Venezuelan Ángel García Banchs, PhD in Economics and Master in Finance, published an article criticizing Bitcoin and classifying the digital currency as a “aberration” which is nothing more than speculation.
He compared Bitcoin’s value to Bored Ape NFTs – a collection of monkey drawings that caused a stir in the market last year – suggesting we live on a “planet of madmen.”
The economist also said that the price of cryptocurrency has not yet reached its lowest value and that it could fall much further.
“The fact that Bitcoin is only down 75% so far is a sign that there is yet to be a downward revision. It is an anomaly that something with no value sells for $17,000, just as the digital ape sold for $10 million. Planet of fools. I exclude myself”.
What #Bitcoin there is only a 75% drop so far is proof that there is still a lack of adjustment to the low to come.
It is an anomaly that something whose non-speculative use value is zero sells for $17,000, while the digital mono sold for $10 million.
Planet of finishing locomotives. I exclude myself.
— Angel Garcia Banchs (@garciabanchs) December 2, 2022
Cryptocurrency market is a scam
Highlighting a tweet from Kraken CEO Jesse Powell, the Venezuelan points out that Bitcoin “geniuses” understand the fraud (the FTX case), but ignore that the entire cryptocurrency market is a scam.
Between the lines, he also treated Bitcoin investors as “dumbbells.”
In the tweet, Powell spoke about the management of FTX founder Sam Bankam-Fried, who “had no idea how his company worked”. The doctor of economics stressed that the FTX case was a total fraud and compared SBF to Madoff, who is considered the greatest con artist in history.
“Bitcoin professionals understand why they have been misled, but they still don’t understand that the whole concept of cryptocurrencies is a fraud. Even if they don’t sign them, they will understand that there is no such thing as putting money into something that pays absolutely nothing and expect that get rich from it.”
Los pro #Bitcoin understanding why they were burned out but without understanding that the whole concept of cryptos is a fraud per se 😂
Neither with dibujitos will understand that there is no such thing as putting your money into something that will yield absolutely nothing and hoping to get rich off it. https://t.co/CGaNHrbRbe
— Angel Garcia Banchs (@garciabanchs) December 2, 2022
There is no denying that the cryptocurrency market is largely made up of speculative investors. However, if the entire market were to disappear today, Bitcoin would survive thanks to its architecture, even if it was only worth a penny.
Critical Education on Bitcoin
Banchs has a blog where he offers courses related to economics and politics, among the classes he teaches, some are related to bitcoin. According to him, bitcoin can go to zero, but this will never happen with fiat currency, that is, if the demand for bitcoin falls to zero, the price will fall with it.
For example, in his teachings he claims that the state is important and that government currency can only be controlled by the government to preserve its value and protect it from fraud and crime.
In other classes, he defends that Bitcoin is not a “hedge” asset, i.e. the digital asset does not serve as a hedge against inflation due to its volatility.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
