Tim Berners-Lee, the inventor of the World Wide Web (WWW), believes that cryptocurrencies are “dangerous” and investing in them is akin to gambling.
However, he argued that they could be useful for transacting if they are converted to fiat when received.
I am not a fan of cryptocurrencies
In a recent appearance on CNBC, the British computer scientist best known for creating the World Wide Web, Tim Berners-Lee, warned Investors stay away from cryptocurrencies as they are “speculative” and replicate gambling.
“Investing in certain things, which is purely speculative, is not what I want to spend my time on.”
He also described the cryptocurrency industry as “dangerous” and saw similarities between its current state and the dot-com bubble of the late 1990s. Many Internet-based companies were the biggest trend back then, and a colossal number of capital flowed into them.
However, speculation was also at a high level, with many failing to turn a profit, causing a massive drop. However, some entities, including eBay or Amazon, have weathered the hard times and now stand out as giants in their field.
Berners-Lee believes that the only merit bitcoin and altcoins have is their ability to be used for remittances. However, he advised consumers to convert them back to fiat upon receipt.
Web3 has recently emerged as an allegory for the updated extension of the World Wide Web based on blockchain technology and decentralization. The British believe that the next version of the WWW should be called Web 3.0, which is something different from Web3, and would not incorporate such concepts.
Charlie Munger shares a similar stance.
Another outspoken critic of the cryptocurrency industry who sees it the same way as Berners-Lee is American billionaire investor Charlie Munger. Warren Buffett’s right hand described digital assets such as gaming contracts that are neither currency nor commodities nor securities.
He believes they pose a serious threat to the economic stability of the United States, wishing the government would place a blanket ban on them.
More recently, he reclaimed Cryptocurrencies are “worthless” and “totally crazy and stupid” options. The 99-year-old finds it “ridiculous” that someone wants to buy such assets, calling those who oppose his position “idiots.”
What if Munger and Berners-Lee are wrong?
In fact, the legacy of cryptocurrencies was severely damaged after countless bankruptcies, scandals, and the market crash in 2022. However, financial markets and even gold have also had a rough year.
Some of the main reasons behind the current global currency disruption that spanned most of the world could be runaway inflation, military conflicts, energy crisis and others.
And while some digital assets have dubious benefits and could disappear in the future, bitcoin seems capable of surviving the turmoil and emerging as a financial asset that competes with national currencies.
The dollar, the euro, and many others have depreciated of late, which means that the same amount of money could buy fewer goods and services today compared to years ago. Also, central banks can always print more fiat or apply policies that could negatively affect consumers.
Bitcoin, on the other hand, is completely decentralized and is not controlled by governments or other institutions. It has a fixed maximum supply limit of 21 million coins, which led some to classify it as an inflation hedge.
Despite being declared “dead” hundreds of times, it has weathered previous crises, while residents of troubled nations like Argentina, TurkeyLebanon and more have shifted their focus to him due to their local financial problems.
Featured image courtesy of FMA
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