The founder and chief investment officer of crypto-focused fund Cyber Capital Justin Bons has called Bitcoin (BTC) “one of the worst cryptocurrencies technically” and a “purely speculative asset with no utility” due to its lack of technological advancement compared to other cryptocurrencies.
Bons added his two cents in an 11-part Twitter thread on Sunday, explaining that Bitcoin and BTC’s value proposition has long deteriorated due to a broken long-term security model, comparatively weak economic qualities, and a lack of capacity, programmability, and composability.
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, and composability
With comparatively weak economic qualities
BTC is indeed a purely speculative asset with no utility
— Justin Bons (@Justin_Bons) August 28, 2022
Bons has been an outspoken figure in the crypto community for several years, having founded one of Europe’s oldest cryptocurrency funds, Cyber Capital, in 2016 and considering himself a full-time crypto researcher since 2014. In addition, Bons has nodes operated on the Bitcoin and Bitcoin Cash networks.
While Justin said he vigorously defended BTC in 2014, he said “the reality is that BTC has changed dramatically since that time,” with the decision not to increase the block size limit being a “major departure from the original vision.” and the original purpose of Bitcoin” represents:
“The world has also evolved and made progress. I remember saying earlier that BTC would only adopt the best technologies. This thesis has obviously failed completely as BTC has no smart contracts, privacy tech or scaling breakthroughs.”
However, Bons does not appear to be concerned with the Bitcoin Lightning network, which is one of the more obvious solutions to the network’s scaling problem.
Bons added that competitor networks have adopted superior token design methods, with some smart contract networks employing fee burning mechanisms that can trigger negative inflation rates for the token:
“BTC’s economic qualities are also incredibly weak […] BTC competes with cryptocurrencies that can achieve negative inflation […] due to fee burning, high capacity and high utility […] like ETH post-merge & alternatives like AVAX, NEAR & EGLD.”
With no significant technological advances or benefits, Bons argues that BTC has become a purely speculative asset for many people who continue to invest “against fundamental reasons of revenue, utility and use case analysis.”
7/11) BTC has become a purely speculative asset
Most people only invest in BTC because they think the price will go up
Works on the same modus operandi as a Ponzi scheme investor
All in contrast to fundamental reasons of revenue, benefit and use case analysis
— Justin Bons (@Justin_Bons) August 28, 2022
Bons isn’t the first to use such strong language to describe Bitcoin.
In June 2022, China Blockchain Service Network (BSN) Chairman Yifan He told Cointelegraph that “all unregulated cryptocurrencies, including Bitcoin, are Ponzi schemes.”
Rosa Rios, former United States Treasurer and current Ripple board member, said last September that Bitcoin is nothing more than a speculative tool compared to other digital assets like XRP, which is mainly used to facilitate cross-border payments.
Related: What is Bitcoin’s Purpose: Speculation or Dollarization?
When it was originally launched in 2009, Bitcoin was designed as a peer-to-peer electronic cash system. Satoshi Nakamoto’s Bitcoin white paper elaborated that any speculation about its value as an investment is simply a by-product of its primary purpose.
The narrative surrounding Bitcoin has changed over time, with the leading cryptocurrency being viewed as an inflation hedge, store of value and digital gold over the years.
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