Unfounded criticism: Crypto expert: “Presumed claim that Bitcoin has no value” | news

• ECB chief Christine Lagarde criticizes cryptocurrencies
• Cake DeFi co-founder calls Lagarde’s assessment “presumptuous”
• Not only the underlying value, other indicators should be included in the evaluation

It should come as no surprise that cryptocurrencies are not exactly popular among well-established financial institutions. The new cyber currencies stand in stark contrast to traditional fiat currencies for this. There is the high volatility, the principle of decentralization or the speculative nature that is part of many cryptocurrencies. So it’s hardly surprising that ECB chief Christine Lagarde is not one of the proponents of Bitcoin & Co. Lagarde has previously been critical of digital currencies, but recently reiterated his concerns in an interview with the Dutch talk show College Tour, which was reported by the American television station CNBC.

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ECB chief Christine Lagarde sees cryptocurrencies with no underlying value

As the ECB chief put it on the cryptocurrency show: “In my very humble opinion, it is worth nothing. It is based on nothing. There is no underlying value that acts as a security anchor.” That is why she is in favor of regulating cyber currencies, especially to protect inexperienced investors. After all, the high volatility of cryptocurrencies has already led to huge losses for several small investors: “I worry about the people who think there is a reward, who do not understand the risks, who lose everything and then will be terribly disappointed with why I think this should be regulated, “Lagarde said.

Cake DeFi co-founder Hosp praises cryptocurrencies

Co-founder of the crypto platform Cake DeFi, Dr. Julian Hosp does not share the criticism of cryptocurrencies. This was made clear by the crypto expert in an opinion piece for the IT finance magazine. In particular, he sees the current economic situation as a good example of why the traditional financial system is flawed, after all, it is not just Europe that is currently struggling with very high inflation. Only in May did this increase increase in eurozone to 8.1 percent, which was well above expectations. Thus, as Hosp claims in the article, since the introduction of the Bretton Woods system after the end of World War II, “the amount of money in circulation, driven by the activities of the ECB and the Fed, has increased immensely”. Again, this is possible as there is no ceiling on creating fiat currencies. However, this is different with Bitcoin. Here, the “hard cap”, the maximum upper limit of 21 million created coins, would ensure that the cryptocurrency could not experience such staggering inflation. The “serious flaw” of the current financial system was addressed here.

criticism “measured”

In its article, Hosp also addresses the accusation that there is no underlying value. On the one hand, supply and demand would determine the price of cryptocurrencies, but in his opinion other factors should also be included in the pricing of cyber currencies: “Although the value of Bitcoin and other cryptocurrencies is determined by supply and demand, indicators are such as. future possibilities, the technology and the possible uses are taken into account when assessing the value. “In this connection, Bitcoin and blockchain technology are rightly often compared to the early days of the Internet:” Should these prospects materialize, then the value would be many times, what it is today, “says the crypto expert. In conclusion, he sums up that on that basis it is” presumptuous “to claim that Bitcoin has no value.

Editing finanzen.net

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