Author: Peter Todd 2022-06-28 23:20:27
Published on: 2022-06-28T23:20:27+00:00
In an email exchange, a person named Billy Tetrud argued against Eric's claim that holders of Bitcoin don't receive any benefit. Tetrud argued that holding a currency is a way to store value and that the utility of Bitcoin as a store of value can only be utilized while holding it. He presented two scenarios, one where a person holds onto 10 Bitcoin for 10 years before spending it in two transactions, and another where a person spends 4 Bitcoin, sells it for 6 Bitcoin, and then spends the 6 Bitcoin on something else without acquiring any more Bitcoin for 10 years. Tetrud argued that the first person benefited more from their use of Bitcoin since they utilized its utility as a store of value. The email exchange also mentioned the high cost per transaction due to the division of the total block reward by the number of transactions. However, this cost is offset by the fact that the average value moved per transaction is very high, making the cost due to inflation of those tens of dollars transactions low enough to be affordable. The email was signed off by Peter Todd.
Updated on: 2023-06-15T21:25:49.522236+00:00