Amid the rising inflation and upcoming recession concerns, Justin Bons, the Founder and chief investment officer of crypto-focused fund Cyber Capital has startled the Crypto space by claiming Bitcoin as one of the worst cryptocurrencies.
He further asserted that Bitcoin is a "purely speculative asset without utility" compared with other cryptocurrencies due to limited technological progress.
Bons has been among the most followed and outspoken figures in the crypto community for several years. In 2016, Bons established one of Europe's oldest crypto funds, Cyber Capital, and has been a full-time crypto researcher since 2014. He also runs nodes on the Bitcoin and Bitcoin Cash networks.
In a Twitter thread, Bons noted that Bitcoin and BTC's value proposition has long deteriorated due to a broken long-term security model, fragile economic qualities, and lack of capacity, programmability, and composability. These huge claims come in line as Ethereum and Cardano are soon undergoing significant upgrades, while Bitcoin remains largely unaltered.
Launched in 2009, Bitcoin was created as an electronic peer-to-peer cash system. Satoshi Nakamoto's Bitcoin white paper affirmed that any speculation regarding its value as an investment is simply a by-product of its primary purpose.
This narrative has changed over time, with the flagship cryptocurrency being considered an inflation hedge, store of value, and digital gold. Earlier, it was also believed that BTC would adopt the best technologies. But this thesis has wholly failed because BTC has no smart contracts, privacy tech, or scaling breakthroughs.
Justin believes that not increasing the block size has dramatically changed the BTC since 2014. It represents a major departure from the original vision and purpose of Bitcoin. Furthermore, Bons highlighted that competitor networks host superior token design methods, with some smart contract networks adopting fee-burning mechanisms that can trigger negative inflation rates for the token.
Comparatively, BTC lacks economic qualities and is incredibly weak. BTC is presently competing with cryptocurrencies that can attain negative inflation due to fee burning, high capacity & high utility like ETH post-merge & alternatives such as AVAX, NEAR & EGLD
Without significant technological advancement, Bons argues that BTC has become a purely speculative asset for many people, who continue to invest "contrary to fundamental reasons of revenue, utility & use case analysis."
Last year, Former United States Treasurer and current Ripple Board Member Rosa Rios said that Bitcoin is nothing more than a speculative tool in comparison to XRP, which is primarily used to facilitate cross-border payments.
On 14 Feb, Reserve Bank of India (RBI) deputy governor T. Rabi Sankar declared cryptocurrencies very similar to Ponzi schemes or even worse and considered banning them the most sensible option for India.
Earlier in June, Chair of China's Blockchain Service Network (BSN) Yifan also shared the same thoughts by claiming that all unregulated cryptocurrencies, including Bitcoin, are Ponzi schemes.