Roland Stadler, PwC Switzerland’s Senior Manager and Data & Analytics Specialist, has published a post on their website explaining the importance of Bitcoin and other cryptocurrencies, and advising against taking part in ICOs.
Stadler first explained the different type of digital assets: currencies, utility tokens and security tokens. He wrote that BTC, a currency, “works without problems” and has not been hacked yet. He then talked about the utility token Ethereum and its various applications. “The technology is promising but still highly experimental, and has not produced any convincing applications,” noted Stadler.
Stadler grouped utility tokens and security tokens together in order to explain that they can be “thought of as venture capital”. However, investing in a new business is risky and the chances of loss is higher. In addition to that, people often use these tokens to lure people into fraudulent projects.
Stay away from the current ICO hype. It’s mostly scams and even honest projects are so small that the market is easily manipulated.
Stadler also explained that focusing on blockchain technology while ignoring Bitcoin isn’t clever. Due to the volatility in its price, people tend to talk negatively about the famous cryptocurrency. He said that some people are trying to find a “killer app” for blockchain technology – however, they are forgetting that the “killer app” is BTC itself.
Bitcoin is a new currency that is independent of any particular nation state … there is a good chance that the concept of “money” could be called into question … That is why you should be interested in Bitcoin & co. Don’t fall for the ICO hype and false promises such as “blockchain, but not Bitcoin”. And recognise the disruptive potential of digital assets.
Bitcoin finally crossed $8,000 on July 27th, however, the milestone was short-lived. At the time of writing, BTC is worth $7,649 and has a market capitalization of $131 billion.
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