Let me start by saying that I am a Christian who works in full-time ministry. I am a big fan of the Gospel Coalition and a personal fan-boy of its founders, Tim Keller and Don Carson.
I have spent hundreds of hours studying Bitcoin over the past year.
So I was intrigued when I saw that the Gospel Coalition was writing about my second favourite subject.
But, like many other Christians who understand Bitcoin, I was sorely disappointed. The article clearly demonstrates the author’s (Greg Phelan) ignorance of the most basic arguments for Bitcoin. Not only does he misconstrue Bitcoin with other cryptocurrencies, but he fails to mention the financial peril our world is in. But perhaps worst of all: he blatantly lies.
Let’s go through some of the most dangerous and misleading quotes found in the article.
“They [Bitcoin and other cryptocurrencies] will never provide a place to stay or earned income or even interest. That’s not a prediction; it’s just a fact.”
This is a lie.
Greg has failed to do his research on this. A simple look at Blockfi or Ledn reveals that you can earn interest on your Bitcoin. I personally know people who earn interest on their Bitcoin. Greg has lied to you. Click the links and verify for yourself.
I could pause here and speak of the dangers of lying, but I’m going to give Greg the benefit of the doubt. He probably just doesn’t know about these two institutions, even though they are household names in the Bitcoin space – especially Blockfi. This is the equivalent of me not knowing what Goldman Sachs is, and proceeding to say that you cannot and never will earn interest on your US dollar.
I must add this too: I have a big problem with the phrase “they will never.” Be very wary of prophets who claim things with 100% certainty. They only need to be wrong once in order to be completely discounted.
Bitcoin is a nascent asset. It’s completely new and Greg is comparing it to things that already exist, like dividend stocks, real estate, or other pre-existing assets. To claim that it will never provide a place to stay, earn income, or interest, ever, is a bold but naive statement.
By the way, a house was bought in my area for Bitcoin this year. That’s a place to stay, is it not?
“The number of Bitcoin transactions slowed down starting in 2012 and hasn’t increased at all since 2017. But the price has soared since then.”
Here’s the 5 year chart:
The number of transactions has been relatively consistent over the past 5 years with some peaks and troughs. One of the reasons for the more recent dip is the Bitcoin lightning network, which was launched in early 2018, but is now coming into common use. It functions as a second layer on top of Bitcoin (think of paper money, being backed by gold), which greatly reduces the need for on-chain transactions.
In El Salvador right now, you can use the Bitcoin Lightning network to buy McDonald’s, groceries, motorcycles… anything! Lightning enables small transactions with next to zero fees, turning Bitcoin into an excellent daily-use currency.
“Bitcoin would have to displace global currencies like the dollar and the euro to have equivalent liquidity value.”
Greg has utterly failed to understand the value proposition of Bitcoin. If Greg had done any research, he would have realized that people call Bitcoin Gold 2.0. Gold has been the bedrock of money for 5000 years, due to its incredible monetary properties. What are those monetary properties?
Durability: It lasts for a long time.
Portability: It is easy to travel with.
Fungibility: One coin/ounce/dollar bill is the same value as any other one.
Verifiability: One coin/ounce/dollar bill can be easily verified as being what it claims to be.
Divisibility: It can be divided down into the smallest fractions.
Scarce: It cannot be replicated or easily produced.
In The Bullish Case for Bitcoin, Vijay Boyapati ranks Bitcoin, Gold, and Fiat according to these and other monetary properties, rating each from A+ to F.
Bitcoin is the best of these categories, making it the best form of money the world has ever seen. It is this good not because of its ability to provide shelter, look shiny, or to be used in jewelry, but because it has the best monetary properties. It is the best at being money. Bitcoin does not have to replace the US dollar or the Euro, but if they want to be viable in years to come, they will need to be backed by the best form of money: Bitcoin.
“Investing in Bitcoin means betting on getting out before the bubble bursts.”
This is wrong.
