Attention Economy


Tuesday, February 9, 2021

Bitcoin is a Poor Medium of Exchange

Why Bitcoin Hasn’t Gained Traction as a Form of Payment
https://www.wsj.com/articles/why-bitcoin-hasnt-gained-traction-as-a-form-of-payment-11612886974
The cost of using the digital currency, and its volatility, make day-to-day transactions impractical

The Tesla-Bitcoin Singularity Is Here at Last
https://www.bloomberg.com/opinion/articles/2021-02-08/elon-musk-s-tesla-buying-bitcoin-is-inevitable-and-disconcerting
Liam Denning notes:
Bitcoin is anything but routine, though. New, stateless, volatile, subject to cybertheft and potential government regulation, it is a currency only if you squint really hard and can jump through the hoops of actually using it. Tesla’s comment that it expects to begin accepting Bitcoin as payment in the near future is irrelevant; doing that doesn’t require hoarding it ahead of time.
On the other hand, the casual reference to Tesla taking Bitcoin as payment down the road is like digital catnip, helping to boost the value of that $1.5 billion bet. And it is a bet. Tesla is speculating with $1.5 billion of the roughly $19 billion it had on the balance sheet at the end of December, $12 billion of which was raised from selling more equity into last year’s frenzied rally”.

Related: 

My take: