Bitcoin does not need laws to function, stressed the speaker.
He explained that the consensus of the network makes transactions expensive.
The second day of LaBitConf 2020 brought with it a talk from Spanish bitcoiner and financial analyst Manuel Polavieja. The guest spoke about some of the strengths and weaknesses of the first cryptocurrency in his presentation “Bitcoin versus traditional monetary systems.”
Polavieja especially emphasized volatility and how expensive Bitcoin transactions can be due to the type of consensus. However, he also praised the digital nature of cryptocurrency that allows it to function without being tied to contracts and its disruptive concept that allows it to function without laws.
“Bitcoin is different because it is digital, without counterparty risk and with a fixed offer. Its nature is radically different because there is no risk that someone will breach their obligation (…) It is a real asset, as if it were a gold or silver coin, not like financial contracts. “
Manuel Polavieja, bitcoiner and Spanish financial analyst.
Regarding its operation, the speaker reiterated that Bitcoin as a digital system does not need laws to exist or be transmitted. That advantage, according to Polavieja, allows it to lower costs in countries where legal frameworks have been consolidated for decades.
As for the volatility of its market price, Polavieja listed it as a detrimental aspect. However, the bitcoiner rescued the fact that, if it weren’t for the same volatility, bitcoin would still be on Satoshi Nakamoto’s computer and on the cypherpunks’ computers.
‘The volatility of bitcoin is a blessing and a condemnation. Blessing because it gives us a lot of publicity, the price and interest in the market grows. It is also good because it offers more robustness since every time the price increases, things become more serious, with more professional people, “he said, referring to the developers who maintain and correct the Bitcoin code.
As a conviction it could be a bad store of value because if someone buys it today and then needs to sell it when it is worth less, “then it is a bad business. Bitcoin needs to be bullish, the one with bitcoin has to put up with a lot, until at least the price is equal or higher.
Polavieja also asserted that Bitcoin as a means of payment lags behind because, when compared to its competitors, each transaction has a high cost. The above explains it by saying that, if all network participants must verify transactions, then the process becomes expensive and slow.
In a previous interview with CriptoNoticias, in May of this year, Polavieja stated that bitcoin is inevitable because it is the simplest money that has been invented. On that occasion the bitcoiner highlighted other advantages of the cryptocurrency such as the ease of transfer and the low cost of storage.
LaBitConf is one of the most important events in the bitcoiner ecosystem in Latin America. Its eighth edition is carried out completely online due to restrictions in various countries due to the expansion of the COVID-19 pandemic.