- Jack Dorsey says Bitcoin must be used daily or face failure.
- Bitcoin community split on store of value vs payment use.
- Ben Kaufman defends Bitcoin’s role in preserving value.
Jack Dorsey, CEO of Block and former Twitter head has stated that Bitcoin could face failure without real-world payment use. Speaking on a podcast hosted by Spiral, a subsidiary of Block, Dorsey focused on the need to return Bitcoin to its original use case. He indicated that Bitcoin risks becoming irrelevant if reduced to only a long-term holding asset.
Dorsey Warns Against One-Sided Bitcoin Use
According to Dorsey, Bitcoin must transition into a usable daily payment method to maintain relevance. He said that Bitcoin’s role should not be limited to an emergency asset or something held for future value alone. He stated that if Bitcoin is not used for transactions, it may slowly lose its position and become less useful to ordinary people.
Dorsey described this scenario as a potential failure, arguing that the current trend of holding rather than using Bitcoin works against its broader purpose. His statements challenge the dominant view that Bitcoin should serve mainly as a store of value.
Addressing scaling and volatility concerns, Dorsey advocated for a focus on creating simple and accessible payment solutions that prioritize speed, privacy, and security. He argued that with time, greater accessibility, and a renewed focus on the ideals that birthed the cryptocurrency, the issue of volatility will also eventually be addressed.
Dorsey noted that BTC has strayed from the goals laid out in its original white paper. He referred to Bitcoin as a P2P electronic cash system that has yet to be fully realized. He emphasized the need for practical solutions that make Bitcoin transactions fast, private, and secure. He also noted that improvements in access and simplicity could help Bitcoin address price volatility over time. By focusing on payment systems, he believes the cryptocurrency could fulfill its initial purpose.
Pushback from the Bitcoin Community
Dorsey’s views have led to disagreement within the Bitcoin community. Some argue that Bitcoin is more needed as a store of value in today’s environment. Ben Kaufman, the lead developer at Bitcoin Keeper, responded by saying that Bitcoin is essential due to global currency devaluation.
He also noted that censorship in payments affects small groups, while loss of currency value impacts entire populations. Kaufman stated that Bitcoin provides utility in both areas but is especially critical for preserving value. While sentiments vary, an often-cited quote from BTC’s creator, Satoshi Nakamoto, remains in debate. Nakamoto once said it might make sense to hold some Bitcoin if it gains adoption. This statement has added to the continuing controversy about Bitcoin’s role and long-term utility.
