The recent criticism made against the cryptocurrency market came from a Co-founder of Hotmail, Sabeer Bhatia. Just as many other critics who exerted strong criticisms on Bitcoin after its breakout, Bhatia believes that the cryptocurrency market looks too good to be true.

According to him, the cryptocurrency market is nothing more than fraud and whitepapers. “The underlying business model that I have looked at is fraud,” he said. “Cryptocurrencies are nothing more than white papers, a hope in the way the world will be,” he added.

According to him, the whole plan of the cryptocurrency is to issue out tokens for people to become part of its growth. Bhatia sided with most of the critics who share the view that the cryptocurrency market thrives on speculation without a real value.

Some analysts have said that Bitcoin, for instance, has no real value, hence any disappointment that will force all investors to sell out their assets will drive the price down to zero. Using Iota as a reference, he said that the whole value of Iota has been inflated, thanks to the speculation in the market.

He said that the idea of Iota is to ensure an iota device talking to the other devices in the future; however, the $15 billion as estimated value is purely speculative. “That’s the idea. And although it’s never been implemented, the idea is worth $15bn? Really? The values are entirely speculative,” he said.

The emergence of cryptocurrency has been likened to be a speculative asset that will probably burst in the future.

Recently, Steve Eisman, an investor questioned the social utility of the cryptocurrencies. In his view, the digital assets serve no meaningful purpose other than for speculation and money laundering.

It is interesting that despite the many misgivings on the cryptocurrency, it always happens to prove critics wrong. Bitcoin, for example, is one of the many assets that have been subjected to criticism. It jumped in price to $2,000 and subsequently to $20000 before falling due to the market pullback.

Bitcoin and Ethereum have been used as payment options in some institutions amidst the many assessments that it serves no meaningful function. In fact, Bitcoin has been projected to be the future of finance in the coming years. The crypto market was earlier predicted by the Quinlan Associates to drop deep and eventually pick up in the course of the year.

The post Cryptocurrency Market Is A Fraud – Hotmail Co-Founder appeared first on ZyCrypto.

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