THELOGICALINDIAN - A Kenyan communications architect Mwotia Ciugu has told African investors to be alert of advance in bitcoin which he claims is account aught
Bitcoin Structurally Incapable of Delivering on Its Promise
In an op-ed appear by The Elephant, Ciugu insists bitcoin (BTC) is structurally butterfingers of carrying on its affiance of acceptable an another abundance of amount or a barrier adjoin inflation. In addition, the architect additionally claims bitcoin fails both as a bill and an investment.
Although he concedes that Africa has one of the highest cryptocurrency acceptance rates, Ciugu cautions, however, that the top cryptocurrency’s animation and scalability issues beggarly it cannot act as a currency. Ciugu is quoted explaining:
To added abutment this point, Ciugu makes advertence to the U.S. dollar which he claims “has an annualized animation of 17 [percent].” Concerning the crypto asset’s scalability problems, Ciugu predictably regurgitates the accepted arguments about bitcoin’s inefficient use of electricity and how this disqualifies it as a bill for circadian transactions.
Bitcoin Useful for Cross Border Remittances
Meanwhile, the architect denies that bitcoin is now actuality acclimated abundantly in El Salvador, the aboriginal country in the apple to declare bitcoin acknowledged tender. According to Ciugu, the U.S. dollar is still the ascendant bill in El Salvador. Despite putting advanced these arguments, Ciugu decidedly agrees that sending remittances via bitcoin is added cost-effective than application approved sending channels. He explained:
On why he thinks the cryptocurrency is account zero, Ciugu uses billionaire broker Warren Buffet’s past comments about bitcoin to altercate his point. In his antecedent remarks, Buffet had intimated the crypto asset had hallmarks of a pyramid arrangement because it produces nothing. Just like Buffet, the architect additionally believes bitcoin investors accept no expectations of authoritative any approaching balance except through agreeable in zero-sum amateur with added speculators.
The architect additionally makes advertence to how bitcoin comatose back Elon Musk accurate his apropos about the crypto asset’s energy use. Such a acknowledgment according to Ciugu agency bitcoin is added affected to sentiments than absolute fundamentals.
The architect ends this continued commodity by acceptance that bitcoin will apparently hit the US$100,000 mark in the abreast approaching as some analysts are predicting. However, Ciugu argues that alike if bitcoin were to ability such a milestone, this will accept “no address on the awkward truths” he has articulated.
Do you accede with Ciugu’s views? Tell us what you anticipate in the comments area below.
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