Amidst all the extreme bull and bear runs of bitcoin, many are forced to believe that the cryptocurrency is here to stay for life while many continue to put all their faith in the digital currency.
Celebrities have been known to speak out in favor of or against the cryptocurrency and one such sports celebrity is former world chess champion Garry Kasparov who believes that while bitcoin’s popularity doesn’t surprise him, he equates bitcoin to “fake money” majority of which is in the hands of investors and exchanges who merely use it as a resource to make more money.
Kasparov made the statements on the sidelines of the Web Summit, in Lisbon, this year which he visited while representing cybersecurity firm Avast. In an interview with PROTESTE INVESTE, a Portuguese investment website, Kasparov said that majority of bitcoins – about 80 per cent – are circulating in exchanges and financial markets, and are never truly used in any other industry.
He even said that bitcoin is highly unstable and attraction towards the digital currency is an indication that the whole economy is in stagnation. He even questioned bitcoin’s security claiming that “whatever’s anonymous can’t be 100% safe.”
He even confirmed that he isn’t a bitcoin investor as bitcoin is pure speculation. Kasparov finished the interview stating that “betting on electronic tools can yield a lot of money, but can also lead investors to ruin.” He concluded that, therefore, an investment in cryptocurrencies depends on every investor’s appetite and attitude towards risk.
The interview with Kasparov comes at a time in which bitcoin is struggling, due to the cancellation of the SegWit2x hard fork, high fees, and due to a large number of unconfirmed transactions being stuck in a backlog.
An economy that only used bitcoin in its current stage would keep on fluctuating between inflation and deflation, the piece’s author suggests, adding that the fact “nothing can be done” with the cryptocurrency facilitates speculation, as there’s nothing to compare its value to.