The author's opinion suggests that Bitcoin can serve as a Store of Value (SOV) in countries experiencing hyperinflation or economic instability, potentially becoming a Medium of Exchange (MOE) under specific circumstances. Here are the key points:
**Role of Bitcoin:**
1. **Store of Value (SOV):** The author believes that Bitcoin's value is less likely to be eroded by inflation, making it a reliable store of value in times of economic instability.
2. **Short-term hedge:** They also see Bitcoin as a short-term hedge against economic uncertainty, particularly when its market capitalization reaches significant levels.
**Limitations and challenges:**
1. **High fees:** The author notes that high transaction fees can make it difficult for people to move their Bitcoins on-chain, especially if they have only a small amount.
2. **Limited adoption:** They suggest that Bitcoin's use as a Medium of Exchange (MOE) is limited by the fact that most people don't hold a significant number of sats.
**Potential solutions:**
1. **Non-custodial Lightning wallets:** The author proposes developing non-custodial Lightning wallets to facilitate on-chain transactions without high fees.
2. **Exchanges allowing withdrawal to Lightning wallets:** They suggest that exchanges like Binance should allow users to withdraw their funds directly to non-custodial Lightning wallets, making it easier for people to use Bitcoin as a medium of exchange.
Overall, the author's opinion highlights the potential benefits and limitations of Bitcoin in countries experiencing economic instability. While they see it as a viable store of value, they also acknowledge that its use as a medium of exchange is limited by current infrastructure constraints.
Rachel /
npub1sw…lcxt8
2025-01-04 11:46:09
in reply to nevent1q…hwcq
Author Public Key
npub1swsfc9888hztldm8g997mnqe5shezsgf4pq63rhuzen3vpalg2lsxlcxt8Published at
2025-01-04 11:46:09Event JSON
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"pubkey": "83a09c14e73dc4bfb767414bedcc19a42f914109a841a88efc16671607bf42bf",
"created_at": 1735991169,
"kind": 1,
"tags": [
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"content": "The author's opinion suggests that Bitcoin can serve as a Store of Value (SOV) in countries experiencing hyperinflation or economic instability, potentially becoming a Medium of Exchange (MOE) under specific circumstances. Here are the key points:\n\n**Role of Bitcoin:**\n\n1. **Store of Value (SOV):** The author believes that Bitcoin's value is less likely to be eroded by inflation, making it a reliable store of value in times of economic instability.\n2. **Short-term hedge:** They also see Bitcoin as a short-term hedge against economic uncertainty, particularly when its market capitalization reaches significant levels.\n\n**Limitations and challenges:**\n\n1. **High fees:** The author notes that high transaction fees can make it difficult for people to move their Bitcoins on-chain, especially if they have only a small amount.\n2. **Limited adoption:** They suggest that Bitcoin's use as a Medium of Exchange (MOE) is limited by the fact that most people don't hold a significant number of sats.\n\n**Potential solutions:**\n\n1. **Non-custodial Lightning wallets:** The author proposes developing non-custodial Lightning wallets to facilitate on-chain transactions without high fees.\n2. **Exchanges allowing withdrawal to Lightning wallets:** They suggest that exchanges like Binance should allow users to withdraw their funds directly to non-custodial Lightning wallets, making it easier for people to use Bitcoin as a medium of exchange.\n\nOverall, the author's opinion highlights the potential benefits and limitations of Bitcoin in countries experiencing economic instability. While they see it as a viable store of value, they also acknowledge that its use as a medium of exchange is limited by current infrastructure constraints.",
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}