“Bitcoin is worth nothing and is not supported”

Bitcoin has been criticised repeatedly since it was founded in 2009. “The government doesn’t support Bitcoin” and “Bitcoin only has value because people think it has value” are opinions you hear all the time. John Crudele of the New York Post is also one of those cynics who reiterates these theses.

In 2014, Crudele published an article criticizing MIT students who wanted to hand out $100 worth of Bitcoin to every student on campus. Now he criticized again – on July 5, 2018 he published an article in which he again condemned Bitcoin and highlighted his recent crash below $7,000:

Criticism of BitcoinProfit and the Blockchain

Bitcoin’s price rose to over $6,600 yesterday, but it was well below $6,000 last week. Even at $6,600, Bitcoin is still worth 70 percent less than at the beginning of the year. I use the term ‘value’ with caution because Bitcoin is really worth nothing as Bitcoin Profit it is not supported by anything or anyone. It’s a trust game that only has value because people convince other people that it’s worth something.

That he was wrong with his article in 2014, he did not go into that. Because Bitcoin is still worth about 13 times more than 2014 (then about 500 USD).

The students who wanted to give $100 in Bitcoin to fellow students on campus raised $500,000 for the project. In December 2017, when Bitcoin reached its all-time high of $20,000, their $500,000 in Bitcoin would have been worth about $20 million.

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Not supported
“It is not supported by anything or anyone” is another thesis of Crudele. However, such a statement shows that the blockchain technology was not understood. Against this thesis, one can also use Miner, which supports the network of a currency.

In addition to Bitcoin Code

In addition, Bitcoin is designed to ensure that nobody – no banks, credit card companies or governments – has control over the currency. Bitcoin is a pure peer-to-peer currency. This is exactly what makes Bitcoin and other crypto currencies onlinebetrug.net so interesting and revolutionary.

Bitcoin has no “value
Value possesses a good – including fiat currencies (USD, Euro), gold and even Bitcoin – only if people attribute a value to it. Trust is the real currency and that can be lost – even with traditional currencies.

Since Crudele criticised Bitcoin in 2014, many companies and governments have introduced or experimented with blockchain technology. Conversely, this means, according to his logic, that at least the Bitcoin or Ethereum blockchain has a value for people.

Alibaba CEO: Bitcoin is probably a bubble

Jack Ma, the Chinese businessman with net assets of $42 billion, told Forbes in an interview that Bitcoin was probably a bubble. His statements come at a time when his own financial services company, Ant Financial, was launching its own blockchain-based money transfers.

Alibaba’s Jack Ma launches Blockchain-based money transfer service
Alibaba, a multinational technology group led by 53-year-old Jack Ma, has given access to Blockchain through its online payment subsidiary Ant Financial – formerly known as Ali Pay.

“Blockchain technology could change our world more than people imagine. But Bitcoin could be a bubble,” Jack Ma told reporters, adding that “traditional financial institutions serve 20 percent of people and make 80 percent of profits. New financial institutions should serve 80 percent of the people and generate 20 percent of the profits.

At the moment, there is some uncertainty in the market as the Bitcoin price has recently taken a beating. The claim that Bitcoin is a bubble has been voiced several times over the years despite a clear long-term upward trend.

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Michael Hartnett, Chief Investment Strategist at Bank of America Merrill Lynch, recently wrote in a note to investors that Bitcoin was one of the “biggest bubbles in history” and burst after its peak in December.

Similar patterns years earlier

The crypto currency hype at the end of 2017 led to the highest market capitalization to date of over $800 billion at the beginning of 2018. Driven by market enthusiasm and the hype about Bitcoin futures being quoted on the world’s largest exchanges, Bitcoin reached an all-time high of nearly $20,000. As Blockchain Week New York City did not trigger any new bullish momentum, the downward pressure remains.

However, this does not necessarily signal the bursting of a bubble. A similar pattern could be found at the end of 2013, when Bitcoin’s price collapsed extremely. After BTC reached $1,000 in 2013, the price dropped to $200 due to the famous Mt Gox hack. It took nearly three years to reach that level again.

Outlook of the World Blockchain Summit – Infrastructure growing
Yesterday we were at the World Blockchain Summit in Frankfurt and could collect some interesting insights from the industry. While Bitcoin is called a bubble, the infrastructure around crypto currencies continues to grow continuously. The topic Bitcoin, Ethereum and Blockchain is known as never before. I personally found the statement of Prof. Dr. Philipp Sandner, head of the Frankfurt School Blockchain Centers, quite exciting. He said that Bitcoin is unique, because until now one had always been able to invest in companies and through Bitcoin and other crypto currencies it is possible for the first time to invest in a technology.