If you’re actively following the crypto space, then you no doubt have seen one of the most trending hip-hop videos pitting the number one cryptocurrency, Bitcoin against centralized currencies like the U.S Dollar.
The rap video produced by LinkedIn co-founder Reid Hoffman who admits he owns Bitcoin reminds every one of us why the crypto revolution is real.
As a tribute to the awesome work done by Hoffman and the team that shot the video, we break down in this article, the top arguments from the Bitcoin Rap Battle Debate.
The video which is embedded below featured rap artists representing Alexander Hamilton (the First Secretary of the Treasury noted as the inventor of centralized banking) against Satoshi Nakamoto (the individual (or group) that wrote the code powering the bitcoin network).
- Fiat Lives in Past Glory; Crypto is the Future
With the opening lines of the debate mentioning the Federalist papers which formed the basis for the U.S centralized banking system adopted globally, the case was made regarding the problem that the invention solved.
The papers which were first published on October 27, 1787, helped America push past being cash-strapped (running short of money) until the current era.
However, the fact that 232 years have passed since then highlights the fact that a change was needed and Bitcoin kickstarted it. Also, with the crypto still in the preliminary stage, it can be considered safe to acknowledge it as having a stronger role to play in the future than an 18th-century system.
- The Banks Serve Wall Street, Crypto Serves all Streets
“As if banks these days still helped people make money.”
“What’s your current interest? Half a percent?”
These lines from the Satoshi party no doubt sums up why many people are poised to invest in Bitcoin or other top cryptocurrencies in the near future.
Earlier this year, the U.S Federal Reserve cut its key benchmark interest rate by a quarter of a percentage point to a range of 2%-2.25%, making it less purposeful for individuals to store money in a bank with the intent of making gains.
Amid the interest rates decline, Wall Street Banks notably still, make a killing off money deposited in its accounts by individuals who are rewarded with only their money-losing value due to inflation.
“Why would they ever change this, when It’s made them rich men!” the Satoshi party asked referring to the governments and central banks.
Bitcoin has within its decade of existence yielded 7,836.41% for investors since 2013 when it came to limelight and is up over 200% in 2019 alone.
It will also be fair to note that despite massive declines between the periods under consideration, the emerging asset class has bettered fiat by addicting people to saving and also rewarding them significantly for doing so.
- Fiat Currently Rules but no Currency Starts with Universal Adoption
Another debate was about the fact that Bitcoin is still not accepted in some places and cannot be used to pay for ‘dental care or breakfast.’
In that regard, the clearest answer would be that “no currency starts with universal adoption. It takes time for places to make it an option.”
Bitcoin as Coinfomania has reported severally is slowly entering mainstream consciousness and even since the start of the year, many retail outlets have started accepting it as a medium of exchange.
Coupled with the fact that “billions of people don’t have bank accounts,” despite the several hundreds of years that fiat has existed proves that it can only get better from this point for Bitcoin and the crypto revolution.
- Fiat and Bitcoin Still Remains Tool for Bad Actors
It’s safe to say that the Alexander Hamilton rep shared thoughts similar to Donald Trump’s recent tweet that Bitcoin is primarily a tool for bad actors looking for a way to launder their proceeds.
However, the fact remains that most crime is done with Benjamins ($100 U.S bill), not the blockchain while most dollars still carry traces of cocaine as revealed by the recent burst of $1 billion worth of cocaine linked to Wall Street Bank, Goldman Sachs.
Noteworthily, talks of regulation coming to the use of Bitcoin, although not generally welcomed by the industry is inevitable and will place the crypto in fine stead to compete with fiat.
- Bitcoin’s Environmental Influence is Overrated
What is perhaps the only solid argument that critics have against Bitcoin is that the mining process which is used to generate new units can cause “power grid spikes” and potentially could harm the climate.
On the other hand, though, centralized banking requires the creation of “bills and forms in triplicates,” all features that require cutting down trees.
Literally, paper money and loads of paper pieces needed to run the system encourages deforestation and this potentially hurts the environment. With that in mind, it is safe to say that both parties can cause climate change even though Bitcoin has a greater chance.
Also, a recent study revealing that 74% of Bitcoin mining is done with renewable energy raises hope that in the near future, the creation of the cryptocurrency will have very little to no effect on the climate.
Besides that, Bitcoin price value is still fair since miners pay for the “purchased power and the market sets the price.”
There is no doubt that the debate regarding the possibility of decentralized cryptocurrencies like Bitcoin competing against fiat will continue into the foreseeable future.
However, every such debate will be a reminder of how far Bitcoin has come in less than ten years an why the revolution is underway!