore his one-sided stance.
I look up to Thaler because he is passionate about building the future of Bitcoin and wants the world to have the same access to self-sovereignty.
Bitcoin is the fastest growing technology It is the best performing asset of the last decade in human history.
Adopted twice as fast as the Internet.
Whether you think Bitcoin is a great asset or a Ponzi scheme, you should ask yourself if the technology will stop and adoption rates will recede.
I do not think so.
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This article is for informational purposes only. It should not be considered financial, tax, or legal advice. You can consult a financial professional before making any important financial decisions.