Bob Loukas, the founder of Bitcoin.Live, has hit out at a recent report from the Bank for International Settlements (BIS) that called into question the stability and longevity of cryptocurrencies.
“With claims that Bitcoin is a poor substitute for the traditional institutional backing of money and that the technology comes with poor efficiency and vast energy use, you could say that the powerful banking group is looking backward and not forward. The report appears to be not only short sighted but also unware of the revolutionary changes that are happening right now,” he says.
Whilst the BIS report casts a large shadow within the UK, other countries are showing a more welcoming approach, Loukas argues. He flags up Dutch banking giant ING, which recently published new research showing the growth and acceptance of cryptocurrencies. Elsewhere, Facebook has reversed a high profile ad ban and the Bahamas is set to offer a government-backed cryptocurrency pilot.
“Although the initial popularity led to expected volatility, it certainly hasn’t scared investors away,” Loukas comments. “With Bitcoin as an asset up 150% overall from this time last year, the BIS report lingered in the past and did not consider not only the infancy of the technology but the constant critique committed developers are undergoing.”
“The hive of activity surrounding the developing technology has seen over 90% of the original Bitcoin code of 2009 rewritten with additional layers now operating on top of the code which will provide the infrastructure the BIS said the platforms lacked. These additions will allow greater volumes of transactions to process. This clearly shows that whilst the BIS highlights a potential issue, it fails to recognise that those working deep within crypto have already begun to solve the problem, unlocking and changing wealth creation around the globe,” he concludes.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.