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Steve Hanke Calls Bitcoin Highly Speculative Asset with Fundamental Value of Zero

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Tue, 09/28/2021 - 10:54
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Yuri Molchan
Steve Hanke has shared his negative take on Bitcoin, detailing why he does not think of BTC as a reliable asset
Steve Hanke Calls Bitcoin Highly Speculative Asset with Fundamental Value of Zero
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Prominent economist at Johns Hopkins University and a crypto skeptic Steve Hanke has once again slammed Bitcoin on his Twitter page, sharing particular reasons why he is anti-BTC.

"Bitcoin's fundamental value is zero"

Prominent Bitcoin critic Steve Hanke has taken to Twitter to name the reasons why he does not believe that Bitcoin is a worthy asset. He is again emphasizing the flagship crypto's high volatility, its vulnerability to fraud. His conclusion is that Bitcoin is only a highly speculative asset whose fundamental value is as low as zero.

The economist has posted a meme putting Bitcoin on the same level as famous disasters, such as the Titanic and Hindenburg.

Around 10 days ago, Hanke commented on El Salvador adopting Bitcoin as a legal tender. He tweeted that the majority of Salvadorans do not understand Bitcoin, so they are allegedly being fed lies about BTC being a cheaper remittance method than traditional financial platforms.

Michael Saylor responds

CEO of the MicroStrategy business intelligence software giant, Michael Saylor, who has recently become a Bitcoin evangelist, has responded with his usual metaphors about Bitcoin, comparing it to digital energy, and trying to persuade Hanke that Bitcoin was made to give "property rights & economic empowerment to anyone," and therefore brings hope—as long as they have a smartphone.

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MicroStrategy holds $5.1 billion in Bitcoin

MicroStrategy is the first public company that began buying Bitcoin with its cash reserves in August 2020 and has been adding more and more BTC since then. It has several times raised funds from its shareholders to do that: $400 million and $600 million.

On Sept. 13, the company bought an additional $243 million in Bitcoin. At the moment, the business intelligence software behemoth holds a total of $5.1 billion in Bitcoin. During the third quarter this year, the company purchased a total of $419 million worth of Bitcoin.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.