Founder and chief investment officer of crypto-focused fund Cyber Capital Justin Bons have known as Bitcoin (BTC) “technically among the worst cryptocurrencies,” along with a “purely speculative asset without utility” in comparison to other cryptocurrencies because of its insufficient technological progress.
Bons added his two cents within an 11-part Twitter thread on Sunday, stating that Bitcoin and BTC’s value proposition has lengthy deteriorated as a result of damaged lengthy-term security model, comparatively weak economic characteristics and insufficient capacity, programmability and composability.
1/11) BTC is exclusive in that it’s technically among the worst cryptocurrencies
It features a damaged lengthy-term security model
It lacks capacity, programmability & composability
With comparatively weak economic characteristics
BTC is, actually, a purely speculative asset without utility
— Justin Bons (@Justin_Bons) August 28, 2022
Bons continues to be an blunt estimate the crypto community for quite some time now, getting established certainly one of Europe’s earliest cryptocurrency funds, Cyber Capital, in 2016 and thinking about themself a complete-time crypto investigator since 2014. Additionally, Bons has run nodes around the Bitcoin and Bitcoin Cash systems.
While Justin stated he intensely defended BTC in 2014, he stated “the the truth is that BTC dramatically altered ever since then,” with the choice to not boost the block size limit representing a “major departure in the original vision and reason for Bitcoin:”
“The world has additionally managed to move on and progressed. I recall it was once stated that BTC would certainly adopt the very best technologies. This thesis has clearly completely unsuccessful as BTC doesn’t have smart contracts, privacy tech or scaling breakthroughs.”
Bons, however, doesn’t seem to address the Bitcoin Lightning network, which is among the more apparent methods to the network’s scaling problem.
Bons added that competitor systems now utilize superior token design methods, with a few smart contract systems adopting fee-burning mechanisms that may trigger negative inflation rates for that token:
“BTCs economic characteristics will also be incredibly weak […] BTC is rivaling cryptocurrencies that may achieve negative inflation […] because of fee burning, high capacity & high utility […] for example ETH publish-merge & alternatives for example AVAX, NEAR & EGLD.”
With no significant technological advances or utility, Bons argues that BTC has for most people be a purely speculative asset, who still invest “contrary to fundamental reasons of revenue, utility & use situation analysis.”
7/11) BTC has turned into a purely speculative asset
People, typically, only purchase BTC simply because they believe the cost will increase
Operating on a single modus operandi like a Ponzi plan investor
All unlike fundamental reasons of revenue, utility & use situation analysis
— Justin Bons (@Justin_Bons) August 28, 2022
Bons isn’t the first one to use such strong language to explain Bitcoin.
In June 2022, Chair of China’s Blockchain Service Network (BSN) Yifan He told Cointelegraph that “all unregulated cryptocurrencies including Bitcoin are Ponzi schemes.”
Former U . s . States Treasurer and current Ripple Board Member Rosa Rios stated this past year in September that Bitcoin is simply a speculative tool compared to other digital assets like XRP, that is mainly accustomed to facilitate mix-border payments.
Related: What’s the reason for Bitcoin: Speculation or dollarization?
If this was initially launched in ’09, Bitcoin was created being an electronic peer-to-peer cash system. Satoshi Nakamoto’s Bitcoin white-colored paper addressed that any speculation regarding its value being an investment is only a by-product of their primary purpose.
The narrative surrounding Bitcoin has altered with time, using the leading cryptocurrency being seen as inflation hedge, store of worth and digital gold through the years.
