Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
According to Justin Bons, Bitcoin has no utility, and is purely a speculative asset.
Justin Bons, founder and chief investment officer of crypto-focused fund Cyber Capital has joined many other critics to launch a scathing attack on Bitcoin. In an 11-part Twitter thread, Bons mentioned that Bitcoin is technically one of the worst cryptocurrencies despite being in existence for more than a decade. Not just that, he also stated that the asset lacks capacity, programmability, and composability.
Compared to other cryptos, Bitcoin has broken the long-term security model and has a comparatively weak economic quality. On top of that, he believes that Bitcoin has no utility, and is purely a speculative asset. Despite his statements, Bons clarified that he has not been a longtime critic of the digital asset. According to him, he was a strong defender of Bitcoin in 2014, but the asset has not gone through any technical change since that time. Bitcoin has not increased its block size limit as it is said to represent a major move from its 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 completely failed as BTC has no smart contracts, privacy tech, or scaling breakthroughs,” he said.
The founder of Cyber Capital also observed that the competitors of Bitcoin are working to achieve negative inflation with fee burning, high capacity, and high utility. He mentioned AVAX, NEAR & EGLD as well as the ETH post-merge as a few projects trying to make their network better.
“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,” wrote Bons.
Chair of China’s Blockchain Service Network (BSN) Yifan He in an interview said the same about cryptos. In his submission, he stated that all unregulated virtual assets including Bitcoin are Ponzi schemes. Also, Former United States Treasurer and current Ripple Board Member Rosa Rios said last year that Bitcoin, in comparison with XRP is a mere speculative tool. Rios added that XRP is used to facilitate cross-border transactions, and cannot be put under the same umbrella as Bitcoin.