Bitcoin (BTC) Maximalism: Necessity or Destructive Reaction?

The criticism leveled at the flagship crypto continues to grow. The most virulent come from banking and financial services professionals in particular. A justified position, given that digital assets threaten the sustainability of their business models. But the criticisms from academia are equally strident.

Bitcoin, a disaster?

University of Zurich economics professor Hans-Joachim Voth is one of Germany’s biggest crypto skeptics. He demonstrated it again during an interview granted on September 13 to Kitco. While he acknowledged that blockchain technology has some advantages, Voth doesn’t believe bitcoin (BTC), or any other crypto, can replace fiat or solve modern monetary problems.

“Blockchain has all sorts of attractive attributes, but the idea that it should replace money seems completely wrong to me (…) I don’t see a single problem that is solved by cryptos. In any case, certainly not bitcoin, which is an environmental disaster. It’s a disaster in terms of transactions. But also ether and all other cryptocurrencies. »he hammered.

This statement contradicts the position of crypto defenders. They believe that digital assets solve problems of security, transparency, the fight against inflationetc.

But Mr. Voth’s opposition to cryptos does not mean that he is fully in line with the existing monetary system. He also says he disagrees with modern monetary theory. This suggests that the government can solve many problems by creating more money without fearing the consequences since it is the issuer of the money.

According to him, as carved, “The Bretton Woods system is an example of an alternative that still fails to solve these problems. »

Ultimately, the university professor portrays the monetary system as imperfect. However, he believes that cryptos, in this case bitcoin (BTC), will not be able to fix some of the problems or do some of the things that the Bretton Woods system failed to do.

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