Since the crypto bull run of 2017, bitcoin enthusiasts and investors have been waiting for bitcoin price to surge again. While many are hoping for substantial returns from bitcoin, CEO of Blackstone, Stephen Schwarzman totally negated bitcoin and labelled it “pretty odd”. A widely renowned billionaire investor, Schwarzman who is the CEO of one of the world’s largest alternative investment firm, vowed to never ever invest in bitcoin but he was all praise for blockchain technology and called it “a sound, very interesting technology”.
Schwarzman regarded bitcoin as a strange asset and confessed that he was never interested in bitcoin at all. He was quite straightforward and admitted that understanding bitcoin was hard for him and he was never interested in bitcoin from the very beginning.
Apart from the lack of interest, the billionaire investor also put forward the flaws of bitcoin. Unlike the fiat currency controlled by the government, Schwarzman told that bitcoin encouraged bad behavior. By saying that, he was particularly referring to the use of bitcoin in criminal activities bitcoin price volatility.
Bitcoin hacks and frauds have been very common in crypto space since the inception of the digital asset. Every now and then, bad actors in the space try to execute fraudulent practices to steal cryptocurrencies. According to one estimate, bitcoin looted by hackers is way more than possessed by its creator, Satoshi Nakamoto.
Apart from frauds and hacks, bitcoin’s use over the dark web has created an alarming situation on various occasions. Besides buying illegal drugs very comfortably on the dark web, people can now contact companies and hire hitman very easily by paying in bitcoin. A few months ago, a woman paid about $12,000 worth bitcoin on the dark web to get her lover murdered. Similarly, a guy paid $6,000 worth bitcoin on the dark web to get a boyfriend of his ex-lover killed.
According to the data of Chainalysis, more than $1 billion worth bitcoin will be spent on the dark web in 2019 alone. Although it may sound as overestimation, $515 million worth of bitcoin had already been spent over the dark web.
Schwarzman stands correct while outlining concerns for the misuse of bitcoin, however, this does not make government-backed fiat currencies superior over bitcoin. For years, people had been laundering money and using digital payment systems to operate on the dark web. While talking to BlockPublisher, John Frigo, SEO Lead at My Supplement Store, in this regard, elaborated:
Bitcoin itself doesn’t get hacked, it’s exchanges and companies who operate in the cryptocurrency space who get hacked or are scams and that reputation rubs off on the whole industry. For example MtGox an exchange owner did an inside job and stole everyone’s Bitcoin. This had nothing to do with Bitcoin, yet Bitcoin catches the bad rap for an individuals actions. This would be like if a bank manager did an inside job and stole all the money from a bank, would we all stop using banks tomorrow? No.
Since fiat currencies are controlled by governments and financial institutes, they can be printed as much as needed. On the other hand, bitcoin can not be controlled by any authority. The world’s first decentralized cryptocurrency, bitcoin, was built to enable peer-to-peer payments without the need for intermediaries.
According to Schwarzman, cryptocurrencies would be acceptable to him if they become unpopular among criminals and solve the problem of controlling money supply. As cryptos like bitcoin are programmed decentralized digital currencies, neither their supply nor their use can be controlled. Giving control of bitcoin to some authority will void the very reason the crypto was built for.
Although bitcoin failed to impress Schwarzman, the underlying technology, blockchain, was successful in making a good impression. Schwarzman was of the view that use of blockchain for projects other than cryptocurrencies is good and expects blockchain adoption to increase exponentially in the future.
Recently, a research predicted the revenue of blockchain to surpass $16 billion by 2024. As blockchain is still in a nascent phase, there is still a long way to go for the technology. Principal consultant at Rocky Mountain Technical Marketing, Jeff Stollman enlightened BlockPublisher on the matter by stating:
Blockchain use cases are coming along. They may not be overnight successes, but they are gaining significant traction throughout a wide variety of industries. Businesses are learning that the technology is not the issue, it is governance of the blockchain platform. Platforms are evolve and require maintenance. Businesses want to ensure that they have a significant voice in this evolution.
Blockchain and bitcoin are both decentralized entities and removing the signature feature means ripping of the true essence out and that can never happen. While there have been several issues in crypto space, due to the negligence of exchanges, not bitcoin itself. Only time will telll if use case of bitcoin can convince the billionaire in the future.