Citing long wait times for transactions to complete, and significant transfer fees making it impractical for use, the co-founder of Bitcoin.com has sold his Bitcoin off.
Emil Oldenburg is the Swedish CTO and one of the founders of Bitcoin.com. He says investing in the cryptocurrency at this point in time is a very risky investment indeed. He is so sure of this that he has sold his own Bitcoin and is now using Bitcoin cash, instead.
He added that he had to not only pay $50 to make the transaction, but that it took over 12 hours to clear, and stated that it was “completely unreasonable.”
The cost of exchanging them in the market is just too high.
He didn’t disclose how much he received for his Bitcoin, however, his salary has been paid in the cryptocurrency for the last several years. It’s safe to say he’s set for life.
Bitcoin.com has been around since 2011, but has seen a rise in the last several months, rising from just over $4,000 for one Bitcoin to over $25,000. Bitcoin.com offers subscribers a virtual wallet, and Bitcoin gambling in addition to the Bitcoin exchange and forums. Recently, more and more mainstream investors have taken notice, which is being cited as the reason for the tremendous growth, but also the reason it is headed for, if not already in a bubble.
Jordan Belfort, the man who inspired ‘The Wolf of Wall Street,’ said just last week that Bitcoin was a scam and virtually guaranteed to fail.
In a recent interview, he told Financial Times that Bitcoin was a “huge scam” and soon the Bitcoin market will collapse. He thinks that the rise in the value of a single Bitcoin is something temporary and soon there will be a massive breakdown. He compared it to the debacle in 17th century Holland when the tulip bulbs rose big time and and in a little while, dropped. He stated that the collapse of the “tulip mania” came when all the investors started selling at the same point. After a little while the whole thing with the tulip mania went down for good! He also stated that most likely it’s for sure that the Bitcoin market will crash, but investors can make money if they are not led by their greed, and sell their Bitcoin in time.
Joseph Stiglitz, Nobel Prize-winning economist, says digital currency is a good thing, but there is no regulation, and for that fact alone, Bitcoin should be outlawed. He said Bitcoin is successful at the moment because of potential for “circumvention and lack of oversight.” He went on to say that it was an up and down bubble in which people will certainly have exciting highs, and that people expect it to keep going like it is, but it won’t.
Naeem Aslam, Think Markets analyst, states that Britain wanting to increase regulation of digital currencies by expanding the territory of anti money laundering rules are why Bitcoin is knocked off its high points. These rules force traders to disclose their identities and report suspicious goings on.
Others believe greater regulations will help. Nicholas Gregory said regulation would increase growth because it will provide credibility and trust. He is the CEO of CommerceBlock, a cryptocurrency firm in London.
No matter what the future of Bitcoin looks like, any investment involves risk. Are you willing to risk it all?
H/T – Source