CEO of PayPal and Intuit “Bitcoin is the greatest scam ever”
Bitcoin has enjoyed a nice stretch lately
‘ Bitcoin It’s a colossal pump-and-dump scheme, the likes of which the world has never seen… the losers are ill-informed buyers caught up in the spiral of greed. The result is a massive transfer of wealth from ordinary families to internet promoters.’
In a recent post for Recode ,The main section of Harris’s post is aimed at three key areas of the Bitcoin debate: means of payment, store of value, and intrinsic value. He even pulled out the ever-popular argument: “Bitcoin has zero value.”
In terms of the use of Bitcoin as a means of payment, Harris claimed Bitcoin is accepted almost nowhere and is useless anyway due to the possibility of a 15% price swing in a single day.
First of all, Bitcoin is useless as a means of payment in specific scenarios where there are no other options available to the user. For example, Amazon Mechanical Turk workers who find it difficult to transfer value out of the system often turn to bitcoin by way of Purse.io. Harris even admitted the usefulness of Bitcoin for value transfer later in the post when he talked about criminal use of bitcoin as a means of payment.
Whether you find a specific use of Bitcoin morally acceptable does not have any world-impact on whether that use case exists in the real world. Additionally, what constitutes as illegal commerce can vary wildly throughout the world (not to mention history).
Harris also discussed the efficiency issues like fees and delay associated with Bitcoin transactions as it exists today, which is ignorant of layer-two networks such as the Lightning Network (see this explanation of how the Lightning Network makes bitcoin much more useful for payments).
In terms of the price volatility (which gets into the store of value argument), the day-to-day price swings do not much matter to those who aren’t living paycheck to paycheck and are willing to hold bitcoin for reasons related to political philosophy, price speculation, or other reasons.