Bitcoin Soaring Won’t Change Its Fundamental Flaws: BTC Skeptic

Bitcoin soaring doesn’t change the fact that the cryptocurrency is fugazi and ‘’fundamentally flawed’’ at least this is what a Motley Fool reporter believes. Let’s find out more in the latest cryptocurrency news.

In a column from yesterday, Sean Williams at Motley Fool attributed the latest bitcoin bull run to many factors which are unrelated to the underlying fundamentals of the cryptocurrency. He noted some of the factors including the Bitcoin halving in 2020, the buzz surrounding Facebook’s crypto project Libra and the pending approval of the SEC for a Bitcoin ETF. According to Williams, the major catalyst that will drive the next bull run is the forthcoming May 2020 halving. This is the process when the BTC block reward will be divided in half. The halving is expected to boost the prices of every single cryptocurrency.

Also, the speculation about the SEC to approve a Bitcoin ETF is also influencing to propel the price forward according to Williams. An excerpt from the column reads:

‘’The SEC has delayed its decision on a bitcoin ETF on multiple occasions, but announced in early April that it wanted to hire a cryptocurrency specialist to help with implementing regulations. This move, along with the SEC currently taking comments and rebuttals on a bitcoin ETF, suggests that the prospects of a bitcoin ETF hitting the U.S. major exchanges are improving.’’

Williams also pointed out that Facebook’s Libra has a halo effect that is currently boosting all the prices to go up. However, he insisted that none of this factors hide the fact that bitcoin is flawed since the cryptocurrency is not really scarce, has no utility in the real world and the stocks are a better investment that bitcoin can ever be. This is why he believes that despite bitcoin soaring, it will not be widely used. He explained as noted in the coming altcoin news:

‘’One of the more common arguments from bitcoin bulls as to why it’s worth so much is its perceived scarcity. But there’s a catch…There’s no hard cap on the number of tokens that are in circulation. Rather, it’s computer code and community consensus that determine this cap. Although it’s unlikely that consensus would be reached to increase the 21 million token cap, the possibility of this happening is not 0%.’’