SEC Chair Gary Gensler - Bitcoin is unlikely to become a currency

[Stalker22]

I gotta say, I just dont get Gensler's perspective here.  Sure, Bitcoin isnt quite the go-to currency yet, but writing it off as unlikely to ever make it happen seems short-sighted.  Though I guess trash-talking crypto is part of the SEC commissioner job description. 

Way I see it hes missing the forest for the trees.  This isnt about toppling old money - its giving folks choices and  and Bitcoin could do a heckuva lot more than just store value if we let it.  No reason it cant work for buying stuff if people wanna use it that way.  Worlds moving on, but feels like the SEC is still harping on how things used to be.

[Smartprofit]

Any state must maintain a monopoly on two things - the army and the issue of money.

Therefore, states will hinder the advancement of private money. Probably, everything is really bad in the global economy and finance if Bitcoin, cryptocurrencies and stablecoins have become so widespread throughout the world.

However, all states are currently testing central bank digital currencies (CBDC). If those in power decide that Bitcoin is harmful to the development of CBDC, they will introduce various new bans and restrictions on the use of the first cryptocurrency. It will not be easy for Bitcoin to become a world currency.

Currently, the world elites are doing everything to devalue Bitcoin, destroying its uniqueness. Many have already begun to perceive it as one of the ordinary financial products. Meanwhile, Bitcoin is a unique entity, a universal decentralized protocol for transferring value in virtual space.

[franky1]

women trade sexual favours... yep sex is a currency
men trade beer for favours with friends/neighbours.. beer is a currency

its just not going to replace FIAT currency

bitcoin wont be a single nations fiat, it wont be a "one world" currency everyone uses as fiat. it however can and will and does operate as a separate choice currency for anyone around the world

[Zoomic]

By "currency," it doesn’t necessarily mean the main currency--fiat will definitely stick around. The point is that people should have more options, not just seeing Bitcoin as a "store of value" (which I agree with), but it could also be used as legal tender so we can enjoy Bitcoin even more!

To be honest, there are some truths in what he said. It is not a lie that alot of bitcoin supporters only see bitcoin as an investment and not as a means of payment. Out of the thousands of people who are singing Bitcoin's praise, how many are actually using it the very way it was created to be used? The newbies who are joining the bitcoin community are only there because they were told that the value of bitcoin appreciates overtime, so they stand a chance to get double or even more of their initial deposits. If the majority of bitcoiners keep accumulating bitcoins for investment purposes and still encourage those yet to adopt bitcoin to do so for investment purpose too, in few years to come, the purpose of bitcoin serving as a currency might be defeated.

[legiteum]

I gotta say, I just dont get Gensler's perspective here.  Sure, Bitcoin isnt quite the go-to currency yet, but writing it off as unlikely to ever make it happen seems short-sighted.  Though I guess trash-talking crypto is part of the SEC commissioner job description.  

It will not, objectively speaking, ever happen. There is simply no way Bitcoin could ever scale to anything even within several orders of magnitude of handling the world's daily transactions. Indeed, maybe Gensler... knows more about Bitcoin than a lot of Bitcoin's cheerleaders?

Currently, the world elites are doing everything to devalue Bitcoin, destroying its uniqueness.

It would appear that the world's elites are actually embracing Bitcoin. Crypto was the #1 industry donor to the 2024 US elections. I really don't know where you are getting that.

Many have already begun to perceive it as one of the ordinary financial products. Meanwhile, Bitcoin is a unique entity, a universal decentralized protocol for transferring value in virtual space.

To almost all users of Bitcoin today, it's just an investment, no different than AAPL or NVDA. This wasn't because of some government conspiracy, it's simple market demand.

[LogitechMouse]

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What do you guys think about this? We know only two countries have declared Bitcoin as legal currency--El Salvador (the most famous one) and the Central African Republic. If they've done it and their economies haven't seen any major issues, like a spike in crime, then why does the SEC chair say it's unlikely for Bitcoin to become a currency?

