Ethereum and Cardano are about to receive big updates, although Bitcoin has stayed essentially unchanged.
According to Justin Bons, founder and chief investment officer of the cryptocurrency-focused firm Cyber Capital, Bitcoin (BTC) is “technically one of the weakest cryptocurrencies” and a “purely speculative asset without use” when compared to other cryptocurrencies.
Since establishing one of Europe’s oldest cryptocurrency funds, Cyber Capital, in 2016 and calling himself a full-time crypto researcher since 2014, Bons has been an active figure in the crypto world. Bons has also operated nodes on the Bitcoin and Bitcoin Cash networks.
“The world has also evolved and advanced. I recall that it was once said that BTC will just absorb the finest technology. This theory has utterly failed, given Bitcoin lacks smart contracts, privacy technology, and scalability innovations.”
Bons does not seem to address the Bitcoin Lightning network, which is one of the most apparent answers to the scalability issue of the network.
Bons said that other networks have evolved improved token design techniques, with some smart contract networks implementing fee-burning processes that may result in negative inflation rates for the token.
“Bitcoin’s economic attributes are also quite deficient […]” BTC competes with cryptocurrencies that may achieve negative inflation owing to fee burning, high capacity, and high usefulness, such as ETH post-merge and alternatives such as AVAX, NEAR, and EGLD.
Without major technical advancements or value, Bons claims that Bitcoin has become a purely speculative asset for many individuals, who continue to invest “contrary to basic revenue, utility, and use case research.”