After the President of the United States, Joe Biden, announced a student loan cancellation plan aimed at canceling the debts of millions of Americans (up to $20,000), a bitcoin (BTC) developer offered an alternative method to repay the loans . .
Said Dennis Porter, CEO of the non-profit organization called the Satoshi Action Fund tweeted that the US government has another way to solve the student loan problem. According to Porter, Biden could give each debtor $10,000 worth of BTC and lock it into a smart contract for 10 years. The head of the non-profit organization explained that the contract should be enough to pay the remaining balance when he is released.
Community members criticized Porter’s comment on a smart contract, as some believe that the Bitcoin network cannot support it. There is a Twitter user answered to Porter and urged him not to “put it all in one basket,” while another said that bitcoin is not the answer to everything.
…I know you think this is smart… but what do families do about the debt they can’t pay for those 10 years. Bitcoin is great but it is not The Solution for everything. Read the room, sir.
— Degen (@PennDusko) August 24, 2022
…I know you think that’s smart…but what do families do with the debt they can’t pay for those 10 years. Bitcoin is great but it’s not the solution to everything. You have to be reasonable, my friend. — Degen (@PennDusko) August 24, 2022
In response to his Twitter thread posts, fintech executive John Wingate said: said to Porter that this could not be done with bitcoin alone. Wingate also asked Porter if he therefore acknowledged the need for bitcoin to expand its use cases.
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Despite criticism of the compatibility of smart contracts with bitcoin, Porter stood by his proposal and defended his position. He also shared a link to a guide detailing a method for using smart contracts to lock bitcoin:
“You got it Dennis! You said smart deal! Bitcoin can’t do smart contracts!”
Wrong. You can lock bitcoin with a bitcoin smart contract. It is literally the heart of the lightning network. https://t.co/NcjbpX6vur
—Dennis Porter (@Dennis_Porter_) August 24, 2022
“I found you Dennis!” You said smart deal! Bitcoin can’t do smart contracts!” Fake. You can lock bitcoin with a bitcoin smart contract. It is literally the core of existence for the Lightning Network. https://t.co/NcjbpX6vur — Dennis Porter (@Dennis_Porter_) August 24, 2022.
Porter’s proposal could be based on the assumption that bitcoin will act as an inflation hedge and increase in value over time, enough to pay off student loan debt. However, for bitcoin to be an effective inflation hedge, Skybridge Capital CEO Anthony Scaramucci believes that bitcoin needs to be in the “billion plus zone” in terms of number of users.