Argentine billionaire and CEO of Mercado Libre e-commerce platform Marcos Galperin says bitcoin is a better store of value than gold. However, the billionaire believes the cryptocurrency will not replace the fiat currency because of what he calls the high “energy costs required to process the transfers.”
Misconception of Bitcoin mining energy consumption
Galperin, that one estimated net worth of $ 7.7 billion, made the remarks when responding to a question from a Twitter user. The user wanted to know if the billionaire had one BTC holder and his views on the possibility of Argentina taking over cryptocurrencies.
However, while Galperin rejects the idea that cryptocurrencies are in fact replacing fiat currencies, he believes that “quantum computing” can solve the challenge of high energy costs, which he believes are hitting the Bitcoin network.
However, the billionaire’s comments about the energy costs of the bitcoin network sparked a response from bitcoiners. For example, in their response to the billionaire’s tweet, a user by the name of Martín Morando agrees with the first part of Galperin’s comments. Nevertheless, the user is quick to explain to the billionaire that his understanding of bitcoin mining may not be accurate.
In his tweet, Says Morando, “Energy costs aren’t an issue (but) it’s part of the combo.” He adds that “most of the energy used is renewable.” The Twitter user then redirects the billionaire to one website that invalidates the theory that bitcoin mining is energy inefficient.
On the other hand, another user, Ibarra Gustavo, asks Galperin a question:
In Mercado Libre and Mercado Pago, have they measured how much kWh they use to process money transfers with all the credit card and Mercado Pago entities operating?
Yet other users such as Matias Walkoski are skeptical of Galperin’s view that quantum computers will play an important role in accelerating BTC adoption. Instead, Walkoski thinks that “a quantum computer can only create BTCthe cryptographic keys can be hacked. “
Another torrent of pesos is arriving
Meanwhile, as Galperin praises bitcoin, reports have emerged from its crisis-laden homeland that it wants to inject new money. Some experts believe that Argentina’s planned injection of $ 12 billion in new money, which is less than the $ 16.4 billion injected in 2020, will worsen the country’s current situation. As of December 2020, Argentina had a report inflation rate of 40% while the currency written off by no less than 94% against the US dollar.
According to an reportEconomic experts predict that the planned injection of new money will result in a significant depreciation of the peso and higher inflation. To escape the expected currency devaluation, the experts are encouraging Argentinians to “use the crunchy pesos to buy bitcoin.”
Do you agree with Galperin’s comments BTC won’t replace fiat currencies? Tell us what you think in the comments section below.
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