„Bitcoin has failed as a means of payment“ is one of the most common criticisms of Bitcoin (BTC) that Fidelity Digital Assets intends to refute. In a blog post published on November 13, the company responded to six „persistent“ criticisms, including volatility, energy waste, and the use of Bitcoin Evolution for illegal activities.
The cryptocurrency is overcome, Fidelity admits, by conventional payment channels such as Visa, Mastercard and PayPal, which offer higher capacities. However, Bitcoin was designed with other priorities in mind, including „perfect scarcity,“ says Fidelity.
„Bitcoin makes deliberate compromises, such as limited and expensive capacity, to offer basic properties such as decentralization and immutability. Given its high settlement guarantees, Bitcoin optimizes its limited capacity to settle transactions that are not effectively served by traditional channels.
Although currency is, in theory, valid as a payment instrument, everyday use is not necessarily the ultimate goal of the asset, given its limitations. In addition to price volatility, the fiscal definition of Bitcoin as an asset in some jurisdictions, according to which users must calculate gains and losses for each payment or purchase in Bitcoin, makes it impractical for many transactions.
According to Fidelity, users should be aware that currency design has given priority to factors such as decentralization, limited offer and unchangeable settlement. These aspects should be valued according to specific terms, accepting that they have disadvantages on the front of daily transactions.
Moving on, Fidelity addresses the criticism that Bitcoin’s extreme volatility compromises its use as a store of value. In this case, Fidelity again reformulates the terms of the criticism, arguing that volatility is the price to pay for a „market resistant to intervention“:
„No central bank or government can intervene to support or protect the markets and artificially control volatility. Bitcoin volatility is a compromise for a distortion-free market. The true price discovery accompanied by volatility could be preferable to artificial stability if it results in distorted markets that could disintegrate without intervention“.
Fidelity offers other detailed arguments about volatility, linking it to the „perfectly inelastic offer“ of the asset. The last four criticisms addressed in the blog post are environmental waste, the use of Bitcoin for illegal activities, the „lack of guarantees“ of the asset and the potential overtaking by a competitor.
Explosive trial in sight – The Kleiman v Craig S. Wright case will soon be tried before a jury , despite all attempts by the accused to avoid it. The one who proclaimed himself as Satoshi Nakamoto (luckily?) Managed to avoid reading messages calling him a “fraud” and a “liar”.
Ira Kleiman has been on trial with Craig Wright since February 2018. He is the brother of the late David Kleiman , a former partner of Wright. Ira is asking for half of the 1.1 million bitcoins her brother supposedly mined before 2013 with Wright’s help.
Without going into the many details and twists of this nearly 3-year-long affair, Craig Wright claims to have (finally) received the keys to access what would be equivalent to nearly $ 20 billion in bitcoins .
However, this amount remains very theoretical for the moment. Indeed, some addresses supposed to contain Wright’s BTC – addresses given by Wright – turned out to belong to others, who left him a message.
These messages, signed on the blockchain by the real owners of the private keys , did not contain only courtesies against the one who is nicknamed Faketoshi. Very far from it even!
„Prejudicial“ remarks that risk influencing the jury
We therefore come back to the last judicial document in this case, published on November 16 by the Court of the Southern District of Florida .
Among the experts called to testify at Craig Wright’s trial, which is scheduled to begin in January , is expected to be Andreas Antonopoulos , author of well-known books on Bitcoin.
He was to read aloud , in front of the jury, the contents of 145 of the signed blockchain messages mentioned above, which all included the same text:
“Craig Steven Wright is a liar and a fraud. He does not have the keys used to sign this message (…) We are all Satoshi. „