Introduced over a decade ago, it is true to say that bitcoin truely disrupted the world. While investors had made substantial gains from the volatile asset, Mark Mobius, founder at frontier markets asset manager Mobius Capital Partners, shared his bitcoin contempt during an interview with CNBC. According to Mobius, blockchain is not a reliable technology and believes that bitcoin’s underlying technology can be broken down. He completely rejected the wide perception related to blockchain while reasoning that anything made by man can be broken.
When Mobius was inquired about his thoughts on bitcoin’s intrinsic value, he was of the view that bitcoin do not possess any value. He elaborated that the faith of people is something that adds value to an asset or currency and to back up his claim, he gave an example of U.S dollar. He clarified that as people have faith that they can use U.S dollar to buy anything, it posses value.
The fund manager and founder of Mobius Capital Partners LLP, shared several concerns regarding bitcoin’s value and risks associated with the crypto.
Furthermore, he continued that an entire generation who has faith in the internet, developed a strong faith in cryptocurrencies as well. Disapproving people’s idea of accepting cryptocurrencies, Mobius said that people will realize the risks of blockchain and cryptocurrencies and his words were:
I think people are going to begin to realize that these are very, very risky situations. And by the way, I believe blockchain is a very high-risk situation.
In his discussion regarding recession, Mobius mentioned the significance of gold. He straightforwardly said that gold is a safe haven and the last resort for people, determined to combat recession. He advised that people should acquire stocks or assets backed by gold if they want to remain stable during the recession. Exhibiting his trust over gold, he also recommended a cryptocurrency backed by gold.
If there is a cryptocurrency that is really backed by gold and there is a meaningful agreement and some kind of modern thing of this connection, then this could be quite interesting.
This week, Mobius isn’t the only one who spoke against cryptocurrencies. The CEO of Twitter, Jack Dorsey, who had previously regarded bitcoin as money of the internet, said that bitcoin isn’t a currency. Being a crypto enthusiast, Dorsey is quite optimistic about the future of bitcoin and its mass adoption. However, he outlined that bitcoin is not acting as functional money and it is too early to consider it equivalent to currency.
In recent past, the CEO of Wachsman, David Wachsman, also leashed on the world’s biggest cryptocurrency by market cap and commented that bitcoin is the oldest and slowest blockchain. Pointing to the fact that bitcoin is capable of handling only 7 transactions per second (tps), whereas Ethereum could manage 15 tps and Ripple 1,500 tps.
Previously, many people have disregarded cryptocurrencies while showing suspicion over cryptos such as bitcoin. Since bitcoin is the world’s first truly decentralized cryptocurrency, its price is dependent upon the fundamentals of supply and demand. Depending entirely on fundamentals, bitcoin price is not controlled or manipulated by any centralized authority.
To get an idea about the future of bitcoin and cryptos in general, BlockPublisher got in touch with Edith Muthoni, Chief Editor of Learn Bonds. Upon inquiring if bitcoin would become a medium of exchange or a store value, Muthoni, who is also an investment writer, trader, and personal finance coach, said:
After the September 1st, the future of Bitcoin will largely depend on how efficient and evolved the cryptocurrency becomes. While there is uncertainty, like with most transitions, it becomes clearer that Bitcoin and other cryptocurrencies will be much more acceptable and usable in societies around the world. It serves as a mobile wallet, mode of transaction, and with a fiat tied to its value, the cryptocurrency would serve as the ideal medium of exchange.
Although bitcoin faced severe criticism, its adoption never seized to increase. After realizing the importance of bitcoin, several countries have regulated the crypto while many others are already devising regulations for the cryptocurreny The replacement of fiat is extremely hard but regulations introduced by countries will play an important role in making bitcoin as common as fiat currency.