- Bitcoins can be claimed to be the face of future financial transactions, which ultimately aims to develop the economy in a sustainable manner.
- Larry was offered, in 2014, 100 Bitcoins in a show, on-air, for free, when he astoundingly turned down the same immediately.
- On the other hand, Bitcoins are limited. Only 21 Million Bitcoins can be mined totally, based on its respective protocol.
The value of digital currencies like Bitcoins are increasing at a rapid rate on a day-to-day basis with increasing development in technology. These currencies are utilized to facilitate various transactions to benefit the public with its efficiency and economic factors.
Financial transactions are taking a turn from its conventional practices to adopt such digital currencies to increase the productivity of such transactions. Bitcoins can be claimed to be the face of future financial transactions, which ultimately aims to develop the economy in a sustainable manner.
However, the present article focuses on a particular individual who turned down such a precious asset. Lang Xianping, commonly known as “Larry”, a professor and T.V Host in China was the one who made such an odd decision. Larry was offered, in 2014, 100 Bitcoins in a show, on-air, for free, when he astoundingly turned down the same immediately.
His refusal caused a wave of shock in the crypto market, a time when the said coins were trading for at least $650 per coin. Meaning the refusal was, of an amount which estimated to $65,000, back at that time. According to reports, he claimed that the un-worthiness of Bitcoins was the sole reason for which he turned down the offer, meaning, he believed that the coin had no value!
At present, Bitcoins are trading around $7000 per coin, the highest of its kind. This information has been underlined here for a certain reason. Recently, Larry was interviewed on a Television channel on the same question. It is to be noted that, 100 BTC’s presently amounts to $7,00,000 based on its present value as mentioned above.
However once again, Larry bewildered everyone, when he repeated his earlier reply on the same question based on the same reason he had mentioned earlier, i.e ‘Bitcoins are Unworthy’.His controversial reply has been criticized by many individuals from the crypto- industry, opining that, the celebrity had made such a statement, disregarding the real worthiness of the coin.
Fiat Currency Vs Bitcoins: A Comparison Analysis
The supremacy of bitcoins over fiat currencies can be ascertained based on the four properties of money. Safe Storage of value is an important one among the said four properties. Having lost 96% of its value over 100 years, U.S dollars, unlike Bitcoins, has failed to achieve the said property. With an increase in the circulation of Fiat Currencies, the fiat currencies will lose their purchasing power.
It is to be emphasized that, though Bitcoins are volatile, such volatility has its own precedential merits.IN the present case of Larry’s offer of the said number of Bitcoins, such volatility would only make him richer in the market.
Scarcity can be accounted for as the next important property of Money. This factor can not be completely observed in the conventional currencies, for the reason, the Government of a country can print as much as they require. On the other hand, Bitcoins are limited. Only 21 Million Bitcoins can be mined totally, based on its respective protocol.
The third property is the extent of Divisibility. Bitcoins, like any other currency, can be divisible up to eight decimal points, each referred to as ‘Satoshi’.
And finally the Transferability factor. The transfer of Bitcoins, unlike Fiat currencies, can be economical and ergonomic. Lack of complexity and waste of time, which can be observed in the facilitation of financial transactions using Fiat currencies, makes the present platform comparatively efficient. As estimated, an International Bitcoin Transaction takes only around an hour.
Thus, the above-mentioned factors, which proves the worthiness of Bitcoins must have been accounted for by the T.V host before making such an unprecedented statement, discrediting the value of such coins.