Why no one pays in Bitcoin

Here’s a transcript from a letter that Tugan sent his French audience a while back. Enjoy.

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I believe deeply in BTC.

And yet, Bitcoin will never be used as a means of payment in everyday life.

And it's not because of the gas fees (the fees you pay for each transaction).

There's another, deeper reason…

When I was at HEC, even though I was bored to death, I still learned 2 or 3 interesting things.

One of them was Gresham's Law.

A rule in economics that explains the following:

Bad money drives out good money.

Basically, this means that when you're in an environment with two types of money, you'll treasure the more valuable and spend the less valuable.

So in the market, the less valuable currency will be more and more present, and the other less and less.

At the time, I remember having a bit of trouble grasping this concept, but with the Bitcoin hype, it's become much clearer.

If you think BTC has value, you don't want to spend it.

The value of BTC is its scarcity.

Instead, you prefer to use money that has less value.

Your Euros or Dollars, which the government prints in unlimited quantities and whose value falls a little more every day.

Nobody who believes in BTC is going to spend it on bread or milk. Never.

That's where it gets paradoxical.

You'd think that the more people adopt Bitcoin, the more will be in circulation.

But in reality, the opposite is true:

The more holders who believe in and understand Bitcoin, the fewer people will use it and spend it.

So, the next time you think about using your Bitcoins to buy something, remember Gresham's Law.

Keep your Bitcoins and instead get rid of the crap that's printed in unlimited quantities by the state.

Good things are coming, 

T&A 

P.S.: Crypto is a game of survival. If you want to keep your BTCs and learn how you can make $500 - $4.000 on a side as a Niche Monopolising MVG in Web3, apply here (it’s free).