Bitcoin

Why were Bitcoin’s critics so silent in 2020?

Bitcoin (BTC) had an interesting year and bounced back from the big sales to finally hit new all-time highs.

However, Bitcoin’s performance and the increasing adoption of cryptocurrencies around the world have still drawn some observers to the crypto field.

However, Compared to other boom years like 2017, cryptocurrencies received far less criticism in 2020;; Even a number of Bitcoin critics seem to have softened their stance on digital assets a little.

Why were Bitcoin’s critics so silent in 2020?
Why were Bitcoin’s critics so silent in 2020?

When we look back at the world of cryptocurrencies in 2020, Cointelegraph has highlighted some of the biggest criticisms.

“Bitcoin has no future”: Russian politician Anatoly Aksakov

  • Appointment date: October 23, 2020
  • Bitcoin price that day: $ 12,900

Anatoly Aksakov, Member of the Russian State Duma and one of the main representatives of Russia’s efforts to legislate on cryptocurrency, was a notable critic of cryptocurrencies in 2020.

The official is confident that the global introduction of payments in cryptocurrencies like Bitcoin would lead to a “destruction of the financial system”. In October 2020 Aksakov predicted that decentralized cryptocurrencies like Bitcoin had no future, arguing that central bank digital currencies, or CBDCs, are the future of the financial system.

While it remains to be seen what will happen to Aksakov’s prediction about Bitcoin, some of his previous comments indicate that he is not exactly an optimist. In a live chat with Maria Butina in May 2020, Aksakov said that crypto mining “is a thing of the past” as the third halving of Bitcoin The reward for mining blocks has been reduced from 12.5 BTC to 6.25 BTC.

“”[La criptominería] It is no longer profitable and as far as I know this business will go away in the future, “argued Aksakov. Despite this fatal prediction, Bitcoin miners made some money over the course of 2020. Bitcoin miners’ income halved in early November.

In accordance with the constant ping-pong game of the Russian authorities regulating cryptocurrencies Aksakov regularly changes his attitude towards the industry. In early December, Aksakov Called cryptocurrencies a “very profitable business” and underlined the need to legitimize them by recognizing cryptocurrencies as property.

Aksakov is also the chairman of the National Banking Council of the Central Bank of Russia. In mid-October 2020, the Bank of Russia officially published its plans for the development of the Russian CBDC, the digital ruble.

“Bitcoin or any other crypto currency doesn’t cost anything”: Nouriel Roubini

  • Date: November 7, 2020
  • Bitcoin price that day: $ 14,900

Nouriel Roubini, Professor of Economics at the Stern School of Business at New York University, is one of the world’s biggest critics of cryptocurrencies, often referred to as “Dr. Doom” in the crypto community.

Known for his claims that “cryptocurrencies as a technology have absolutely no basis for success”, The award-winning economist steadfastly criticized cryptocurrencies and Bitcoin in 2020, despite admitting that BTC “could be part of the store of value” in late 2019.

On November 7, 2020, Roubini argued that the cryptocurrency itself was a “misnomer” as a currency must provide a unit of account. Roubini continued to insult Bitcoin, criticizing its seemingly limited scalability:

“Bitcoin or other cryptocurrencies do not cost anything. They have to be a single counter, and with that many tokens, you don’t have a single counter. It has to be a scalable means of payment, and with Bitcoin you can only do five transactions per second. “

At the same time, Roubini recognized the potential role of Bitcoin as a store of value. “Maybe it’s part of the store of value, because unlike thousands of others that I call shitcoins, it can’t be mined that easily because there is at least one algorithm that determines how much the supply of Bitcoin will increase over time “remarked Roubini. .

Bitcoin is “the biggest bubble I’ve ever seen”: Peter Schiff

  • Appointment date: October 28, 2020
  • Bitcoin price that day: $ 13,200

Peter Schiff, a millionaire broker and CEO of Euro Pacific Capital, is another famous Bitcoin pessimist who has been criticizing Bitcoin since 2013. Also known as the “Gold Bug” in the cryptocurrency community. Schiff is also one of the world’s biggest proponents of investing in gold.

Throughout 2020, Schiff made several negative and controversial comments about Bitcoin, predicting that gold would hit the moon while Bitcoin would crash in the near future.

