The crypto industry is constantly bombarded by opinions. Some do it in a respectful way while others do their best to shoot Bitcoin.
Bitcoin: The Good, The Bad and The Fraud?
As we reported yesterday, Jordan Belfort, a former Wall Street investment guru and convicted criminal, recently spoke out against cryptocurrency in an interview with CNBC, casting the industry in a negative light.
In the interview, Belfort has outlined some reasons why Bitcoin will no longer be available this year. There were two main concerns during his performance. The first reason is that this anonymous asset can be used for money laundering. But Bitcoin’s ethos has never been to be a money laundering tool, but a form of decentralized digital cash that cannot be controlled by a central authority.
His second problem is that the US government will eventually crack down on BTC and other “anonymous” crypto assets. But, as recent statements by the CFTC Chief Innovation Officer or SEC Commissioner Hester Pierce show, the US government does not intend to wipe out the crypto industry. Rather, the authorities intend to turn to industry to protect investors by providing a regime in which customers can be protected and innovation can continue to thrive.
This has also happened to governments around the world, with the head of the Japanese SEC, the Financial Services Agency (FSA), announcing recently that its organization does not intend to stem the development of crypto and related technologies. And why would the NYSE, together with Microsoft and Starbucks, turn to cryptocurrencies if the risks were too great?
Bitcoin Is Far from Reaching Its Destination
Belfort also added that Bitcoin was slow and too expensive for traders. What he has omitted is that Bitcoin transactions currently cost less than $1.00 on average. For merchants, fees are an inexpensive alternative, as traditional payment processors often charge a three percent fee on each transaction. We already reported yesterday that Bitcoin could outrank the credit card companies in the future.
In terms of speed, Belfort did not mention any scaling solutions, such as the Bitcoin Lightning Network, which will create an environment in which Bitcoin can be transferred in near real time and with no fees.