Bitcoin is “one of the worst cryptocurrencies”, says Cyber ​​Capital founder

Founder and CIO of crypto-focused fund Cyber ​​Capital, Justin Bons, called Bitcoin “technically one of the worst cryptocurrencies” and a “purely speculative asset with no use” compared to other cryptos. -currencies due to its lack of technological advancement.

Bons added his two cents in an 11-game Twitter on August 28, stating that the value proposition of Bitcoin and BTC has long deteriorated due to a broken long-term security model, relatively weak economic qualities, and a lack of capacity, programmability, and composability .

Bons has been an outspoken figure in the crypto community for several years now, having established one of Europe’s oldest cryptocurrency funds (Cyber ​​Capital) in 2016 and considering himself a full-time crypto researcher ever since. 2014. Additionally, Bons operated nodes 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 then”, with the decision not to increase the block size limit representing a “major departure from against Bitcoin’s original vision and purpose”.

“The world has also evolved and progressed. I remember it used to be said that BTC would simply adopt the best technologies. This thesis has obviously completely failed because BTC has no smart contracts, privacy technology or scaling breakthroughs.

However, Bons does not seem to address the Bitcoin Lightning Network, which is one of the more obvious solutions to the network scaling problem.

Bons added that competing networks have adopted superior token design methods, with some smart contract networks adopting pricing mechanisms that can trigger negative inflation rates for the token:

“The economic qualities of BTC are also incredibly weak […] BTC competes with cryptocurrencies that can reach negative inflation […] due to cost burning, high capacity and high utility […] like post-merger ETH and alternatives like AVAX, NEAR & EGLD.

Without any significant technological advancement or utility, Bons says BTC has become a purely speculative asset for many people, which continues to invest “contrary to the fundamental reasons of revenue, utility and use case analysis.” .

Bons is not the first to use such strong language to describe Bitcoin.

In June 2022, Yifan He, Chairman of China’s Blockchain Service Network (BSN), told Cointelegraph that “all unregulated cryptocurrencies, including Bitcoin, are Ponzi schemes.”

Former US Treasurer and current Ripple Board Member Rosa Rios said in September last year that Bitcoin was nothing more than a speculative tool compared to other digital assets like Bitcoin. XRP, which is primarily used to facilitate cross-border payments.

Related: What is Bitcoin used for: speculation or dollarization?

When initially launched in 2009, Bitcoin was designed as a peer-to-peer electronic payment system. Satoshi Nakamoto’s Bitcoin white paper indicated that any speculation regarding its value as an investment is simply a by-product of its main purpose.

The narrative surrounding Bitcoin has changed over time, with the primary cryptocurrency being seen as an inflation hedge, a store of value, and digital gold over the years.