On October 28, 2020, as gold plunged to an annual low against Bitcoin, Schiff argued:

“If you measure the size of asset bubbles by the belief buyers have in their trades, the Bitcoin bubble is the largest I’ve seen. Bitcoin scammers are more confident that they are right and more confident that they cannot lose during these bubbles than dotcom or homebuyers. “

December 4th ship said Bitcoin’s past performance does not guarantee future success but “ensures future failure”.

Despite regular criticism of Bitcoin, Schiff hasn’t completely stayed away from the world’s largest currency. In January 2020, Schiff claimed he had lost access to his crypto wallet, stating that BTC was “a bad idea”.

In August 2020, the gold attorney asked Twitter users to send BTC to his 18-year-old son, Spencer Schiff. “Since many of you Bitcoin optimists piss me off because my son bought Bitcoin, why not rub it off by giving him something as a belated birthday present?”

“I can trade bananas as a commodity more easily than Bitcoin”: Mark Cuban

  • Appointment date: April 24, 2020
  • Bitcoin price that day: $ 7,500

Mark Cuban, a billionaire and owner of the NBA’s Dallas Mavericks, is another big skeptic who called Bitcoin a bubble in 2017. Cubans admitted that cryptocurrencies could be a “reliable financial instrument”, but did not criticize Bitcoin in 2020 for its alleged complexity.

In an interview with Morgan Creek Digital’s Anthony Pompliano on April 24, the Cuban reiterated his long-term stance that Bitcoin was too complicated to use. “It should first be completely smooth and understandable for everyone, and then you can say that it is an alternative to gold as a store of value,” he said.

Cuban stated that Bitcoin is a questionable medium of exchange due to its apparent lack of fungibility for goods and services without conversion to fiat currencies:

“I can trade bananas as a commodity more easily than Bitcoin, and I can eat that banana before it goes bad and get all of the potassium for my workout.”

Despite his criticism of Bitcoin, the Cuban still owns a bit of cryptocurrency. The billionaire said he had Bitcoin worth around $ 130 in April 2020. In 2017, Cuban recommended investing up to 10% in cryptocurrencies such as Bitcoin.

“I don’t think digital currencies are as successful as people expect” – Ray Dalio

  • Date: November 7, 2020
  • Bitcoin price that day: $ 15,500

In an interview with Yahoo Finance on November 7th Ray Dalio, the American billionaire hedge fund manager and founder of Bridgewater Associates, claimed he did not see digital currencies like Bitcoin as successful, contrary to the opinion of others. He also expects world authorities to “ban” Bitcoin if its price rises too high.

Dalio also criticized Bitcoin for not being an effective medium of exchange and store of value.in the following words:

“In theory, Bitcoin is good, but there are three basic things: A currency must be an effective medium of exchange, a store of wealth, and governments want to control it. […] Today I still can’t take my Bitcoin and just buy things with it. “

Dalia admitted later that he “might be wrong about something” about Bitcoin:

“I can’t think of any central bank, large institutional investor, multinational or corporation using Bitcoin […] If I am wrong about these things, I would like to be corrected. “

Dalio has significantly softened its stance on Bitcoin, stating that it could be a diversifier for gold on December 8th.. The hedge fund veteran called the cryptocurrency a bubble back in 2017.

In 2020, fewer people criticized Bitcoin and cryptocurrencies

Although a select number of well-known critics hit Bitcoin in 2020, It seems that the pioneering cryptocurrency has generated less public skepticism than in previous years.

Celebrities naysayers like Warren Buffett, Bill Gates and Donald Trump have been silent about Bitcoin and cryptocurrencies this year. Nobel Prize-winning economist Paul Krugman, who predicted a “total collapse” of Bitcoin in 2018, also declined to comment.

According to the major bitcoin website 99bitcoins, 2020 was the year with the lowest rate of Bitcoin obituaries since 2013.

Only seven cases of “Bitcoin death” were reported on the media monitored by 99bitcoins, compared to 41 “death notices” in 2019 and 93 in 2018.

The biggest year for bitcoin deaths was 2017, the last year Bitcoin saw a sharp surge before 2020.

Whether you look at the fading criticism of Bitcoin Given the growing interest of major banks and financial institutions in cryptocurrencies, or the meteoric rise this year, one thing seems clear: cryptocurrencies are here to stay.

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