{"id":13850,"date":"2021-11-02T04:54:07","date_gmt":"2021-11-02T04:54:07","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/bitcoin-is-worth-zero-kenyan-communication-strategist-warns-african-investors-to-be-wary\/"},"modified":"2021-11-02T04:54:07","modified_gmt":"2021-11-02T04:54:07","slug":"bitcoin-is-worth-zero-kenyan-communication-strategist-warns-african-investors-to-be-wary","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/bitcoin-is-worth-zero-kenyan-communication-strategist-warns-african-investors-to-be-wary\/","title":{"rendered":"\u2018Bitcoin Is Worth Zero\u2019 \u2014 Kenyan Communication Strategist Warns African Investors to Be Wary"},"content":{"rendered":"

A Kenyan communications strategist, Mwotia Ciugu, has told African investors to be wary of investing in bitcoin which he claims is worth zero. <\/strong><\/p>\n

Bitcoin Structurally Incapable of Delivering on Its Promise<\/h2>\n

In an op-ed<\/a> published by The Elephant, Ciugu insists bitcoin (BTC)<\/a> is structurally incapable of delivering on its promise of becoming an alternative store of value or a hedge against inflation. In addition, the strategist also claims bitcoin fails both as a currency and an investment.<\/p>\n

Although he concedes that Africa has one of the highest cryptocurrency adoption rates<\/a>, Ciugu cautions, however, that the top cryptocurrency\u2019s volatility and scalability issues mean it cannot act as a currency. Ciugu is quoted explaining:<\/p>\n

Bitcoin fails as a currency because of two things: volatility and scalability concerns. In its 12 years of existence, bitcoin has maintained extremely high levels of volatility i.e. 60 per cent to 100 per cent annualized.<\/p>\n

To further support this point, Ciugu makes reference to the U.S. dollar which he claims \u201chas an annualized volatility of 17 [percent].\u201d Concerning the crypto asset\u2019s scalability problems, Ciugu predictably regurgitates the common arguments about bitcoin\u2019s inefficient use of electricity and how this disqualifies it as a currency for day-to-day transactions.<\/p>\n

Bitcoin Useful for Cross Border Remittances<\/h2>\n

Meanwhile, the strategist denies that bitcoin is now being used extensively in El Salvador, the first country in the world to declare<\/a> bitcoin legal tender. According to Ciugu, the U.S. dollar is still the dominant currency in El Salvador. Despite putting forward these arguments, Ciugu surprisingly agrees that sending remittances via bitcoin is more cost-effective than using regular sending channels. He explained:<\/p>\n

The use of bitcoin in that country is primarily for remittances by citizens working abroad to their families back home. These citizens rely on bitcoin for cross-border money transfers to avoid the high costs that come with such transactions, and also because most citizens of El Salvador, i.e. 70 [percent], don\u2019t have bank accounts.<\/p>\n

On why he thinks the cryptocurrency is worth zero, Ciugu uses billionaire investor Warren Buffet\u2019s past comments<\/a> about bitcoin to argue his point. In his previous remarks, Buffet had intimated the crypto asset had hallmarks of a pyramid scheme because it produces nothing. Just like Buffet, the strategist also believes bitcoin investors have no expectations of making any future earnings except through engaging in zero-sum games with other speculators.<\/p>\n

The strategist also makes reference to how bitcoin crashed when Elon Musk<\/a> voiced his concerns about the crypto asset\u2019s energy use<\/a>. Such a reaction according to Ciugu means bitcoin is more susceptible to sentiments than actual fundamentals.<\/p>\n

The strategist ends this long article by conceding that bitcoin will probably hit the US$100,000 mark in the near future as some analysts are predicting<\/a>. However, Ciugu argues that even if bitcoin were to reach such a milestone, this will have \u201cno bearing on the intractable truths\u201d he has articulated.<\/p>\n

Do you agree with Ciugu\u2019s views? Tell us what you think in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nFeatured, bitcoin store of value, cross border remittances, Crypto asset, cryptocurrency adoption, Elon Musk, inflation hedge, Warren Buffet<\/p>\n","protected":false},"excerpt":{"rendered":"

A Kenyan communications strategist, Mwotia Ciugu, has told African investors to be wary of investing in bitcoin which he claims is worth zero. Bitcoin Structurally Incapable of Delivering on Its Promise In an op-ed published by The Elephant, Ciugu insists bitcoin (BTC) is structurally incapable of delivering on its promise of becoming an alternative store…<\/p>\n","protected":false},"author":0,"featured_media":13851,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-13850","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/13850"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=13850"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/13850\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/13851"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=13850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=13850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=13850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}