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Bloomberg Newsletter Bashes “Annoying” Bitcoin Evangelists

Avatar Davit Babayan 6 months ago

Bitcoin will never supplant the US dollar, believes Joe Weisenthal of Bloomberg Markets.

The chief editor today invited bitcoin evangelists to fight his belief as the cryptocurrency soared towards the $10,500 valuation. He shared excerpts from their Bloomberg newsletter, which showed an unnamed author discussing how bitcoin supporters project it as a solution to almost everything, including excess natural gas issues in Texas. The newsletter went on debating that it is “virtually impossible” for bitcoin to become a dollar successor, stating that asset is too volatile to become a global reserve.

“There can be no lender-of-last-resort with Bitcoin because no central bank can create it, and therefore relying on it would be exceptionally risky,” he wrote. “This is true, but Bitcoiners think this is a good thing.”

The Bashing Fest

The rest of the excerpts focused on many aspects of bitcoin that its backers showcased as a game-changing evolution. But, as the author put, the “annoying” supporters would never thoroughly discuss why bitcoin could never become a global medium of exchange – or a unit of account. He/She added that nobody would ever want bitcoin-denominated debt nor any state would accept taxes in bitcoin because it would limit a government’s ability to regulate commerce.

“You just end up in an argument over first principles [of the economy?], which is a waste of everyone’s time,” the author said to bitcoin evangelists.

Weisenthal backed the writings in the newsletter for their anti-bitcoin observation, repeating in a tweet that the cryptocurrency would never be able to replace the US dollar.

On ‘Digital Gold’ Theories

The statements came on the day when bitcoin revived its interim bullish bias and soared above the $10,700 level for the first time in two weeks. The upsurge appeared against the backdrop of a dwindling China’s renminbi and Argentina’s capital controls. The coincidental correlation between bitcoin’s rise and those two events prompted many bitcoin supporters to say that investors are treating the cryptocurrency as a safe-haven asset.

Bloomberg Markets and Weisenthal didn’t argue with that narrative. Their newsletter stated that while bitcoin’s likelihood of replacing dollar is negligible, it could still become equal to Gold – a rival hedging asset.

Ryan Selkis, the founder of crypto data startup Messari, backed Weisenthal on both of the bitcoin’s aspects: of a global reserve and hedge. He tweeted:

“Replacing the dollar/state currencies for MoE, debt markets, etc. is unlikely, but a “better gold” could be bigger than gold and cut into demand for no yield debt assets as a mix of reserves. So that’s $7 trillion + $17 trillion. We’ll be very happy with $1.5 million BTC.”

Davit Babayan

Davit Babayan is an Armenia-based expat balancing the academic life of a software design engineer with the experiences of a financial technology journalist. He aspires to be a full-time columnist and wants to write a book that...

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