By "currency," it doesn’t necessarily mean the main currency--fiat will definitely stick around. The point is that people should have more options, not just seeing Bitcoin as a "store of value" (which I agree with), but it could also be used as legal tender so we can enjoy Bitcoin even more!

I'm against Gensler most of the time because of how he looks at cryptocurrency particularly with Bitcoin ever since he became the chair of the SEC, but with this one, I will agree with him... but not totally. I mean he's right, but he's wrong as well.

He's right in a sense that Bitcoin might not be a currency in the future because of how people look at it, but at the same time, he's wrong that it will be unlikely because it's our choice as investors and users of Bitcoin if we will be using it as a currency or as an asset. Speaking of how people look at it, this is I believe the reason why Gensler said that to the public. The fact that many people look at Bitcoin as an asset more than a currency is the reason why he said that it's unlikely to become a currency. Yes, fiat will not be replaced, but we have another option to pay things and that's through cryptocurrency.

The problem is that most of us don't want to use it because we have this kind of mindset where "If I use Bitcoin to pay things, I might lose potential profits in the future if goes up", and there's nothing wrong with it, but for me, that's the reason why Bitcoin for most is an asset rather than a currency.

[hypersonic1]

Gensler is such a bitter man. He's tried so hard to get into the industry and never makes it. His bitterness has affected millions. He needs to be replaced to end his madness.

[BALIK]

Even though none of us like Gary for what he has done for the crypto industry. But we should be realistic and accept the fact that turning bitcoin into a currency is a difficult task and the chances of it happening are almost zero.
 

For a country like the USA, it's difficult, but in general, it’s not impossible if a country is willing, and El Salvador is living proof of that. However, I don’t think we should take his statement too seriously. Investors in the US are probably fine with Bitcoin’s current status. As long as they can use it and the government acknowledges it, they likely don’t expect it to become a legal currency like the USD.

People seem to have overlooked the detail that El Salvador does not have its own currency and they use USD as their currency, and the reason they took on the challenge of making bitcoin a legal currency was because their economy was on the brink of bankruptcy and was denied assistance by the IMF at the time. But as fuguebtc said: they make bitcoin legal currency but do they actually use it because as far as I know they still use USD domestically.
For other countries, most of them have their own currency and they manage their people through currency, I don't think they will use bitcoin to replace it and make it harder to manage the economy.


We don't need to listen to anyone, let's take ourselves as the most practical example. Who among us wants to use a payment method with transaction fees and unstable speeds? Is anyone here willing to spend an extra $1-2 (transaction fee) per bill? Obviously, that is not practical and does not benefit us. That's why I don't think using bitcoin as a means of payment is a good idea even though that's what satoshi created it for. With the current changes, bitcoin is no longer suitable as a currency, IMO.

[Russlenat]

Gensler is such a bitter man. He's tried so hard to get into the industry and never makes it. His bitterness has affected millions. He needs to be replaced to end his madness.

He’ll probably be replaced if Trump wins, since Gensler was appointed by Joe Biden, and Trump might have a different stance on Bitcoin. Trump has been pro-Bitcoin before, so let’s hope things improve under his administration. However, making Bitcoin a currency is still a long discussion, but just seeing it being brought to this level is a positive sign. Eventually, it might get accepted in the long run.

[Z-tight]

What did you expect to hear from Gary Gensler, he never says anything good about BTC or cryptocurrency, instead he goes after crypto firms and projects and tries to regulate them by enforcement, i'll not take anything he says about BTC seriously.

Almost everyone in this industry knows that BTC would not replace fiat, but it is a currency that a lot of people use, and it will get widely used in the future. BTC is becoming more and more important, even the U.S politicians now use it to canvass for votes, i guess uncle Gary cannot live with that.

[legiteum]

He’ll probably be replaced if Trump wins, since Gensler was appointed by Joe Biden, and Trump might have a different stance on Bitcoin. Trump has been pro-Bitcoin before, so let’s hope things improve under his administration. However, making Bitcoin a currency is still a long discussion, but just seeing it being brought to this level is a positive sign. Eventually, it might get accepted in the long run.

