Promoters of cryptocurrency industry believe that advanced technology will influence all the development sectors in the world as much as the appearance of Internet has done.
However, one of the major IT entrepreneurs has expressed disagreement about prediction. Speaking for Arabian Business, the founder of Hotmail Sabeer Bhatia, claimed that all crypto assets were created on a fraudulent protocol model. “The underlying business model that I have looked at is fraud. Cryptocurrencies are nothing more than white papers, a hope in the way the world will be,” he explained, referring to the criticism of other business players on the market such as Warren Buffett and Jamie Dimon.
Bathia sold his company to Microsoft in 1990 for about $ 400 million. He argues that the comparison between the dotcom bubble and the crypto boom is not relevant at all, because even Books.com proved to be a viable company.
“The likes of Pets.com and the Books.com were at least versions of e-commerce platforms that are only growing today,” he claimed. “There [were] missteps back then but, guess what, we’re doing everything online today. They were right… but they were too early and didn’t have the staying power like an Amazon. Those failures tried to pick a vertical and wanted to be the solution for that segment. [There’s] nothing wrong with that.”
IOTA’s value was entirely speculative, said Bhatia
The founder of the mail service referred a lot to IOTA, one of the world’s largest crypto exchanges. According to Bhatia, even if the project was carried out by a professional team of top companies such as Volkswagen and Bosch, the token’s price was “entirely speculative“. According to CoinMarketCap, IOTA has a market capitalization of $ 3,504,403,986.
“There is a token called IOTA, which is based on the Internet-of-Things. But they haven’t sold a single device to anyone. The whole idea is: ‘In the future, one IoT device will be able to talk to another IoT device and settle any financial transaction between them using blockchain. That’s the idea. And although it’s never been implemented, the idea is worth $15bn? Really? The values are entirely speculative.”
Blockchain technology versus Cryptocurrency
Bhatia argues that blockchain technology is not confronted with the same problems of cryptocurrencies, even if these two are interconnected. Instead, he believes that many users will lose their investments in assets that are “too good to be true” and that do not really add value to the community.
“The most successful companies of the last 10-15 years have been networks… Facebook, WhatsApp, Instagram, and even Uber is kind of a network. It seems that cryptocurrencies are trying to grow a network and people buy tokens and people participate in the growth of the network. But what is the network really doing? The fundamental question of creating value for society is one they carefully dodge,” Bhatia concluded.