“Bitcoin is not useless, but it is a passing fad”, said manager during the program Por CriptoFácil

© Reuters. “Bitcoin is not useless, but it is a passing fad,” said manager during the program
Luiz Alves Jr, gestor do fundo Versa encontrou Fabrício Tota, diretor da exchange Mercado Bitcoin. Ambos participaram do programa Preconceito, organizado pelo canal Spotniks no YouTube, em edição que foi ao ar nesta quinta-feira (19).

In this program, two people who do not know each other and have never seen each other must guess each other’s main characteristics. The only basis guests have is the stereotype of each of them.

In this way, Tota and Alves made a sort of “blind assessment” of each other. And of course, the subject of cryptocurrencies was part of this assessment.

Participants guess each other’s positions When trying to describe the manager, Tota said that, in his view, Alves considered the cryptocurrency market useless. In another question, in which he should have guessed what Alves thought of the market the first time he read about it, Tota stated: “he looked skeptically and that he would be serious about scams.”

Tota also hinted that Alves does not have cryptocurrencies in his portfolio. However, Alves’ response was different than expected. “I would define the cryptocurrency market as a fad, but by no means is it useless. I think it has its uses, but this hype is a fad,” he said.

In this sense, Tota’s response highlighted the increase in adoption. The Market director highlighted that more and more people know and acquire cryptocurrencies. Therefore, the market’s growth potential is increasing.

On the other hand, Alves stated that when he heard about it for the first time, he considered the market “innovative and complicated”. The CEO said he spends part of his time studying cryptocurrencies and especially blockchain technology.

“My impression was (…) innovative, interesting and complicated. My discovery process was quite intense and I still study about it today. But you got it right, to this day I don’t have cryptocurrencies. I’m not skeptical about the technology of cryptocurrencies, but about their pricing,” said Luiz.

Indeed, Alves is critical of BTC as an investment due to the volatility in the price of cryptocurrency. At the same time, the manager

“The main advantage of cryptocurrencies is the reliability and immutability of the registry. That’s why I think the blockchain has application in real estate registration and other registrations.”

Free topic yielded good discussion

Afterwards, the theme of the program became free, with Alves and Tota discussing points about the market. First, the manager questioned Tota about the scarcity of cryptocurrencies. Alves said that, in his view, the ease of creating new cryptocurrencies makes them not scarce and, therefore, makes it difficult to define a value for each one of them.

In his response, Tota clarified that, in fact, it is possible to create several cryptocurrencies at once. However, each cryptocurrency has a different perception of value. BTC, for example, is seen as more valuable precisely because it has a larger network and different characteristics from other cryptocurrencies.

“For example, the two of us can create a cryptocurrency here and now. But that doesn’t mean we create value, because no one is assigning that value. BTC, on the other hand, has a huge network that sees value,” he said.

That is, the BTC source code, which can be replicated, actually has no value in itself. The value resides in the network itself and in some characteristics of each cryptocurrency, such as the scarce offer and greater decentralization, in the case of BTC.

The issue of BTC as a store of value, Alves’ main criticism in most of his publications, was also the theme of the meeting. During the interview, the manager asked Tota about the BTC: after all, how can an asset that can drop in price by 50% in one day be called a store of value?

“The BTC market is only $600 billion in value, with around 20.30% of that lost forever. In fact, it has characteristics that can be a store of value, but it is still a small market and has great impacts in the short term”, he said.

Finally, both greeted each other cordially. In a statement provided to CriptoFacil, Tota praised the conversation and said he hoped to have changed the manager’s opinion about cryptocurrencies.

“The chat was great, high level. Sometimes the person we see on social media is quite different from the person we know personally. That was the case. Investing in stocks and following certain investment schools does not necessarily conflict with seeing another asset class, or BTC in particular, as an opportunity. I don’t know if I convinced Luiz this time, but I’m sure one day he will still have BTC.”

By Easy Crypt