Founder and chief funding officer of crypto-focused fund Cyber Capital Justin Bons have known as Bitcoin (BTC) “technically one of many worst cryptocurrencies,” and a “purely speculative asset with out utility” as compared with different cryptocurrencies on account of its lack of technological progress.

Bons added his two cents in an 11-part Twitter thread on Sunday, stating that Bitcoin and BTC’s worth proposition has lengthy deteriorated on account of a damaged long-term safety mannequin, comparatively weak financial qualities and lack of capability, programmability and composability.

1/11) BTC is exclusive in that it’s technically one of many worst cryptocurrencies

It has a damaged long-term safety mannequin

It lacks capability, programmability & composability

With comparatively weak financial qualities

BTC is, actually, a purely speculative asset with out utility

— Justin Bons (@Justin_Bons) August 28, 2022

Bons has been an outspoken determine within the crypto neighborhood for a number of years now, having established one in every of Europe’s oldest cryptocurrency funds, Cyber Capital, in 2016 and contemplating himself a full-time crypto researcher since 2014. As well as, Bons has run nodes on the Bitcoin and Bitcoin Money networks.

Whereas Justin stated he vigorously defended BTC in 2014, he stated “the truth is that BTC dramatically modified since that point,” with the choice to not improve the block measurement restrict representing a “main departure from the unique imaginative and prescient and function of Bitcoin:”

“The world has additionally moved on and progressed. I bear in mind it was stated that BTC would simply undertake one of the best applied sciences. This thesis has clearly utterly failed as BTC has no sensible contracts, privateness tech or scaling breakthroughs.”

Bons, nonetheless, doesn’t seem to handle the Bitcoin Lightning community, which is among the extra apparent options to the community’s scaling downside.

Bons added that competitor networks have adopted superior token design strategies, with some sensible contract networks adopting fee-burning mechanisms that may set off destructive inflation charges for the token:

“BTCs financial qualities are additionally extremely weak […] BTC is competing with cryptocurrencies that may obtain destructive inflation […] on account of charge burning, excessive capability & excessive utility […] similar to ETH post-merge & alternate options similar to AVAX, NEAR & EGLD.”

With none vital technological advances or utility, Bons argues that BTC has for many individuals turn into a purely speculative asset, who proceed to take a position “opposite to basic causes of income, utility & use case evaluation.”

7/11) BTC has turn into a purely speculative asset

Individuals, for essentially the most half, solely spend money on BTC as a result of they consider the value will go up

Working on the identical modus operandi as a Ponzi scheme investor

All opposite to basic causes of income, utility & use case evaluation

— Justin Bons (@Justin_Bons) August 28, 2022

Bons isn’t the primary to make use of such robust language to explain Bitcoin.

In June 2022, Chair of China’s Blockchain Service Community (BSN) Yifan He informed Cointelegraph that “all unregulated cryptocurrencies together with Bitcoin are Ponzi schemes.”

Former United States Treasurer and present Ripple Board Member Rosa Rios stated final yr in September that Bitcoin isnothing greater than a speculative device compared to different digital belongings like XRP, which is primarily used to facilitate cross-border funds.

What’s the function of Bitcoin: Hypothesis or dollarization?

When it was initially launched in 2009, Bitcoin was designed as an digital peer-to-peer money system. Satoshi Nakamoto’s Bitcoin white paperaddressed that any hypothesis concerning its worth as an funding is just a by-product of its primary function.

The narrative surrounding Bitcoin has modified over time, with the main cryptocurrency being seen as an inflation hedge, retailer of worth and digital gold all through the years.