TV host in China refused to accept bitcoin for free in 2014. Five years later, he refused again. Bitcoin performs better than fiat currency.
If you were offered 100 bitcoin for free, would you hesitate to jump on the opportunity? Chances are, you won’t think twice to supercharge your stockpile of satoshis. With bitcoin trading around $7,000, 100 BTCs is worth $700,000
Well, a certain professor and TV host in China was offered 100 BTCs for free on air. His name is Lang Xianping, also known as “Larry.” Back in 2014, the lucky professor shocked the crypto community when he refused the offer. At the time, the top cryptocurrency was trading at $650.
According to Larry, the number one cryptocurrency has no value. Would he change his mind now that bitcoin is worth $700,000?
Apparently, the professor is sticking to his guns. Recently, Larry was asked again on TV if he would accept free bitcoin. Surprisingly, he insisted on refusing because “it’s worthless.”
I’m not sure what Larry is smoking but I’m having none of that. Thinking that bitcoin is worthless is hypocritical and shows total ignorance of how money works.
I hope Larry gets to read this article so he learns that bitcoin fares so much better than fiat currency in the four properties of money. For instance, sound money should be a safe store of value. The U.S. dollar is an awful store of value, having lost 96% of its value in 100 years. With the Federal Reserve printing more money, the greenback is bound to lose more purchasing power.
On the other hand, bitcoin maybe volatile but the volatility has been on the upside. If Larry accepted the 100 BTC in 2014, he would have made over 992% in gains by today.
Another property of sound money is scarcity. Bitcoin is the most scarce currency in existence. There will only be 21 million BTCs ever mined. Meanwhile, governments can print as much fiat currency as they want.
Also, bitcoin is divisible just like the dollar or the Renminbi. The number one cryptocurrency is divisible to eight decimal points. Each decimal point or unit is referred to as a “satoshi.”
Lastly, bitcoin performs a lot better in the transferability aspect of sound money than paper currency. If you want to transfer fiat currency to a person in another country, it might take days before the cash reaches the recipient. With bitcoin, the transfer may take less than an hour. That’s the power of blockchain technology maintained by a healthy network of miners.
These are some of the reasons why bitcoin is worth more than any fiat currency. In fact, one BTC is worth 700,000% more than one U.S. dollar. If Larry the professor uses paper currency, claiming that bitcoin is worthless is just hypocrisy.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
This article was edited by Sam Bourgi.
Last modified: November 27, 2019 2:13 PM UTC