Recently, the Kenyan Communication Strategist warned African investors about crypto, saying, “Bitcoin is worth zero.” The name of the official is Mwotia Ciugu, and he thinks that Bitcoin’s fundamentals don’t allow it to be used as a store of value or hedge against inflation. According to him, it is structurally incapable. So, for him, it fails both as a currency and an investment. Ciugu also pointed out that the volatility of Bitcoin makes it impossible to be used as a currency.
Mwotia Ciugu on Bitcoin
Mwotia thinks that Bitcoin is not scalable, and the volatility makes it even worse. He pointed out the electricity use of BTC, saying that it’s inefficient. This is something that’s debatable, So, I wouldn’t talk about it. Ciugu also draws a comparison with the US Dollar, saying that it has annual volatility of 17% while Bitcoin has even more than 50%, and this makes it impossible to use for day-to-day transactions.
Now many could argue that El Salvador has made BTC legal tender, and it is being used there extensively. But according to Mwotia, the US Dollar is still the most used currency in the country. But he does agree that sending money with Bitcoin between different nations is much more efficient. This is because the charges that come with these transfers are exorbitant when done through banks.
Ciugu also thinks that Bitcoin doesn’t produce anything of value and is like a zero-sum game. He pointed out the time when BTC crashed after Elon cited his concern over its energy usage. And this means that Bitcoin is more susceptible to emotions than actual fundamentals.
The real value of BTC
Bitcoin is decentralized, and this is the real value of the cryptocurrency. It is not controlled by a single entity, and that gives the power of money in the hands of people. Countries that are struggling with their own currency, like Venezuela, can also find relief in BTC. And this is why the adoption rates are very high there. BTC is not here just for fun; it is here for survival.
What are your thoughts on Mwotia Cigu’s statement saying, “Bitcoin is worth zero”? And do you agree with his arguments? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.