[ad_1]
Chief global strategist at financial advisory firm BCA Research, Peter Brezin, questioned the legitimacy of bitcoins by calling the asset a fraud over allegedly increased use in illegal transactions.
Speaking to Kitco News, Berezins said investors should be concerned about the role of bitcoin in the existence of industries such as ransomware.
Although bitcoin is increasingly adopted as a means of payment, Brezin notes that the number still tracks transactions involving its use in illegal transactions.
He said that such shortcomings, coupled with other problems, would make bitcoin disappear.
If you look at transactions involving Bitcoin, to this day the majority continue to fund all kinds of illicit activity. But if you look at how much Bitcoin is being used for legitimate business purposes, the answer is very small. In fact, some of the data I have presented in this debate with my colleague shows that fewer transactions for legitimate commercial purchases are made now than they were three years ago, Brezin said.
On the future of bitcoin, the strategist says environmental concerns are among the significant gaps in the asset. In his view, bitcoin will come under increased regulatory scrutiny resulting in the disappearance of assets.
He said bitcoin uncertainty in financial markets is evident after electric vehicle maker Tesla (NASDAQ: TSLA) suspended vehicle payments using the cryptocurrency. Tesla’s about-face, Brezin said, should worry investors.
Gold remains superior to bitcoin
Brezin added that gold remains a superior store of value compared to bitcoin due to the use cases of precious metals. He notes that in addition to acting as an investment vehicle, gold has real-life use cases, while bitcoin does. Bitcoin’s lack of intrinsic value, Brezin says, eliminates the asset as a store of value.
At the same time, the strategist said bitcoin does not meet the standard for classification as a currency, citing the time and cost of the transaction.
Additionally, Brezin believes cryptocurrencies are a catalyst for hyperinflation, an aspect that spells the end of the industry.
Share this article Share it
[ad_2]
picture credit