-->
cyber capital founder

Cyber Capital founder claims Bitcoin is ‘one of the worst cryptocurrencies’

Cyber Capital Justin Bons, founder and CIO of the crypto-focused fund, described Bitcoin as “technically one of the worst cryptocurrencies” and a “useless purely speculative asset”. Bons added his two cents to an 11-part Twitter thread on Aug. 28, adding to the corrupt long-term security model of Bitcoin and BTC’s value proposition, relatively weak economic qualities and capacity, programmability and composability.

Bitcoin
Cyber Capital

1/11) BTC is unique in that it is technically one of the worst cryptocurrencies
It has a broken long-term security model
It lacks capacity, programmability & composability
With comparatively weak economic qualities
BTC is, in fact, a purely speculative asset without utility

RELATED : Crypto will become an inflation hedge — just not yet

Although Bons said he was vehemently defending BTC in 2014, “the truth is that BTC has changed dramatically since then” and the decision not to increase the block size cap represents “a major departure from Bitcoin’s original vision and purpose.”

“The world has also moved on and progressed. I remember it used to be said that BTC would just adopt the best technologies. This thesis has obviously completely failed as BTC has no smart contracts, privacy tech, or scaling breakthroughs.”

However, Bons doesn’t seem to be addressing the Bitcoin Lightning network, which is one of the more obvious solutions to the network’s scaling problem. Bons added that rival networks are adopting superior token design methods, and some smart contract networks are adopting fee-burning mechanisms that can trigger negative inflation rates for the token:

“BTCs economic qualities are also incredibly weak […] BTC is competing with cryptocurrencies that can achieve negative inflation […] due to fee burning, high capacity & high utility […] such as ETH post-merge & alternatives such as AVAX, NEAR & EGLD.”

Crypto Market
Crypto Market

Bons argues that, without any significant technological advancements or benefits, BTC has become a purely speculative asset for many people who continue to invest “as opposed to the root causes of revenue, utility, and use-case analysis.”

7/11) BTC has become a purely speculative asset
People, for the most part, only invest in BTC because they believe the price will go up
Operating on the same modus operandi as a Ponzi scheme investor
All contrary to fundamental reasons of revenue, utility & use case analysis

RELATED : Top 10 Google searched questions about cryptocurrency and what it means

In June 2022, Yifan He, Head of China’s Blockchain Service Network (BSN), told Cointelegraph that “all unregulated cryptocurrencies, including Bitcoin, are Ponzi schemes.” Former U.S. Treasurer and current Ripple Board Member Rosa Rios said in September last year that Bitcoin is nothing more than a speculative tool compared to other digital assets like XRP, which are mainly used to facilitate cross-border payments.

When it was first released in 2009, Bitcoin was conceived as an electronic peer-to-peer cash system. Satoshi Nakamoto’s Bitcoin whitepaper addressed that any speculation about its value as an investment is only a byproduct of its main purpose. The narrative surrounding Bitcoin has changed over time, and the leading cryptocurrency has over the years been seen as an inflation hedge, store of value, and digital gold.

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

Check Also

bitcoin

EU MPs Attack Amazon’s Participation in Digital Euro Project

A cross-party coalition of members of the European Parliament on Tuesday came under fire at …

Leave a Reply

Your email address will not be published.