Michael Saylor questions the prospects for national digital currencies

CBDC are unstable and doomed to fail, and the first cryptocurrency is destined to become the best form of money due to its scarcity in terms of time and energy. This was stated by former MicroStrategy head and Bitcoin maximalist Michael Saylor.

A comprehensive thesis by @dergigi explaining why virtual currencies issued by authorities are unstable and certain to fail, and why #Bitcoin is superior due to its linkage to scarce time & energy, and destined to succeed as the best form of money.https://t.co/tJTNMEgrQu

— Michael Saylor⚡️ (@saylor) October 9, 2022

The executive cited a post by the user under the handle dergigi, which elaborates the aforementioned ideas.

“The difference between gaming money and fiat money lies in scale, not in nature. Both assets are virtual — simulations that are not connected to reality. And with the rollout of CBDCs, both will also be fully digital,” the document says.

dergigi predicted that CBDCs will fail in the future, as have all digital currencies before them, for the following reasons:

• “Administrators” abuse their powers and print more openly;
• “Players” find ways to earn more by cheapening the ways they are produced;
• “The arena” ceases to exist either due to bankruptcy, interference, or collapse.

Bitcoin cannot be “printed” because it is issued automatically over time. The system cannot be gamed because energy cannot be copied. Proof-of-Work cannot be modelled, and the difficulty adjustment forbids “mining” blocks. Anyone can participate in everything, create coins and verify them, the author explained.

Bitcoin stands out from all money that came before it by a combination of non-simulable proof-of-work with cheap independent verification and the concrete [UTXO], he added.

“Proof-of-Work with a difficulty adjustment is what makes the first cryptocurrency a real phenomenon worth fighting. It is what makes it not virtual, not imaginary,” the article says.

BIS named CBDC as the foundation of monetary systems of the future.

In October 2020, the founder of MicroStrategy admitted , that he owned a substantial number of bitcoins, which he had bought before his company invested in them. According to Saylor, in his personal portfolio at the time there were 17,732 BTC, purchased at an average price of $9,882 per coin. 

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