Tim Bond, partner and portfolio manager at UK investment firm Odey Asset Management, stated that bitcoin has few benefits to offer society. Instead, the first cryptocurrency embodies “an extreme form of libertarian anarchism,” Bond told MarketWatch publication.
Bond claimed that bitcoin has no social utility, beyond offering “a tool for speculation and a means of laundering money from illicit activities. The executive referred to the “negative environmental impact of bitcoin mining activities.”
In my opinion, bitcoin is a particularly vile asset class. If bitcoin starts to crowd out fiat currencies, governments’ ability to tax, spend, and redistribute resources will be severely limited.
Tim Bond, partner at Odey Asset Management.
Bond’s statements occur in the context of increased institutional adoption of bitcoin, which began in 2020. That year closed with more than USD 20,000 million invested in bitcoin by dozens of institutions, a fact reported by CriptoNoticias, and that continues manifesting this year.
In a recent demonstration on the change in perception of bitcoin, a survey of 3,400 investors conducted by JPMorgan, commented by CriptoNoticias on Friday, March 5, revealed that organizations 33% of those consulted had already invested in bitcoin and other cryptocurrencies (11%) or were willing to do so (22%). 58% of the sample believed that cryptocurrencies as they are here to stay.
The carbon footprint of bitcoin mining
Bond also referred to the carbon emissions caused by bitcoin mining and highlights that “bitcoin has added CO2 emissions equivalent to the annual consumption of a medium-sized country ».
Regarding the environmental impact of bitcoin mining, companies engaged in this activity seek options associated with renewable energies, as reported in this medium. In mid-December, the Square company announced that it will grant financing to companies that use green energy in bitcoin mining, a fact reported by CriptoNoticias.