Categories: Bitcoin

Cryptocurrencies Operate on ‘Fraudulent’ Business Model: Hotmail Founder


Get unique fiat and cryptocurrency evaluation on Bhatia singled out IOTA as a cryptocurrency that’s “too good to be true.”

He particularly singled out IOTA — the ninth-largest cryptocurrency — whose market cap peaked close to $15 billion in mid-December however has in the end declined to $three.5 billion in lockstep with the broader cryptocurrency market. Though the mission has signed various partnerships with high-profile firms like Volkswagen and Bosch, Bhatia mentioned that he believed the token’s worth was “solely speculative.

“There is a token referred to as IOTA, which relies on the Internet-of-Things. But they haven’t offered a single system to anybody. The entire concept is: ‘In the future, one IoT device will be able to talk to another IoT device and settle any financial transaction between them using blockchain. That’s the thought. And though it’s by no means been carried out, the thought is value $15bn? Really? The values are solely speculative.”

He argued that whereas blockchain know-how could have advantages for cross-border settlement, many buyers will probably lose cash investing in an asset class that’s “too good to be true” and doesn’t — in his view — create worth for society.

“The most successful companies of the last 10-15 years have been networks,” he concluded. “Facebook, WhatsApp, Instagram, and even Uber is kind of a network. It seems that cryptocurrencies are trying to grow a network and people buy tokens and people participate in the growth of the network. But what is the network really doing? The fundamental question of creating value for society is one they carefully dodge.”

Images from Shutterstock

Follow us on Telegram.
Advertisement

Disqus Comments Loading...
Share

Recent Posts

NSW Registry Manager to Test Land Conveyancing on a Blockchain in Australia

The land registry manager of New South Wales in Australia has partnered with a blockchain technology firm with a view…

2 mins ago

Crypto Exchange Giant Coinbase Opens Office in Ireland

Cryptocurrency exchange Coinbase has opened a new office in Dublin to mark its latest expansion into Ireland as a marked…

47 mins ago

Binance Uganda to Begin Accepting Deposits in Ugandan Shilling, BTC & ETH

Months after announcing the launch of Uganda’s first-ever fiat-crypto exchange, Binance has made another step towards facilitating cryptocurrency trading in…

3 hours ago

Crypto Market Stabilizes as Tether Recovers, Real Bitcoin Price at $6,450

The crypto market has stabilized after a wild 24-hour period triggered by the sudden increase in the price of Bitcoin.…

6 hours ago

DocuSign Will Add Ethereum Blockchain Integration to Verify Signatures

San Francisco based DocuSign has announced the integration of the Ethereum blockchain into its electronic signature and transaction management service.…

9 hours ago

Soaring Inflation Sends Bitcoin Trading Volume to New High in Venezuela

The amount of Venezuelan bolivars being spent to purchase bitcoin has risen to record levels as the South American country…

10 hours ago

This website uses cookies.