As the World Economic Forum (WEF) Continues in Davos, Switzerland, and the who’s-who of finance and politics , there is a significant amount of negative commentary coming from investors and analysts regarding BTC (BTC) and cryptocurrencies.
Most recently, one prominent investor drew a stark line between blockchain and , noting that he strongly believes in the future of the former, while disregarding the latter as a pseudo-currency that will likely “go to zero.”
Davos Not BTC Friendly
The recent comments came from Jeff Schumacher, the founder of BCG Digital Ventures – a blockchain-focused investment firm – who told that although the BTC as a technology is interesting, its value as a currency is null.
“I do believe it will go to zero. I think it’s a great technology but I don’t believe it’s a currency. It’s not based on anything,” he bearishly noted.
Another prominent investor who was on the CNBC panel, Glenn Hutchins, the chairman of North Island, shared a similar sentiment, claiming that his focus as an investor remains on Blockchain technology.
“I am much less interested in investing around bitcoin [BTC] as a currency unit or a currency equivalent, or even the blockchain as an accounting ledger. I am thinking much more about the protocols. In other words, what is the underlying protocol going to do as a consequence of which, which tokens are valuable or not,” Hutchins explained.
bitcoin and Blockchain are Thoroughly Intertwined
Although these investors aren’t excited about BTC, they are neglecting to recognize that and are largely intertwined with one another.
While regarding the relationship between BTC and blockchain, Andreas Antonopoulos said that blockchain cannot stand strong on its own without BTC, defining blockchain as “bitcoin with a haircut and a suit you parade in front of your board.”
“Blockchain is one of the four foundational technologies behind BTC and it can’t stand alone. But that hasn’t stopped people from trying to sell it. Blockchain is BTC with a haircut and a suit you parade in front of your board. It is the ability to deliver sanitized clean comfortable version of the blockchain of BTC to people who are too terrified of actually disruptive technology,” Antonopoulos explained.
Another popular figure within the cryptocurrency community, Joseph Young, referenced the recent Davos comments regarding blockchain being successful while BTC fails, equating it to saying, “Airplanes will go to zero while engines have potential.”
Airplanes will go to zero while engines have potential
— Joseph Young (@iamjosephyoung)
Furthermore, many prominent financial analysts who are not heavily involved in the cryptocurrency industry have dismissed the “BTC will go to zero” thought line.
Mohamed El-Erian, the chief economic advisor at Allianz, cryptocurrencies late last year, saying that cryptocurrencies will survive their current bear market.
“I think cryptocurrencies will exist, they will become more and more widespread, but they will be part of an ecosystem. They will not be dominant as some of the early adopters believed them to be,” he explained.
Although cryptocurrencies are still seen as “fake money” in much of the traditional financial industry, as they gain more widespread adoption they will also garner greater respect from the financial industry as a whole.
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Published at Thu, 24 Jan 2019 00:00:48 +0000
zerohedge.com / by Tyler Durden /