I am really having trouble following your logic. What do you consider "not accepted" about Bitcoin that you think it will only be "accepted" sometime in the future?

What would be a sign for you that it has been "accepted"?

[Russlenat]

He’ll probably be replaced if Trump wins, since Gensler was appointed by Joe Biden, and Trump might have a different stance on Bitcoin. Trump has been pro-Bitcoin before, so let’s hope things improve under his administration. However, making Bitcoin a currency is still a long discussion, but just seeing it being brought to this level is a positive sign. Eventually, it might get accepted in the long run.

I am really having trouble following your logic. What do you consider "not accepted" about Bitcoin that you think it will only be "accepted" sometime in the future?

What would be a sign for you that it has been "accepted"?

Being accepted as a legal currency... currently it's considered as a property by the US.

[legiteum]

I am really having trouble following your logic. What do you consider "not accepted" about Bitcoin that you think it will only be "accepted" sometime in the future?

What would be a sign for you that it has been "accepted"?

Being accepted as a legal currency... currently it's considered as a property by the US.

Bitcoin is perfectly legal in the USA. What are you talking about?

[Russlenat]

I am really having trouble following your logic. What do you consider "not accepted" about Bitcoin that you think it will only be "accepted" sometime in the future?

What would be a sign for you that it has been "accepted"?

Being accepted as a legal currency... currently it's considered as a property by the US.

Bitcoin is perfectly legal in the USA. What are you talking about?

Kindly read the OP to get what I mean. Yes, Bitcoin is legal in the USA, but it's not considered legal tender; it's treated as property or a commodity. Even the SEC Chair doesn’t see Bitcoin becoming a legal currency.

[Cryptomultiplier]

That's what he said.

NEW YORK — U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler said he thinks it's unlikely that bitcoin (BTC) or other cryptocurrencies will ever be widely used as a form of payment and, instead, will continue to be seen as more of a store of value.

Speaking at an event at NYU School of Law in Manhattan on Wednesday, Gensler responded to a question from an attendee about what the value of cryptocurrency – which was created to be separate from any government – would be to its users if totally brought into the regulatory fold.
Gensler said that the agency is "merit neutral" and the investing public will get to decide – "through disclosures" if there's a utility for any given cryptocurrency.

"But I did teach this stuff up at MIT and so forth, so I'm just going say this – these debates literally go back to Plato and Aristotle," he said. "This is 3,000 years of history. Hundreds of great nations, thousands of nation-states – we tend to have one currency per geographic economic state. We tend even not to have bimetallism."

source :
https://www.coindesk.com/policy/2024/10/09/sec-chair-gary-gensler-on-crypto-its-unlikely-this-stuff-is-gonna-be-a-currency/


What do you guys think about this? We know only two countries have declared Bitcoin as legal currency--El Salvador (the most famous one) and the Central African Republic. If they've done it and their economies haven't seen any major issues, like a spike in crime, then why does the SEC chair say it's unlikely for Bitcoin to become a currency?

By "currency," it doesn’t necessarily mean the main currency--fiat will definitely stick around. The point is that people should have more options, not just seeing Bitcoin as a "store of value" (which I agree with), but it could also be used as legal tender so we can enjoy Bitcoin even more!

Bitcoin can be used as a legal tender but why I think it is far from that reality still, is the simple fact that there isn't a printed note of Bitcoin because it is a digital currency and a society must have been well developed to accommodate the rising standard of technology and innovations, inorder to even consider using the digital currency Bitcoin freely as a legal tender, because it demands good internet access and network coverage as well as good supply of electricity and other alternative sources of energy to maintain a mining farm or nodes.

For now, Bitcoin still makes sense as an investment option that can be beneficial in the long run and it stands as a hedge against Fiat inflation in another case.

[legiteum]

Kindly read the OP to get what I mean. Yes, Bitcoin is legal in the USA, but it's not considered legal tender; it's treated as property or a commodity. Even the SEC Chair doesn’t see Bitcoin becoming a legal currency.

