The club critics of bitcoin official refill: Hotmail founder Sabir Bhatia issued a sharp warning to investors, saying that the market value of cryptocurrencies is based on speculation and not on proved success. It is reported by Arabian Vusiness.
“Behind them [of cryptocurrency] based business model I reviewed is a Scam. Cryptocurrency is nothing like a technical document, the hope of what the world could be”, he said.
Bhatia added that unrealized ideas can not be assessed in billions of dollars.
“There is a token IOTA, which is based on “Internet of things”. But they are not sold from any device. The whole idea is this: “in the future one IoT device can talk with another IoT device and to hold between them any financial transactions through the blockchain. That’s the idea. Although this idea was never implemented, it is worth $15 billion Seriously? Values are entirely speculative,” — said the developer.
While Bhatia supports the potential of the blockchain as a means of cheap, instantaneous and democratic cross-border settlement, he shared the view of Warren Buffett that many investors lose their money by investing in cryptocurrencies.
At the same time, he rejects the oft-quoted Parallels with the dot-com bubble, which at the time it was him. Then, in the late 1990s, years billions of dollars were poured into web sites which were not operated and were lost, which caused massive sales in the markets and destroyed many investors.
“It’s even worse. Pets.com, books.com and the like was, at least, the versions of the platforms online shops that today only grow. Then there were mistakes, but guess what, we do everything online today. They were right, but came too early and had no margin of safety, as Amazon. These failed projects are trying to choose a niche and become the solution in its segment. There is nothing wrong”, — said the developer.
Sabir Bhatia, 49-year-old designer from the city of Chandigarh in North-West India known as the founder of Hotmail, which he later successfully sold in the late 1990-ies.
As previously reported, according to researchers from the Boston School of management Wallace E. Carroll, the average investor who invested in the ICO, received 82% of the profits.