Bruce Fenton Of Atlantic Financial Blockchain Labs Says Owning Bitcoin is Risky Due to Hack Threats
Many analysts and experts in and outside the crypto ecosystem have suggested that there are very few people actually spending Bitcoins, rather they are just accumulating it.
Data from New York-based blockchain researcher Chainalysis Inc. show that only 1.3% of economic transactions came from merchants in the first four months of 2019, little changed over the boom and bust cycles of the prior two years.
Accumulation — or HODLing, as the industry acronym goes — thus appears to be in direct conflict with the cryptocurrency’s future as a replacement for fiat currencies. Kim Grauer, a senior economist at Bloomberg says:
“Bitcoin economic activity continues to be dominated by exchange trading. This suggests Bitcoin’s top use case remains speculative, and the mainstream use of Bitcoin for everyday purchases is not yet a reality.”
Earlier BitcoinExchangeGuide had reported about Pomp suggesting Bitcoiners to save the failing Deutsche bank. He had said:
“Today @DeutscheBank is valued at just over $14 billion and the stock price is in a free fall. If we could raise the capital, it would be interesting to purchase the failing bank and revive it by embracing Bitcoin. Crazier things have happened.”
However, Bruce Fenton, CEO of Atlantic Financial Blockchain Labs, doesn’t agree with him. He replies:
“In my career, I’ve handled billions of dollars & never worried about theft or personal risk. With a tiny fraction of that in crypto, you are a huge target. That’s a risk I won’t take.”
Even though Bruce doesn’t call himself pro-bank, he thinks that people have been reliant on third parties for storing their money for centuries now. Even the European Central Bank has the same point of view as him. They say:
“Crypto-assets like #bitcoin are increasingly popular but are volatile and speculative, and they are not currencies. New technologies like #blockchain enabled their emergence.”