Bitcoin has Zero Value & Holds Zero BackUp: Is It Really So?
The title rightly points at the major controversial thing — the crux of Bitcoin and the value it holds in the portfolio for the institutional investors. We have heard many critics stating that cryptocurrencies hold no worth as long as investments are considered.
Well, this is not just a layman belief whose investment portfolio would have turned fragile due to cryptocurrency or Bitcoin investment, given the time of investment and holding period. Undoubtedly, we have crypto critic biggies, who have in the past shared their not-so-favoring opinions about the investment and worth of crypto, particularly Bitcoin.
Pointing the first and very famous, Warren Buffett, the CEO of Berkshire Hathaway, continued his public disinclination to cryptocurrency by condemning it as having “no value.”
He rightly stated, “Cryptocurrencies basically have no value and they don’t produce anything,” to which he even clarified further, “In terms of value: zero. I don’t have any cryptocurrency and I never will.”
To explain further, the value that Warren Buffett and many other people have pointed out is the intrinsic or inherent value of the investment as the source remains decentralized.
On the second in the index, we have Mark Cuban, the Billionaire Entrepreneur who says that Bitcoin has no inherent value—but the technology that powers the leading cryptocurrency could be transformative. He also believes that Bitcoin is not likely to have worldwide recognition for the investors as it is too difficult for an average person to use and goes ahead to compare it with the safe-haven—Gold.
Well, if we go ahead with the statements of other critics and their points, we are likely to end up with the major point of the discussion, which happens to be the “Value of Bitcoin.”
1) Busting the Myth: “Bitcoin has zero value & is backed by nothing.” #Bitcoin is backed by the resilience of a decentralized network of miners that maintain block validation which establishes a consistent Financial System. Monetary Policy is dictated by code, NOT the
— Matt D'Souza, CPA (@mjdsouza2) April 2, 2020
Amidst the world of Bitcoin and crypto critics, we even have yet another crypto biggie, Matt D’Souza, who is rightly pointing at busting the biggest myth: “Bitcoin has Zero Value and is Backed by Nothing.”
When he says that he is busting the widely accepted and believed myth, it is important to point that Bitcoin is backed by the toughness of a decentralized network of miners which brings us to the point of highlighting that Bitcoin and Bitcoin Network is a Global Phenomenon. It is one of those investments which is neither backed by the company’s profit and does not depend on the group of BODs rather the brains behind the network.
Here, Bitcoin miners take the spotlight on the stage who happens to be the HODLers of last resort, irrespective of Bitcoin Blockchain just being an algorithm. As rightly pointed by Mr. D’Souza, these miners have been at times working with negligible profits and therefore, the recent suppression in the price and the upcoming mining gives a hope of relief amid the recent selling pressure created.
However, this will end as an open-ended discussion as we will see people coming up with even further criticism but when we talk about financial investment and the goal of making money, we ought not to forget the thumb rule, “Higher the Risk, Higher the Profits.” And, when we specify this, no matter how risky crypto and Bitcoin investment maybe, it is making its way amongst the preferred tools of investments. You can check the current Bitcoin Price from our price page.