Bitcoin "will probably be totally wiped out"? The Independent FUDs crypto

01 Jul, 2018
by David Robb
Bitcoin will probably be totally wiped out? The Independent FUDs crypto

UK online news site The Independent has published an article claiming that Bitcoin may soon be completely wiped out. Citing the recent price drop and issues regarding the utility of crypto, the author turned the FUD up to the max.

According to the article, cryptos shouldn't really be classed as utilities, as they "don’t really serve as mediums of exchange because they have to be switched into real money first. They are, however, an asset class like gold, fine wines or classic cars".

It criticized the way that fiat currency manipulation can damage economies, giving the example of Venezuela's inflation, but also drew parallels between this and the current crypto situation: "The Bolivar has lost 99 per cent of its value against the dollar this year (Bitcoin has lost 58 per cent)". The author suggested that if the main BTC holders "collectively try to bunk out, there would be a Bolivar situation."

Standard negative opinions from mainstream financial institutions were trotted out, such as the Swiss BIS (Bank for International Settlements) criticism of crypto's scalability, stability, and trust. For some balanced expert investor opinion, a video of billionaire Warren Buffett calling Bitcoin 'rat poison squared' was also added.

Response on crypto Twitter was as expected:

While a small number of Chinese investors owning the vast majority of BTC is an issue worthy of attention, as is the huge amount of energy consumption involved with crypto mining, the conclusion that crypto is over is at best too pessimistic.

The author seemed to think that the current price drop is a sign of weakness, despite the fact that the general trend since BTC started less than 10 years ago is overwhelmingly positive. 

And to drive home just how little this article seems to understand the importance of crypto, it quotes the BIS as saying that "the decentralised nature of cryptocurrencies is a weakness rather than a strength", without considering whether this well-established Swiss banking insitution might have its own motives in making this judgement. 


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