Bill Harris, former and founder CEO of PayPal, surely feels no love about bitcoin at all. Yesterday, he published an article on Recode where he shuns bitcoin repeatedly making a series of negative allegations about it, its usage and the limitations of its actual scope.
First, he goes straight to state a polemic thing:
I’M TIRED OF SAYING, “BE CAREFUL, IT’S SPECULATIVE.” THEN, “BE CAREFUL, IT’S GAMBLING.” THEN, “BE CAREFUL, IT’S A BUBBLE.” OKAY, I’LL SAY IT: BITCOIN IS A SCAM.
From there he goes into the issue of market manipulation, affirming that bitcoin is also prone to a pump and dump management: pump and dump means that a big party can pump (cause a rise in the price) by flooding the market with buy orders, and then dump (cause a drop in the price) by selling it all at the same time. This is not entirely false, but saying it without having proof seems a little like going the conspiracy theory way.
Then he states that bitcoin has failed as a store of value, due to the volatility of the market (no one wants to lose 20% of his savings overnight), and as an alternate currency, due to the limited number of stores that accept it and its limited capability of managing numerous payments at once. This is also true, but there are solutions proposed for this problem, although in an experimental stage still (Lightning Network).
Bill also goes to declare something that some thought over, a thing that was the original stigma for Bitcoin and the whole cryptocurrency movement: Bitcoin is used mostly for criminal activities.
MOST HEAVY USERS OF BITCOIN ARE CRIMINALS, SUCH AS SILK ROAD AND WANNACRY RANSOMWARE. TOO MANY BITCOIN EXCHANGES HAVE EXPERIENCED SPECTACULAR HEISTS, SUCH AS NICEHASH AND COINCHECK, OR OUTRIGHT FRAUD, SUCH AS MT. GOX AND BITFUNDER.
And then he also tackles normal users by saying that even they are not acting legally, because most bitcoin users do not pay their exchange taxes. While there is a good percentage of cryptocurrencies undeniably used for criminal purposes, to say that “most users of bitcoin are criminals” is to go a little bit too far. Mining is also quoted as an unnatural way of using energy resources, one that can put at risk our energy sources n the near future.
Bitcoin is often criticized and attacked, but for its revolutionary scheme of bypassing existing financial power centers in every corner of the world. And, paradoxically, it is also being used as a substitute for PayPal, now that its fees have gone up like we explained earlier in this article. The truth is that like it or not, Bitcoin is here to stay. The full article of Bill bashing bitcoin can be read here.