Craig Wright explains why BTC is terrible money at Valuetainment

Dr. Craig Wright recently joined Patrick Bet-David for an interview on his Valuetainment Media, an entrepreneur focused channel that interviews subject matter experts. The two explored several topics related to digital currency, such as why BTC will not be worth $100,000, why BTC is not as decentralized as people think it is, why BTC does not work as a value transfer system, why John McAfee is a “scamming bastard,” and much more. 

Here are a few excerpts from the conversation between Wright and Bet-David.

BTC is full of false narratives

Among the many digital currency-related topics that are explored throughout the episode, Bet-David and Dr. Wright talk about BTC narratives. 

Wright says that the reason these narratives are abundant and proliferate in the digital currency ecosystem is because it keeps the Ponzi Scheme that is BTC alive. 

“Third world citizens don’t have investments, they don’t have loans, telling them about BTC is not going to pull them out of poverty. However, what it does do is create a false narrative perpetuating a Ponzi.”

In what seems to be an allusion to decentralized finance (DeFi), Dr. Wright comments on how BTC—or any digital currency for that matter—is not going to save individuals living in third world countries.

In many third world countries, there are bigger problems than getting an electronic peer-to-peer cash system in the hands of the citizens. That being said, giving the citizens of a third world country BTC is not going to pull them out of poverty. What it is going to do is give individuals who already hold digital currency a talking point that will make them hopeful and give them a positive outlook on the future of BTC—despite BTC being a terrible payment system full of speculators.

Why BTC is terrible money

When Bet-David asked Dr. Wright if BTC was more likely to go to $100 or $100,000, the nChain chief scientist was quick to say that BTC is not going to go to $100,000.

“Just believing things will go up because they’ll go up doesn’t work,” said Dr. Wright. “If you don’t have something that makes money, something that actually works, then it’s an empty promise, and it eventually ends. If you don’t have a system that transfers more volume every day at a lower rate, more efficiently, more effectively than Visa or Mastercard, if people are not using your system as a transmission system, then eventually someone is going to replace you. People will take BTC when it’s cheap and easy but when you have fees that are variable and go up and down and are more than 1 cent, then you don’t have an online cash system anymore”

BTC is more likely to go to $100 than it is $100,000 because BTC has no utility and fails as an electronic cash system. Individuals buy BTC because they are speculating on it, but BTC holders aren’t actually using BTC in a way that creates value; in addition, the fees associated with a BTC transaction are unpredictable and expensive, that being said, it is often cheaper to transact with fiat currency than it is to transact with BTC.

So what are you supposed to use Bitcoin for?

Wright tells Bet-David that Bitcoin (BSV) is supposed to be a system that acts as plumbing, a system that is cheaper than PayPal and faster than Visa while allowing users to make micropayments.

“I want you to use Bitcoin,” Dr. Wright said, explaining that real value is created in a network when you are building apps and services, transferring value, and investing in others who are creating as well. 

Using Bitcoin in the way Satoshi envisioned is only possible on the original Bitcoin (BSV). On BSV, there is no block size limit, the average transaction fee is always a fraction of a cent, and there are no artificially imposed limits on the network, which gives software engineers building on BSV as well as the BSV ecosystem unbounded scalability and potential.

Dr. Wright and Bet-David talk about much more in their interview and we recommend watching the full interview on the Valuetainment YouTube channel to see the conversation in its entirety.

New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.