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Bitcoiners versus Bankers: The battle on the blockchain

In this, we explore the views of three of the top businessmen in banking and compare them with the leading cryptocurrency experts.

Written by Becky Leighton Published on

There have been some times when major banking figures and virtual currency advocators can’t seem to see eye to eye when it comes what role the future of cryptocurrency holds in the financial market.

The Bankers

First, we’ll tuck into the nay-sayers; those who thoroughly and explicitly propose that Bitcoin has no place in finance and that the whole endeavor will meet a foul end.

George Soros

Billionaire Soros, of the Soros Management Fund, has denounced Bitcoin as a bubble – a sentiment which is familiar with those in the cryptoworld – and has condemned the virtual currency incorrectly titled as “currency” owing to its volatile nature.

Soros has further slammed cryptocurrency for the pseudonymity which offers the potential for illicit black-market activity.

At the beginning of this year, the financial mogul spoke out against Bitcoin, saying:

“Cryptocurrency is a misnomer and is a typical bubble, which is always based on some kind of misunderstanding… Bitcoin is not a currency because a currency is supposed to be a stable store of value and the currency that can fluctuate 25% in a day can’t be used for instance to pay wages because wages drop by 25% in a day. It’s a speculation. Based on a misunderstanding”.

Soros also likened Bitcoin to the Tulip Mania craze, saying that it is “a bubble typical which is always based on a misunderstanding like the tulip mania”.

*Ahem, Mr Soros.

Agustín Carstens

General Manager of the Bank for International Settlements and Mexican financial whizz, Carstens took the “if you don’t have anything nice to say, don’t say it at all approach” advice and threw it out the window, along with any optimism his followers might have had about his take on Bitcoin.

Because it turns out that take is just not good.

Like Mr Soros, he accused Bitcoin of not only being a bubble but followed the attack, calling it a ponzi scheme and an environmental disaster. He also thinks that virtual assets endanger the trust that investors have in money.

“Private digital tokens posing as currencies, such as bitcoin and other crypto-assets that have mushroomed of late, must not endanger this trust in the fundamental value and nature of money.”

On a totally related note, we look into the ways in which cryptocurrency functions as money in our Bitcoin Basics learning content.

Warren Buffett

This is a name which has become synonymous with business success. A philanthropist, investor, and financial master-mind who ranks in the top ten richest people.

Apparently, Buffett also falls in the top ten cryptocurrency critics and has also referred to the innovation as a bubble.

Not only knocking Bitcoin, Buffett has beef with all cryptocurrencies, saying:

“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending. When it happens or how or anything else, I don’t know.”

He said that he often will invest in projects he thinks he knows something about but suggested that getting involved – either long or short-term – in something he has no interest in knowing would be ridiculous.

Bitcoin Buffs

On the other side of the fence – quite far, mind you – we have those who sing the praises of Bitcoin and cryptocurrency and have all of the faith and optimism that the future of the cryptocurrency market will bring a new innovative way of using money to the world.

Brian Kelly

BKCM’s CEO is a Bitcoin believer, despite the bad-run the cryptocurrency is having and he declared it on national television.

Kelly gave his view of the matter on CNBC’s ‘Fast Talks’ late last month and his optimism is shining, with sentiments that the decline will be followed by a reverse upward gradient and that regulations and related trade exchanges will bring a long-term benefit to the bright future of cryptocurrency.

Brian Armstrong

While encouraging his staff at Coinbase, Armstrong decided to send some of the feel-goods to the public too and shared with the world his positive opinion that the crypto-market will become even stronger because of its volatile turns.

The CEO of the major cryptocurrency trade exchange suggested that the rollercoaster-like market of Bitcoin is ultimately beneficial as it will force those invested for the wrong reasons to lose interest in the market.

“After many years of this, I’ve come to enjoy the down cycles in crypto prices more. It gets rid of the people who are in it for the wrong reasons, and it gives us an opportunity to keep making progress while everyone else gets distracted. We use the down cycles to build a strong foundation so we can thrive in the next growth cycle.”

Charles Hoskinson

While he might not be named Brian, he does share the same views on cryptocurrency as Kelly and Armstrong.

Hoskinson, the founder of the Cardano project, has every reason to have hope in cryptocurrency and if his professing is anything, hope is what he certainly has. Well known in virtual currency market matters, the businessman claimed that cryptocurrency has a bright future ahead.

He also thinks that the bright future of cryptocurrency will be heading in the multi-trillion dollar direction before long.

Written by

Internet writer looking to find the right piece. Also presents things on radio and happens to be a chip off the old blockchain. @BeckyRLeighton

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