Friday, October 7

Justin Bons Says Bitcoin’s First Vision Has Been Diverted

Justin Bons, the Founder and Chief Investment Officer of Cyber Capital, one of the oldest cryptocurrency funds globally, has taken the time to reflect in detail on the largest cryptocurrency.

As stated on Justing Bons’ Twitter page, Bitcoin has broken the long-term security model. He further said the coin lacks capacity programmability and composability with comparatively weak economy qualities.

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Justin Bons said:

“BTC is unique in that it is technically one of the worst cryptocurrencies”

Bitcoin’s Vision Has Been Diverted

He reiterated that the vision of the largest cryptocurrency by market cap has been diverted. He said Bitcoin block size not increasing is an aberration to the plan behind Bitcoin and this has gone against what he once defended BTC against.

As a result of the limited block size, the Bitcoins Value proposition is no longer utility-based and also the BTCs security now requires TX fees to grow exponentially larger or else then there will be a failure in the network security.

Limited Block Size Was As A Temporary Anti-Spam Measure

In the 11-tweet thread by Justin, he mentions a prominent argument that the block size should not be raised to prevent inflation.

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Recall, that the blocksize limit was introduced by the founder, Satoshi Nakamoto as a temporary anti-spam measure while Bitcoin was still much smaller.

In the early life of BTC, it is said that BTC would just adopt the best technologies. Unfortunately, this has failed because the most prominent cryptocurrency has no smart contracts, privacy tech, scaling breakthroughs and some others.

Economic Qualities Of Bitcoin Are Weak

 Per economic qualities, BTC is surprisingly weak with an uncertain limited supply.  Interestingly, Bitcoin is competing with cryptocurrencies that can achieve negative inflation with the help of free burning, high capacity, and high utility as found in Ethereum post-merge, AVAX, NEAR and EGLD.

Over time, BTC has become a speculative asset for people to only come and invest expecting the price will spike soon making it to be a Ponzi scheme investor. all the above are contrary to basic reasons of revenue, utility and use case analysis.

Justin Bons finally said, another case is that people analyze Bitcoin as if there are no other coins while the truth of the matter is without another coin, Bitcoin is incredible.

In September 2020, Justin wrote in the Medium post:

“If we can accept that Bitcoin requires change, it also necessitates the need for governance. Bitcoin is supposed to be a decentralized system, this is where much of its value is derived. Therefore imposing a centralized form of control over a decentralized system would massively detract from its value. This is why we need a decentralized form of governance for Bitcoin to be truly competitive and resilient in changing times, to evolve, or die.”

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