Mwotia Siugu, a communications and public relations specialist from Kenya, warned African investors that bitcoin has no intrinsic value and urged them to be cautious when investing in the premier cryptocurrency.
“Bitcoin has zero value”
According to the expert, Africa has one of the highest cryptocurrency adoption rates in the world. However, bitcoin, due to its issues with volatility and network scalability, will not be able to keep “its promise” and become a “currency”:
“Bitcoin fails as a currency for two reasons: because of volatility and scalability issues. During the 12 years of its existence, BTC has maintained an extremely high level of volatility, ranging from 60 to 100% year to year. “
Other arguments against Siugu’s first cryptocurrency are common statements among critics of BTC’s inability to be used in day-to-day transactions and the inefficient use of electricity to keep this network functioning. .
The situation in El Salvador
The Kenyan communications specialist did not bypass El Salvador, saying citizens of that country prefer dollars over bitcoin. However, he also acknowledged the fact that using the first cryptocurrency in international money transfer transactions is more profitable than using traditional sending channels:
“In this country, bitcoin is primarily used for money transfers made by citizens working abroad to their families in their home country. To avoid high transaction costs, these citizens rely on bitcoin for cross-border money transfers. Another reason they choose bitcoin for this purpose is the fact that around 70% of Salvadorans do not have a bank account. “
Returning to the claim that bitcoin has no intrinsic value, Siugu refers to the position of billionaire investor Warren Buffett, well known for his aversion to cryptoassets. The Kenyan communications specialist is also concerned that BTC is easy to manipulate using media events and cited the example of Elon Musk, when the latter in raising the issue of the use of l energy of the cryptoasset, sharply lowered the price of the first cryptocurrency.
Siugu does not deny the possibility of bitcoin reaching the price of $ 100,000, but in his personal opinion it will have “nothing to do with the intractable truth.” Bitcoin, will it start the bullrun again in order to reach this milestone? Time will tell, but this opinion remains quite popular among prominent people in the crypto industry.