Bitcoin is a bad crypto with no real use, says Cyber Capital Founder Justin Bons. He has labeled Bitcoin (BTC) a purely speculative asset without use. These comments come from the lack of technological advancement of the coin since its conception more than a decade ago.
On Sunday, Bons contributed his two cents in an 11-part Twitter thread, claiming that the value proposition of Bitcoin and BTC has long degraded owing to flawed long-term security architecture, comparably weak economic attributes, 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 & composability
With comparatively weak economic qualities
BTC is, in fact, a purely speculative asset without utility
— Justin Bons (@Justin_Bons) August 28, 2022
Bons has been a vocal member of the cryptocurrency community for some years, having founded one of Europe’s oldest cryptocurrency funds, Cyber Capital, in 2016 and working as a full-time crypto researcher since 2014. Bons has also run nodes on the Bitcoin and Bitcoin Cash networks.
While Justin enthusiastically defended Bitcoin in 2014, he stated that “the fact is that BTC has substantially altered since that time,” with the decision not to raise the block size limit indicating a “huge deviation from the original vision and purpose of Bitcoin:”
“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.”
Bons, on the other hand, appears to ignore the Bitcoin Lightning network, which is one of the more obvious answers to the network’s scalability problem.
Competitor networks, according to Bons, have superior token design methodologies, with some smart contract networks including fee-burning algorithms that might result in negative token inflation rates:
“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.”
Without major technological breakthroughs or value, Bons contends that Bitcoin has become a merely speculative asset for many people, who continue to invest “contrary to fundamental principles of revenue, utility, and use case analysis.”
Bons isn’t the first person to characterize Bitcoin in such forceful terms.
Yifan, the Chair of China’s Blockchain Service Network (BSN), who will retire in June 2022 said that:
“All uncontrolled cryptocurrencies, including Bitcoin, Ponzi scams.”
Rosa Rios, a former United States Treasurer and current Ripple Board Member, stated in September that Bitcoin is only a speculative tool in comparison to other digital assets like XRP, which is primarily used to enable cross-border payments.
Bitcoin was created as an electronic peer-to-peer currency system when it was first introduced in 2009. According to Satoshi Nakamoto’s Bitcoin white paper, any discussion about its worth as an investment is only a byproduct of its primary function.
The story of Bitcoin has evolved over time, with the leading cryptocurrency being viewed as an inflation hedge, store of value, and digital gold.
We hope that the new story doesn’t say that Bitcoin is a bad crypto with no real use, as Bons thinks.
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