While Bitcoin price is making headlines in the mainstream and financial media, skeptics of cryptocurrencies have come out of the woodwork in droves.
The latest skepticism comes from Tim Bond, partner and portfolio manager at Odey Asset Management, who claims Bitcoin has very little social benefit and is instead an extreme form of libertarian anarchism. But could the bold, sweeping statement actually contain truth?
Tim Bond strikes Bitcoin as pointless, hideous and polluting
Bitcoin is a topic that most economists, tech-savvy entrepreneurs, and fund managers are asked about these days, as the asset has grown from under $ 10,000 to over $ 50,000 per coin in less than a year.
Depending on who you ask, this is the most important technological revolution since the internet, while others claim it’s a bubble waiting to burst.
Tim Bond, fund manager at Odey Asset Management, instead calls it “particularly mean”, “pointless” and “harmful to the environment”.
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Bond claims that Bitcoin not only emits more CO2 than most small economies, but also spearheads “a particularly extreme form of libertarian anarchism,” which is why the cryptocurrency is so popular with Silicon Valley types.
“When bitcoin starts to displace fiat currencies [government-issued currency that is not backed by a commodity]Governments’ ability to collect taxes, expenditures and reallocations will be severely affected, ”continued Bond.
The more Bitcoin gains in value, the more disruptive the performance it exerts Source: BTCUSD on TradingView.com
Crypto Anarchist Future prefers consensus over compulsory taxation
Bond is absolutely right about at least one point, however: Bitcoin could severely affect governments’ ability to collect taxes, spending and reallocations – a system that arguably is already broken.
Governments like the United States use their money to establish control over society, and without this leverage, society would not be so forced to obey taxes and other forms of control.
While much of this infrastructure has been designed for the benefit of civilized society, governments have abused that control, and how they redistribute wealth is a major ongoing economic problem that only Bitcoin can fix.
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If government is removed from the equation, it will require community consensus – which the crypto industry does well – to handle redistribution in the future.
Bitcoin offers several important advantages that give the unique cryptocurrency its underlying value. It cannot be faked, only 21 million BTC is available at a time, and a lot more. The greatest benefit of all, however, could be the fact that governments can control this – something that Bond clearly cannot understand.
Featured image from deposit photos, charts from TradingView.com