I suspect you don't actually know the legal definition of "legal tender": it is something that a) would not be desirable for Bitcoin; b) would not make any difference to anybody in actual reality.

Let me ask the question differently: what is the US government preventing you from doing with Bitcoin that you would like to do with it?

[Russlenat]

Kindly read the OP to get what I mean. Yes, Bitcoin is legal in the USA, but it's not considered legal tender; it's treated as property or a commodity. Even the SEC Chair doesn’t see Bitcoin becoming a legal currency.

I suspect you don't actually know the legal definition of "legal tender": it is something that a) would not be desirable for Bitcoin; b) would not make any difference to anybody in actual reality.

Let me ask the question differently: what is the US government preventing you from doing with Bitcoin that you would like to do with it?

Okay, I hope this explanation helps you understand the difference between Bitcoin being treated as legal currency and as property.......

[1] When Bitcoin is treated as "property" (like it is now), every time you trade or use it, that’s a taxable event, and you’ll need to pay capital gains tax if you profit from the transaction.

[2] On the other hand, if Bitcoin were treated as "legal currency/tender," you could use it for daily transactions without it being taxable, just like when you use fiat for your everyday spending.

[Apocollapse]

Bitcoin is perfectly legal in the USA. What are you talking about?

Kindly read the OP to get what I mean. Yes, Bitcoin is legal in the USA, but it's not considered legal tender; it's treated as property or a commodity. Even the SEC Chair doesn’t see Bitcoin becoming a legal currency.

Yep, even there are many business or stores accept Bitcoin as an alternative payment, but speaking about regulations, The US still not consider Bitcoin as a legal tender, but I have not read they announce something like "US Dollar is the only legal tender, the rest are not legal", so using Bitcoin as a currency is still in grey area.

It's all fine until SEC officially announce if using Bitcoin as a currency is illegal.

[davis196]

Gensler is right. Bitcoin is and it will always be more like "digital gold" rather than an actual currency for everyday use. The same thing applies to all altcoins as well. However, Gensler isn't right about the "3000 years of history". The human civilization used precious metals as a currency during almost the entire history of human kind. Fiat currencies have nothing to do with precious metals. They aren't even backed by precious metals. Fiat currencies are backed by the promises of the governments. Those promises can easily be broken and I think that they already are broken.

[legiteum]

Okay, I hope this explanation helps you understand the difference between Bitcoin being treated as legal currency and as property.......

[1] When Bitcoin is treated as "property" (like it is now), every time you trade or use it, that’s a taxable event, and you’ll need to pay capital gains tax if you profit from the transaction.

[2] On the other hand, if Bitcoin were treated as "legal currency/tender," you could use it for daily transactions without it being taxable, just like when you use fiat for your everyday spending.

You are talking about the capital gains tax in the US, which I take to mean you wish you didn't have to pay.

But understand that you only pay capital gains tax when the property in question increases in value.

Do you also wish, therefore, for Bitcoin to henceforth never appreciate in value?

The US still not consider Bitcoin as a legal tender, but I have not read they announce something like "US Dollar is the only legal tender, the rest are not legal", so using Bitcoin as a currency is still in grey area.

It's all fine until SEC officially announce if using Bitcoin as a currency is illegal.

Bitcoin is no more in any sort of "grey area" than any other object of value. They will sooner announce Bitcoin is illegal than they will announce grapefruits are illegal.

The US has the the majority of the world's hashrate, we have most of the holders of Bitcoin, and thousands of new products around Bitcoin and crypto have been created in the past few years including by major US financial players such as PayPal.

I get that some people need to feel like they are doing something "dirty" when they are trading Bitcoin, but the actual reality is that it's absolutely positively legal, and there's absolutely no sign that will change.

And spreading these lies about Bitcoin diminishes its value so please stop it.

Just because you need to feel like you are "fighting the man" by owning Bitcoin, most investors don't want to fight their government and do illegal things, so if they believe you they will stop buying Bitcoin and the price will plummet.