Senior Global Data analyst Gary Barnett spoke very harshly about cryptocurrencies. He considers them unprofitable, unreasonably expensive, slow and essentially false. This is stated in the report on the digital money market.
According to Barnett, the statements of the supporters of cryptocurrency are far from reality, and the advantages of virtual money are greatly exaggerated.
“We are told that cryptocurrencies accelerate transactions, help to remove intermediaries and are free of costs, but none of these points are true,” Barnett says. He forgets to mention that under acceleration of transactions, crypto supporters normally mean transactions between two persons in different countries, transferring money from one bank account to another. This normally takes around 3 – 7 business days and there’s nothing even close in speed to 10 transactions per second of the slowest network of bitcoin.
Barnett compared the processing speed of Bitcoin transactions with the Visa payment system instead. The latter can handle up to 24 thousand transactions per second (tps), when bitcoin tends to a rate of 10 tps, and Bitcoin Cash can handle about 60. Although somehow approaching Visa, Ripple is trying to get results from 1.5 thousand tps. Here, Gary Barnett forgets to mention that the average load on Visa system is around 1500 tps, same as Ripple can already handle.
He also noted that the commission for the transaction is very high, and sellers who are ready to accept payment in cryptocurrencies are few. Here, we can partially agree, as the commission for the transaction can be considered high, but in the bitcoin network only, during the high load periods, but not comparing to the international money transfer by the average bank. And there are plenty of other coins are present on the current markets that don’t have such an issue. Few sellers that are ready to accept cryptos for the payment – yes, it is, but Amazon shopping with Bitcoin Cash and bitcoin makes this statement “not so true” because even though it’s only one particular seller, the variety of items, offered by Amazon are huge. And don’t forget that cryptocurrencies appeared only a few years ago and obviously, mass adoption is in its early stages.
A representative of Global Data is confident that there is no good to expect from bitcoins – this is a common fraud and a bubble because the price of this cryptocurrency is formed by speculation on the likely behavior of the market. Now, let’s quote “the voice of fairness” in the introduction to this report:
In fairness, all currencies are a confidence trick. The US dollar, British pound, and the Euro all depend on nothing more than market confidence for their value. The extent to which a currency works effectively is a function of a range of factors…
This report is just trying to feed the fire of FUD that is constantly used by the mass media these days. The only obvious reason for that is to create controversy news and drag the attention of the readers. We aim for critical thinking of our readers, trying to provide both pros and cons in the same article. Our authors are always opened for the discussion.
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