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Bitcoin [BTC]: Tim Draper dismisses fiat currency’s relevance in the face of crypto’s growing importance

Arijit Sarkar



Bitcoin [BTC]: Tim Draper dismisses fiat currency's relevance in the face of crypto's growing importance
Credit: flickr

Following the entry of several institutions into the cryptocurrency space, world renowned venture capitalist Tim Draper, has also openly opined in favor of crypto. Sharing the sentiments of entrepreneur Brock Pierce, Draper shared that his focus was on improving humanity. Citing the ongoing dispute between the United States and China, Draper said,

“That’s friction between the two leaders of those countries. It’s not friction between us.”

Draper reinforced the statement by revealing his own relations with people from countries around the world. He credited leaders of several small economies in taking the first few steps towards embracing blockchain and cryptocurrencies.

“Estonia and Malaysia already have virtual citizenship program. There are many countries including Kazakhstan that are going through similar developments.”

Additionally, Draper said that mainstream media was losing relevance, and that anyone can spread the right news through various social media platforms available globally, making everyone less fearful of being misled by mainstream media. Taking about the impact of crypto on the modern world, Draper revealed,

“There was the possibility that ICO would replace venture capital. I believe that, (eventually) I’ll be able to raise a fund in Bitcoin [BTC], put it out in Bitcoin, have the entrepreneurs pay their employees and suppliers in Bitcoin.”

Once this is achieved, Draper envisions building the entire process into a smart contract so that his investors could end up having a really a great experience by getting paid exactly what they’re due, at the exact time.

Taking a shot at banks and banking institutions, Draper linked high cross-border transaction fees to the general, lavish lifestyle of bankers.

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Bitcoin is an enterprise; its users are comparable to traditional shareholders, claims Goldmoney Founder




Bitcoin: Age old discussion about Bitcoin being a commodity or security brought to life; Could it be a security?
Source: Unsplash

Bitcoin was conceived in the backdrop of banks bailouts and the 2008 financial crisis. The recession and the loss of faith in banking, financial institutions gave Bitcoin a platform to rescue the ones affected, giving them hope for a better financial system without the hassle of corrupt institutions. With the rise of Bitcoin’s fame, both in the darknet and in the mainstream, questions about its regulations had to arise.

The question was put to rest when the SEC/CFTC ruled Bitcoin as a commodity and taxed it. However, Goldmoney’s Roy Sebag brought this discussion up again recently in his tweet thread, where he said that Bitcoin as an enterprise is working towards its good, comparing its users to traditional “shareholders” among other things, while concluding that Bitcoin is a security. He tweeted,

“Is Bitcoin a security? <10 years old so regulators haven’t even had enough time to truly learn how it works (think Napster or Kazaa in early days). Miners are clearly issuing coins and responsible for governance, an absence of formal relations among them is irrelevant….”

In successive tweets, Sebag attributed miners with the role of “stewarding” the so-called enterprise. In return, these miners get paid in “direct fees” or in “share appreciation.” In Bitcoin’s case, it is the mining reward, which is “BTC”. Similarly, buyers are compared to “shareholders” with a common interest in the enterprise, i.e. profit. Sebag added,

“Coins trade at exchanges. The common enterprise is designed for the price appreciation of coin.”

Bitcoin could face a shutdown by the government, just like it did with big players in file sharing, said Sebag, who added that Bitcoin could also be interpreted as a security under the “34 act of the SEC.” The Goldmoney Founder concluded that “this realization rests on the belief that neither Bitcoin nor any common enterprise is truly decentralized.”

However, his inputs weren’t very well-received by many in the crypto-community. Casa’s CTO Jameson Lopp refuted Roy Sebag’s ideas, tweeting,

“Roy will believe what he wants to believe, though if he’s not actually participating in Bitcoin then his beliefs are irrelevant to its consensus formation.”

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