Sure, there are some people who buy Bitcoin, hoping to get out after a price jump. This is what all Altcoin buyers are doing. But in Bitcoin, there are far better reasons to buy and hodl for the long term.
Investing in Bitcoin means you believe that sound money is important, and thus inherently valuable.
Investing in Bitcoin comes from a willingness to take responsibility for your money and your future, rather than leaving it in the hands of the government or other authorities (this is called counterparty risk).
Investing in Bitcoin means you understand the times. You understand the danger of an ever-increasing inflationary system and you’re opting out into a better system, one that will hold your purchasing power over time. Trading Fiat for Bitcoin is the same as getting out of Confederate dollars in 1865 and into the money of the future.
Investing in Bitcoin means your eyes have been opened to the moral catastrophe that is our monetary system. You understand that inflation is theft, is killing the middle class, causing untold damage to our social fabric, and is accelerating the global wealth gap.
Bitcoin is not gambling or speculation, Greg. We have just seen something you haven’t seen yet.
“With real assets, you earn a return because you put money at risk and it is put to productive use.”
Bitcoin is a real asset. Why? Because people use it as a real asset. Enough said.
“Christians should be excited to invest in ways that serve the common good.”
I agree with Greg here. That’s why I advocate for Bitcoin and believe it is every Christian leader’s responsibility to understand it. I believe wholeheartedly that spreading Bitcoin will help the common good.
By being the most honest and incorruptible form of money ever seen, Bitcoin represents hope for the unbanked, poor, and marginalized of the world. It allows anyone with internet access the opportunity to own an asset more valuable than gold or real estate, that cannot be easily confiscated.
“Given the choice between investing in a bubble that enables illicit black-market transactions, or investing in real assets that one hopes serve the common good—the choice should be obvious for Christians.“
Finally, Greg concludes his attack by throwing in a little gem from Bitcoin’s past, speaking of how it “enables illicit black-market transactions.” It sounds as if Greg has done some research, at least enough to know about the late Silk Road. The Silk Road was the Amazon of the dark web and it used Bitcoin as payment. It was shut down by authorities 8 years ago. Criminals are always on the cutting edge of technology, and this was no exception. However, the currency of choice among criminals remains USD cash. Do you believe the USD illicit’s black-market transactions too, Greg? Because it does.
Now, Bitcoin is not merely a US phenomenon. Let’s think beyond governments with good legal systems. Do you think Greg understands that 53% of the world’s population lives under authoritarian regimes and ruthless dictators?
Since Greg believes we need government oversight in our daily transactions, perhaps he is also a fan of the Chinese Social Credit system which has perfected the ability to monitor and stop the purchase of illegal goods. In that system, authorities are able to quickly stop transactions of illicit black-market purchases like Bibles or pro-democracy books. They can quickly shut someone off from society if they speak out or do something improper, like attend an unsanctioned worship service.
Maybe Greg would support that too?
Or maybe Greg is wrong and it is actually very important for our world to have a decentralized and permissionless money.
Before I close, let me point out the one thing that bugs me most about this article. Sure, Greg lied. Sure, he was ignorant. But this one I can’t let go of.
One of Greg’s headings says, “Christian Response,” in big, fat, bold letters.
Oh heavens! The audacity to state with such certainty that this is the Christian response to Bitcoin! The very notion that Greg and TGC have ascended to the throne room of our God, have spoken with the Almighty, have seen the truth, and have stamped it with papal authority: Bitcoin is Gambling – this is the Christian Response!
Is it a Christian response to lie to your readers, Greg?
Is it a Christian response to speak so strongly of things without confronting a single contrary argument?
Is it a Christian response to write off perhaps the world’s greatest tool to help mankind right now as “gambling”?
Shame on you Greg. And shame on you TGC for publicizing false information. You need to change your ways.
Thankfully Christ is merciful. He’s forgiven my sins and he will forgive yours.
But please… do your research, then go and sin no more.
HODLing Jesus 